2021 Georgia Code
Title 20 - Education
Chapter 2 - Elementary and Secondary Education
Article 1 - State Board of Education
§ 20-2-14.1. Georgia Foundation for Public Education; Authorization to Accept Transfers of Certain Property Held in Trust by State Board of Education; Authorization for Nonprofit Corporation; Authorization to Receive Donations From Taxpayers; Requirements; Annual Report

1. There is established the Georgia Foundation for Public Education existing as a public corporation and instrumentality of the state, exclusively limited to the following charitable and public purposes and powers:
   1. To solicit and accept contributions of money and in-kind contributions of services and property for the purpose of supporting educational excellence in Georgia;
   2. To solicit and accept contributions of money and in-kind contributions of services and property for the purpose of supporting educational excellence at Georgia Academy for the Blind, Georgia School for the Deaf, and Atlanta Area School for the Deaf;
   3. To accept transfer of any donation, gift, devise, or bequest of real, personal, or mixed property of any kind and character held in trust by the State Board of Education to manage and otherwise administer. This paragraph shall apply to any donation, gift, devise, or bequest of real, personal, or mixed property of any kind and character held in trust by the state board pursuant to Article VIII, Section II, Paragraph I(c) of the Georgia Constitution, subsection (a) of Code Section 20-2-14, or Code Section 20-2-18;
   4. To sell and dispose of contributed property and securities in accordance with the prudent person rule;
   5. To make and disburse contributions to the department and others for such purposes;
   6. To contract and be contracted with for purposes of the foundation; and
   7. To seek recognition of tax exempt status by the United States Internal Revenue Service and to seek confirmation concerning the deductibility of contributions.
2. The Georgia Foundation for Public Education shall be attached to the department for administrative purposes. The Attorney General shall be the attorney for the foundation. The State School Superintendent may solicit and accept contributions from the foundation. The department may cooperate and contract with the foundation for their mutual benefit and authorize others to do so. Upon any dissolution of the foundation, its assets shall devolve in trust to the State Board of Education or its successor for use only for the benefit of the department, the schools listed in paragraph (2) of subsection (a) of this Code section, and schools that meet the criteria provided in subparagraph (g.1)(1) of this Code section.
3. The incorporation of the foundation and the execution of its corporate purposes shall be in all respects for the benefit of the people of this state and constitute a public and charitable purpose. Further, the foundation performs an essential governmental function in the exercise of the powers conferred upon it by this Code section. Accordingly, the foundation shall not be subject to taxation or assessment in any manner, including without limitation taxation or assessment upon any transaction, income, money, or other property or activity. The exemptions granted by this Code section shall not be extended to any private person or entity.
4. 1. The foundation shall be governed by a board of directors composed of at least five members as determined by the State School Superintendent. Members of the board of directors shall be appointed by either the State School Superintendent or the State Board of Education. For every three board members appointed by the State School Superintendent, the State Board of Education may appoint two board members. At least two members of the board of directors appointed by the State Board of Education shall represent the interests of students who are blind or deaf. The chairperson of the Budget and Finance Committee of the State Board of Education, or such committee's successor, shall be an ex officio member of the foundation board of directors. The foundation board of directors shall draft and adopt governance bylaws, subject to approval by the State School Superintendent.
   2. The foundation shall have complete discretion to invest any and all assets as it sees fit in accordance with the prudent person rule, and at no time shall the assets of the foundation be considered assets of the state.
   3. The foundation shall not be subject to state purchasing laws, as contained in Article 3 of Chapter 5 of Title 50 or in other provisions of this Code, or required to dispose of property in accordance with Article 4 of Chapter 5 of Title 50.
   4. The foundation shall be authorized to purchase insurance as provided by Code Section 50-5-16.
   5. The foundation shall have the authority to roll over any unused funds into the next fiscal year.
5. The foundation's operations shall not be subject to Article 1 of Chapter 13 of Title 50, the "Georgia Administrative Procedure Act."
6. The foundation shall be deemed to be a charitable organization for purposes of voluntary contributions from state employees pursuant to Article 3 of Chapter 20 of Title 45.
7. 1. The foundation shall have the power and authority to incorporate a nonprofit corporation that could qualify as a public foundation under Section 501(c)(3) of the Internal Revenue Code to aid the foundation in carrying out any of its powers and in accomplishing any of its purposes. Any nonprofit corporation incorporated pursuant to this power shall be incorporated pursuant to Chapter 3 of Title 14, the "Georgia Nonprofit Corporation Code," and the Secretary of State shall be authorized to accept such filing.
   2. Any nonprofit corporation incorporated pursuant to this Code section shall be subject to the following provisions:
      1. In accordance with the Constitution of Georgia, no governmental functions or regulatory powers shall be conducted by any such nonprofit corporation;
      2. Upon dissolution of any such nonprofit corporation incorporated by the foundation, any assets shall revert to the foundation or to any successor to the foundation or, failing such succession, to the State of Georgia;
      3. As used in this paragraph, the term "direct employee costs" means salary, benefits, and travel expenses. To avoid the appearance of undue influence on regulatory functions by donors, no more than a combined total of 10 percent of donations to any such nonprofit corporation from private sources, or from taxpayers pursuant to Code Section 48-7-29.21, shall be used for direct employee costs of the foundation;
      4. Any such nonprofit corporation shall be subject to all laws relating to open meetings and the inspection of public records;
      5. The foundation shall not be liable for the action or omission to act of any such nonprofit corporation;
      6. No debts, bonds, notes, or other obligations incurred by any such nonprofit corporation shall constitute an indebtedness or obligation of the State of Georgia nor shall any act of any such nonprofit corporation constitute or result in the creation of an indebtedness of the state. No holder or holders of any such bonds, notes, or other obligations shall ever have the right to compel any exercise of the taxing power of the state nor to enforce the payment thereof against the state; and
      7. Any nonprofit corporation incorporated pursuant to this Code section shall not acquire or hold a fee simple interest in real property by any method, including but not limited to gift, purchase, condemnation, devise, court order, and exchange.

