501 (c) 4 Social Welfare Organization or Social Disease

Private foundations vs public charities | Foundations | Funding Resources | Knowledge Base | Tools | GrantSpace:

Q:

What is the difference between a private foundation and a public charity?

A:

Private foundations

Foundation Center defines a private foundation as a nongovernmental, nonprofit organization having a principal fund managed by its own trustees or directors. Private foundations maintain or aid charitable, educational, religious, or other activities serving the public good, primarily through the making of grants to other nonprofit organizations.

Every U.S. and foreign charity that qualifies under Section 501(c)(3) of the Internal Revenue Service Code as tax-exempt is a "private foundation" unless it demonstrates to the IRS that it has met the public support test. Broadly speaking, organizations that are not private foundations are public charities as described in the Internal Revenue Service Code.

Public charities

Public charities generally derive their funding or support primarily from the general public, receiving grants from individuals, government, and private foundations. Although some public charities engage in grantmaking activities, most conduct direct service or other tax-exempt activities. A private foundation, on the other hand, usually derives its principal fund from a single source, such as an individual, family, or corporation, and more often than not is a grantmaker. A private foundation does not solicit funds from the public.

Why should grantseekers know the difference?

Examining a funder's giving history is an important part of researching foundation prospects. Past grants can reveal the funder's preferred subjects, organization types, and ranges of grant amounts.

This data is easier to get from a private foundation, which must disclose all grantees and grant amounts in its IRS Form 990-PF. However, a grantmaking public charity isn't subject to this disclosure requirement, so access to its grants data will depend on how much the funder is willing to share with the public, via its Form 990, website, or other communication channels.

If a grantmaking public charity doesn't provide a grants list in its Form 990, explore its website or search the Internet for the funder's name to find any related news or press releases, some of which may be about grants that it made.

A word about "foundation"

Don't assume that an organization with "foundation" in its name is a grantmaker. (Example: Foundation Center.) The word "foundation" has no legal definition. 

Selected resources below might also be helpful.

Web Sites

* indicates staff pick

• * Exempt Organization Select Check | IRS
  Online search tool that allows users to select an exempt organization and check information re: its eligibility to receive tax-deductible charitable contributions; automatic revocation of tax-exempt status for not filing 990s; whether it has filed a Form 990-N.
• InfoTax | Tax Analysts
  Tax Analysts' Exempt Organization Master List (EOML) provides information on all exempt organizations required to file with the IRS applications for recognition of exemption and annual information returns. Check your nearest Foundation Center library for free access to this database.
• * GuideStar
  GuideStar works to improve public access to information about nonprofit organizations by providing Forms 990 and other data through their searchable online database. Users can search organizations by name, keyword, location, or EIN. Free site registration is required in order to access Forms 990 and 990-PF.
• Foundation Center | 990 Finder
  Foundation Finder is a free tool allowing users to access basic information on U.S. grantmakers, including names, addresses, web sites, and key financial data. Grantmakers can be searched by name, location, or EIN.
• * Frequently Asked Questions | National Center For Charitable Statistics
  Provides answers to many frequently asked questions about the nonprofit sector, such as: Are all nonprofit organizations public charities?
• * idealist.org | Should we incorporate a 'private' or a 'public' nonprofit?
  Summary states "[I]n general, it is probably better to be a 'public charity' than a 'private foundation.'"
• * National Center for Charitable Statistics | Should we incorporate a 'private' or a 'public' nonprofit?
  Summary states "[I]n general, it is probably better to be a 'public charity' than a 'private foundation.'"

Types of Organizations Exempt under Section 501(c)(4)

Internal Revenue Code section 501(c)(4) provides for the exemption of two very different types of organizations with their own distinct qualification requirements. They are:

• Social welfare organizations: Civic leagues or organizations not organized for profit but operated exclusively for the promotion of social welfare, and
• Local associations of employees, the membership of which is limited to the employees of designated person(s) in a particular municipality, and the net earnings of which are devoted exclusively for the promotion of social welfare.

Homeowners associations and volunteer fire companies may be recognized as exempt as social welfare organizations if they meet the requirements for exemption. Organizations that engage in substantial lobbying activities sometimes also are classified as social welfare organizations. 

