TractorByNet Scholarship

[Tim Stuart]

Folks, this week I have been doing a lot of thinking as I have my middle daughter about to Graduate High School on June 4, 2009. My youngest daughter will be a senior in High school next year. So I have two children that will be in College at the same time. I have always preached to my children since birth a High School Education is not enough to depend on to make it in life. I have been blessed with a great job and I have made sure that I have enough money put aside to pay for my children's college education. So that being said I am not looking for money for my children. But it got me thinking about other families that may not be as fortunate as mine. I am also sure that in today's economic times it has even gotten worst on families that are trying to pay for college educations. The cost of a college 4 year education at a State University in Texas is in the nieborhood of 30 K(instate tuition). I am sure that that varies from State to State.

I got to thinking about this great website where we all share knowledge. To the Owner of the website I am sure it is a business, but to the rest of us it is a place to make friends and share knowledge. I also got to thinking how great it would be if this website that shares knowledge could be taken to the next level by starting a scholarship fund. I do not have all the details on how it should work. That is why I am just throwing it out there in hoping the great minds of this site could expand on the ideal and develop it into a practical and viable thing. I am sure with our vast diversity of people here that has got to be some Attorneys that could help with the legalities of the issue and help set it up. I think that there could be some sort of elected committee that could over see the funds and distribution of the funding. I also think that the funds should go to promote a Rural lifestyle (ie; Agriculture degree , Veterinarian) . I also think that maybe the scholarship so only go to children of TBN members that posted x-amount of postings proving that they are active members of this website. I know that there are power in numbers. This website has 60,000 members if each member reaches in their wallet or purse and donates $5 that would equal to $300,000 witch could pay for 10 kids a year full 4 year college education. To me that would be the Ultimate sharing of knowledge !!!! As stated I do not know exactly how this should work that is why I think there should be some sort of committee to develop this.

The knowledge I take from this site is by far more that I can give.

I will pledge the first C-note to the fund.

Regards,

Tim

If the moderators feel this posting is inappropriate please delete

 

[972500]

well im in school right now for a diesel/ag degree so i completly know what your saying... ill dontate the second c-note, im not sure what to do other than that
Hope this works
Mark

 

[firefighter9208]

Sounds like a great idea, but would be much harder than you think.

Here are some of the steps involved:
1. Set up a foundation with a board of directors and bylaws.
2. Incorporate the foundation (lawyer fees etc...)
3. Hire someone to run the foundation.
4. File 501(c) (3) papers with the IRS (more lawyers fees etc...) Wait 6-8 months for the IRS to determine if it's a legitimate non-profit cause.
5. We've been working on our 501 (c) (3) for our volunteer fire department for six months. It has cost us about $2000.00 in fees and many hours of man labor. We still have to submit our paperwork, along with a $750.00 check to the IRS.

I hate to throw a dart at your balloon, but that would be a lot to ask of anyone.


Congratulations on your daughter reaching this milestone in her life. My daughter just graduated Kindergarten today. I can imagine how you feel.

Chris

 

[Cat_Driver]

...We've been working on our 501 (c) (3) for our volunteer fire department for six months. It has cost us about $2000.00

Why does it have to be a 501C, why can't it just be a bunch of good ole boys tossing in a few buck and not worrying about the tax wright-off.

I know every time I hand a homeless guy $20.00 I don't want a receipt and a tax wright off, I just want to help the guy.

No I don't think it has to be all that complicated. Sure you need someone to trust with the funds, but some bank may manage that for free.

Now who gets the money? well like he said based on the number of posts that allows you voting privileges. The kids that want the funds can post essays and community service etc. here or somewhere else on the net, like my space, or you tube, then we ( who have donated ONLY ) can vote for who we feel deserves the funds.

There's plenty of online polling software where we can vote for the student and it's all done from our computers and we only vote once and get locked out.

I don't think we all need to make this complicated.

I'll do $100.00, and no I don't need the tax write-off.

 

[firefighter9208]

Why does it have to be a 501C, why can't it just be a bunch of good ole boys tossing in a few buck and not worrying about the tax wright-off.

I know every time I hand a homeless guy $20.00 I don't want a receipt and a tax wright off, I just want to help the guy.

No I don't think it has to be all that complicated. Sure you need someone to trust with the funds, but some bank may manage that for free.

Now who gets the money? well like he said based on the number of posts that allows you voting privileges. The kids that want the funds can post essays and community service etc. here or somewhere else on the net, like my space, or you tube, then we ( who have donated ONLY ) can vote for who we feel deserves the funds.

There's plenty of online polling software where we can vote for the student and it's all done from our computers and we only vote once and get locked out.

I don't think we all need to make this complicated.

I'll do $100.00, and no I don't need the tax write-off.

501 (c) (3) status doesn't just allow for a tax write-off. It also protects the organization from tax penalty by the IRS.

