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Mark Anderson
Mark Anderson, Tax Attorney
Category: Tax
Satisfied Customers: 539
Experience:  Tax attorney and accountant
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Customer Question

Hoping to find a nonprofit lawyer with this question.

I want to create a Schedule H public charity that gives grants to graduated students with a "chartible" GPA and a high student loan debt total.

Would both a minimum GPA and $30,000 in student loans after graduation be deemed ok to create a merit/need educational scholarship/grant 501(c)(3) in the eyes of the IRS?

The funds would be solicited from public memberships and private grants.

I have scoured over Nolo nonprofit books and can only find scholarships before and during college but none that are awarded after graduation and dealing with the need from high student loan debt.

Thanks in advance of someone who can help fill in the blanks of the research I have already done.
Submitted: 4 years ago.
Category: Tax
Expert:  Mark Anderson replied 4 years ago.

You would need to serve some public good or interest. Here is a foundation that provides scholarships:

Typically you form a nonprofit corporation under state law and apply for exempt status with the IRS. What exactly is your question?

Customer: replied 4 years ago.
The nonprofit I wish to start would help the specific students with large student loan debt with a "qualifying" GPA and minimum debt amount after graduation. Helping with the cost of college and freeing up money that could be used on our struggling economy. Help college students and freeing those from "debt sentences" who can contribute to the economy I personally qualify as serving the good of the public.

I am actually trying to develop my nonprofit for fiscal sponsorship. In order to do that I need to be compliant with the 501(c)(3) section of the IRS rules. I have a business and financial plan which I hired a firm to write. I am aware of the process of obtaining tax exempt status, however suppose the question I am seeking is, the merit/need I am trying to operate under qualify as something that would be accepted by the IRS under the 501(c)(3)? I can't afford to pay a lawyer thousands of dollars to be told that won't work need their guidelines.

Hopefully this helps a little more. Also I have looked up lots of other scholarships and nothing resembles what I am trying to start, so unfortunately sending me links to something I have already seen isn't going to answer my questions.

Expert:  Mark Anderson replied 4 years ago.

Have you look at the IRS webpage:

You typically need to provide a public benefit.

Expert:  Mark Anderson replied 4 years ago.
I will opt out and give another expert a chance to respond.
Customer: replied 4 years ago.
Relist: Answer quality.
In some cases having answers be in the form of links found (for free) on the Internet may satisfy some people, the answer I am searching for wil not be satisfactory with links to websites I have already gone to. If a representative can not satisfy my answer I hope I am able to have my money refunded. To my PayPal account.

Thank you
Expert:  Lindie-mod replied 4 years ago.
Hi, I’m a moderator for this topic. Your Professional has opted out and I wonder whether you’re still waiting for an answer. If you are, please let me know and I will do my best to find another Professional to assist you right away. If not, feel free to let me know and I will cancel this question for you. Thank you!
Customer: replied 4 years ago.
I am still hoping to have my question answered, however I am a little reluctant that there will be anyone who can answer my question without directing me to websites I have already visited. I am in need of IRS 501(c)(3) help. I have looked over the IRS website and have read Nolo's Nonprofit Tax Guide and How to form a nonprofit in California.

I am aware of the procedures and ramifications but my idea has never been done and I just need to have someone with enough understanding of the tax exempt laws to creatively find an exemption to my idea or if it is not refined enough to qualify.

Expert:  Lindie-mod replied 4 years ago.
Sometimes, finding the right Professional can take a little longer than expected and we thank you greatly for your understanding. We’ll be in touch again shortly
Customer: replied 4 years ago.
Waiting for the right answer I certainly can do. I appreciate Justanswer taking the time to get the satisfaction I have come to expect.

Thank you.
Expert:  Lindie-mod replied 4 years ago.

Thank you for your patience, your business is very important to us, we are waiting on the Professional with the right expertise to come online. Feel free to let us know if you would like us to continue searching for a Professional or if you would like us to close your question. Thank you for your understanding!
Customer: replied 4 years ago.
Hi thanks for the response. I was wondering if there is a time limit for having a question waiting for reply that wouldn't allow for a refund? If so then I think it would be best to close the question and refund the money back to my PayPal account.

If there isn't a limit then I can certainly wait for the right expert.
Expert:  Lindie-mod replied 4 years ago.
Please understand that it’s rare when we cannot find the right Professional . Nevertheless, because you are entitled to your money back with no questions asked, we will process your refund immediately. Please accept our sincere apology. We hope you’ll think of us again when the need arises.