Yes, I there are questions on the form that ask for the criteria for accepting applicants. I was trying to summarize my question.
I need more advice than what you have provided.
I am aware of the exhibits or attachments required of the form. I have written attachments for each section that calls for descriptions and policies.
With the scholarship section, Schedule H, I want to ensure that I am providing valid and complete information about the scholarships. Because I am the CEO and lead teacher, and I will determine acceptance of scholarship, I am seeking advice on specific detail/wording the IRS requires for approval. The scholarship process is insular but I feel, legitimate.
Thank you for the detail in your last response. Can you give an example of a policy for payment of professional fees? As it stands now, I would write a check to myself for teaching services. The invoice would include the classes taught (days, times, attendees) for a certain periods of time. Do I need to have the Board review each check, approve each check or simply review financial activity on a quarterly basis?
To demonstrate that no profit is made, do provide a sample of funds allocated to individuals for scholarship, list expenses, amount paid to me and any remaining balance kept in the bank account for future expenses?
There is a section for financial data within the form that I've completed. Is it sufficient to simply state in this section of the form that no profit is made along with including the detail we've been discussing? This is to clarify your comment, "You would also need to demonstrate that there is no actual profit being made by the school itself."
Part IX - A. Statement of Revenues and Expenses
Part IX - B. Balance Sheet
I have an attachment of itemized expenses for program services (teaching services provided by me and independent contractors).
Yes, I know.
Can you clarify the following question asked in my prior email,
Is it sufficient to simply state in this section of the form (Schedule H) that "no profit is made" along with including the detail we've been discussing? This is to clarify your comment, "You would also need to demonstrate that there is no actual profit being made by the school itself."
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