Charter schools are governed by the charter school laws of individual states. In some states, charter schools may also screen applicants for readiness in terms of the school's mission. Eligibility is usually determined by residence in a locality or sometimes simply within the state. Like all public schools, charter schools must comply with state and federal non-discrimination laws. If more students apply than can be accommodated in a particular grade or program, a lottery is usually required.
Many schools maintain waiting lists of eligible students.
Charter schools provide a free public education to eligible students. In some states, for-profit companies may obtain charters and operate charter schools. Charter schools generally receive a per-pupil allocation that is determined through state legislation. Charter schools are usually able to receive supplemental funding from state and federal grants, and grants and gifts from private sources. Some states allow for conversions of existing public schools to charter schools.