501 (c) (3) Non-Profit Organization
June 22, 2001
Rules when awarding any type of scholarship: 1. Must states the criteria for the scholarship Example: Student currently enrolled or has been accepted to Texas A&M University 2. Must advertise the scholarships so community is aware of them 3. Must be open to all persons, but you can state the town, zip code, A&M student as criteria 4. State the number of scholarships that will be awarded, the amount of the scholarship and the dates they will be awarded Note: Club newsletter can not be the only form of advertising 5. Must state how to be eligible for the scholarship Example: Fill out form at meeting, through University Financial Aid Office, contact club member 6. Can not limit the scholarship to only members of the club 7. Can not say must be present to win Academic Scholarships: 1. When awarding academic scholarships, members of the club should not be on the committee that selects the recipients if they could gain personally from the person receiving the scholarship. Example: Their student is one of the applicants 2. It is best if the money is sent to the University and they, as a third party, select the students to receive the scholarships. 3. If all the money is not awarded, it can be carried over to the next year. Book Scholarships: 1. Must be advertised in the same manner as other scholarships
2. Book scholarships should stay under $600.00 per scholarship. Otherwise the club would need to issue the recipient a W-2 form. 2. If the recipient is given a check by the club for this scholarship, the recipient must turn in receipts that show the money was actually spent for books, tuition, etc. 3. If the money is given directly to the University, then no receipts are necessary. 4. If a student is given a check by the club and the student fails to turn in receipts by the timeline suggested by the club, then the student will have to return the money. Receipts can be turned in as the money is spend or all at one time. The treasurer is responsible for keeping receipts, or it can be a person appointed by the President . Example: Scholarship chair, but this must be in the minutes. 5. Book scholarship money must be spent for educational purposes. 6. Money from the Book Scholarships can be put in an account at the Book Store in the student’s name to be used for academic purchases only. Example: Purchases acceptable – books, notebooks, dividers, pencils, computer needs Example: Purchases not acceptable – clothes, greeting cards, jewelry 7. Since Book Scholarship monies are awarded as scholarships, the monies can not be put into Aggie Bucks. Cash Awards to Students: 1. Do not give students cash out of club funds for any reason. 2. Do not give cash to students as graduation presents. 3. Do not set up loans for students out of club funds. 4. Do not sent money out of club treasury for birthdays, Valentine’s, etc. Door Prize Money: Acceptable: As person walks in the door, puts $1.00 in a “hat”. At the end of meeting money is given to student who mom’s name is drawn out of the hat.
1. This is money not coming from any type of club dues or fund raiser.
2. This must be open to all that attend meeting. 3. Any mom who has student at A&M and who was at the meeting can enter the drawing. 4. It is best not to put this in the minutes. 5. Money should not go through the club treasury. Gifts for students: 1. Twenty-five dollars ($25.00) total per year can be spent on each student if coming directly from club funds. 2. This total must include the gifts for graduating students. Example: If you award graduating students a paperweight for $18.95, then those students only have $6.05 left that can be spent on them.
Goodie Boxes: 1. If all the items in the Goodie Boxes are purchased out of dues and fund raisers, then the Goodie Boxes can not be limited to only students of members of your club. All students would be eligible to receive one. 2. If the members pay an extra amount above their dues to the club specifically for Good Boxes, then the Goodie Boxes can be given only to said members’ students. The club can stipulate in their minutes that members can pay X amount for each Goodie Box. The Goodie Box will then be given to the students of the parents who purchased them. 3. No extra money should be taken out of the budget for Goodie Boxes. It should be a break-even account. 4. Members may donate items to be put into the Goodie Boxes for their students only. Start-up Money: A club can carry over the amount of money they realistically feel they will need to begin the next year. Example: Money for stamps, Howdy Letters, craft supplies, etc. More than 15% can be carried over.
Code 162
Under this code money can be spent out of the treasury for necessary business expenses. Example: Stamps, paper, refreshments for nominating committee would be acceptable since the persons attending will work with the entire organization and all members were given an opportunity to apply.