For Example: TBN sets up a scholarship foundation and receives $25,000 the first year. The IRS requires Mohammad to claim that as income unless the TBN scholarship foundation (that oversees the scholarship) has been deemed a 501 (c) (3) by the IRS.

Believe me, When I spoke to the IRS about our Volunteer Fire Department (that has been operating since 1984) the woman had me scared to death. She basically said that since we hadn't been reporting the income that we had been receiving over the past 25 years and would be liable for back taxes and penalties. Good thing was I hadn't told her who I was, so I quickly hung up. The next week we started the Incorporation and 501 (c) (3) process.

One department in our county got a bill from the IRS for over $250,000 in back taxes and penalties. Basically, someone claimed the $100.00 donation they had given as a deduction. Unless the organization is a 501 (c) (3) that is not a ligitimate deduction. The IRS got to checking and went over the departments records and charged them for back taxes and penalties for the 20+ years they had been in existence. The chief of the department made a call to our U.S. Senator and the Senator got it straightened out so they didn't have to pay the IRS, but they quickly became a 501 (c) (3).

Even if you are a 501 (c) (3) you still have to report all income and expenditures each year. There is a special form you fill out.

Chris

 

[dooleysm]

My college fraternity started a scholarship at our school in memory of a guy that died when I was a freshman. For about 10 years I collected money, helped with the voting/selection, and presented the award. A couple of years ago we got more serious and worked with the school. They required a minimum of $50k to get it started. Once we came up with that, they took over. Now everyone that donates to the scholarship fund gets the tax write off, and the school gets to have the fun of managing the funds. They guarantee a 5% return and anything over that gets rolled back into the fund. With some careful crafting of the scholarship charter, we made it so that the fraternity picks the recipient based on some vague parameters.

So what I'm saying is, if this gets going (and I'm all for it), it might be worth considering tieing the scholarship to a particular school. I can recommend one that I know with work with the group, but any school would be fine with me. Maybe make a competition and the school with the most money pledged gets to be the school we fund for a scholarship.

Just my thoughts from recently going through a similar situation.

 

[scott_vt]

Sounds like a great idea, but would be much harder than you think.

4. File 501(c) (3) papers with the IRS (more lawyers fees etc...) Wait 6-8 months for the IRS to determine if it's a legitimate non-profit cause.
5. We've been working on our 501 (c) (3) for our volunteer fire department for six months. It has cost us about $2000.00 in fees and many hours of man labor. We still have to submit our paperwork, along with a $750.00 check to the IRS.

.

Chris

Good Afternoon Chris,
I hate to throw gas on a fire , but yes you are soooo right about the 501c..... that task alone is like climbing Mt Everest ! Our volunteer company has been trying unsucsesfully to obtain that for quite some time !

 

[firefighter9208]

Scott,

You are right about the 501c3 . We have been using an online service (Legalzoom.com) to do the paperwork for us. Basically you fill out a questionaire, supply them with all the information, and they fill out the forms for you. You then submit the application to the IRS. It took about 4 weeks to get Incorporated using this service, but much longer to get the 501c3.

Running the scholarship through a school would be a good idea. Schools have a much easier time getting approved as a 501c3.

Chris

 

[Uncle Doug]

I currently serve on the state board of a 501c3 adult ag ed group. Our group(s) raise funds and provide scholarships on the state, area and local chapter level.

I think scholarships are a great idea. Todays youth heading into a agriculture field need all the help we can give them. While a 501c3 is not necessary it could be useful on down the road, not only for the tax advantages but the open records act which also applies to all 501c3 groups.

The two biggest area of concern among members is an accurate accountability of funds and a fair selection process. Fund raising is the easy part, accountability is the hard part.

 

[dmccarty]

Kinda related....

When Ben Franklin died his will setup two trusts. One was for the state of MASS and the city of Boston. The other was for the state of PENN and the city of Philadelphia. Each trust was seeded with 1,000 pounds. The trusts were to be used to provide low interest loans, 5%, so that tradesman, like Franklin had been, could start up in business.

There were two time periods mentioned in the will. At the end of *** 100 *** years, yes 100 years, a portion of the money from the trusts were to be removed and split 75/25 between the state/city. After 100 years I think Franklin figured the 1,000 pounds would have been worth one or two million pounds. Philadelphia used their money to create a trade school. I have no idea how the other states and Boston used their money.

The second time period ended the trust. After *** 200 *** years the money would be given with the same split to the state/city. After 200 years, , Franklin ciphered that the trust should have been worth around 4 million pounds. The trust in MASS was at 4.5 million while the PENN one was not well managed and was at 2.25/2.5 million. Philadelphia used their split to continue to fund the trade school that was created after the first 100 years.

He was well of aware that the money might disappear. He was also concerned if the republic would still exist.

I thought this was very interesting from a very intelligent and interesting man.

Later,
Dan