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fordetra

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FORDETRA Scholarship

Posted by [email protected] on August 25, 2011 at 9:45 PM Comments comments (45)

OPERATING DRAFT

Fordetra Reunion Scholarship Fund Committee

Mission

Committee Members

The Scholarships

Advertising

The Application and Selection Criteria

Bylaws

For the Fordetra Reunion Scholarship Fund

Committee

(Rules and Regulations)

NOTE: Your Comments and Recommended Changes Requested

October 1, 2009

OPERATING DRAFT

Fordetra Reunion Scholarship Fund Committee

Forrest County, Mississippi

Motto: Our Young People Need Our Support, Now

Mission

The Fordetra Reunion Scholarship Fund Committee, hereafter referred to as “the Committee,” manages money made available to the Fordetra Reunion Scholarship Fund, a trust fund. It also receives and reviews all applications and makes scholarship awards to the recipients. The Committee was established by the Fordetra Reunion classes on October 1, 2009, but functions as a completely independent entity.

Today, most American students need financial assistance, as well as moral support and encouragement, to reach their educational and career goals.

The mission of this Committee is to raise funds and provide tangible support to students who are disadvantaged. These students have historically lacked equal access to scholarships and educational assistance. Many students are supporting their families rather than their families supporting them, and therefore receive little or no financial support from their own families. Most students cannot attend college full-time without working or receiving family financial support or scholarships, grants, loans, and general assistance. The required expenses include items such as transportation, tuition, fees, books, supplies, housing, and food – these are increasing annually.

Committee Members

The Committee members are active participants in the Fordetra Reunion. They have volunteered to work to carry out the mission of the Committee. The Committee members shall elect officers and establish all of its appropriate operating procedures in accordance with the accompanying Bylaws.

The current volunteer member are: Charles Cooper, Christine Cooley, Carolyn Green, Thera Nathaniel, Mary Breland, Ralph Lindsey, Carl Chisolm, Billy Mosley, Annie Rose Holliman, Annie M. Parker, and Sylvester Garner.

The Scholarship Fund is a Matching Arrangement

The trust fund was established with the understanding that an interested donor would contribute a minimum of $1,000.00 annually over a five-year period. The contributions by residents of Forrest County, and elsewhere, would match this contribution and build up the fund for future scholarship awards.

The Committee welcomes donations of financial support, and time and talent to help build the fund. The Committee members will contact various churches, other organizations, and individuals to raise matching funds.

Community members who wish to serve as members of the Committee are invited to join.

In order to make donations or to help in fund-raising, please contact any member of the committee. The Committee will provide evidence of taxable contributions for taxes.

The Scholarships

All funds raised will be held in trust to be used for scholarships for disadvantaged students of Forrest County, per established guidelines.

In planning for the academic year of 2009-2010, the Committee can offer two or more scholarships of $500.00 each. The Committee has the authority to change the number and amount of scholarships based on fund-raising success in future years. The recipients will be selected by graduation day in May of each year and the awards will be announced as deemed appropriate by the Committee.

The scholarships will be awarded to students who have definitive plans to pursue post-secondary education.

Advertising

The Committee will have the responsibility to inform the public about the Scholarship Fund on a regular basis, and as part of its fund-raising activities.

FORDETRA SCHOLARSHIP

The Application and Selection Criteria

This section describes all materials to be submitted by each applicant in one complete package.

A. The application must provide information about the applicant such as

name, address, and telephone, etc.

B. Supporting Material (to help evaluate each applicant against the specific

selection criteria – i.e., career goal, financial need, community involvement,

work experience, GPA, and recommendations from others):

1. Scholarship Essay: statement of applicant's educational

educational and vocational goals.

2. Financial Need: consideration will be given to students

with the greatest financial need (a parental or guardian

statement of financial need will be required).

 

3. Statement of Community Involvement: activities at

school, church, Boy Scouts or Girl Scouts (please

have someone confirm).

 

4. Work Experience: summer, weekend or evening work

(please have someone confirm).

