Hi all
For context, we are an independent 501(c)(3) organization that supports up to six affiliate colleges and universities, each with its own EIN and 501(c)(3) status. To optimize costs, we share resources across all institutions, but each entity maintains its own bank accounts, and funds are not commingled.
We (the parent organization) received an estate donation, which was used to establish a board-designated endowment. The earnings from this endowment will support scholarships at each affiliate institution. Each institution will set its own scholarship criteria, solicit applications, and select a recipient. To fund the scholarships, we will transfer money from the parent organization to the respective affiliate colleges/universities.
Would these transfers be considered donations from the parent organization to each affiliate school, or would they be classified as straightforward fund transfers, allowing the recipient schools to treat them as outside scholarships with no "donation" aspect? Thanks for your insights!
Also, if there are any other organizations that are structured in this way, I would love the ability to connect and discuss how you handle other things, such as database management, department structure, etc.
Thanks,
Anna
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Anna Simons
The Community Solution Education System
asimons@tcsedsystem.edu------------------------------