Have Legal Questions? Ask a Lawyer Now.
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."
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).