Additional information

Social welfare organization - Examples

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Return to Life Cycle of a Social Welfare Organization

Social Welfare Organizations - Examples

Some nonprofit organi­zations that qualify as social welfare organiza­tions include:

• An organization operating an airport that serves the general public in an area with no other airport and that is on land owned by a local government, which supervises the airport’s operation,
• A community association that works to improve public services, housing and resi­dential parking; publishes a free commu­nity newspaper; sponsors a community sports league, holiday programs and meetings; and contracts with a private se­curity service to patrol the community,
• A community association devoted to preserving the community’s traditions, ar­chitecture and appearance by represent­ing it before the local legislature and administrative agencies in zoning, traffic and parking matters,
• An organization that tries to encourage in­dustrial development and relieve unem­ployment in an area by making loans to businesses so they will relocate to the area and
• An organization that holds an annual festi­val of regional customs and traditions.

Action Organizations

Seeking legislation germane to the organization's programs is a permissible means of attaining social welfare purposes.  Thus, a section 501(c)(4) social welfare organization may further its exempt purposes through lobbying as its sole or primary activity without jeopardizing its exempt status. An organization that has lost its section 501(c)(3) status due to substantial attempts to influence legislation may not thereafter qualify as a section 501(c)(4) organization.  In addition, a section 501(c)(4) organization that engages in lobbying may be required to either provide notice to its members regarding the percentage of dues paid that are applicable to lobbying activities or pay aproxy tax .  For more information, see Lobbying Issues .

Additional information

Social Welfare Organizations - Political Campaign Intervention

http://www.irs.gov/Charities-&-Non-Profits/Other-Non-Profits/Types-of-Organizations-Exempt-under-Section-501(c)(4)

Some Michigan parents saying no to state testing

Some Michigan parents saying no to state testing:

Too much pressure on kids? Parents reject state tests

When sixth-grader Elliot Corbin talks about taking the state's standardized exams, words like "stress" and "afraid" and "nervous" flow freely from her lips.

"My stomach would hurt and I would have headaches, and I would be worried about the test days before it actually happened," said Elliot, 12, recalling the times she'd taken the now-retired MEAP exam.

These days, though, Elliot is only excited. When the state debuts a new exam for elementary and middle school students this spring, Elliot and sister Quinn, 10, a fourth-grader, will stay home with their mom, Deborah Corbin of Mt. Clemens, who for the first time is opting her kids out of the exams.

They're part of a movement gaining traction nationwide as parents unhappy with the pressure and anxiety that comes with high-stakes exams — particularly the exams based on the rigorous Common Core State Standards — are rising up to say "enough."

In Michigan, elementary and middle school students are tested every year in grades 3-8 in math and language arts, and in additional subjects at other grade levels. High school students are tested in the 11th grade. But that's on top of tests required by local school districts.

DETROIT FREE PRESS

Board: Snyder's school reform plan violates constitution

Deborah Corbin of Mt. Clemens will be keeping her daughters home when the state exams are given this spring. (Photo: Salwan Georges, Special to Detroit Free Press)

The opt-out movement is fueling a debate in Michigan and beyond. Critics worry kids are being over-tested and say schools have been overtaken by testing. Testing advocates, meanwhile, say it's crucial to holding schools accountable and for gauging how well students are learning. The debate has heated up this year as Congress works to reauthorize No Child Left Behind, the federal law that has been blamed for the increased focus on testing.

The movement's impact could be significant. Federal rules require 95% of students in a school to be tested. If too many opt out, a school could be identified for improvement — and face sanctions — a point officials at the Michigan Department of Education Some Michigan parents saying no to state testing:

Parents Can Opt Out - United Opt Out National

Click Here to go to United Opt Out National: 

Click Here to go to the Website- United Opt Out Team

Click Here to go to the Website FairTest

Ok It's a Conspiracy: Move Over, Koch Brothers: A Bigger, Darker Rightwing Funder Is Out to Destroy Public Education | Common Dreams

Move Over, Koch Brothers: A Bigger, Darker Rightwing Funder Is Out to Destroy Public Education | Common Dreams | Breaking News & Views for the Progressive Community:

Move Over, Koch Brothers: A Bigger, Darker Rightwing Funder Is Out to Destroy Public Education

It's "the most powerful organization in America that no one seems to know about."

That's how Scot Ross, executive director of the progressive think tank One Wisconsin Institute, describes the Bradley Foundation.

The Bradley Foundation, headed by Governor Scott Walker's campaign co-chair Michael Grebe, has underwritten a massive, pro-privatization propaganda campaign, including "a systematic and relentless campaign to turn public opinion against the public school system."