5. Submit a transcript (to be provided to the applicant by

the Forrest-Lamar County High Schools as an official document). A minimum 2.5 grade point average (GPA)

will be a benchmark.

6. Three references are required to provide letters of

recommendation.

To Apply

Submit an application along with the documents above to the Committee President by April 1 of the year for timely review and evaluation for the ensuing academic year.

The Application and Selection Criteria

This section describes all materials to be submitted by each applicant in one complete package.

A. The application must provide information about the applicant such as

name, address, and telephone, etc.

B. Supporting Material (to help evaluate each applicant against the specific

selection criteria – i.e., career goal, financial need, community involvement,

work experience, GPA, and recommendations from others):

3. Scholarship Essay: statement of applicant's educational

educational and vocational goals.

4. Financial Need: consideration will be given to students

with the greatest financial need (a parental or guardian

statement of financial need will be required).

 

3. Statement of Community Involvement: activities at

school, church, Boy Scouts or Girl Scouts (please

have someone confirm).

 

4. Work Experience: summer, weekend or evening work

(please have someone confirm).

5. Submit a transcript (to be provided to the applicant by

the Forrest County High Schools as an official document). A minimum 2.5 grade point average (GPA)

will be a benchmark.

6. Three references are required to provide letters of

recommendation.

To Apply

Submit an application along with the documents above to the Committee President by April 1 of the year for timely review and evaluation for the ensuing academic year.

Fordetra Reunion Scholarship Fund Application

Full Name

Address

 

Phone Number E-mail Address

Date of Birth

Father's Name

Mother's Name

If not living with parents, who is your legal guardian?

 

(To be a legal guardian, the applicant must be claimed as a dependent on the income

tax return.)

Grade Point Average (GPA)

What College, University, or Training School do you plan to attend?

 

Have you been accepted? Do you have a letter of acceptance?

What is your degree objective?

 

Please provide all of the supporting documents (attachments) requested for this application.

I have answered all questions on this application honestly and to the best of my ability. I understand that to receive any scholarship funds, I must be accepted at an accredited institution to continue my education. The deadline to submit a request for the scholarship funds is April 1 of each year. If I have not made application for scholarship by that time, I understand that I will not be considered for a scholarship.

Signature and Date

1. Scholarship Essay

Please describe for the Committee, in your own words, your educational and vocational goals, e.g., a two-year vocational training to get a certificate. This essay should be no more than 400 words.

2. Financial Need

(This page should be filled out by the parents or guardian.)

Financial need is one of many criteria that the Committee will review for this scholarship. If you feel qualified for a scholarship based on financial need, please fill out the information on this page. You may be asked to verify financial information. All information given will remain strictly confidential and will be destroyed upon completion of the evaluation of your request.

Father's Occupation

Mother's Occupation

Approximate Combined Annual Income

Number of children/dependents Ages of children

Are any other children in college or school?

How are you planning to finance the applicant's education?

Has the applicant applied for other scholarships, loans, grants, etc. or been awarded other financial aid?

If there are any other circumstances that will affect your ability to pay for your child's education, please explain:

3. Community Involvement

Please list activities that you have been involved in at school, church and in the community. Please use an outline format. Please have someone confirm.

Confirmed by

 

4. Work Experience

Please list all paid work experience that you have had. Please use an outline format, starting with your most recent job. Please include the number of hours you worked per week. Please have someone confirm.

Confirmed by

 

5. Submit a Transcript

Submit a transcript (to be provided to the applicant by the Forrest County High Schools as an official transcript). A minimum 2.5 grade point average (GPA) will be a benchmark.

6. Letters of Recommendation

Three references are required to provide letters of recommendation. These individuals could be teachers, counselors, work supervisors, pastors, etc. These letters must be submitted with the application.

Bylaws

For Fordetra Reunion Scholarship Fund Committee

(Rules and Regulations)

ARTICLE 1

OFFICE

SECTION 1. PRINCIPAL OFFICE

The principal office of the Committee shall be located in Fordetra at an address selected by the Committee.

