Donor Terms and Conditions
Thank you for seeking to make a gift to The Scholarship Money Foundation.
Acceptance of Gifts
The Scholarship Money Foundation accepts gifts from individuals, companies, and other tax-exempt foundations to secure the future growth and mission of the Scholarship Money Foundation. These Terms & Conditions govern the acceptance of gifts by the Scholarship Money Foundation and provide guidelines to prospective donors and their advisors when making gifts to the Scholarship Money Foundation. The provisions of these Terms & Conditions shall apply to all gifts received by the Scholarship Money Foundation but may change from time to time to best meet the needs of the Scholarship Money Foundation.
The Scholarship Money Foundation will at all times use best efforts to implement the written philanthropic goals of its donors. The Scholarship Money Foundation strongly urges all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. It will be the responsibility of the donor to secure an appraisal (where required) for all gifts made to the Scholarship Money Foundation.
Purpose of Gifts
The Scholarship Money Foundation will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes, and priorities or with any applicable laws or public policy. The Scholarship Money Foundation will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the terms of the Scholarship Money Foundation’s corporate Articles of Incorporation or tax-exempt status, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the Scholarship Money Foundation. Any gifts not specifically restricted or designated by the donor will be considered unrestricted and will be utilized in the areas of greatest need as determined by the Scholarship Money Foundation.
The Scholarship Money Foundation reserves the right to decline any gift or grant.
Valuation and Acknowledgment of Gifts
The Scholarship Money Foundation will record a gift received at its valuation for gift purposes on the date of gift. The Scholarship Money Foundation will acknowledge all gifts made to the Scholarship Money Foundation and comply with the current IRS requirements in acknowledgment of such gifts by providing a receipt to the donor listed by email, after the donation is processed.
For gifts designated as scholarship funds, the Scholarship Money Foundation will collaborate with donors to create a customized scholarship based on the donor’s philanthropic goals and priorities. Donors may be asked to review and consent to a written agreement addressing the management, investment, and expenditure of funds, and the circumstances permitting alteration of purpose for which funds are to be used.
Eligibility and Selection for Scholarships
Because of the Scholarship Money Foundation’s status as a tax-exempt private foundation, the Scholarship Money Foundation is required to award its scholarships on an objective and non-discriminatory basis. The officers, managers, and directors of the Scholarship Money Foundation are not eligible to receive a scholarship; substantial contributors to the Scholarship Money Foundation are not eligible to receive a scholarship; the members of the selection committee are not eligible to receive a scholarship; and family members of any of the foregoing categories are not eligible to receive a scholarship.
Furthermore, the Scholarship Money Foundation recognizes that, sometimes a scholarship applicant will have no formal connection with any persons who are ineligible to receive a scholarship as set forth in this section, but may have a personal connection with one or more of those persons. In that case, there might be the perception of a conflict of interest or an inappropriate selection process if such applicant were selected to receive a scholarship. The Scholarship Money Foundation reserves the right for its selection committee to consider and base its decisions, in part or in whole, on avoiding any public perception of wrongdoing in the interest of avoiding damage to the reputation of the Scholarship Money Foundation.
Selection Committee Membership
For scholarship funds to be awarded by a selection committee, the Scholarship Money Foundation will appoint annually all of the members of the selection committee, whose members may vary on a scholarship-to-scholarship basis. The donor, or a party related to the donor, may serve or suggest other individuals to serve as members of the selection committee, but the Scholarship Money Foundation will retain the right to accept or reject any suggestions.
Neither the donor nor any parties related to the donor may control the selection committee, directly or indirectly. Thus, while a donor may participate in the selection process and may make recommendations that the section committee takes into consideration, the ultimate selection of recipients must be controlled by the Scholarship Money Foundation.
Related parties include relatives and employees of the donor and may also include independent contractors of the donor (such as the donor’s attorney). When a scholarship is established by a corporation, the corporate employees may be considered “related” and therefore should not form a majority of the selection committee. If any employer-sponsored scholarship limits the eligible applicants to employees or children of employees, or gives any preference or priority to employees or children of employees, then no corporate employees would be permitted to serve on the selection committee.
Use of Scholarship Funds
Upon the award of scholarships, the recipients may use such funds for tuition or fees to enroll at or attend an educational institution, repayment of student loans for such purposes, and course-related educational expenses such as fees or the purchase of textbooks, supplies, or equipment that are required. The Scholarship Money Foundation will work to encourage recipients to use such funds for direct educational expenses. If the scholarship funds are used for non-educational expenses such as room and board, travel, research, etc., the funds will be taxable to the recipients. The Scholarship Money Foundation shall not award scholarships with any condition that the recipient provide services in the future, including for example unpaid internships.
Specific Objective Grants
The Scholarship Money Foundation may award grants designated to achieve a specific objective, produce a report or other similar product, or improve or enhance a particular skill, capacity, or talent of the recipient. For those grants, the Scholarship Money Foundation will enter into a separate agreement with each recipient to ensure that the funds will be used appropriately.
In the event of a donor’s death or incapacity or if the donor ceases to participate in any selection process, the Scholarship Money Foundation will continue to use any donated funds for the specific purpose for which the funds were designated by awarding scholarships in accordance with its regular schedule for making such awards. If, however, a designated purpose becomes impossible or impracticable, the Scholarship Money Foundation will direct such funds to be devoted to purposes that it deems to be most consistent with the wishes and intentions of the donor, including in some cases by expanding eligibility for scholarships to ensure a qualified pool of applicants.
Providing Recipient Information to Donors
The Scholarship Money Foundation will announce the recipients of scholarships online and to all scholarship applicants in accordance with the announcement date agreed upon with the donor, or in accordance with its regular schedule of making awards. For those donors who wish to connect with a recipient to offer congratulations, the Scholarship Money Foundation can provide the donor’s contact information to the recipient, and the recipient may choose to contact the donor if they desire. Scholarship Money Foundation reserves the right to provide winner contact information to the donor at the Foundation’s direction.