43-1603. Operational requirements for school
tuition organizations; notice; qualified schools



(Eff. 1/1/11)



A. A certified school tuition organization must be established to receive
contributions from taxpayers for the purposes of income tax credits under section 43-1089
and to pay educational scholarships or tuition grants to allow students to attend any
qualified school of their parents' choice.


B. To be eligible for certification and retain certification, the school tuition
organization:


1. Must allocate at least ninety per cent of its annual revenue for educational
scholarships or tuition grants.


2. Shall not limit the availability of educational scholarships or tuition grants
to only students of one school.


3. May allow donors to recommend student beneficiaries, but shall not award,
designate or reserve scholarships solely on the basis of donor recommendations.


4. Shall not allow donors to designate student beneficiaries as a condition of any
contribution to the organization, or facilitate, encourage or knowingly permit the
exchange of beneficiary student designations in violation of section 43-1089, subsection
F.


C. A school tuition organization shall include the following notice in any printed
materials soliciting donations, in applications for scholarships and on its website:


Notice


A school tuition organization cannot award, restrict or reserve
scholarships solely on the basis of a donor's recommendation.


A taxpayer may not claim a tax credit if the taxpayer agrees to swap
donations with another taxpayer to benefit either taxpayer's own dependent.


D. In evaluating applications and awarding, designating or reserving scholarships,
a school tuition organization:


1. Shall not award, designate or reserve a scholarship solely on the recommendation
of any person contributing money to the organization, but may consider the recommendation
among other factors.


2. Shall consider the financial need of applicants.


E. A qualified school shall not accept an educational scholarship or tuition grant
from a school tuition organization in an amount that exceeds the school's total cost of
educating the student in whose name the scholarship or grant is received.