Educational Nonprofit Under Investigation

A South Carolina nonprofit has recently come under fire for their practices in fund disbursement. Palmetto Kids First Scholarship Program is an organization that gives students with disabilities scholarships to obtain private school education in South Carolina. Currently, the nonprofit has been banned from raising money, and if the proposal becomes a law, the state would take over operation of the charity.

Although the nonprofit has given out over $17 million dollars in scholarships since 2014, questions have been raised about who is receiving these scholarships. The government contends that many of the recipients of these scholarships were donors themselves, an arrangement that violates the law. Further, the government alleges that some of the parents whose children received scholarships claimed the donation they made to the program as a tax deduction, which is not allowed. Executives from the organization refute the allegations, claiming nothing wrong has been done. However, executives are aware of the ramifications of the allegations, and the issues are being addressed internally.

Deciding to shut down an organization like this, even if temporarily, has major implications for the community at large. There will be families who do not receive the funds they would normally be entitled to, and some children may not be able to receive the education they otherwise would have enjoyed. However, if the allegations are true, serious reforms are needed, and the takeover will certainly be justified.

David Brennen