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  • 1.  Scholarship Criteria with a donor requirement

    Posted 02-18-2024 01:07 PM

    A donor proposed the following criteria. If our alumni department could vet these criteria points, are there any concerns with a donation being part of the requirement for 2/3 of the options (lifetime member is a paid designation as is current donor status)?

    Recipients must have a parent, grandparent, aunt, uncle, or legal guardian who is an alumna/alumnus of xxxx. The alumna/alumnus must also be one of the following: 
    - lifetime member of xxxx Alumni 
    - current volunteer at xxxx 
    - current donor (within the current fiscal year) of any amount to any area of xxxx 



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    Jayme Fancher
    San Diego State University
    jfancher@sdsu.edu
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  • 2.  RE: Scholarship Criteria with a donor requirement

    Posted 02-18-2024 01:17 PM
    I feel confident in saying that these restrictions violate IRS requirements for a suitable size of charitable class. These exclusions are also precisely what have gotten many institutions in trouble on the Admissions side of things.

    You must check with Counsel, but here's what the IRS states about benefiting classes:

    "A charitable class is a group of individuals that may properly receive assistance from a charitable organization. A charitable class must be either large enough that the potential beneficiaries cannot be individually identified, or sufficiently indefinite that the community as a whole, rather than a pre-selected group of people, benefits when a charity provides assistance. For example, a charitable class could consist of all individuals located in a city, county, or state. This charitable class is large and benefits to it benefit the entire geographic community."

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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