         The Department of Revenue shall post on its website the information received pursuant to subparagraphs (A) through (C) of this paragraph.

   3. Except for the information reported pursuant to subparagraphs (A) through (C) of paragraph (2) of this subsection, all information or reports provided by this nonprofit corporation to the Department of Revenue shall be confidential taxpayer information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether it relates to the donor or the nonprofit corporation.
   1. (g.1) (1)
      1. Effective January 1, 2022, a nonprofit corporation incorporated by the foundation pursuant to this Code section shall be authorized to receive donations from taxpayers pursuant to Code Section 48-7-29.21 for the purpose of awarding grants to public schools for the implementation of academic and organizational innovations to improve student achievement, with priority given to schools that have performed in the lowest 5 percent of schools in this state identified in accordance with the state-wide accountability system established in the state plan pursuant to the federal Every Student Succeeds Act, and for the dissemination of information regarding successful innovations to other public schools in this state. Funds received by the nonprofit corporation for such purpose may be awarded through a competitive grant process administered by the foundation. The criteria for awarding such grants shall include the potential to which the innovation is likely to result in the proposed improvement, the potential for widespread adoption of such innovation by other public schools in the state, the quality of the proposed project design, the reasonableness of the costs involved in conducting the project, and such other criteria which the foundation may deem appropriate and necessary. The General Assembly may appropriate funds for purposes of this nonprofit corporation beginning in Fiscal Year 2022.
      2. Such nonprofit corporation shall report to the Department of Revenue, on a form provided by the Department of Revenue, by January 12 of each tax year the following:
         1. The total number and dollar value of donations and tax credits approved. Individual contributions shall include contributions made by those filing income tax returns as a single individual or head of household and those filing joint returns;
         2. The total number and dollar value of corporate donations and tax credits approved;
         3. The total number and dollar value of grants awarded to public schools; and
         4. A list of donors, including the dollar value of each donation and the dollar value of each approved tax credit.
8. 1. Members of the board of directors of the foundation may also serve on the board of any nonprofit corporation incorporated pursuant to this Code section without regard to the prohibition set forth in Code Section 45-10-23 or any other similar prohibition.
   2. Members and former members of the board of directors for the Public Education Innovation Fund Foundation, incorporated pursuant to Code Section 20-14-26.1, may be considered by the foundation for membership on the board of directors of the nonprofit corporation provided for in subsection (g.1) of this Code section.
9. Any nonprofit corporation incorporated pursuant to this Code section shall make and provide an annual report that shall, except as otherwise provided in subsection (g.1) of this Code section, show the identity of all donors and the amount each person or entity donated as well as all expenditures or other disposal of money or property donated. A copy of such annual report shall be provided to the Governor, the Lieutenant Governor, and the chairpersons of the House Committee on Education and the Senate Education and Youth Committee.

(Code 1981, §20-2-14.1, enacted by Ga. L. 2010, p. 411, § 1/SB 427; Ga. L. 2013, p. 769, § 2/HB 116; Ga. L. 2019, p. 316, § 1/HB 130; Ga. L. 2021, p. 248, § 1/SB 66.)

The 2019 amendment, effective July 1, 2019, substituted "Article VIII, Section II, Paragraph I(c) of the Georgia Constitution" for "Paragraph I(c), Section II, Article VIII of the Georgia Constitution" in the last sentence of paragraph (a)(3) and added subsections (g), (h), and (i).

The 2021 amendment, effective July 1, 2021, substituted "incorporated" for "created" throughout this Code section; substituted "department, the schools listed in paragraph (2) of subsection (a) of this Code section, and schools that meet the criteria provided in subparagraph (g.1)(1) of this Code section" for "department and the schools listed in paragraph (2) of subsection (a) of this Code section" in the last sentence of subsection (b); substituted "incorporation" for "creation" near the beginning of the first sentence of subsection (c); substituted "at least five members" for "between five and 15 members" in the first sentence of paragraph (d)(1); rewrote subsection (g); added subsection (g.1); redesignated subsection (h) as paragraph (h)(1) and added paragraph (h)(2); and, in subsection (i), substituted "that shall, except as otherwise provided in subsection (g.1) of this Code section, show" for "showing the" in the first sentence, and inserted "Governor, the Lieutenant Governor, and the" in the second sentence.

- For annual survey of law on administrative law, see 62 Mercer L. Rev. 1 (2010).