Eagle Project Private Donations

[Alec27 3]

Hey all.  I got a tough one here. and this one's personal. 

My son has his project proposal next week and I have a MC, ASM and myself as Dad and son getting conflicting information regarding private monetary donations for his eagle project.  The kid is building a deck and the whole thing is being funded by a private donation from one of our unit members who is also a parent who is also a friend of the family.  Total is just under $900.  The problem is that I have an ASM that has sat on our district eagle board telling me that because it's over $500 my son needs to fill out a form.  It's not a fundraiser and he's not fundraising, so what form is he referring to.  The donor is not donating materials, supplies, etc.  He's donating cash.   My other ASM is telling us that donations only need to be documented on page F of the workbook.  Please help !  He's taking on this grand project cause he goes big and as his ASM I'm incredibly proud and as his father I think he's out of his dang mind.  LOL   But it's his project.  But this donor vs fundraiser vs form vs workbook nonsense is driving us all crazy and I don't want him to get rejected by the eagle board.  Thank you as always !

[T2Eagle 903]

If your ASM thinks there should be a form ask him to show it to you.  But unless your council has something weird there isn’t one. 
 

As you said, have your son answer the question on form F: “Mr. Smith has generously agreed to donate all the costs necessary for this project.”  If he wants to elaborate a bit he can add some thing like, “because Mr. Smith is a supporter of both Scouting and the community organization this project benefits.”

As a guess, I would guess ASM is sort of waving at some IRS rule about donations over $500, but that’s not for the scout to worry about, that’s between Smith and the beneficiary org, because that’s who he is actually donating to.

 

[MikeS72 448]

4 hours ago, T2Eagle said:

If your ASM thinks there should be a form ask him to show it to you.  But unless your council has something weird there isn’t one.

Actually there is a form in the project workbook.

Eagle_Scout_Service_Project_Fundraising_Application.pdf

[Alec27 3]

Mike, 

I think the issue is that per the "Fundraising" form you attached, that we already know about, that is in question is to "raise funds" meaning a donation is being solicited or asked for.  So in essence, you are "raising funds" by asking for donations and that's what the "fundraising form" addresses.  Here's the problem.  No funds were solicited.  Nobody was asked.  Nothing was raised.  My son's project donor came forward and volunteered funding of the project on his own initiative and directly to the beneficiary.  So exactly what "fundraising" was done?  Per the form "If people or companies will be asked for donations of money, materials, supplies, or tools, how will this be done and who will do it?*  My son can fill out this form to appease but how exactly is he supposed to answer that?  I guess in the end it comes down to how the BSA deciphers the difference between a solicited donation and an unsolicited donation.  Thoughts ?

[Alec27 3]

3 hours ago, MikeS72 said:

Actually there is a form in the project workbook.

Eagle_Scout_Service_Project_Fundraising_Application.pdfUnavailable

Page 2 of the fundraising form.   *This application is not necessary for contributions from the candidate, his parents or relatives, his unit or its chartered organization, parents or members in his unit, or the beneficiary. All proceeds left over from fundraising or donations, whether money, materials, supplies, etc., regardless of the source, go to the beneficiary. If the beneficiary is not allowed, for whatever reason, to retain any excess funds or materials, etc., the beneficiary should designate a suitable charity to receive them, or allow the unit to retain them. The unit must not influence this decision.

[SiouxRanger 506]

It appears that the Eagle Scout Service Project Fundraising Application and the Procedures And Limitations page are "self-contained," that is, comply with all the provisions of both and the Eagle Scout Candidate has fully complied with all rules. I note that the Application requires Council approval.

The text in both the Application and the Procedures mention "donations," with little discussion on how much effort is expended to "fund raise."  So, I'd treat the cash donation as being the result of "fund raising," complete the Application accordingly, submit it for Council approval. If approved, the Eagle Scout Candidate is done with the issue.

The law has a main "bug-a-boo," (well, thousands…), and that is, it is impossible to craft rules that cover every possible contingency.  Human activity always seems to present situations that were unanticipated. If the rules are well-crafted, the unanticipated situations are rare. In any event, unanticipated situations do present themselves and need to be dealt with appropriately.