ARTICLE 2

NONPROFIT PURPOSES

SECTION 1. SPECIFIC OBJECTIVES AND PURPOSES

The specific objectives and purposes of this Committee shall be, as noted, to help provide financial support to needy, disadvantaged students who wish to pursue educational objectives to advance their careers.

ARTICLE 3

MEMBERS

SECTION 1. NUMBER

The Committee currently has eleven volunteer members, but the number can be increased to involve new volunteers.

SECTION 2. QUALIFICATIONS

The only qualification is the strong desire to work to help to provide financial support to aspiring disadvantaged students.

SECTION 3. POWERS

The members shall have sole power to engage in any and all lawful activities to ascertain the Committee's mission.

SECTION 4. DUTIES

It shall be the duty of the members to:

(a) Perform any and all duties imposed on them collectively or individually by these Bylaws;

(b) Remove members and officers for non-performance or activities that jeopardize the effective attainment of the Committee's mission, and prescribe the duties of all officers;

(c ) Meet at such times and places as required by these Bylaws;

(d) Develop:

(1) revise the application form and supporting documents as needed;

(2) the procedures to invite applications from candidates (announcements

in churches – develop the first three pages of the mission statement

into a brochure);

(3) how to review applications and supporting documents (use the

selection criteria set forth in the mission statement);

(4) how to obtain transcripts from Forrest County High Schools (require

each applicant to obtain an official transcript and submit it in the

application package);

(5) how to reach decisions on candidates (openly discuss each candidate

against the selection criteria); and

(6) how to communicate decisions to parents and students, and to Forrest

County High Schools (preferably in a form letter from the Committee);

(e) Develop ways to fund-raise:

(1) have ministers appeal to their congregations;

(2) visit or send letters to local businesses; and

(3) sponsor special events, cook-outs, raffles, etc.

(f) Register their addresses with the Secretary of the Committee, and notices of meetings shall be mailed, faxed or telephoned to them at such addresses.

SECTION 5. TERM OF OFFICE

Each member shall serve on the Committee as long as desired, except as required under item (b) above.

SECTION 6. COMPENSATION

Members shall serve without compensation.

ARTICLE 4

MEETINGS

SECTION 1. TIME AND PLACE OF MEETINGS (REGULAR AND SPECIAL MEETINGS)

Meetings shall be held at a church, school, or other location, designated by the members as the most convenient place, and at a regular time, or special time, as specified by the members.

SECTION 2. NOTICE OF MEETINGS

At least one week prior notice shall be given by the Secretary of the Committee to each member of each regular and special meeting of the Committee. Such notice may be oral or written, may be given personally, by first class mail, by telephone, or by facsimile machine, and shall state the place, date and time of the meeting and the matters proposed to be discussed or acted upon at the meeting. In the case of facsimile notification, the member to be contacted shall acknowledge personal receipt of the facsimile notice by a return message or telephone call within twenty-four hours of the first facsimile transmission. In the case of notices by telephone, the Secretary will ensure direct contact with each member to avoid messages not being delivered.

SECTION 3. QUORUM FOR MEETINGS

A quorum shall consist of 6 (six) of the members of the Committee. Each member shall be required to inform the Secretary of availability for each meeting.

 

Except as otherwise provided under these bylaws, no business shall be considered by the Committee at any meeting at which the required quorum is not present, and the only motion which the chair shall entertain at such meeting is a motion to adjourn.

SECTION 4. MAJORITY ACTION AS COMMITTEE ACTION

Every act or decision done or made by a majority of the members present at a meeting duly held at which a quorum is present is the action of the full Committee.

SECTION 5. CONDUCT OF MEETINGS

Meetings of the members shall be presided over by the President or, in the absence of the President, by the Vice President. The Secretary shall act as Secretary of all meetings, provided that, in the absence of the Secretary, the presiding officer shall appoint another person to act as Secretary of the meeting.

