(a) A scholarship granting organization shall submit an application for approval to issue certificates of receipt in the form and manner prescribed by the Department, provided that each application shall include:
         (1) documentary evidence 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 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from the scholarship granting organization’s operating or other funds until such qualified contributions or income are withdrawn for use;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) a list of the names and addresses of all members
    
of the governing board of the scholarship granting organization; and
        (6) 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 auditing standards generally accepted in the United States, government auditing standards, and rules adopted by the Department.
    (b) A scholarship granting organization whose owner or operator in the last 7 years has filed for personal bankruptcy or corporate bankruptcy in a corporation of which he or she owned more than 20% shall not be eligible to provide scholarships.
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Terms Used In Illinois Compiled Statutes 35 ILCS 40/15

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

     (c) A scholarship granting organization must not have an owner or operator who owns or operates a qualified school or has a family member who is a paid staff or board member of a participating qualified school.
     (d) A scholarship granting organization shall comply with the anti-discrimination provisions of 42 U.S.C. § 2000d.
     (e) The Department shall review and either approve or deny each application to issue certificates of receipt pursuant to this Act. Approval or denial of an application shall be made on a periodic basis. Applicants shall be notified of the Department’s determination within 30 business days after the application is received.
     (f) No scholarship granting organization shall issue any certificates of receipt without first being approved to issue certificates of receipt.
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