Moore County Schools Foundation Committee outlines proposal for two nonprofits

The Moore County Schools Foundation Committee discussed creating two additional nonprofit foundations at its inaugural meeting Oct. 7, with a proposed annual fundraising goal of $20 million and a target of beginning operations Jan. 1, 2027.

David Hensley presented the proposal at the district’s central office boardroom. Committee members Steve Johnson and Pauline Bruno participated, and Superintendent Jenny Purvis joined remotely.

The proposal calls for a traditional charitable foundation to support district initiatives and a separate scholarship-granting organization designed to participate in the new federal Education Freedom Tax Credit program.

The $20 million figure was presented as a fundraising goal, rather than money already secured or guaranteed annual revenue.

Part of Hensley’s proposal is taking advantage of the Education Freedom Tax Credit (EFTC) which was part of the Big Beautiful Bill passed by congress in 2025. In the last session, the NC House and Senate passed a bill to opt North Carolina into the EFTC. The single issue bill was vetoed by Governor. The NC General Assembly overrode Governor Stein’s veto, thus allowing Moore County Schools to take advantage of the EFTC.

Beginning Jan. 1, 2027, eligible individual donors may claim a nonrefundable federal income tax credit of up to $1,700 for qualifying cash contributions to eligible scholarship-granting organizations, according to the IRS. North Carolina has elected to participate. For example, a couple living in Southern Pines can donate $3,400 to MCS’s SGO Foundation, and that couple will receive $3,400 back on their taxes.

Hensley’s stated that 10,000 taxpayers taking advantage of the $1,700 tax credit is $17 million. “$17 million a year is an achievable goal for the SGO foundation,” Hensley said.

Federal requirements include spending at least 90% of an organization’s income on scholarships for eligible students and serving at least 10 students who do not all attend the same school. Qualifying education expenses can include tutoring, special-needs services, books supplies, summer school, and other qualifying expenses.

Other fundraising ideas in Hensley’s presentation included arts-related activities, partnerships with homebuilders, traditional fundraising and hiring a development director. He also outlined possible involvement by Moore County Schools and Sandhills Community College students in housing construction through career and technical education and volunteer work.

Participants discussed possible uses for the traditional foundation, including staff housing, rent assistance and coaching stipends. These were discussed as potential initiatives, with legal and organizational details still to be addressed.

The presentation proposed loans from Moore County Schools to cover startup costs and first-year expenses. Listed estimates included $15,000 to establish the corporations and $1,500 for directors’ insurance. A development director, administrative assistant and compliance expenses were also listed, without dollar amounts.

Under the proposed governance structure, each foundation would have a separate board of directors appointed by the school board. The initial boards would have five members serving staggered two-and four-year terms, with possible expansion to nine members.

The proposed incorporation documents would require a supermajority vote of the directors and school board approval to change a foundation’s purpose.

Johnson suggested including the district’s strategic plan in the foundation bylaws. Hensley raised the need for the foundations to operate autonomously, with legal advice needed to resolve how that would work.

The next step discussed was seeking school board authorization to establish the foundations, pursue federal tax-exempt status and appoint directors. Hensley’s presentation proposed a further report in November for discussion and guidance.

Implementation requirements are still developing. The North Carolina State Education Assistance Authority says it is reviewing recently issued federal temporary and proposed regulations and will develop state guidance.

Oct. 8, 2026

Jim Pedersen

Journalist