Section 1000.300 Scholarship Granting Organization: Approval to Issue Certificates of Receipt

Section 1000.300  Scholarship

Granting Organization: Approval to Issue Certificates of Receipt

a)

No scholarship granting organization shall issue any

certificates of receipt without first being approved by the Department to issue

certificates of receipt.

b)

A scholarship granting organization shall submit an

application for approval to issue certificates of receipt in the form and

manner prescribed by the Department.

Applications for approval to issue

CORs must be received by the Department no later than January 15 preceding the

school year for which the scholarships will be granted.  Each application

shall

be submitted electronically, shall be signed and verified by a board member,

officer, executive director, or employee with managerial authority of the

scholarship granting organization, or a board member, officer, executive

director, or employee with managerial authority of any entity retained by the

scholarship granting organization to operate the scholarship granting organization,

and shall include

:

1)         a copy of the letter issued by the Internal Revenue Service to

the scholarship granting organization demonstrating

that the scholarship

granting organization has been granted an exemption from taxation under section

501(c)(3) of the Internal Revenue Code;

2)

certification that all qualified contributions and any

income derived from qualified contributions are or will be deposited and held

in an account that is separate from the scholarship granting organization's

operating or other funds until such qualified contributions or income are

withdrawn for use;

3)

certification that the scholarship granting organization

will use at least 95% of its annual revenue from qualified contributions for

scholarships;

4)

certification that the scholarship granting organization

will provide scholarships to eligible students;

5)         the region or regions in which it will grant scholarships;

6)

a list of the names and home addresses of all members of

the governing board of the SGO;

7)

a list

hip granting organization

will use at least 95% of its annual revenue from qualified contributions for

scholarships;

4)

certification that the scholarship granting organization

will provide scholarships to eligible students;

5)         the region or regions in which it will grant scholarships;

6)

a list of the names and home addresses of all members of

the governing board of the SGO;

7)

a list of the names, home addresses,

and social

security numbers of the officers, executive director, and employees with

managerial authority of the scholarship granting organization, and the

officers, executive director, and employees with managerial authority of any

entity retained by the scholarship granting organization to operate the

scholarship granting organization

;

8)         certification that,

in the last 7 years, no officers,

executive director, board members involved in day-to-day operations of the

scholarship granting organization, or employees with managerial authority of

the scholarship granting organization, or officers, executive director, employees

with managerial authority, and board members involved in day-to-day operations of

any entity retained by the scholarship granting organization to operate the

scholarship granting organization

have filed for personal bankruptcy or

corporate bankruptcy in a corporation of which they owned more than 20%.  An

SGO that cannot make the certification required by this subsection (b)(8) shall

not be eligible to provide scholarships;

9)         certification that the officers, executive director, board

members involved in day-to-day operations of the scholarship granting

organization, and employees with managerial authority of the scholarship

granting organization, or the officers, executive director, employees with

managerial authority, and board members involved in day-to-day operations of

any entity retained by the scholarship granting organization to operate the

scholarship granting organization are not board members or paid staff members

of a parti

ting

organization, and employees with managerial authority of the scholarship

granting organization, or the officers, executive director, employees with

managerial authority, and board members involved in day-to-day operations of

any entity retained by the scholarship granting organization to operate the

scholarship granting organization are not board members or paid staff members

of a participating school,

do not own or operate a qualified school, and do

not have a family member who is a board member or a paid staff member of a

participating qualified school;

10)          certification that

the scholarship granting organization

is and will remain in compliance with the anti-discrimination provisions of 42

USC 2000d;

11)          the primary email address to which notices and other

documents provided for under the Act shall be sent;

12)

a copy of the most recent financial audit of the

scholarship granting organization's accounts and records conducted by an

independent certified public accountant in accordance with government auditing

standards and auditing standards generally accepted in the United States.

For

the initial application to be approved to issue CORs, an SGO registered under

Section 2 of the Solicitation for Charity Act who is subject to the provisions

of Section 4(b) of that Act and who files with the Attorney General a summary

financial statement or written report in accordance with that subsection may

satisfy the requirements of this subsection (b)(12) by submitting to the

Department a copy of the most recent summary financial statement or written

report.  No application will be approved unless the requirements of this

subsection (b)(12) have been met; and

13)        the beginning and ending dates of the SGO's fiscal and taxable

years.

c)

The Department shall review and either approve or deny each

application to issue certificates of receipt pursuant to the Act

.  Each SGO

that has been approved will be assigned a unique identifier

ten

report.  No application will be approved unless the requirements of this

subsection (b)(12) have been met; and

13)        the beginning and ending dates of the SGO's fiscal and taxable

years.

c)

The Department shall review and either approve or deny each

application to issue certificates of receipt pursuant to the Act

.  Each SGO

that has been approved will be assigned a unique identifier.

Applicants

shall be notified of the Department's determination within 30 business days

after the application is received.

[35 ILCS 40/15]

If the

application is denied, the Department will notify the SGO of the reason for the

denial of the application.

d)         An SGO whose application to issue CORs is denied by the Department

may reapply subject to the deadlines in this Section.