AboutHarvey Mechanic Expertise US Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation.
To search my previous answers you can do a Google search: site:allexperts.com/q/nonprofit [with your other search terms appended].
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Education/Credentials B.S. Columbia University in New York City, 1970
J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude
Question One of my previous employers, who has a private 501(c)(3) foundation has offered to help me fund my graduate degree. However, for tax reasons he would like to donate the money not directly to me, but another 501(c)(3). Now I assume this would not be a problem if I would study in the United States since most colleges and universities are public charities. But, since I will be studying abroad I was wondering how I would be able to receive the money (scholarship)while allowing him to receive the tax benefit?
Answer His private foundation may not receive a deduction for a donation to another 501(c)(3) organization if he designates you as the recipient. The main issue is that the IRS would treat the grant as if he gave to you directly and you already informed me that "for tax reasons he would like to donate the money not directly to me". If he requires the other 501(c)(3) organization to give to you, the IRS treats it as if he gave directly to you.
Grants to Individuals by Private Foundations for travel, study,
or other similar purposes (including loans made for charitable
purposes, and program-related investments)
www.irs.gov/charities/foundations/article/0,,id=137396,00.html
Harvey Mechanic
Attorney at Law
Harvey108@hotmail.com
