K12 Inc.: California Virtual Academies' operator exploits charter, charity laws for money

[KamaAina]

http://www.mercurynews.com/education/ci_29780959/k12-inc-california-virtual-academies-operator-exploits-charter

California's largest network of online academies is different: Although the schools are set up like typical charters, records show they're established and run by Virginia-based K12 Inc., whose claims of parental involvement and independent oversight appear to be a veneer for the moneymaking enterprise.

The company -- the subject of a two-part investigative series by this newspaper -- says the schools operate independently and are locally controlled. But the academies' contracts, tax records and other financial information suggest something entirely different: K12 calls the shots, operating the schools to make money by taking advantage of laws governing charter schools and nonprofit organizations....

California law is silent on whether for-profit firms are even allowed to run charter schools. So before applying 14 years ago to open the state's first online academies, K12 treaded cautiously into a new market, creating a series of nonprofit organizations whose names match those of the schools.

That means each California Virtual Academy is considered by the IRS to be a charitable organization that need not pay taxes, even though K12 effectively controls the schools by providing them with all academic services.

Well, there was no way anyone could have seen that coming!

[Jeffersons Ghost]

1. K&R because someone saw "THAT" Comey