Unlike David Koch of the Koch Brothers, whose cover was blown when a gonzo blogger named Ian Murphy(editor of the Buffalo Beast and a frequent contributor to The Progressive), impersonated him in a prank call to Wisconsin Governor Scott Walker.

The Milwaukee based Bradley Foundation operates off the mainstream media radar. Yet the group has made more than $530 million in grants and awards since 1985, making it a much, much bigger giver to rightwing causes than the Koch brothers. With more than $290 million in assets, Bradley is one of the biggest foundations in the United States.

A new report by Ross's group One Wisconsin Now reveals the Bradley Foundation's particular focus on privatizing the public schools.

Among the report's findings:

--The Bradley Foundation, headed by Governor Scott Walker's campaign co-chair Michael Grebe, has underwritten a massive, pro-privatization propaganda campaign, including "a systematic and relentless campaign to turn public opinion against the public school system."

--Bradley has spent more than $31 million since 2001 supporting organizations promoting education privatization, academics providing favorable pro-privatization pseudo-science, media personalities promoting the privatization agenda, and lobbying organizations advocating for privatization legislation.

--The Bradley-financed campaign has manufactured an education "crisis," proposed a "solution," attacked and undermined the ability of potential opponents to block their agenda, and funded aggressive pro-privatization media and lobbying efforts.

--The Bradley-financed Wisconsin Policy Research Institute has manipulated research and pressured a University of Wisconsin professor to downplay results that show school vouchers in a negative light, while highlighting scientifically dubious favorable results.

Way back in 1990, Bradley backed the first private-school voucher program in the nation, right in Milwaukee.

This year, Wisconsin Governor Scott Walker plans to expand the voucher program to nine new counties, despite test results that show voucher students underperform compared with their public school peers.

The free-market mission of the Bradley Foundation fits in nicely with a national rightwing pro-privatization agenda.

Across the country, Bradley has given money to groups like Americans for Prosperity to tout school vouchers and other privatization efforts as an answer to "failing" public schools.

"Their financing is the cornerstone for the privatization of public schools not just in Wisconsin, but across America," Ross explains.

Ross calls the interlocking efforts of Bradley and other groups "a tax-deductible SuperPAC." The groups that have received funds from Bradley include the MacIver Institute, the Koch brothers' Americans for Prosperity, the Manhattan Institute, and rightwing pundits including George Will, a member of the Bradley Foundation board of directors and recipient of a $250,000 Bradley "outstanding achievement" cash prize.

The free-market mission of the Bradley Foundation fits in nicely with a national rightwing pro-privatization agenda.

"We've seen this influx of out-of-state corporate money into Wisconsin," says Ross, who was active in the effort to recall Wisconsin Governor Scott Walker. "Here we have this homegrown foundation pouring more money into the rightwing foundation network than Move Over, Koch Brothers: A Bigger, Darker Rightwing Funder Is Out to Destroy Public Education | Common Dreams | Breaking News & Views for the Progressive Community:

Bradley Foundation. $3,000,000.00 to Charter School Growth Fund 2013

http://chartergrowthfund.org/

Common Core stands despite vote - News - seacoastonline.com - Portsmouth, NH

Common Core stands despite vote - News - seacoastonline.com - Portsmouth, NH:

Common Core stands despite vote

SAU 21 officials call article 'non-binding,' says parents need more education

 By Max Sullivan

msullivan@seacoastonline.com

Posted Mar. 23, 2015 at 5:30 PM 

HAMPTON - SAU 21 officials said last week they plan to move forward with the Common Core State Standards at Winnacunnet High School despite voters passing a citizen's petition by 60 percent at the March 10 election to reject Common Core.

School District officials and School Board members called the petition on the Winnacunnet High School Cooperative District ballot "non-binding" last week, as the language in the article did not require any action to be enforced if passed.

"There's nothing binding to it," SAU 21 Superintendent Bob Sullivan said. "It was just a statement."

But the fact that 2955 of 4909 voters marked "yes" on Article 6 put forth by State Rep. Max Abramson (R-Seabrook) did send a message to SAU 21, Assistant Superintendent Barbara Hopkins said.

"I think it means we need to help educate our communities and our parents better," Hopkins said. "We try. We've had a number of forums about it... all the different schools have done outreach in regards to these standards."

Common Core is "a set of high-quality academic standards in mathematics and English language arts/literacy (ELA)," according to its website, outlining "what a student should know and be able to do at the end of each grade." New Hampshire is one of 43 states that have implemented the standards into their school districts, according to the website.