Meetings shall be governed by Robert's Rules of Order, insofar as such rules are not inconsistent with these Bylaws.

ARTICLE 5

OFFICERS

SECTION 1. DESIGNATION OF OFFICERS

The officers of the Committee shall be a President, a Vice President, a Secretary, and a Treasurer.

SECTION 2. QUALIFICATIONS

Any person may serve as an officer of this Committee.

SECTION 3. ELECTION AND TERM OF OFFICE

Officers shall be elected by the members, and each officer shall hold office until that officer resigns or is removed or is otherwise disqualified to serve.

SECTION 4. REMOVAL AND RESIGNATION

Any officer may be removed with cause, by the members, at any time. Any officer may resign at any time by giving written notice to the President or Secretary of the Committee. Any such resignation shall take effect at the date of receipt of such notice or at any later date specified therein, and, unless otherwise specified therein, the

acceptance of such resignation shall not be necessary to make it effective.

SECTION 5. VACANCIES

Any vacancy caused by the death, resignation, removal, disqualification, or otherwise, of any officer shall be filled by the members. Any vacancy shall be filled promptly by election by the members.

SECTION 6. DUTIES OF PRESIDENT

The President shall be the chief executive officer of the Committee and shall supervise and control the affairs of the Committee and the activities of the officers as required by these Bylaws. The President shall preside at all meetings of the Committee. The President shall approve and sign all legal and financial documents (checks or other instruments).

The President, with the consent of the members, shall appoint special committees as necessary.

SECTION 7. DUTIES OF VICE PRESIDENT

In the absence of the President, or in the event of his or her inability or refusal to act, the Vice President shall perform all the duties of the President, and when so acting shall have all the powers of, and be subject to all the restrictions on, the President.

SECTION 8. DUTIES OF SECRETARY

The Secretary shall:

Certify and keep the original, or a copy, of these Bylaws as amended or otherwise altered to date.

Keep a book of minutes of all meetings of the members, and meetings of special committees.

See that all notices are duly given in accordance with the provisions of these Bylaws.

Be custodian of the records and duly executed documents of the Committee.

Keep a membership book containing the name and address of each and any member, and, in the case where any membership has been terminated, he or she shall record such fact in the membership book together with the date on which such membership ceased.

Be able to provide at all reasonable times, the Bylaws, the membership book, and the minutes of the proceedings of the Committee.

In general, perform all duties incident to the office of Secretary by these Bylaws, or which may be assigned to the Secretary from time to time by the members.

SECTION 9. DUTIES OF TREASURER

The Treasurer shall:

Have charge and custody of, and be responsible for, all funds of the Committee, and deposit all such funds in the name of the Committee in such banks, or other depositories as shall be selected by the members.

Receive, and give receipt for, monies contributed to the Scholarship Fund.

Disburse, or cause to be disbursed, the monies of the Scholarship Fund as may be directed by the members, making proper notation for such disbursement.

Keep and maintain adequate and correct accounts of the Scholarship Fund

monies.

Exhibit at all reasonable times the books of account and financial records to any member or officer.

Prepare, or cause to be prepared, and certify, or cause to be certified, the financial statements to be included in any required reports.

In general, perform all duties incident to the office of Treasurer and such other duties which may be assigned by the members and the officers.

SECTION 10. COMPENSATION

All officers (and all other Committee members) shall serve without compensation.

ARTICLE 6

EXECUTION OF INSTRUMENTS, DEPOSITS AND FUNDS

SECTION 1. CHECKS AND NOTES

Except as otherwise specifically determined by resolution of the Committee, checks, drafts, promissory notes, and orders for the payment of money, shall be signed by the Treasurer and countersigned by the President of the Committee.

SECTION 2. DEPOSITS

All monies of the Scholarship Fund shall be deposited in a timely manner in such banks, or other depositories as the Committee members may select.

SECTION 3. GIFTS

The Committee may accept any contribution, gift, bequest, or devise for the charitable purposes of this Committee.

