and to the parents or guardians of eligible students receiving a scholarship from the scholarship granting organization. (5) Scholarship The term scholarship does not include any payment to fulfill or fund any obligation or project of any school or school system to provide a free, appropriate public education. (d) Requirements for scholarship granting organizations An organization meets the requirements of this section if— (1) such organization does not provide grants to eligible students for any expenses other than qualified elementary and secondary education expenses, (2) such organization provides grants to— (A) more than 1 student, and (B) different students attending more than 1 school, (3) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student or to any specific school or group of schools, (4) such organization takes appropriate steps to verify the annual household income and family size of eligible students to which it provides grants, (5) such organization obtains annual audits from an independent certified public accountant and submits such audits to the Secretary, (6) no employee of such organization has violated any law relating to the audit described in paragraph (4), and (7) such organization— (A) requires any eligible student who receives a scholarship— (i) to participate in the evaluation conducted by the Institute of Education Science under section 2(d) of the Educational Opportunities Act , and (ii) to permit such organization to share assessment information and other data regarding the student with the Institute in accordance with subparagraph (B), and (B) provides the reports described in subsection (e)(1)(C) and such other information as necessary to the Director of the Institute of Education Science for the purposes of identifying eligible students receiving a scholarship from such organization and conducting the evaluations and reports required under section 2(d) of the Educational Opportunities Act . For purposes of paragraph (5),