For decades, education funding has largely been channeled through institutions, leaving families with little say in how resources are allocated to meet their children’s needs. Direct-to-family funding challenges the status quo by empowering families to make critical decisions about their children’s education. Programs like microgrants and Education Savings Accounts (ESAs) are demonstrating that when families are trusted and empowered, the results can be transformative—not just for individual children, but for entire communities.

The Benefits of Direct-to-Family Funding

Direct-to-family funding offers unparalleled flexibility, allowing families to make choices that align with their children’s unique needs and interests. Whether it’s tutoring, enrichment activities, or specialized educational resources, these programs address gaps that traditional funding often overlooks.

Research shows that programs like these can close the “enrichment gap,” which disproportionately impacts low-income families, limiting their children’s access to learning opportunities outside of the classroom.

When not designed with equity at the center, these programs can unintentionally deepen existing disparities, benefiting those with more resources while leaving behind families facing greater barriers to access.

Success Stories from RESCHOOL and Outschool.org

Programs across the U.S. are proving that giving families control over resources yields incredible results, especially in underserved communities. Both RESCHOOL and Outschool.org have piloted innovative microgrant programs with remarkable results:

  • RESCHOOL’s Learning Dollars Fund has invested over $1 million in Colorado communities to expand learning opportunities and to support families in accessing enrichment activities like camps, sports, and tutoring, with $500-1,000 microgrants distributed through flexible payment methods such as debit cards, bank transfers, or PayPal​​.
  • Outschool.org supported over 12,500 families in Virginia with the Learning Acceleration Grant program, resulting in over 300,000 hours of tutoring and educational therapy. This initiative addressed core academic needs like special education services​.

These stories prove that empowering families isn’t just an innovative idea—it’s a solution that works.

Opportunities and Risks

Direct-to-family funding has the potential to increase educational access, flexibility, and equity—allowing families to choose the best opportunities for their children’s learning. When designed effectively, these programs can break down financial barriers and help students engage in tutoring, enrichment activities, and specialized support tailored to their needs.

However, if not implemented with equity in mind, these programs can unintentionally reinforce existing disparities. Families with more time, resources, and digital access may be better positioned to navigate funding applications and make informed choices, leaving behind those facing systemic barriers like limited English proficiency or digital literacy. Ensuring streamlined access, family support, and clear guidance is critical to maximizing the benefits of direct-to-family funding while mitigating risks.

The Role of Philanthropy

Philanthropy has been instrumental in seeding and scaling these models. Early investments have provided proof of concept, inspiring policymakers to adopt publicly funded initiatives. Programs like Denver’s My Spark were inspired by RESCHOOL’s small-scale Learning Dollar pilots funded by private donors that served as proof of concept, eventually scaling to a citywide initiative.

The Role of System Leaders

For direct-to-family funding to be effective, system leaders must ensure equitable access, streamlined distribution, and strong family support. Removing barriers, simplifying processes, and providing clear guidance help ensure funds reach those who need them most, making these programs truly impactful and scalable.
Direct-to-family funding is more than a trend—it’s the future of education. Your support can help expand these programs and empower more families. Download our new policy briefs to learn how you can make an impact.