Charter schools are primary or secondary education institutions that receive government funding but operate with a degree of autonomy from local public school districts. They operate under a contract (charter) with local school districts or other governmental authorizing bodies. Charter schools are open to all students depending on capacity and do not charge tuition. They may be founded by individuals or teacher-parent groups, and two-thirds operate as freestanding independent schools while others are managed by charter management organizations (CMOs) or education management organizations (EMOs), which can be either for-profit or non-profit.
Charter school funding is dictated by each state and typically involves transferring per-pupil state aid from the student's home school district. On average, charter schools receive significantly less funding per pupil than traditional public schools—approximately 22–36% less depending on the study and state. Charter schools may also fundraise independently; only non-profit charters can receive donations from private sources. As of 2012, charter schools received an average of $7,131 per pupil compared to $11,184 in traditional public schools, though they raised an average of $500 per student in additional revenue from donors.
The most popular educational focus among charter schools is college preparation (30%), while 8% focus on STEM and 16% emphasize Core Knowledge. Some charter schools provide specialized curricula in arts, mathematics, or vocational training. Charter schools tend to serve more disadvantaged student populations, including more low-income and minority students, with 61% serving populations where over 60% qualify for free or reduced lunch. They are typically located in urban areas and tend to be small, with fewer than 200 students on average.
Charter schools are accountable to their sponsor (local school board, state education agency, university, or other entity) for producing positive academic results and adhering to their charter contract. Charters are typically granted for 3–5 years. As of March 2009, approximately 12.5% of over 5,000 charter schools founded in the US had closed due to academic, financial, managerial problems, or consolidation. A 2013 Stanford study suggested that overall improvement in the charter sector is linked to the closure of underperforming schools.