FundSvcs Community

 View Only

  • 1.  Every time I think I've pretty much seen it all - financial incentives to complete bachelors

    Posted 10-03-2023 01:42 PM
    Good afternoon, AS Pro Colleagues;

    In the course of a recent talk at a satellite campus where the primary focus is serving the needs of under-represented communities, we've just been informed of a statement made by a well-intentioned donor. He announced that he wanted to inspire the students there to complete their studies by setting aside $50K so that any who completed their studies could get a portion (with interest) at the time they achieve their bachelors. As you might imagine, this was completely off the cuff and in no way discussed with any CUA reps and now we're now being asked if there is any way at all for CUA to be part of this donor's vision. 

    Honestly, while I would like to say there is a path, right now I can't imagine what that would be. This isn't a scholarship, it is more like when parents offer kids a bonus in their allowance for doing something good. It is truly difficult for me to see how this might translate as a gift to our institution with expectations that we would not only invest and accrue interest on the revenue but then be responsible for tracking and disbursing funds at some future date to a decidedly limited student population. 

    Any and ALL thoughts about how to wrangle this one are much appreciated. I'm going to pause now to intake a few more ibuprofen...  

    -Amy

    Amy J. Phillips
    Director of Advancement Services, Gift Acceptance
    Division of University Advancement
    The Catholic University of America
    620 Michigan Avenue, USCCB 166
    Washington, DC 20064
    Phone: 202-319-6919


  • 2.  RE: Every time I think I've pretty much seen it all - financial incentives to complete bachelors

    Posted 10-03-2023 05:41 PM
    Giving a prize in recognition of past achievements is a permissible use of charitable funds, if the prize aligns with a nonprofit's mission. Graduation prizes are common at many campuses, though they are usually for a graduating student with some other specific achievement. A prize for completing a degree within some number of years seems like it could be plausible. If CUA developed a prize, funding for this prize would qualify as a charitable gift. However, I would certainly want counsel involved, since there are lots of potential gotchas around structuring something like this. Note that this prize money is subject to income tax, and the income might disqualify recipients from receiving some means-tested benefits.

    As an alternative, move the whole thing back a year -- have the donor provide scholarships for students on track to graduate within the next year - a 'finish strong' gift. That's going to be much easier to administer, and meets students at their point of need, when they still have a tuition bill to pay, not after they graduate, have no tuition, and can generally earn a greater income than the previous year. 

    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


  • 3.  RE: Every time I think I've pretty much seen it all - financial incentives to complete bachelors

    Posted 10-04-2023 09:26 AM
    Thanks for your feedback, Isaac. The more I think about this the less I'm able to legitimately see this as a gift. The donor announced that he would set aside this money and that it would be disbursed to a specific set of students pending their completion of a degree program. 

    I'm still open to suggestions if anybody else would like to chime in with creative ways to potentially approach resolving this donor variation on student support...  ��

    -Amy






    Original Message


  • 4.  RE: Every time I think I've pretty much seen it all - financial incentives to complete bachelors

    Posted 10-04-2023 09:35 AM
    Given the "specific set" scenario, this would clearly not be a gift per IRS Publication 526. There, it states a gift cannot be set aside for the benefit of specific individuals.

    I also believe the narrow nature of these payments would violate the IRS requirements pertaining to the size of a charitable class.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 5.  RE: Every time I think I've pretty much seen it all - financial incentives to complete bachelors

    Posted 12-18-2023 01:35 PM

    Hi Amy,

    It looks like you've successfully stumped the gallery on this one. :)

     

    Not really a close fit but one thing that comes to mind is if a donor has a heart for the underserved, maybe set up a fund for stipends for unpaid/low paid internships. Students from underserved communities may not have connections to get more lucrative opportunities. It would allow them to get some experience without having to also hold down a paid job. It is not the same as a cash reward for finishing but internships tend to be toward the end of a students undergraduate academic career so at least there's incentive to get to that point.

     

    Again, it's a stretch from what the donor is asking but, unlike their raw request which wouldn't qualify as charitable, it could be done.

     

    Good luck with this one!

     

    John Smilde

    Director of Gifts and Records Administration

    Advancement and Alumni Relations

    George Mason University

    4400 University Drive, MSN 1A3

    Fairfax, VA 22030

    703.993.8680

    jsmilde@gmu.edu

     

    This electronic message contains confidential information which is, in whole or in part,

    subject to exclusion from disclosure under the Freedom of Information Act pursuant to

    §2.2-3705.4.7. of the Code of Virginia.

     

     

     




    Original Message


Related Content