Last verified: October 2026
What is an Alabama Accountability Act scholarship?
It is a private-school scholarship paid by a nonprofit scholarship granting organization out of donations that earn the donor an Alabama tax credit under the Alabama Accountability Act of 2013. The state caps the credits at $40 million a year, first-come, and unclaimed credits expire on December 31.
Because the money comes from donors rather than an appropriation, the number of scholarships at any one school is limited and awards are made first-completed, first-served.
How much can a Birmingham student receive, and who qualifies?
Scholarships can reach $10,000 for any grade, a ceiling that has applied since 2023-24. Families qualify with income at or below 250% of the federal poverty level ($75,000 for a household of four on the table the Diocese of Birmingham publishes) or when the student has an active IEP or 504 plan.
Alabama Daily News reported an average scholarship of $5,907 in 2023-24 and noted that six of the seven schools at the $10,000 maximum were in Birmingham.
Which SGOs work with Birmingham schools?
The Alabama Opportunity Scholarship Fund (AOSF) is headquartered in Birmingham, and the Diocese of Birmingham also lists Scholarships for Kids, Renaissance Scholarships and the Rocket City SGO. AOSF partners include Our Lady of Sorrows in Homewood and Holy Family Cristo Rey; Renaissance serves St. Francis Xavier and John Carroll Catholic High School.
Families apply to the SGO directly, usually after the school's admissions office points them to the one it works with.
Should a family use the SGO scholarship or the CHOOSE Act ESA?
A student can hold only one: the CHOOSE Act excludes students receiving an Accountability Act scholarship. The ESA is a fixed $7,000 that also pays non-tuition costs, while an SGO award can be larger at a high-tuition school but depends on donor money and the SGO's own rules. Ask the school what each would mean for your bill before you commit.
Tax-credit scholarship vs CHOOSE Act ESA
| Accountability Act scholarship | CHOOSE Act ESA |
|---|---|
| Funded by donors who redirect state tax | Funded by the state through ALDOR |
| Up to $10,000, set by the SGO | A flat $7,000 (school) or $2,000 (home) |
| Income at or below 250% of poverty, or IEP/504 | No income test from 2027-28 |
| Tuition at SGO partner schools | Tuition plus textbooks, tutoring, therapies and more |