WHS is moving forward with Smarter Balanced testing in April, which will provide data to show the district how its classes are keeping up with the standards, WHS Principal Bill McGowan said. He said the standards are designed to make the students "college-ready."

But the standards have faced criticism, including from parents across the country.

Heather Day, whose daughter is in fourth grade at Marston School, said that she's concerned the standards are an overreach by the federal government, taking away local control of education and thus stifling creativity in teachers and students. She stood outside with her daughter holding a sign in opposition of Common Core on voting day.

"Common Core will take local power away from educators, teacher and parents," Day said.

Article 6 stated that a yes vote would "reject Common Core."

The article stated Common Core "is not research based" and was created without "input taken from the teachers when developing these standards behind closed doors."

But Hopkins said there are misunderstandings about Common Core, the biggest being that it changes the curriculum. That's not true, she said. Curriculum is still up to the individual schools, Common Core stands despite vote - News - seacoastonline.com - Portsmouth, NH:

Six-weeks of training at the Broad Academy, no significant experience in education, Tata was hired as superintendent of Wake County schools

Tata’s politics may cost NC transportation dollars | News and Observer News and Observer:

Tata’s politics may cost NC transportation dollars

N.C. Department of Transportation Secretary Tony Tata has made a nice living trading on his status as a retired brigadier general.

When he retired after 28 years in the U.S. Army, his former rank and six-weeks of training at the Broad Academy gave him entry into the Washington, D.C. school district. There he would use his military acumen to improve the schools logistics as chief of operations under then-schools chancellor Michelle Rhee. That lasted 19 months.

Then, despite no significant experience in education, Tata was hired as superintendent of Wake County schools, North Carolina’s largest school district, because a conservative-led school board liked his potential for gung-ho, nontraditional leadership. That didn’t end well. Tata gained a reputation for bullying staff and couldn’t get the buses to run on time. He was dismissed by a new, progressive board after a year and half and left with approximately $250,000 in severance pay.

Soon after he landed his current post. Upon announcing Tata’s appointment, Gov. Pat McCrory said that despite Tata’s lack of experience with state transportation issues, he had run complex operations as a general. “If he can do it in Afghanistan under fire, surely he can do it in North Carolina,” McCrory said.

Now Tata is working his one-star again. In addition to running a major state department with a $4 billion budget and some 12,000 employees, he’s found time to be a regular commentator on Sean Hannity’s Fox News show and write military thrillers on the side. On Fox, Tata regularly criticizes the Obama administration’s policies regarding the Middle East. Last Friday, he noted that Iran and Hezbollah have been taken off the list of terror threats in the national security report. The move is part of the administration’s effort to encourage Iran’s help in fighting the Islamic State, but Tata declared it foolish and dangerous.

“I don’t know what pie-in-the-sky world we’re living in right now, but this is ridiculous,” he told Hannity. “This is an oppressive regime that wants to destroy Israel and the United States.”

Why Hannity is turning to Tata for wisdom on the Middle East is baffling. Tata has no special insight into the region. Beyond that, the public learnedTata’s politics may cost NC transportation dollars | News and Observer News and Observer:

Read more here: http://www.newsobserver.com/opinion/editorials/article16130225.html#storylink=cpy

Has Jeb Bush Used Money From His Education Foundation to Pay for His Presidential Bid? | Scathing Purple Musings

Has Jeb Bush Used Money From His Education Foundation to Pay for His Presidential Bid? | Scathing Purple Musings:

Has Jeb Bush Used Money From His Education Foundation to Pay for His Presidential Bid?

Writes Beth Reinhard for the Wall Street Journal:

The educational foundation founded by former Florida Gov. Jeb Bushpaid about $3 million in 2013 and 2014 to a public affairs firm headed by a top political adviser, Mike Murphy.

Mr. Murphy is a partner at Revolution Agency in Alexandria, Va., which ran the Foundation for Excellence in Education’s Learn More, Go Further campaign marking the 15th anniversary of the former governor’s education overhaul. Mr. Murphy is also a top adviser to Right to Rise, the political committee that has been collecting millions of dollars since January as Mr. Bush explores a potential bid for the Republican presidential nomination.

The foundation’s Learn More, Go Further campaign in 2013 and 2014 included a website and other online media, television and radio ads, and live events in Florida to promote the state’s educational system.

