Discussion:Church Member Ministry Education
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| 4 May 2007 | |
| I have a church client who wants to set up a fund to help one of it's members pay for tuition to minister's school. Can this be done so the congregation donations are tax deductible? Will the payments be taxable to the student? Does the student have to commit to come back to the church after school?
Thanks, Ryan | |
| 4 May 2007 | |
| I have never had a church for a client so don't take my word on this but I'll take a swing at it. I would use money from the general donations and call it a scholarship. | |
| 4 May 2007 | |
| This will be up to the church. They can set up a restricted fund for a scholarship and then contributions by members to this restricted fund are indeed deductible. The payments to the student should not be taxable Ordinarily, if a student has an award that covers tuition and fees or book, supplies and equipment for required courses, the scholarship is considered tax free. A taxable scholarship is an award used to cover room and board, research, travel, or other non-course related expenses. This of course is normally but there may be some other items to consider.
No parent or relative of the student can contribute to the scholarship fund for their relative and consider that a charitable contribution, but if it covers VARIOUS scholarships, then it could very well still be a charitable contribution. Don't know about what the church will require of the student; that will be up to the minster/deacons/congregation when setting up a scholarship fund :) | |
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