Setting up a scholarship fund

[RandytheHelpfulPineapple]

My company matches 100% for non-profit donations. Recently, my grandmother passed away and left me a little money. Those two things got me to thinking of setting up a scholarship fund at KU for the Department I graduated from. I'd like to have some influence in the selection process, if possible.

Has anyone ever done this before? Does this generally go through KU Endowment, or can you set up an entity separate from them? What are the tax implications?

[Hawker007]

Re: Setting up a scholarship fund

I would talk to the Endowment people at KU. I know they have specific people for the particular schools at KU. If it is Engineering, let me know. One of our best friends does a lot of the fundraising for the Endowment for the School of Engineering.

[RandytheHelpfulPineapple]

Re: Setting up a scholarship fund

[quote author=Hawker007 link=topic=2855.msg32030#msg32030 date=1292860948]
I would talk to the Endowment people at KU. I know they have specific people for the particular schools at KU. If it is Engineering, let me know. One of our best friends does a lot of the fundraising for the Endowment for the School of Engineering.
[/quote]

It's Engineering. I'm thinking the Mechanical Dept.

Per the KUEnd. website, there is a minimum gift of $30k to start up an endowment scholarship fund. There is a minimum of $10k to start up a fund. It looks like there are annuity options. I don't think I can drop $30k, but with an employee match I could probably get there in under a decade. I guess I need to know more about the taxes behind it, because I'd be willing to give more if it lowers my tax burden.

[Hawker007]

Re: Setting up a scholarship fund

Check your PMs.

[RandytheHelpfulPineapple]

Re: Setting up a scholarship fund

Thanks Hawker.

It looks like endowment funds are tax deductable. Assuming the Feds and MN govt. take around a third this year and I can set up an employee match contribution via my company, a contribution looks like this:

$1,000 from me
$1,000 from the company
---------
$2,000 to the account

Of that $1k contribution, $333 would have gone to the Govt. regardless and is a sunk cost. Therefore, a $667 donation stretches to $2,000. That's some economics I can get behind.

[dewarsrocks]

Re: Setting up a scholarship fund

[quote author=RandytheHelpfulPineapple link=topic=2855.msg32051#msg32051 date=1292865105]
Thanks Hawker.

It looks like endowment funds are tax deductable. Assuming the Feds and MN govt. take around a third this year and I can set up an employee match contribution via my company, a contribution looks like this:

$1,000 from me
$1,000 from the company
---------
$2,000 to the account

Of that $1k contribution, $333 would have gone to the Govt. regardless and is a sunk cost. Therefore, a $667 donation stretches to $2,000. That's some economics I can get behind.
[/quote]

That's a cool thing to do, Huzzah!