ARTICLE 7

PROHIBITIONS

SECTION 1. PROHIBITION AGAINST PRIVATE INUREMENT

No part of the monies of the Scholarship Fund shall inure to the benefit of the Committee members, officers, or other private persons, e.g., such as a loan. No receipts or disbursements of money shall be made without the full knowledge of each Committee member.

In the event, at some future time, that the Committee is dissolved, for any reason, all remaining funds in the Scholarship Fund shall be awarded by the Fordetra Reunion to an educational institution within Forrest County.

SECTION 2. PROHIBITION AGAINST DISCUSSING OUTSIDE THE

COMMITTEE ANY DELIBERATIONS OR DECISIONS

No Committee member shall reveal the deliberations or decisions of the Committee to any outside source, until such time the Committee in full decides to announce its decisions.

ARTICLE 8

SECTION 1. LEGAL STATUS OF FORDETRA REUNION SCHOLARSHIP FUND AND COMMITTEE

This section contains vital information from Internal Revenue Service (IRS) publications. This section provides a summary and Appendix A provides detailed excerpts from these publications. Although these excerpts may seem redundant, they are included to demonstrate the sincere desire of the Fordetra Reunion Scholarship Fund Committee to comply fully with the rules and regulations of the IRS.

The central purpose is to document for any reader (or investigator) clear justification for this section of the Bylaws. In summary: Fordetra Reunion Scholarship Fund is a qualified “tax exempt” organization with the legal capacity to receive “charitable deductible contributions.” The Fund supports educational efforts for disadvantaged youth and because it expects annual receipts of less than $5,000, it is automatically exempt by the IRS and does not need to apply for tax exempt status using Form 1023.

All the documents referred to herein can be found and reviewed at http://www.irs.gov. The present survey of the site was conducted during October 2009. Consultations were also conducted with the legal profession.

SECTION 2. FUTURE CHANGES

The Committee will continually review IRS regulation changes, as well as interpretations of existing regulations that impact the organization, and make changes to insure compliance.

ARTICLE 9

AMENDMENT OF BYLAWS

SECTION 1. AMENDMENT

These Bylaws, or any of them, may be altered, amended, or repealed and new Bylaws adopted by approval of the Committee members.

ADOPTION OF BYLAWS

We, the undersigned, are all of the initial Committee members, and we consent

to, and hereby do, adopt the foregoing Bylaws.

Dated:

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX A

Excerpts from IRS publications

1. IRS Publication 557, “Tax-Exempt Status for Your Organization”

Page 16

Chapter 3 – Section 501 (c ) (3) Organizations, Introduction. An organization may qualify for exemption from federal income tax if it is organized and operated exclusively for one or more of the following purposes:

• Charitable,

• Religious,

• Educational,

• Scientific,

• Literary,

• Testing for public safety,

• Fostering national or international amateur sports competition (but only if none of its activities involve providing athletic facilities or equipment; however see Amateur Athletic Organization,s later in this chapter), or

• The prevention of cruelty to children or animals.

To qualify, the organization must be a corporation, community chest, fund, or foundation. A trust is a fund or foundation and will qualify. However, an individual or a partnership will not qualify.

Examples. Qualifying organizations include:

 Nonprofit old-age homes,

 Parent-teacher associations,

 Charitable hospitals or other charitable organizations,

 Alumni associations,

 Schools,

 Chapters of the Red Cross or Salvation Army,

 Boys' or Girls Clubs, and

 Churches.

Contributions

Contributions to domestic organizations described in this chapter, except organizations testing for public safety, are deductible as charitable contributions on the donor's federal income tax return.

Page 17: Application for Recognition for Exemption

This discussion describes certain information to be provided upon application for recognition of exemption by all organizations created for any of the purposes described earlier in this chapter. For example, the application must include a conformed copy of the organization's articles of incorporation, as discussed under Articles of Organization later in this chapter. See the organization headings that follow for specific information your organization may need to provide.

Form 1023. Your organization must file its application for recognition of exemption on Form 1023. See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. Some organizations are not required to file Form 1023. These are discussed later in this section.

