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Specifies a person´s home organization using the domain name of the organization.
http://www.terena.org/activities/tf-emc2/schacreleases.html

Examples:

"example.ac.at", should use the same "canonical" DNS domain as the "scope" part of eduPersonPrincipalName and eduPersonScopedAffiliation.
Could be used as an identifier for the institution which is independent from the Identity Provider's entityID (e.g. for mapping of institutional contracts)
Could be used to only send the "scope" part of eduPersonScopedAffiliation when the "affiliation" is not needed at the Service Provider, but note the warning below!
TCS Personal Certs

Contrary to scoped attributes (eduPersonScopedAffiliation, eduPersonPrincipalName) the Shibboleth software does not perform any checks on what Identity Provider may issue what schacHomeOrganization value. (Also note that other SAML implementations do not perform those checks for any kind of attribute.)