2018 ANNUAL REPORT

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A HERO FOR KIDSA C H O I C E F O R P A R E N T S

2 0 1 8 A N N U A L R E P O R T

OPPORTUNITY SCHOLARSHIP FUND

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We believe every child is different, and not every school is right for every child. This is why choice matters.

Our program accommodates special-population students and younger students with special educational challenges.

The issue is not about public versus private schools. It is about finding the place where each student learns the best.

OUR BELIEF

2018 ANNUAL REPORT

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ABOUT

The Opportunity Scholarship Fund (OSF) is a 501(c)(3) scholarship-granting organization

providing scholarships for lower-income families to afford to attend accredited private K-12

schools in Oklahoma. Students qualify based on standards established by individual member

schools’ financial aid criteria and the requirements established by the Oklahoma Equal

Opportunity Education Scholarship Act. Established in late 2014, OSF is the premier scholarship

granting organization in Oklahoma.

IN THIS DOCUMENT

2 Our Belief4 President’s Letter6 2018 Overview10 Looking Ahead

MISSION

The Opportunity Scholarship Fund provides life-changing opportunities to low-income

students who would not normally receive a pathway to specialized education.

OVER $14 MILLIONin Donations Since Inception

64Member Schools

80%of Scholarship Dollars Go to

Lower-Income Students

OPPORTUNITY SCHOLARSHIP FUND

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FROM OUR PRESIDENT

CHARLES DANIELSPRESIDENT

Donors to the Opportunity Scholarship Fund (OSF) are true heroes.

Their generosity allows parents to choose the best schools for their children, making a difference that lasts a lifetime for every student who receives a scholarship.

Since the Oklahoma Legislature authorized scholarship granting organizations in 2011, OSF has done incalculable good across the state. In 2018, we granted more than 1,300 scholarships worth more than $3.8 million, with more than 80% going to students from lower-income families.

However, when I think about what we do at OSF, I don’t focus on the statistics. I think about the children. I picture:

• Autistic kids attending Paths to Independence

• Hearing-impaired children enrolled at Happy Hands

• Addicted teens reclaiming their lives through Mission Academy

• Abused kids finding help at the Cross Christian Academy

• Homeless children getting shelter at Positive Tomorrows

• Students with learning disabilities benefiting from specialists at Trinity School and Town & County School

• Hundreds of other students realizing their God-given potential at more than 60 accredited schools

Funding these scholarships is noble and deserves increased support. That’s why the Legislature provided a tax credit of 50% for donations, as well as a 75% credit for two-year pledges. We continuously encourage lawmakers to raise the cap on tax credits so everyone who wants to become a hero for students can receive the full benefits.

Our program has proven its value. Besides the thousands of families now providing the best education possible for their children, we have saved the state money. In 2018, every $1 in tax credits issued to donors resulted in $1.39 in savings for the state budget.

The more our program grows, the more taxpayers save.

We had an exceptional 2018, and the entire board and everyone affiliated with OSF promises to continue fighting for Oklahoma’s children in 2019.

Sincerely,

2018 ANNUAL REPORT

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BOARD OF DIRECTORS

OUR SCHOOLS

DIRECTORS

STAFF

Altus Christian Academy

Ardmore Adventist Academy

Bristow Adventist School

Christian Heritage Academy

Claremore Christian School

Community Christian School

Corn Bible Academy

Crossings Christian School

Destiny Christian School

Eagle Point Christian Academy

Emmanuel Christian School

Family of Faith Christian School

First Lutheran School

Good Shepherd Lutheran School

Happy Hands Education Center

Heritage Adventist School

Hillsdale Christian School

Holy Trinity Lutheran School

Hope Harbor School

Immanuel Lutheran Christian Academy

James Caraway Christian Academy

Ketchum Adventist Academy

King’s Gate Christian School

Lakewood Christian School

Lawton Academy of Arts & Sciences

Lawton Christian School

Legacy Christian School

Life Christian Academy

Lincoln Christian School

Metro Christian Academy

Mingo Valley Christian School

Mission Academy

Oak Hall Episcopal School

Oklahoma Bible Academy

Oklahoma Christian Academy

Oklahoma Christian School

Parkview Adventist Academy

Paths to Independence School

Pioneer Adventist Christian School

Positive Tomorrows

Regent Preparatory School of Oklahoma

Rejoice Christian School

Riverfield Country Day School

Seventh-Day Adventist Christian Academy

Southwest Covenant Schools

Special Care School

St. John Lutheran School

St. John’s Christian Heritage Academy

St. Paul’s Lutheran School

Stillwater Christian School

Stonebridge Academy

Summit Christian Academy

The Cross Christian Academy

The Little Lighthouse

Town and Country School

Trinity School

Tulsa Adventist Academy

Tulsa Hope Academy

Undercroft Montessori

Victory Christian School

Victory Life Academy

Wesleyan Christian School

Western Oklahoma Christian School (Clinton Campus)

Western Oklahoma Christian School (Elk City Campus)

Western Oklahoma Christian School (Weatherford Campus)

Wright Christian Academy

MICHAEL CARNUCCIO Yukon

EDDIE HUFF Tulsa

TODD KOLCZUN Miami

T.W. SHANNON Norman

DAN NEWBERRY Tulsa

HOPPER SMITH Edmond

ROBERT SELLERS EXECUTIVE DIRECTOR

BRANDON DUTCHERVICE PRESIDENT Edmond

MIKE LAPOLLATREASURER Tulsa

PHOTOCHARLES DANIELSPRESIDENT Bartlesville

LAUREN ROBERTS EXECUTIVE ASSISTANT

BRITTONI LANTZSECRETARY Broken Arrow

OPPORTUNITY SCHOLARSHIP FUND

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2018 OVERVIEW

2018 was a tremendously fruitful year. Our school leaders became more engaged with OSF, attending trainings, increasing marketing efforts and reaching out to policymakers. OSF provided over 1,300 scholarships through 64 member schools to help lower-income families achieve a better educational experience.

