Serious answerers only -- establishing a scholarship?

Question

I would like to establish a "scholarship" to honor the memory of my father to send a Boy Scout to summer camp who is deserving but can't afford it. This does not cost much, but my idea is to start with a small amount of money and send 1 kid to camp this year with enough money left in the account (and what kind of account would that be?) so that next year, I'll have enough money to send two kids to camp. And so on and so on. I'm not even sure if this question should be in this category, so any help anyone can give me would be greatly appreciated.

Answer 1

Hello actormyk:

This is a great thought! Start with your local Council. They have experts available to help you set up the scholarship. You might think about establishing a annuity fund that generates interest every year, providing funds for one or two scholarships. This way it will live in perpetuity, and you need not monitor the fund directly. An investment of $10,000 @ 4% interest will generate enough to send a boy or two to camp each year. Reinvest the overage so that the fund can grow with inflation.

Keep on Scoutin'

Answer 2

Get in touch with the Boy Scouts of America. Tell them what you want to do. They will work with you to accomplish your objective and you can take the scholarship payment as a charitable contribution deduction off your taxes, if you itemize.
Nice thought!

Answer 3

We would have people come in and open a "scholarship account" at our bank and all it was is a checking account.

You would need to get donations and you would need to talk to a tax professional about the implication of the donations (people will want to write them off, which means you would need to claim them).