Empowering School Choice Through Strong Scholarship Granting Organizations
At Bearing Tree, we believe every family should have the freedom to choose the education that’s right for their children and we know Scholarship Granting Organizations (SGOs) and Scholarship Tuition Organizations (STOs) are the heart of making that possible.
From the very first step, we’re here to help you build a strong foundation. Whether you’re forming your nonprofit, navigating state and federal compliance, or setting up the systems to manage donations and scholarships, our team brings deep expertise, proven processes, and world-class tools to the table. We handle the complex operational details so you can focus on connecting students with life-changing opportunities.
Our comprehensive services cover everything from incorporation and charitable registration to finance & accounting, development support, board administration & compliance, payroll & benefits, and IT security. And for those just getting started, our startup solutions mean you can begin fundraising and awarding scholarships with confidence right from day one.
We are not just your service provider. We are your partner, dedicated to helping you grow, stay compliant, and make a lasting impact. Together, we can open more doors for more students and families, turning the promise of school choice into a reality.
At Bearing Tree, we make it easier to make a difference. And we can’t wait to help you start your journey from the ground up.
Startup & Formation Support
- Incorporation & IRS Filings – Bearing Tree can handle all state and federal filings in partnership with legal counsel to establish your nonprofit SGO/STO.
- Fiscal Sponsorship – If you want to start issuing scholarships before your IRS 501(c)(3) determination is finalized, Bearing Tree can facilitate as a sponsoring organization to collect and process tax-exempt donations on your behalf.
Financial Management & Compliance
- Full-Service Finance & Accounting – From managing bank accounts to processing tuition scholarship payments, reconciling donations, preparing board financial reports, and facilitating clean audits, Bearing Tree’s finance team can run your back office accounting work.
Fundraising Infrastructure
- Donor Database & CRM Setup – Bearing Tree’s Salesforce customization and donor management services help you track scholarship donors, issue timely tax receipts, and maintain accurate donor records.
- Wealth Screening & Donor Research – Identify major donors who can leverage the new federal tax credit for school choice, and target fundraising efforts effectively.
Board Governance & Administration
- Bylaw & Policy Compliance – SGOs often must meet governance rules under both nonprofit law and state scholarship program statutes. Bearing Tree can help maintain agendas, minutes, conflict-of-interest records, and other governance documents.
Operational Support
- Payroll & Benefits for Staff – As a Professional Employer Organization (PEO), Bearing Tree can manage payroll, benefits, and HR compliance for your team, even if you hire staff across multiple states.
- IT Support & Cybersecurity – Protection of sensitive student and donor data is critical; Bearing Tree offers managed IT services, secure email systems, and data protection tools.
- Insurance Coverage– Directors & Officers (D&O) insurance, general liability, and cyber liability policies to protect the organization and leadership.
- Regulatory Compliance-Many states require organizations to file annual reports and maintain strict charitable registration. Bearing Tree’s charitable registration compliance services can ensure you meet all deadlines and maintain eligibility for state/federal tax credit programs.
Beyond Bearing Tree: Additional Resources Needed to Start a Scholarship Granting Organization
Below are some essential external resources and considerations:
Legal Counsel Specializing in Education & Nonprofits
- Drafting bylaws that align with your state’s SGO/STO program requirements.
- Reviewing state statutes to ensure your scholarship distribution process complies with rules on student eligibility, allowable expenses, and reporting.
Banking & Investment Services
- Set up dedicated accounts for scholarship funds, operating funds, and reserve accounts.
- Consider investment advisors for holding funds between donation receipt and scholarship disbursement.
Marketing & Outreach Tools
- Public relations campaigns to educate donors about the new federal tax credit and your state’s program.
- Partnerships with private schools, homeschool groups, and parent organizations to reach scholarship applicants.
Application & Award Management Platform
- A secure online system for families to apply for scholarships and for you to track application status, award amounts, and renewals.
- Many SGOs use platforms like Blackbaud Award Management or custom-built portals.
Policy & Impact Evaluation Framework
- Documenting how scholarship funds are allocated, tracking academic outcomes, and producing annual impact reports to donors and regulators.
Bearing Tree can provide nearly all of the operational backbone for a Scholarship Granting organization/Scholarship Tuition Organization by handling formation, finance & accounting, compliance, donor operations, board administration, IT, and payroll & benefits. This allows founders to focus on fundraising, advocacy, and delivering scholarships.
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