Thank you. I understand the tax deductible part as a non-profit. That phase is part of my permanent signature.
But, for the record. It is possible for a tax exempt non-profit to incur income that is taxable.
The payment of fees here for information regarding your business operations may also be included as a business expense.
Regarding the scholarship.
Typically when a client donates money to your for a specific cause or function, it becomes a restricted use donation.
This means it had to be used for the scholarship.
The only thing you had to do was to enter the donation into the books by purpose, and note it in the diary.
so the balance sheet should show donation for scholarships, then the amount.
Second. every corporation and non-profit should have a diary for significant events. A restricted use donation, whether or not it meets the charter purpose, should be considered significant. You would note it in the diary.
When you get such a donation, while it is not required, a memo or procedure needs to be documented that outlines how the scholarships were awarded, and the candidate selections.
It need only be a one pager: i.e. "Scholarship Selections (restricted donation of named person).
This is important that you make a memo indicating who was on the selection board or committee and who applied, and who won and who did not. (protects you in an audit).