What are the requirements for a scholarship fund?

Sample Procedures and Sample Board Resolution Community foundations that award scholarships and other grants to individuals from funds with donor involvement should be sure these funds comply with the requirements of the Pension Protection Act of 2006.

How to establish scholarship under the IRS rules?

Besides meeting the IRS’ requirements governing all grant programs, the company must abide by additional regulations. These include adhering to principles of basing awards on educational advancement for the recipients and not as added compensation for select employees.

Who are the members of the scholarship committee?

The sponsoring organization (the community foundation) appoints all of the members of the scholarship committee and the donor’s advice is given solely as a member of the committee 2. Neither the donor nor the parties related to the donor control the scholarship committee directly or indirectly 3.

What do you call a Community Foundation scholarship?

Grants made from such Funds shall be referred to as “Scholarship Grants.” The Community Foundation also from time to time holds and administers certain Funds that make grants to individuals in recognition of achievement in the fields of art, literature, education, science, public or community service, or for other charitable or civic achievement.

Are there any scholarships that are tax free?

Other types of grants include need-based grants (such as Pell Grants) and Fulbright grants. Tax-Free. If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:

How to apply for an educational scholarship fund?

1 Financial need 2 Academic achievement, shown by grade point average, test scores, etc. 3 Extent of community involvement 4 Leadership skills 5 Work history 6 Writing skills, demonstrated by an application essay or otherwise 7 Achievements in particular fields (sports, debate, performing arts, etc.)

How are scholarships awarded in an endowed fund?

In the case of an endowed scholarship fund: A gift of a fairly large amount is set aside as a principal balance and invested. Scholarships are then awarded by drawing from the interest earned on the principal, and any remaining interest is reinvested to grow the principal and the balance that can be awarded for future scholarships.