E. The director shall annually allocate monies from the fund, excluding administrative fees, as follows:

1. 1. Fifty percent to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets both of the following:

   1. (a) Is headquartered in this state.
   2. (b) Promotes safety and awareness in the cycling community.

2. 2. Fifty percent to a charitable organization that is qualified under section 501(c)(3) of the United States internal revenue code for federal income tax purposes and that meets both of the following:

   1. (a) Is headquartered in this state.
   2. (b) Offers the opportunity for a person to use a loaner bicycle if the person is registered in a charity cycling event and is not able to afford to purchase a bicycle.