How to set up a scholarship?
November 29, 2011 10:42 AM Subscribe
How do I set up a small one-time scholarship for college-bound kids at a high school?
Back in the summer, a family friend of mine passed away. She was a beloved substitute teacher at a local public high school for over forty years. Due to the overwhelming outpour of love for her after her death (her posthumous Facebook fan page has over 900 fans), I and her family have decided to try to raise a small fund through donations from school staff, school faculty, past students, and friends to go toward a scholarship for a student (or more than one, depending on the amount raised) at the high school who will be entering college next fall.
I hope to be able to take donations via a website of some kind, and for this money to be legitimately gained and distributed. I don’t expect to raise more than $5000 (even $500 I would consider a success). I will naturally be working with administrators at the high school on this project.
SO, I have never taken on a project like this, or anything close. Where do I start? I’m more concerned with the money aspect of this. Where can I take donations? Does money have to be funneled through a registered foundation to be legit? How do taxes come into play? How does one then turn it over to its intended recipient? Is this even doable?
Most of the resources I have found online apply to setting up large endowments or foundations or recurring scholarships. Could any of you point me toward more applicable resources? The school is located in North Carolina, in case that matters.
Thanks!
Back in the summer, a family friend of mine passed away. She was a beloved substitute teacher at a local public high school for over forty years. Due to the overwhelming outpour of love for her after her death (her posthumous Facebook fan page has over 900 fans), I and her family have decided to try to raise a small fund through donations from school staff, school faculty, past students, and friends to go toward a scholarship for a student (or more than one, depending on the amount raised) at the high school who will be entering college next fall.
I hope to be able to take donations via a website of some kind, and for this money to be legitimately gained and distributed. I don’t expect to raise more than $5000 (even $500 I would consider a success). I will naturally be working with administrators at the high school on this project.
SO, I have never taken on a project like this, or anything close. Where do I start? I’m more concerned with the money aspect of this. Where can I take donations? Does money have to be funneled through a registered foundation to be legit? How do taxes come into play? How does one then turn it over to its intended recipient? Is this even doable?
Most of the resources I have found online apply to setting up large endowments or foundations or recurring scholarships. Could any of you point me toward more applicable resources? The school is located in North Carolina, in case that matters.
Thanks!
FWIW, I got a small scholarship from a local non-profit group when I was in high school, and it was sent directly to my college. I don't know how the details work, but the norm is that it goes directly to the school rather than to the recipient. I would also talk to the school- these sort of small scholarships aren't that uncommon, and they can direct you to people who've done it before.
posted by MadamM at 12:12 PM on November 29, 2011
posted by MadamM at 12:12 PM on November 29, 2011
Is this even doable?
Yes, and good on you.
Where do I start? I’m more concerned with the money aspect of this. Where can I take donations? Does money have to be funneled through a registered foundation to be legit? How do taxes come into play? How does one then turn it over to its intended recipient?
Google to see if the school district or community has something called an "education foundation", which (in Texas anyway) is usually a 501(c)3 purposely set up for receiving and administering funds exactly like you are talking about. Here is an example of one based in North Carolina. Very often you can simply raise money and give it to the foundation to distribute and deal with.
Don't know about NC state laws on this but there isn't a federal tax implication unless you are soliciting tax-deductible contributions (in which case, yes, you need to be partnering with a registered foundation). But the people who want to give $20 here or $50 there to this effort will be doing it because they loved your friend, not because they need the write-off.
posted by pineapple at 1:20 PM on November 29, 2011
Yes, and good on you.
Where do I start? I’m more concerned with the money aspect of this. Where can I take donations? Does money have to be funneled through a registered foundation to be legit? How do taxes come into play? How does one then turn it over to its intended recipient?
Google to see if the school district or community has something called an "education foundation", which (in Texas anyway) is usually a 501(c)3 purposely set up for receiving and administering funds exactly like you are talking about. Here is an example of one based in North Carolina. Very often you can simply raise money and give it to the foundation to distribute and deal with.
Don't know about NC state laws on this but there isn't a federal tax implication unless you are soliciting tax-deductible contributions (in which case, yes, you need to be partnering with a registered foundation). But the people who want to give $20 here or $50 there to this effort will be doing it because they loved your friend, not because they need the write-off.
posted by pineapple at 1:20 PM on November 29, 2011
This is the one you want. Get in touch with me offline and I'll give you first person contact info.
posted by thivaia at 2:01 PM on November 29, 2011 [1 favorite]
posted by thivaia at 2:01 PM on November 29, 2011 [1 favorite]
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posted by tomswift at 10:47 AM on November 29, 2011