Good afternoon.
We will discontinue the regular weekly message during
July. If a matter of urgency arises, I will communicate with you on an ad hoc
basis. This message contains the following items:
·
An update on the status of the
state’s education budget.
·
Information about a memorandum that
clarifies Child Find roles and responsibilities.
·
Information about procedures
governing the creation of tax-exempt foundations for the use and benefit of
schools (a memorandum from our general counsel is appended to this
message).
Finally, this week we once again have included the
agenda and dates for the Superintendents’ Conferences and the New
Superintendents’ Conference, which will be held in the fall. More detailed
information will be sent to you in July.
Budget
Update
As of this writing, the Governor has not taken any
action on the education budget bill, which was sent to him last Friday by the
General Assembly. He has 60 days from June 20 in which to take action. The
Governor has, however, signed an implementation bill that confirms that the GSA
foundation level for FY04 will be $4,810 (an increase of $250 per student) and
confirms that from now on, the poverty count will be calculated using the
numbers of the Illinois Department of Human Services instead of the federal
census.
Interagency
Agreement Regarding Child Find
A memorandum that reviews the responsibilities of the
Department of Human Services (DHS) and the State Board of Education with respect
to an interagency agreement that the two agencies signed in December 2001 is
posted at http://www.isbe.net/news/pdf/isbe_dhs_child_find_transition_memo.pdf.
In December 2001, DHS and the State Board signed an
Interagency Agreement addressing Child Find collaboration required by
regulations (34 CFR Part 300.123) of the Individuals with
Disabilities Education Act (IDEA). The agreement clarifies the roles and
responsibilities of DHS, the State Board, local education agencies, and Child
and Family Connections offices with respect to Child Find and the transition of
children who are turning three years old and moving from IDEA Part C to Part B
services.
Procedures Governing
the Creation of Tax-Exempt Foundations
Appended to this
message is a memorandum from ISBE’s general counsel, Respicio F. Vazquez.
The memorandum explains procedures set forth in the Illinois School Code
governing the creation of tax-exempt foundations that are qualified to receive
gifts, donations, bequests and other contributions for the use and benefit of
school districts. The memorandum addresses requirements of both the federal
Internal Revenue Service and the Illinois Department of Revenue.
Robert Schiller
State Superintendent
of Education
statesup@isbe.net
M
E M O R A N D U M
DATE:
TO:
Regional Superintendents of Schools
Boards of Education
FROM:
Respicio F. Vazquez
General Counsel, State Board of Education
SUBJECT: Procedures
Governing the Creation of Tax Exempt Foundations
Article 2 of the 2002 Illinois School Code,
105 ILCS 5/2-3.74, requires the State Board of Education to disseminate to all
school boards and superintendents of schools information concerning the
procedures governing the creation of tax exempt foundations qualified to receive
gifts, donations, bequests and other contributions for the use and benefit of
school districts of the state.
A primary purpose for creating a tax exempt
foundation is to solicit contributions from individuals or corporations, with
the intent of applying funds raised toward supplementing the educational
programs of a district. The advantages are that the person(s) contributing may
treat the contribution to the foundation as a tax deductible charitable donation
and that no federal or state income tax is paid on the part of the foundation.
To achieve this status, however, both the Federal Internal Revenue Service and
the Illinois Department of Revenue must be contacted for the acquisition and
submission of the necessary forms.
The following
information is offered in keeping with the intent of the law; however, it is not
intended to be a substitute for seeking advice from an attorney, accountant or
other qualified person knowledgeable in these complicated
procedures.
Internal
Revenue Service
Federal Internal Revenue Service requirements, tax
information and materials for charitable organizations are available at
800/829-1040 or on-line: http://www.irs.gov/charities/charitable/. Links from the site are
as follows:
Exemption Requirements –
A brief description of the requirements for exemption under
IRC Section 501(c)(3).
Application for
Recognition of Exemption – Procedures for applying for exemption
under IRC Section 501(c)(3).
Filing
Requirements – A brief description of the annual filing requirements
for tax-exempt organizations.
Private
Foundations – A brief explanation of the rules for classifying
charitable organizations as private foundations, and the effect of private
foundation status.
Unrelated Business
Income Tax, General Rules – A general description of the unrelated
business income tax requirements for tax-exempt
organizations.
Contributions
– A brief description of the disclosure and substantiation requirements for
contributions to charitable organizations.
Illinois
Department of Revenue
Questions and requests for information, materials and
assistance for exempt organizations defined by 35 ILCS 5/205 is available at: www.revenue.state.il.us, or
contact
The Secretary of State
Business Services Department
800/732-8866 –http://www.sos.state.il.us/contact/contact.html
The State Superintendents’ Conference this year will be
offered at six regional meetings.
Dates
and Locations:
September 3
September 4
Matteson
September 9
September 15
September 22
September 23
District superintendents, regional superintendents,
association leaders, and others will receive a mailing in July with specific
registration and conference site information.
Proposed
Conference Agenda for Superintendents’ Regional
Conferences
September
2003
Five
breakout sessions: participants may attend 2 of the
5:
Accountability:
Keeping Our Heads While Those About Us Are Losing
Theirs
Learn the facts and fallacies about the newly adopted
legislation for testing and accountability that aligns Illinois law with No
Child Left Behind; walk through how adequate yearly progress (AYP) is determined
and how to project progress for your schools; view the new e-Report Cards and
the Illinois Interactive Report Card Web site; review the new “assessment
frameworks” that will guide test development for the next five
years.
Offered in breakout sessions I &
II
School
Improvement: Using What We Know to Improve
Performance
Focus on four components of school improvement,
highlighting strategies that really work: data analysis that drives targeted
improvement plans; classroom curriculum, instruction and assessment aligned with
the Learning Standards; teacher and administrator enhancement; and support
services for students, families and communities.
Offered in breakout sessions I &
II
Finance
and Funding: Gearing Up for the Real Reform We
Need
Understand the new state financial profiles—what they
are and are not; preview proposed legislation to assist districts in significant
financial difficulty; review the status of the state education budget; discuss
“life after EFAB,” potential funding recommendations and next steps; review
options for legislative and public support
strategies.
Offered in breakout sessions I &
II
P-Card:
Adding Efficiency and Accountability to the Purchasing
Process
With the Procurement Card, school leaders are able to
increase the efficiency of the purchasing process while improving on
accountability. This session will explain in detail the new P-Card program,
provided through the sponsorship of the IASA/IASB/IASBO, which has a proven
record of streamlining the P.O. process, saving time and money while improving
control over expenditures.
Offered in Breakout Session
I
Financial
Projections: Looking Five Years Out
A critical part of local school management is making
timely and accurate financial projections. The ISDLAF+ sponsored by the
IASA/IASB/IASBO has a relationship with PMA for fund management and advisement.
A new PMA service allows for such projections. This session will provide you
with a close look at the system.
Offered in breakout session II
The annual New Superintendents’ Meeting, cosponsored by
the IASA and ISBE, will be held at the State Board office in