An $841,652 payment to Revolution Agency from the Foundation for Excellence in Education was listed in its 2013 report to the Internal Revenue Service detailing revenues and expenses. The 2014 report is expected to show another $2.2 million payment to Revolution Agency, 

Has Jeb Bush Used Money From His Education Foundation to Pay for His Presidential Bid? | Scathing Purple Musings:

Film Review: Defies Measurement weaves together problematic purposes of ed reform | Cloaking Inequity

Film Review: Defies Measurement weaves together problematic purposes of ed reform | Cloaking Inequity:

Film Review: Defies Measurement weaves together problematic purposes of ed reform

In Defies Measurement, Shannon Puckett expertly weaves together the problematic purposes of testing, Common Core, corporate reform, No Child Left Behind, Teach For America, The Gates Foundation, The Broad Foundation, charter schools, and privatization. The film begins with Chipman middle school and traces the inspiration and impact that the school had on a diverse groups of students over the long term beyond their experience at the Bay Area middle school. The core of the film traces the testing and accountability reform context from their birth in eugenics to their invasion of public schools in the 2000s. At each step, the movie has an acute sense of counter narrative to the common discourse and argument in favor of school reform.

DEFIES MEASUREMENT strengthens the discussion about public education by exploring why it is so important to address the social and emotional needs of every student, and what happens when the wrong people make decisions for schools.

Shannon Puckett ratchets up the tension and knowledge methodically by gathering an all-star cast of education policy experts, parents and others— Diane Ravitch, David Berliner, Linda Darling-Hammond, David Kirp, Karran Harper Royal, Mercedes Schneider, Jason France, Howard Gardener and many many many others (y yo)… These are the critical voices and expertise noticeably absent in Davis Guggenheim’s Waiting for Superman. Puckett’s filmmaking is markedly more imaginative and accurate than Waiting for Superman. She clearly improves upon that effort. It could be said that Defies Measurement is kryptonite for Superman’s attempt to discuss what is ailing our nation’s schools. The movie has an acute sense of the unnerving aspects of education reform agenda, the film Defies Measurement made me simultaneously disappointed, angry— and yet with the Chipman backdrop— hopeful for an alternative student and community centered era in public education.

Please click the link below to go directly to the film. For information on how to screen this film for others and for resources to learn more and take action, visit DefiesMeasurement.com

Film Review: Defies Measurement weaves together problematic purposes of ed reform | Cloaking Inequity:

Not My Daughter – One Dad’s Journey to Protect His Little Girl from Toxic Testing - Badass Teachers Association

Badass Teachers Association:

Not My Daughter – One Dad’s Journey to Protect His Little Girl from Toxic Testing

 By:  Steven Singer

Originally posted on his blog:  https://gadflyonthewallblog.wordpress.com/2015/03/20/not-my-daughter-one-dads-journey-to-protect-his-little-girl-from-toxic-testing/

I’ll admit it – I was scared.

I’m a nationally board certified teacher with a masters degree in education. I’ve taught public school for over a dozen years. But I’ve only been a daddy for half that time.

Would making this call get my little girl in trouble?

I didn’t want to rock the boat. I didn’t want my daughter to suffer because her old man is making a fuss. I didn’t want her teachers and principal giving her a hard time because of something I did.

But I couldn’t deny what I know.

Standardized testing is destroying public education. It’s stressing kids out by demanding they perform at levels they aren’t developmentally ready to reach. And its using these false measures of proficiency to “prove” how bad public schools are so they can be replaced by for-profit charters that will reduce the quality of kids’ educations to generate profits.

No. There was no doubt about it. I had to make this phone call.

I used my most professional voice on the line with the principal.

“Hi, Mr. Smith. This is Steven Singer. I’m Amy’s father. I know she’s just in kindergarten but it’s come to my attention she’s taking standardized tests, and I’d like to opt her out.”

Before my little girl started school, I hadn’t even realized there were standardized tests in kindergarten. She takes both the DIBELS and the GRADE test.

He seemed surprised, even a bit fearful, but he quickly suggested a meeting with me, my daughter’s teacher, the councilor and a few others to get it done.

It was my turn to be surprised. I had expected to be asked to review the tests before writing a formal letter citing my “religious” reason for refusal. But I guess things are different before students reach third grade. Without legislation mandating a formal process, we needed to meet and discuss like adults.

And a few weeks later, here I was waiting for that meeting to begin.

