Charter Schools Ordered to Repay $30,000 in Tax-Credit Funds
By Robert D. Haws, Attorney, Gust Rosenfeld P.L.C., July 23, 2014

Eduprize, a charter school with two campuses in the East Valley, has entered into a consent judgment to pay $30,000 into accounts for extracurricular activities for students. (See, Judgment).

The judgment was entered against the schools after the Attorney General's Office investigated how the schools solicited and spent tax-credit funds. The Attorney General's investigation concluded that the school told parents their donations would be used for technology, a use not allowed under state law, in order to encourage parents to make the tax deductible donations.

According to the judgment, Eduprize also improperly directed parents to pay students' extracurricular fees to private entities, such as its parent-teacher organization, rather than to the school itself, according to the investigation.

In addition to the repayments, Eduprize was ordered to provide training and additional written guidance, perform yearly audits, and conduct other monitoring activities.

Tax credit funds can be used only for state-approved activities, such as after-school sports, arts or field trips. Schools should review how their tax-credit funds are used and how contributions are solicited.

For more information, please contact one of our school attorneys below:

Robert D. Haws - 602.257.7976 - rhaws@gustlaw.com
James T. Giel - 602.257.7495 - jgiel@gustlaw.com
Nicholle Harris - 602.257.7451 - nharris@gustlaw.com
Shelby M. Exposito - 602.257.7498 - sExposito@gustlaw.com
Jennifer N. MacLennan - 602.257.7475 - maclennan@gustlaw.com
Eric McGlothlin - 602.257.7453 - emcglothlin@gustlaw.com
Kimberly M. McIntier - 602.257.7473 - kmcintier@gustlaw.com
Fred H. Rosenfeld - 602.257.7413 - rosenfeld@gustlaw.com
Scott W. Ruby - 602.257.7432 - swruby@gustlaw.com
Susan Plimpton Segal - 602.257.7425 - spsegal@gustlaw.com
Sarah C. Smith - 602.257.7458 - ssmith@gustlaw.com
Timothy A. Stratton - 602.257.7465 - tstratton@gustlaw.com

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