Hawaii independent schools, donor groups urge lawmakers to clarify gifts vs. contracts for private scholarships

Supporters of Senate Bill 3123 (SD1) told the House Committee on Judiciary and Hawaiian Affairs on March 18 that the proposal would safeguard philanthropic tuition assistance at private schools by clarifying such awards are conditional gifts rather than commercial contracts.

Kho Abad, appearing for Kame Schools, said the bill allows private schools and donors to define scholarship relationships in ways consistent with their missions and traditions. "This bill empowers schools and donors to define for ourselves our relationships and interactions with our students and ohana," Abad said.

David Gaudy, president of the Hawaii Association of Independent Schools and head of St. Mark Lutheran School, emphasized the role of donor-funded tuition assistance in maintaining educational access, noting association data that "approximately 94% of member schools offer financial aid, supporting over 14,000 students." He told the committee the statutory clarity would encourage continued giving and simplify scholarship administration.

The committee heard no opposition and indicated it would take the measure up for a committee decision as part of its calendar. Members thanked the testifiers and moved on to subsequent agenda items.