Page 18: Organizations Not Required to File Form 1023

Some organizations are not required to file Form 1023. These include:

 Churches, interchurch organizations of local units of a church, conventions or associations of churches, or integrated auxiliaries of a church, such as a men's or women's organization, religious school, mission society, or youth group.

 Any organization (other than a private foundation) normally having annual gross receipts of not more than $5,000 (see Gross receipts test, later).

These organizations are exempt automatically if they meet the requirements of section 501 (c ) (3).

Filing Form 1023 to establish exemption. If the organization wants to establish its exemption with the IRS and receive a ruling or determination letter recognizing its exempt status, it should file Form 1023. By establishing its exemption, potential contributors are assured by the IRS that contributions are deductible. A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself.

Page 24: Other Section 501 (c ) (3) Organizations

In addition to the information required for all organizations, as described earlier, you should include any other information described in this section.

Charitable Organizations

If your organization is applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest. Some examples of this type of organization are those organized for:

- Relief of the poor, the distressed, or the under-privileged,

- Advancement of religion,

- Advancement of education or science,

 - Erection or maintenance of public buildings, monuments, or works,

 - Lessening the burdens of government,

 - Lessening of neighborhood tensions,

 - Elimination of prejudice and discrimination,

 - Defense of human and civil rights secured by law, and

 - Combating community deterioration and juvenile delinquency.

The rest of this section contains a description of the information to be provided by certain specific organizations. This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. Each of the following organizations must submit the information described.

Charitable organization supporting education. Submit information showing how your organization supports education – for example, contributes to an existing educational institution, endows a professorial chair, contributes toward paying teachers' salaries, or contributes to an educational institution to enable it to carry on research.

Scholarships. If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. Submit the following also.

1) Criteria use for selecting recipients, including the rules of eligibility.

2) How and by whom the recipients are or will be selected.

3) If awards are or will be made directly to individuals, whether information is

required assuring that the student remains in school.

4) If awards are or will be made to recipients of a particular class, for example,

children of employees of a particular employer: a) Whether any preference is or

will be accorded an applicant by reason of the parent's position, length of

employment, or salary, b) Whether as a condition of the award the recipient must

upon graduation accept employment with the company, and c) Whether the award

will be continued even if the parent's employment ends.

5) A copy of the scholarship application form and any brochures or literature

describing the scholarship program.

2. IRS Publication 526, “Charitable Contributions”

Page 17: Application for Recognition of Exemption

This discussion describes certain information to be provided upon application for recognition of exemption by all organizations created for any of the purposes described earlier in this chapter. For example, the application must include a conformed copy of the organization's articles of incorporation, as discussed under Articles of Organization later in this chapter. See the organization headings that follow for specific information your organization may need to provide.

Form 1023. Your organization must file its application for recognition of exemption on Form 1023. See chapter 1 and the instructions accompanying Form 1023 for the procedures to follow in applying. Some organizations are not required to file Form 1023. These are discussed later in this section.

Page 18: Organizations Not Required to File Form 1023

Some organizations are not required to file Form 1023. These include:

 Churches, interchurch organizations or local units of a church, conventions

or associations of churches, or integrated auxiliaries of a church, such as a

men's or women's organization, religious school, mission society, or youth

group.

 Any organization (other than a private foundation) normally having annual

gross receipts of not more than $5,000 (see Gross receipts test, later).

These organizations are exempt automatically if they meet the requirements of section 501 (c ) (3).

Filing Form 1023 to establish exemption. If the organization wants to establish its exemption with the IRS and receive a ruling or determination letter recognizing its exempt status, it should file Form 1023. By establishing its exemption, potential contributors are assured by the IRS that contributions will be deductible. A subordinate organization (other than a private foundation) covered by a group exemption letter does not have to submit a Form 1023 for itself.

Page 24: Other Section 501 (c ) (3) Organizations

In addition to the information required for all organizations, as described earlier, you should include any other information described in this section.

