Can I set up a non-profit organization benefiting me?

Question

Can I set up a non-profit to raise money for my college tuition? Just so people have a place to donate? Serious answers only. Thanks!

Answer 1

In order to get tax exempt status from the govt, you need to fill out an application stating what your charitable purpose. If you say "To fund scholarships" they will ask how do you select the recipients.

In the highly unlikely event that you get determination letter giving you an exempt status. You will need to file an annual tax return. You would need to do the return yourself because no CPA would sign a fraudulent return.

After a few years the IRS will review your organization to determine if you are in fact living up to your promise in your original application. That is when S**T will hit the fan. There would be back taxes required and fraud charges would be possible.

I am involved with tax exempt organization that funds scholarships for people who meet the basic requirements of our organization.

Just get another part time job! Good Luck!

Answer 2

Ditto to what Judy said. Community foundations can be a way to set up a scholarship fund. If you set up a fund with one in your area, people can donate to that fund without you setting up your own non-profit. However, the idea with this is that the fund will usually be long-term. Plus, they might have a minimum amount with which a fund can be started.

The school you're attending (or will attend) very likely has some scholarship funds for which you can apply. If they are federally funded, they also might offer College Work Study.

Answer 3

Nope. Non-profits, by definition, don't benefit the people setting it up or running it. You can set up an account for people to donate to who want to, but it would not be eligible to receive non-profit status.