Corporate Scholarship Programs

Corporate Scholarship Programs is sponsored by Various Corporations. Scholarships offered by corporations to support higher education for individuals, often based on merit or need.

Company scholarship programs | Internal Revenue Service Include Historical Content Include Historical Content Business and self-employed Governments and tax-exempt bonds Indian Tribal Governments Apply for an Employer ID Number (EIN) Identity Protection PIN (IP PIN) Bank Account (Direct Pay) Payment Plan (Installment Agreement) Electronic Federal Tax Payment System (EFTPS) Tax Withholding Estimator Where’s my amended return?

Businesses & Self-Employed Earned Income Credit (EITC) Clean Energy and Vehicle Credits POPULAR FORMS & INSTRUCTIONS Fake IRS email or message Include Historical Content Include Historical Content Company scholarship programs Company scholarship programs are usually administered by company-created private foundations.

These foundations may give preference in awarding scholarships to employees, the children or relatives of employees, or the children of deceased or retired employees of the company or related companies. Scholarship grants awarded by these private foundations are taxable expenditures unless the grant programs meet the requirements for individual grants and receive advance approval from the Service.

Company scholarship programs will not qualify if grants are essentially providing extra pay, an employment incentive, or an employee fringe benefit. Similarly, if scholarship programs are compensatory in nature, an organization administering such a program will not qualify for tax exemption because it is operated for private benefit.

A private foundation administering such a program could also be involved in direct or indirect self-dealing . Company-related scholarship programs can meet the scholarship requirements by ensuring that the scholarships awarded are for the main purpose of furthering the recipients' education rather than compensating company employees.

Certain conditions and tests must establish three facts: The preferential treatment derived from employment must not have any significance beyond that of an initial qualifier, The selection of scholarship grantees must be controlled and limited by substantial non-employment related factors, including a selection committee of individuals who are independent and separate from the private foundation, its organizer, and the employer concerned, and There must exist only a limited probability that qualified employees or their children will receive scholarship grants.

Ruling requests for advance approval of procedures are to be sent to the Exempt Organizations Division, and should include the statements described under grants to individuals , in addition to information responsive to the seven conditions and the percentage test described in approval of company scholarship programs . Return to Life cycle of a private foundation