Uncertainty over exceeding the tax credit cap may have lowered donations, but we still have many committed supporters doing the right thing for Oklahoma’s children, and OSF will keep fighting to expand our program.

2018 ANNUAL REPORT

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REVENUES

Revenue for 2018 totaled $4,140,298, a 19.6%

decrease from the $5,149,000 generated

in 2017. Most of the decrease came from

business donations, largely due to the

effect of having exceeded the statutory cap

the year before. Corporate donations fell

$730,000 and donations from couples and

individuals fell $354,000.

As in 2017, corporate gifts made up 71% of the

donations generated in 2018, while married

and individual taxpayers generated 27% and

2% of the remaining donations, respectively.

Qualified business entities only made up 17%

of donors; the married and individual donors

made up 83%. With the married and individual

taxpayers limited to only $2,000 and $1,000

of tax credits, the donations generated by this

group will always be lower until the limits can

be raised or eliminated by the Legislature.

27%

71%2%Corporate

2018 DonationsBy Donor Type

Joint

Individual

SCHOLARSHIPS

Scholarships awarded in 2018 grew to $3.8

million, an increase of $760,000, or 25%, from

the $3 million granted in 2017. Over 1,300

scholarships were given in 2018, an increase of

more than 300 from 2017.

The majority of the scholarships went to

families eligible for the free-and-reduced

lunch program (defined as “low income”

by the law). Families in this category

are deemed to be at 185% of the federal

poverty level (FPL). For 2018, almost $2

million in scholarships were granted to

families categorized as low-income. Another

$1,050,000 was granted to students at the

185% - 300% of FPL, with the remaining

$760,000 going to families over 300% of FPL.

Since OSF’s inception in late 2014, the

organization has delivered approximately

$8.4 million in scholarships to almost 3,000

students, $4.5 million of which went to 1,370

families eligible for free-and-reduced lunch.

19%

54%27%

Under 185% FPL

Scholarships AwardedSince Inception

185% – 300% FPL

Over 300% FPL

Average Scholarship AwardUnder 185% FPL 185% – 300% FPL Over 300% FPL

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

$2,832

$2,355

$1,933

$2,521

$3,379 $3,269

$3,565

$2,279

$2,773$2,627$2,654

$1,763

$2,296 $2,233$2,402

2015 2016 2017 2018 SINCE INCEPT

OPPORTUNITY SCHOLARSHIP FUND

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OPERATIONSOperating expenses for OSF totaled

approximately $266,000, or 6.5% of

revenues, in 2018. Most of the operating

expenses went toward contract services, and

marketing and advertising of the program.

During the year, the organization moved its

operations from Oklahoma City to Tulsa,

which provided more efficiencies to serve its

member schools and donors.

“Due to medical bills and constantly taking off work for Riley’s needs we could not afford her school. We heard about OSF scholarships, and the impact on our family is HUGE. We are able to take Riley to a school that knows how to fulfill her every need. We drop her off every day knowing she is in good hands.

Ashley R., Special Care School ”

OTHER FINDINGS

VALUE TO OKLAHOMA

• The total educational savings from the

Scholarship-Granting Organizations

(SGOs) was more than $14.6 million from

all funding sources (federal, state and

local) in 2017.

• When anticipating state appropriations in

common education for teachers’ pay and

classroom funding for the 2018-19 school

year, the state savings increases to $1.51

for every $1 of tax credit issued. (When

accounting for all funding sources, the

fiscal return is $3.16 for every $1 of tax

credit issued.)

• In the 2017-18 school year, the state’s three

main SGOs awarded more than 2,466

scholarships, with an average award of

more than $1,800 per scholarship.

A 2018 fiscal impact study shows Oklahoma’s

tax credit scholarship programs save the state

– and public education – money while helping

hundreds of lower-income families afford

to send their children to private school. An

updated study by economists at Oklahoma

City University revealed for every $1 of tax

credit issued to donors, the Oklahoma state

budget saved $1.39, a 15-cent increase from

2017 results.

The fiscal impact to the state is determined

by the tradeoff of tax revenue and the state’s

per-pupil expenditures for common education.

Every $1in Scholarship

Tax Credits

SavesOklahoma $1.51

in Spending

2018 ANNUAL REPORT

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“My daughter had always attended public school, but when she started middle school the cliques and bullying started. She was in a school with almost 2,000 kids, and the student-teacher ratio was terrible. She has done astoundingly better at Immanuel Lutheran Christian Academy. We are so grateful for this scholarship.

Tonya P., Immanuel Lutheran Christian Academy”

Throughout 2018 OSF visited schools, provided training and hosted check presentation events.

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LOOKINGAHEADOklahoma’s scholarship-granting organizations exceeded the tax credit cap for 2017. We need legislation to ensure donors receive the full incentive they were promised. It’s a matter of fairness, and it will increase the number of scholarships we can provide.

Outside of raising awareness about our scholarships, our top priority remains asking the Legislature to raise the cap so we can help more families than ever before.

2018 ANNUAL REPORT

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My son was born with Down syndrome and has been diagnosed with autism. Public schools are often not equipped to serve the special needs community. This scholarship makes a HUGE difference for our family. He has progressed more in one year at his private school than he did during four years at public school.

Dana H., Paths to Independence

OSF visited schools across the state to host check presentation events.

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1831 E. 71 StreetTulsa, OK 74136

918.877.2710

www.osfkids.orgFollow us on Facebook: @OSFkids