It wasn’t long before my daughter’s teacher arrived. We chatted briefly about a fire drill and how my sweetheart hadn’t been afraid. Then the councilor, principal and others came in and ushered us into the conference room.

Most of the space was taken up by a long rectangular table surrounded by black leather chairs on wheels. It looked like the kind of place where important decisions are made – a bit imposing really.

We sat down and Mr. Smith introduced me to the team and told them I Badass Teachers Association:

Thar's Gold in Them Thar Charter Schools: Walton and Gates Foundations Edition | The Range: The Tucson Weekly's Daily Dispatch | Tucson Weekly

Thar's Gold in Them Thar Charter Schools: Walton and Gates Foundations Edition | The Range: The Tucson Weekly's Daily Dispatch | Tucson Weekly:

Thar's Gold in Them Thar Charter Schools: Walton and Gates Foundations Edition

 When the Walton Foundation—the ultra conservative WalMart fortune foundation which pours close to two hundred million a year into "education reform"—teams up with the Gates Foundation—Bill Gates' reasonably apolitical foundation which believes that every problem has a business model solution and also spends hundreds of millions on education initiatives—to put on a conference about education, it's worth taking notice. On March 10, the two groups hosted  "Bonds and Blackboards: Investing in Charter Schools" in New York. The purpose of the get-together was to let investors know they can make money lending to charter schools.

With the explicit intent of helping investors "Learn and understand the value of investing in charter schools and best practices for assessing their credit," the event featured experts on charter school investing from Standard & Poor's, Piper Jaffray, Bank of America, and Wells Capital Management, among others.

[snip]

Hedge funds and other private businesses are particularly interested in the growth and success of charter schools. The growth of charter networks around the US offer new revenue streams for investing, and the sector is quickly growing. Funding for charter schools is further incentivized by generous tax credits for investments to charter schools in underserved areas.

"It's a very stable business, very recession resistant, it's a high demand product. There are 400,000 kids on waiting lists for charter schools ... the industry is growing about 12-14% a year," David Brain, former President and CEO at EPR Properties, told CNBC in 2012.

"It's a public payer, the state is the payer on this category," he added in support of the highly safe investing opportunities in charter schools.

As safe as an investment in charter schools may be, Ducey and the AZ Lege want to make it safer still by creating a $24 million pot of collateral, which Ducey calls the "Arizona Public School Achievement District plan," to guarantee the loans. Details about the plan have not yet been announced, but if I read it right, it's a win-win for charter schools and investors. The only ones at risk are Arizona taxpayers. The collateral brings down interest costs because the loans are secured. Great for charters. Investors know they'll get their money no matter what. Great for investors. But if a charter fails, the state is left paying off the loan and holding the bag. Not so great for the state budget and the taxpayers who fund it.Thar's Gold in Them Thar Charter Schools: Walton and Gates Foundations Edition | The Range: The Tucson Weekly's Daily Dispatch | Tucson Weekly:

PARCC postponed as N.J. school district's network 'held hostage' for bitcoins | NJ.com

PARCC postponed as N.J. school district's network 'held hostage' for bitcoins | NJ.com:

PARCC postponed as N.J. school district's network 'held hostage' for bitcoins

 Swedesboro-Woolwich school district's entire computer system network was hacked over the weekend preventing its four elementary schools from administering the PARCC exams.

The school district's technical services operators noticed the problem Saturday morning and have been working throughout the weekend and into Monday to correct it, according to Superintendent Terry Van Zoeren.

"There's basically no tech service happening in Swedesboro-Woolwich right now," he said. "Essentially our network has been taken over and has been made nonoperational."

The hackers have asked the school district to send bitcoins in order to free up their system.

This has affected the district's entire operations from internal and external communications to its point-of-sale for school lunches.

It also has prevented any students from taking the scheduled PARCC exams, which are entirely computerized.

"We are operating as if it's about 1981 again," Van Zoeren said. The network administrator received a message with complex directions to forward $500 in bitcoins -- a digital currency popular on underground online markets.

Hackers take over a system with "ransomware," a type of malware that restricts access to the computer system until a ransom is paid.

Technicians are working to rebuild Swedesboro-Woolwich's system without paying the ransom, and the district is hoping it will be fixed by Tuesday morning.

While it can often be very difficult to find out who is responsible for hacking into the system, the district will pursue the culprits "to the greatest extent possiblePARCC postponed as N.J. school district's network 'held hostage' for bitcoins | NJ.com: