“The School" and the Georgia GOAL Scholarship Program

1. “The School" and the Georgia GOAL Scholarship Program October, 2010

2. Presentation Outline • HB 1133 • History • National Context • Redirecting Georgia Income Taxes to Provide “The School" Scholarships • GOAL Scholarship Program 2009 Results

3. History of HB 1133 • Origins in the school choice movement: Emphasis on choice for low-income families • Iowa Tuition Tax Credit Program – 1987 • Cleveland and Milwaukee voucher programs – 1990 • Arizona Tuition Tax Credit Program – 1997 • Georgia Charter Schools Act – 1998 • Proposed Early HOPE Scholarship Program of 2000 (vouchers for low-income families with children in failing public schools) – did not pass • U.S. Supreme Court approves Cleveland School Choice Program – 2002 • Georgia Special Needs Scholarship Program (SB 10 – 2007) • Georgia Tuition Tax Credit Program (HB 1133 – 2008) • Senator Eric Johnson introduces bill providing for universal public and private school choice – 2009 – did not pass • GA HB 251 (2009) – allows parents to transfer children from one public school to another within assigned school system if space is available • SB 361 (2010) – proposed by Senator Chip Rogers, this Early HOPE Scholarship would recast the GA Special Needs Scholarship Program and expand scholarship eligibility to children from military families, foster families, and children with disabilities

4. Tuition Tax Credit Laws & Programs Exist in Eight States

5. Redirecting Georgia Income Taxes to Provide “The School" Scholarships

6. You have a choice HB 1133 is a 2008 Georgia law that grants an income tax credit to individuals and corporations who contribute to qualified student scholarship organizations (SSOs) such as the Georgia GOAL Scholarship Program (GOAL) The passage of HB 1133 was an incredible victory for the school choice movement and your participation in the program is critical to make this victory a meaningful one OR

7. HB 1133 Requirements • Individual and corporate taxpayers receive Georgia income tax credit for contributions to qualified Student Scholarship Organizations (SSOs) • Individuals are limited to $1,000 (single); $1,250 (married filing separately); $2,500 (married filing jointly) • C-Corporations can contribute and receive a tax credit for up to 75% of their Georgia income tax liability • S-Corporation shareholders, LLC members and Partnership partners are subject to individual contribution limits • Contributions are also eligible for federal charitable income tax deduction • Scholarships may only be awarded to “eligible” students • Students must be enrolled in Georgia public school or eligible to enter PreK-4 or Kindergarten • No limitation on household income of scholarship recipient families • No limit on amount of scholarship per recipient • Multiple year scholarships may be awarded

8. How to redirect your Georgia income taxes in the simplest, fastest way

9. A simple two-step process for taxpayers Contribute to GOAL: Send the following items to “The School": – A complete and notarized* GOAL Contribution & Authorization Form – A blank copy of page 2 of the Form IT-QEE-TP1 pre-approval form, signed by you at Part C – A check made payable to “Georgia GOAL Scholarship Program” in the amount of your contribution “The School" school officials and GOAL Scholarship Program officials will manage the paperwork and approval process as follows: – Fill out your IT-QEE-TP1 Form using your GOAL Form information – School – Fax or email your TP1 Form to the DOR for pre-approval – School – Receive approval from the DOR by return Fax or return email – School – Send your check and approved TP1 Form to GOAL – School – Process your contribution check when DOR approval is received – GOAL – Send you a Form IT-QEE-SSO1 acknowledging your contribution – GOAL Claim the Credit: – File your Georgia income tax return and take the credit (GOAL will send tax filing instructions early in 2011 to assist you) *Please note: If you are not able to get your GOAL Contribution & Authorization Form notarized, you will receive your approved Form IT-QEE-TP1 directly from the Georgia DOR in the mail. You must send this form to GOAL within 30 days of approval.

10. A simple two-step process for taxpayers Contribute to GOAL: Send the following items to “The School": – A complete and notarized* GOAL Contribution & Authorization Form – A blank copy of page 2 of the Form IT-QEE-TP1 pre-approval form, signed by you at Part C – A check made payable to “Georgia GOAL Scholarship Program” in the amount of your contribution GOAL will manage the paperwork and approval process as follows: – Fill out your IT-QEE-TP1 Form using your GOAL Form information – Fax or email your TP1 Form to the DOR for pre-approval – Receive approval from the DOR by return Fax or return email – Send your check and approved TP1 Form to GOAL – Process your contribution check when DOR approval is received – Send you a Form IT-QEE-SSO1 acknowledging your contribution Claim the Credit: – File your Georgia income tax return and take the credit (GOAL will send tax filing instructions early in 2011 to assist you) *Please note: If you are not able to get your GOAL Contribution & Authorization Form notarized, you will receive your approved Form IT-QEE-TP1 directly from the Georgia DOR in the mail. You must send this form to GOAL within 30 days of approval.

