For the past 20 years, a private organization has been growing exponentially using direct and indirect public funds largely out of public view. This organization is the conduit for an unregulated school system without standards being created by the Florida Legislature. It is essentially a money management/marketing firm operating as a non-profit charity.
The organization is called Step Up for Students (StepUpForStudents.org), an SFO (Scholarship Funding Organization) that awards and manages tax credit scholarships for the state of Florida, as well as in Alabama. According to Forbes, Step Up is the 21st largest charity in the United States. To put that in perspective, the American Cancer Society is 18th. In 2019 Step Up and Subsidiaries had $697,363,075 in total assets.
Step Up receives donations from corporations who receive a dollar-for-dollar tax credit on corporate and certain sales taxes owed to the state of Florida. Billions of dollars have been diverted to Step Up instead of having been deposited into general revenue to operate state government, including public schools. These tax diversions have been cleverly labeled as “donations.”
The League of Women Voters of Florida has just released an investigative report that details the history, financial dealings, political connections, and audit findings for Step Up for Students. The full report is available here.