Quote:
Originally Posted by Argie's Wife
I'm not looking to establish a trust fund, which is what you're suggesting. Those are set up in a way that makes them come under a certain type of tax shelter and it's generally revenue from the interest that goes into the check for the actual scholarship.
I'm seeing where a lot - and I mean a lot - of scholarships are drying up. Even just a $500 fund to a student in need can make all the difference. Even if it's just something we do once, it will make a difference in someone's life. Perhaps it could cause them to turn around to make a difference for someone else - pay it forward.
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AW, I'm no expert for sure, I'm sure I'm about to get some of this wrong.
I'm part of a committee in Lake Shore Park that runs an annual Golf Event to raise money for students from LSP. Over the last 10+ years we have handed out over $100K in scholarships.
To make the event "legal" with the IRS we had to set up a 501c, (I think that's the number) that collected the money and distributed it to the various students. The funds must actually be sent to the college for deposit in the students account and the use of the funds is determined by the college. We can't hand a check directly to the student.
We also have to file a set of forms with the IRS to show the distribution and our "non-profit" status.
The benefit to the golf event is that many companys and golfers that sponsor the event want to be able to take the tax benefits of donations to the Scholarship fund. We get more players and sponsors, we raise more money, and more kids get donations.
Hope that made sense, trying to explain taxes gives me a headache.