11. How are the contributions obligated? • HB 1133 requires that at least 90% of designated contributions be obligated for scholarships at “The School" • GOAL uses the designated funds and investment earnings on those funds to provide scholarships to applicants recommended by “The School" • “The School" officials recommend potential scholarship recipients and the amount of the GOAL Scholarships they will receive

12. GOAL Contribution Results

13. Georgia Education Expense Credit Contribution Results • 2008 Contributions: • State-wide: • Approx. 3,700 contributors: $6.2 million • GOAL Scholarship Program: • 1181 individual contributors: $ 2,353,209 • 13 corporate contributors: $ 1,194,200 • Total $ 3,547,409 • 2009 Contributions: • State-wide (estimated): • Approx. 11,000 contributors: $25.4 million • GOAL Scholarship Program: • 3,755 individual contributors: $ 7,112,840 • 45 corporate contributors: $ 3,496,460 • Total $ 10,609,300

15. GOAL Scholarship Program 2009 Contributions by Quarter

16. GOAL Scholarship Program Source of 2009 Contributions

17. GOAL Scholarship Results

18. GOAL Scholarship Award Results • 2008-2009 Scholarships Awarded: 77 at 9 GOAL Schools • 2009-2010 Scholarships Awarded: 639 at 56 GOAL Schools • Average Amount of Award: $4,697 • Average AGI of Recipient Family: $44,633 • Median AGI of Recipient Family: $38,927 • Total scholarship awards disbursed: $ 2.7 million

21. North Georgia Athens Christian School Augusta Christian Schools Augusta Preparatory Day School Berry College Elementary & Middle School Curtis Baptist School Darlington School Episcopal Day School Heritage Academy Lakeview Academy Monsignor Donovan Catholic High School Mountain Area Christian Academy Rabun Gap-Nacoochee School Ridge Creek School Riverside Military Academy Tallulah Falls School Unity Christian School Westminster Christian Academy Westminster Schools of Augusta Wildwood Christian Academy GOAL Participating Schools Peachtree Academy Private School Perimeter School Pinecrest Academy Providence Christian Academy The Ron Clark Academy Sophia Academy Southwest Atlanta Christian Academy Strong Rock Christian School Sugar Hill Christian Academy The Swift School Wesleyan School Whitefield Academy Woodward Academy Greater Atlanta Area Arlington Christian School Atlanta Classical Christian Academy Atlanta Youth Academy Brandon Hall School Bridgeway Christian Academy Cherokee Christian Schools Chrysalis Experiential Academy The Cottage School Cumberland Academy of Georgia Destiny Christian Academy Eagles Landing Christian Academy Eastminster School Fellowship Christian School Furtah Preparatory School Greater Atlanta Christian School Greenforest/McCalep Christian Academic CenterHarvester Christian Academy Holy Spirit Preparatory School Hope Schools of Excellence The Howard School Killian Hill Christian SchoolLandmark Christian School Legacy Christian Academy The Lionheart School Loganville Christian Academy Marist School Mill Springs Academy Mount Paran Christian School Mount Pisgah Christian School Mt. Bethel Christian Academy New Birth Christian Academy New Day Gables Academy Notre Dame Academy Old Suwanee Christian School Middle Georgia Brentwood School Brookstone School Bulloch Academy Calvary Christian School Covenant Academy David Emanuel Academy First Presbyterian Day School Flint River Academy Gatewood Schools John Hancock Academy John Milledge Academy LaGrange Academy Montessori of Macon Nathanael Greene Academy Providence Christian School Redeemer Episcopal Academy Southland Academy St. George’s Episcopal School Stratford Academy Tattnall Square Academy Trinity Christian School The Westfield School Windsor Academy Woodfield Academy South Georgia Benedictine Military School Bethesda Home for Boys Brookwood School Calvary Day School Deerfield-Windsor School Favor Christian Academy First Presbyterian Christian Academy Grace Christian Academy Paul Anderson Youth Home Randolph Southern School Robert Toombs Christian Academy Sherwood Christian Academy St. Andrew’s SchoolTerrell Academy Tiftarea Academy Valwood School Westwood Schools