The purpose of the community scholarship matching grant program is to provide two thousand dollar state-funded matching awards as an incentive to Washington community scholarship foundations to raise money and award scholarships to community residents who wish to pursue higher education. The community scholarship matching grant program encourages community organizations to generate local dollars to complement efforts funded by the state. In making awards, preference will be given to organizations affiliated with the citizens' scholarship foundation. An organization may receive more than one two thousand dollar matching grant per biennium.

As defined in RCW 28B.80.240, the higher education coordinating board is charged with the administration of any state program or state administered federal program of student financial aid now or hereafter established.

(1) "Matching award" means the state appropriated funding for two thousand dollar grants available to selected eligible community scholarship foundations that raise at least two thousand dollars for student scholarships.

(2) "Community scholarship foundation" means a nonprofit, tax exempt 501 (c)(3) Internal Revenue Service Code, community-based organization, formed in part or in full for the purpose of providing higher education scholarships for local residents.

(3) "Higher education scholarship program" means a program which would provide awards to community residents to attend institutions of higher education in Washington state.

(4) "Washington institutions of higher education" or "institution" means a degree-granting college or university in the state of Washington whose campus or branch campus is physically located in the state of Washington, and who is accredited by a nationally recognized accrediting body. The recognized accrediting bodies are:

(a) The Northwest Association of Schools and Colleges or a similar regional accrediting body as determined by the board;

(b) The Accrediting Bureau of Health Education Schools;

(c) The Accrediting Council for Continuing Education and Training;

(d) The Accrediting Commission of Career Schools and Colleges of Technology;

(e) The Accrediting Council for Independent Colleges and Schools;

(f) The National Accrediting Commission of Cosmetology Arts and Sciences;

(g) The Middle States Association of Colleges and Schools, Commission on Higher Education;

(h) The New England Association of Schools and Colleges;

(i) The North Central Association of Colleges and Schools;

(j) The Southern Association of Colleges and Schools;

(k) The Western Association of Schools and Colleges.

(5) "Board" means the higher education coordinating board. When a duty or responsibility of the board is referenced in this chapter, the authority needed to discharge that responsibility lies with the executive director or his or her designee.

(6) "Washington resident" means a resident as defined in RCW 28B.15.012 (2)(a) through (d) and board adopted rules and regulations pertaining to the determination of Washington state residency.

(7) "New money" means funds raised during a twelve-month period designated and described in the annual program application. These funds cannot include interest income from endowments or interest from other funds raised previous to July 1 of the year of application.

(8) "Permanent and irrevocable scholarship endowment fund" means contributions received and deposited into an investment fund with the permanent purpose of using only the interest earnings from the principal of the contribution for the scholarships.

To be eligible to apply for a matching award a community organization must:

(1) Have or establish a higher education scholarship program and, during a twelve-month period designated and described in the annual application, raise at least two thousand dollars in new money for student scholarships;

(2) Obtain and maintain tax exempt status under section 501 (c)(3) of the Internal Revenue Code for the fund supporting the student scholarship program;

(3) Award student scholarships without regard to age, sex, marital status, race, creed, color, religion, national origin, or the presence of any mental, sensory, or physical handicap; and

(4) If the recipient of the matching grant is a college foundation, agree to award student scholarships funded by the grant and the matching money only to graduating students for the specific purpose of continuing their higher education. College foundations must be registered with the attorney general's office under the Charitable Trust Act, chapter 11.110 RCW.

Community organizations meeting eligibility criteria will be considered for selection after they complete an application for the matching award on a form provided by the higher education coordinating board.

Community organizations which meet the eligibility criteria in WAC 250-69-040 and have raised two thousand dollars in new money during the twelve-month period designated and described in the annual application will be selected for a matching award, in the following priority order. Preference is given to those organizations affiliated with citizens' scholarship foundation.

Priority 1: Eligible organizations that have not previously received the matching grant.

Priority 2: Recipients of the matching grant in previous years that agree to raise new money and place that money and the matching grant into a permanent and irrevocable scholarship endowment fund.

Priority 3: Recipients of the matching grant in previous years that agree to raise new money for student scholarships.

When the number of organizations applying exceeds available matching award funds, those which:

(1) Solicit broad-based community support in their fund-raising activities and are representative of the community in their structure;

(2) Conduct fund-raising activities with volunteers and not with paid or contracted fund raisers; and

(3) Have primary focus of awarding scholarships to Washington residents attending Washington institutions of higher education shall be given further preference.

The community scholarship foundation matching award is a two thousand dollar grant based on available funding.

The higher education coordinating board will disburse matching awards of two thousand dollars to the selected community organizations.

Community organizations will submit, on a form provided by the board, reports of scholarships awarded from their two thousand dollar contribution and the two thousand dollar matching award. Reporting information will include, but is not limited to, recipients names and addresses, scholarship amounts and the higher education institution the recipient plans to attend. Or if the organization receives an endowment matching grant, a report indicating the endowment account number, name, the amount of the matching grant and the community match deposited along with a copy of the deposit receipt from the financial institution.

The community organizations may request in writing a review of any adverse decision affecting them by requesting such review within twenty days of adverse decision, addressed to the executive director of the higher education coordinating board. The review shall be handled by brief adjudication hearing procedures as outlined in the Administrative Procedure Act, chapter 34.05 RCW.