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Most scholarship

members of a nonprofit 501(c)(3) organiza-

Scholarship Organizations

tion called the Children's Hope Association.

organizations use

This organization is dedicated to promoting

financial need as

awareness of the tax credit among Arizona

The scholarship organizations receiving

the primary crite-

taxpayers, defending the program to the

donations and distributing scholarships vary

Arizona legislature, and providing informa-

greatly in size and focus. Table 2 lists the schol-

rion for allocating

tion about Arizona's tax credit to legislators

arship organizations during the 2000 school

scholarships to

around the country. For example, the associ-

year and the amounts donated for scholarships.

ation ran an advertisement in the Arizona

Most scholarship organizations are small

eligible students.

Republic publicizing the credit and listing the

and serve specific students. Of the 34 schol-

member scholarship organizations and their

arship organizations, 20 raised less than

contact information. Trent Franks, president

$200,000 and 9 raised less than $50,000 dur-

of the Children's Hope Association, stated

ing 2000. Only a few of the organizations

that the response to the ad was significant

accept applications from all students and

and that the association plans to continue

give scholarships to attend any private school

such efforts.1 6 Those efforts may significant-

in Arizona. Most specialize in serving specific

groups of students. For example, some assist

ly increase awareness of the program and

students on the basis of religious affiliation,

thereby significantly increase taxpayer partic-

ethnicity,  type  of  school  (such  as

ipation rates.

Montessori); others give scholarships only to

Almost all of the organizations that

students attending schools affiliated with

accepted donations do not have enough

the organization. In fact, many organizations

resources to meet the needs of all applicants.

are offshoots of specific private schools and

The greatest unmet demand seems to be for

serve the needs of students at those schools.

independent, nonparochial schools. Two

Most scholarship organizations use finan-

organizations that provide scholarships to

cial need as the primary criterion for allocat-

enable any financially needy student to

ing scholarships to eligible students.

attend any private school reported the largest

Therefore, most scholarships are given to

waiting lists; one had a waiting list of 2,000

students currently enrolled in affiliated pri-

and the other 3,000.

vate schools who are either at risk of having

It is difficult to determine exactly how

to leave the private school for financial rea-

much unmet demand there is for scholar-

sons or whose families are making signifi-

ships because few organizations keep track of

cant sacrifices in order to send them to pri-

that information. Considering that 14,936

vate school. In this sense, some scholarship

scholarships were given in 2000, the two

organizations serve as a kind of financial aid

waiting lists alone suggest that at least 33

office for the private schools, assisting stu-

percent more students wanted scholarships

dents in serious financial need. In some

than were able to obtain them.

instances, the scholarship organizations rely

Most organizations provide partial

on the private schools to identify the neediest

tuition scholarships. Many expressed the

students and to distribute the scholarship

belief that it is important for the family to

money.

make some contribution toward tuition so

Currently, most scholarship organiza-

that parents are more involved in their chil-

tions raise awareness of the availability of the

dren's education. The average scholarship

scholarship tax credit primarily through pri-

amount for the 2000­01 school year was

vate schools. Only a few of the scholarship

$856. However, scholarship amounts ranged

organizations have more extensive marketing

greatly, from $602 to $3,389, according to

campaigns, such as advertising in the media

our interviews. Our survey results suggest

and using targeted direct mail to reach tax-

that most private schools in Arizona charge

payers. However, 21 of the organizations are

between $2,000 and $4,000 for tuition.

6