This article examines an increasingly popular alternative to government-funded voucher plans: private voucher and scholarship plans. Through the 1998-99 school year, spending on privately funded voucher programs totalled $61 million. Private vouchers began with the Golden Rule Program in Indianapolis in 1991 and was inspired by insurance CEO J. Patrick Rooney. Rooney limited participation in the plan to less affluent families and covered only partial tuition. His ideas caught the attention of other executives and institutions, some of whom started their own voucher system. A few of these programs are reviewed here, along with their effectiveness and some financial considerations. Private voucher plans include the Children's Scholarship Fund, which was funded with $100 million and targets Catholic elementary schools, and New York City's privately funded School Choice Scholarship Program, which has been reported to improve the educational gains of low-income children. Researchers have reported that African-American students may have the most to gain from private scholarship programs. Such successes have built support for tax assistance for education costs, despite failed bills that would have given families tax breaks on various private- or public-school expenses. State legislatures, however, are introducing financial incentives, such as tax subsidies and tax credits. (Contains 27 references.) (RJM)