Charitable Organizations

If your organization is applying for recognition of exemption as a charitable organization, it must show that it is organized and operated for purposes that are beneficial to the public interest. Some examples of this type of organization are those organized for:

 Relief of the poor, the distressed, or the under-privileged.

 Advancement of religion,

 Advancement of education or science,

 Erection or maintenance of public buildings, monuments, or works,

 Lessening the burdens of government,

 Lessening of neighborhood tensions.

 Elimination of prejudice and discrimination,

 Defense of human and civil rights secured by law, and

 Combating community deterioration and juvenile delinquency.

The rest of this section contains a description of the information to be provided by

certain specific organizations. This information is in addition to the required inclusions described in chapter 1, and other statements requested on Form 1023. Each of the following organizations must submit the information described.

Charitable organization supporting education. Submit information showing how your organization supports education – for example, contributes to an existing educational institution, endows a professorial chair, contributes toward paying teachers' salaries, or contributes to an educational institution to enable it to carry on research.

Scholarships. If the organization awards or plans to award scholarships, complete Schedule H of Form 1023. Submit the following also.

1) Criteria use for selecting recipients, including the rules of eligibility.

2) How and by whom the recipients are or will be selected.

3) If awards are or will be made directly to individuals, whether information is

required assuring that the student remains in school.

4) If awards are or will be made to recipients of a particular class, for example,

children of employees of a particular employer: a) Whether any preference is or

will be accorded an applicant by reason of the parent's position, length of

employment, or salary, b) Whether as a condition of the award the recipient must

upon graduation accept employment with the company, and c) Whether the award

will be continued even if the parent's employment ends.

5) A copy of the scholarship application form and any brochures or literature

describing the scholarship program.

2. IRS Publication 526, “Charitable Contributions”

Page 2: Organizations That Qualify To Receive Deductible Contributions

You can deduct your contributions only if you make them to a qualified organization.

To become a qualified organization, most organizations other than churches and governments, as described below, must apply to the IRS.

Overview of Section 501 (c ) (3) Organizations: Who Is Eligible for Section 501 (c )

(3) Status?

Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals are eligible to file Form 1023 to obtain recognition of exemption from federal income tax under section 501 (c ) (3) of the Internal Revenue Code.

Form 1023 not necessary. The following types of organizations may be considered tax exempt under section 501 (c ) (3) even if they do not file Form 1023.

 Churches, including synagogues, temples, and mosques.

 Integrated auxiliaries of churches and conventions or associations of churches.

 Any organization that has gross receipts in each taxable year of normally not

more than $5,000.

Even though the above organizations are not required to file Form 1023 to be tax exempt, these organizations may choose to file Form 1023 in order to receive a determination letter that recognizes their section 501 (c ) (3) status and specifies whether contributions to them are tax deductible.

Qualification of a Section 501 (c ) (3) Organization

There are two key requirements for an organization to be exempt from federal income tax under section 501 (c ) (3). A 501 (c ) (3) organization must be organized and operated exclusively for one or more exempt purposes.

Organized. An organization must be organized as a corporation (including a limited liability company), trust, or unincorporated association. The organizing document articles of incorporation if you are a corporation, articles of organization if you are a limited liability company, articles of association or constitution if you are an association, or trust agreement or declaration of trust if you are a trust must limit the organization's purpose(s) and permanently dedicate its assets to exempt purposes.

Operated. An organization must be operated to further one or more of the exempt purposes stated in its organizing document. Certain other activities are prohibited or restricted, including, but not limited to, the following activities. A 501 (c ) (3) organization must:

a. Absolutely refrain from participating in the political campaigns of candidates for local, state, or federal office.

b. Absolutely ensure that its assets and earnings do not unjustly enrich board members, officers, key management employees, or other insiders.

c. Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially.

d. Not operate for the primary purpose of conducting a trade or business that is not related to its exempt purpose(s).

e. Not engage in activities that are illegal or violate fundamental public policy.

f. Restrict its legislative activities.


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