Set Up A Scholarship Fund Today!
INVESTING IN TOMORROW’S LEADERS
Our donors believe in the importance of investing in tomorrow’s leaders.
More than 20 individuals, families or groups have chosen to establish scholarship funds at the Hudson Community Foundation to memorialize a loved one, honor an alma mater, or for a specific purpose. These gifts provide financial assistance for students attending private elementary/high schools, accredited colleges, universities or technical schools.
Now more than ever, a college education is crucial to success in life. With rising tuition costs, many young people don’t have the resources required to earn a college degree. Setting up an educational scholarship fund can be a meaningful way to give back to your community or to honor a loved one.
Creating a scholarship fund with the Hudson Community Foundation (HCF) offers students critical help. Your scholarship fund can reflect your family name and values. You decide the criteria for the scholarship. Set up is quick and easy. HCF scholarship funds have the ability to accept a wide array of asset types and you can take immediate and maximum tax deductions.
You can use your IRA required minimum distributions to create your scholarship fund tax-free!
Scholarship funds can be established by an individual, a corporation or a group of people, such as a club or group of individuals to memorialize someone. These funds can supply financial support for students at any level of education throughout the country. The Foundation can provide a range of services to scholarship funds, including designing the scholarship criteria and application process and working with a scholarship advisory committee.
Advantages of Creating a Scholarship Fund with Hudson Community Foundation:
- Easy set up. There are no complicated legal documents. Our simple fund application form is completed to create a fund.
- Cost efficiency. Administrative Fees vary by sponsor. HCF offers a tiered administration fee based on the fund size. Typically 1% charged to the fund on a quarterly basis. Investment management fees vary based on the investment program of your financial advisor.
- Simplicity. Choose assets to create your fund, one tax receipt, decide later when to grant (allocate) to any U.S. charity throughout the country.
- Tax benefits:
– An immediate and maximum income tax deduction subject to annual AGI limits on the type of assets contributed with five-year carryover.
– No capital gains tax on appreciated long-term assets contributed.
– No estate tax.
– Assets in the fund grow tax-free.
– If you are subject to AMT, contributions to the fund will reduce AMT liability.
– No excise taxes on investment income.
– Favorable tax strategies on contributions of S corporation securities.
– HCFoffers alternative gifting strategies to reduce taxes on IRA Required Minimum Distributions (RMD).
- Flexibility. With a charitable fund, your received maximum tax benefits and decide when the scholarship will be awarded on an annual basis. There is no minimum annual grant distribution requirement as is true for private foundations. You can make grants on your own convenient timetable.
- Grantmaking support. Our professional staff can assist with the school administration.
- Donor recognition. We provide your personal charitable fund letterhead stationery.
- Visibility choice. You can choose to give anonymously or with full recognition.
- Legacy of family philanthropy. A fund that is set up and managed as an endowment will continue grantmaking in perpetuity.
- Educational benefits. Funds that involve both parents and children in grantmaking can be a rich training ground to pass on family values and establish a tradition of family philanthropy.
- An easy decision-making structure. The donor is involved in all decision making, unlike a private foundation whose board must be consulted, which can be a time-consuming process.
- An alternative to a bequest. A straight bequest to your favorite charity is always an option, but a fund with HCF offers you and your family the flexibility of an ongoing legacy.
- The ability to receive donations from private foundations. Private foundations must distribute five percent of assets yearly and, if they have not decided on a specific charity, they could give the five percent to a charitable fund for later decision making.