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Newsletter

Updates on Scholarship Tax Credit Program

October 1, 2009

This newsletter is published by School Choice Indiana (SCI) to provide news and resources about the new Indiana School Scholarship Tax Credit program.  SCI is providing information to the public about the program assisting interested parties in the establishment and effective implementation of scholarship tax credit programs.

Administrative Rules Expected Shortly

The Indiana Department of Education (DOE) recently announced their intent to publish in October temporary rules for administering the School Scholarship Tax Credit program.  These rules will outline the procedures for prospective scholarship granting organizations (SGOs) to apply for certification, reporting requirements, accountability and other matters related to the administration of the program. 

These administrative rules will be “temporary” under the state’s emergency rulemaking processes, as authorized in the law, in order for the program to be operational by January 1, 2010.  That’s when donations to certified SGOs can begin to qualify for tax credits.  The permanent rulemaking process requires a considerable number of steps and time to conduct.  We expect this rulemaking process to begin shortly after temporary rules are published.

DOE is charged by the statute with certifying SGOs, including reaching an agreement on operations, and some oversight responsibilities.  The Indiana Department of Revenue will administer the actual tax credit qualifications process and will also be publishing rules, but a timeline is not yet clear.

The idea of “administrative rulemaking” brings to mind images of piles of red-tape and bureaucratic regulations.  However, we do not expect an overly difficult or complicated process for what is a relatively simple program design.  Rulemaking is a necessary process for state agencies charged with providing tax credits and oversight of participating scholarship programs to explain how they will run the programs and meet the requirements of the law.

As soon as DOE and/or DOR temporary rules are released, we will be sharing those with our network, along with analyses.  Watch future e-newsletters or www.inscholarships.com for updates.

Starting a Scholarship Granting Organization

We have received a number of inquiries in recent weeks about how to start a scholarship granting organization (SGO).  For instance, what are the requirements, how do you build a board, develop a mission and program plan, charitable fundraising strategies, and much more.

SCI has developed a “How to Start an SGO”  guide to help provide a framework for planning the development of a program.  The guide is based on experiences from other states that have started up similar SGO programs, coupled with the unique elements in Indiana ’s law. 

This document will be updated as new strategies and information becomes available.  Please contact Lindsey Brown at School Choice Indiana with questions or suggestions.

Sample “Best Practices for SGOs

For potential SGOs developing plans for start-up and on-going operations, we recommend reviewing and considering inclusion of recommended “Best Practices” in your SGO program. You may find them very useful in establishing your organization’s mission and operating principles, aligning your vision with the scholarship tax credit program and rules.

School Choice Indiana developed this list in consultation with other state and national experts, as well as experiences from SGOs in other states.  Great lessons can be learned from successes and failures of others.  This “Best Practices” document is a model in development and will be updated and amended as the program builds-out.

Have Questions?

With the passage of STC only a month old, a number of questions and issues remain to be resolved in the rulemaking and implementation processes. We would be happy to try and answer your questions and plug you into our regular email updates.  Please contact Lindsey Brown at School Choice Indiana for more information.  

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