So what is "appropriately?"

Our assumption is that we have a legitimate issue:  An Eagle Service Project.  So, there MUST be a way to accept donations and get the Project approved.

First, you want to provide full information so that decision-maker has all the pertinent information that you have.  In current jargon the word in use is "transparency." I do not like that word because the statement, "You're not being transparent," connotes intentional concealment with evil intent. Maybe the case in some government and political matters, but not so in many other things.

@T2Eagle has great suggestions.  It states the facts as they are:  "Mr./Mrs./Ms. X is donating $900± which covers all costs. Unsolicited."

You've done all that you can do and provided all the information that there is.

Now the ball is in the Council's court.  Let it approve, deny, or ask for clarification.

The law is all about "pressure."

So, the pressure is on the Council to deal with the Application as submitted. The immediate "pressure" is that the Council does not want to disappoint nor discourage an Eagle Candidate from continuing with their Project and WANTS to approve Eagle projects and increase its numbers of Eagle Scouts reported in its annual reports.

[Jameson76 1508]

If money for the project is raised / solicited from the candidate, his parents or relatives, his unit or its chartered organization, parents or members in his unit, or the beneficiary then NO FORM is needed.  Do not overthink.  

 

[InquisitiveScouter 1710]

1 hour ago, Alec27 said:

Mike, 

I think the issue is that per the "Fundraising" form you attached, that we already know about, that is in question is to "raise funds" meaning a donation is being solicited or asked for.  So in essence, you are "raising funds" by asking for donations and that's what the "fundraising form" addresses.  Here's the problem.  No funds were solicited.  Nobody was asked.  Nothing was raised.  My son's project donor came forward and volunteered funding of the project on his own initiative and directly to the beneficiary.  So exactly what "fundraising" was done?  Per the form "If people or companies will be asked for donations of money, materials, supplies, or tools, how will this be done and who will do it?*  My son can fill out this form to appease but how exactly is he supposed to answer that?  I guess in the end it comes down to how the BSA deciphers the difference between a solicited donation and an unsolicited donation.  Thoughts ?

@Alec27,

He does not need the form.

If you need confirmation from the "chain of command", have your candidate check with the District or Council Approving Authority AFTER he submits his proposal.

See the Preliminary Cost Estimate section: "Note that if your project requires a fundraising application, you do not need to submit it with your proposal."

Worrying about the form now is putting the cart before the horse.

During the proposal phase, he only need answer the question: "Fundraising: Explain how you will raise the money to pay for the total costs. If you intend to seek donations of actual materials, supplies, etc., then explain how you plan to do that, too."

You said, "The kid is building a deck and the whole thing is being funded by a private donation from one of our unit members who is also a parent who is also a friend of the family. "

So, his answer is as simple as re-wording the instructions from earlier in the Workbook:

"A member of my unit has graciously agreed to provide the funding.  I will fund any supplemental needs myself.  I do not plan to obtain money, materials, supplies, or donations from any other sources, therefore no fundraising application is required."

And leave it at that, for the Workbook.

As mentioned before, there should be an offer of a tax receipt from the beneficiary.  This would be a good discussion for the candidate to have with the donor, AFTER project approval; "Would you like a receipt for your donation for tax purposes?"  If the donor says "Yes", then the Scout should inform the beneficiary, provide the donor information to the beneficiary, and tell the donor he has given the beneficiary the info.  This need only happen during/after project execution.  Not in the proposal or planning phases.  

And the amount is immaterial, for receipt purposes.  If a donor gives $5, the beneficiary should provide a receipt when requested.  

However, the amount threshold where the IRS requires a receipt in order to report the donation at tax time is $250. 

https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contributions-written-acknowledgments

As @T2Eagle stated before, this is between the donor and the beneficiary.  And your Scout should make it clear to anyone giving money, the money is for XYZ 501 c (3) Non-profit Corporation, not your Scout.  If a specific amount is given beforehand, any overage must either be returned to the donor, or given to the beneficiary.

Happy Hunting

 

Edited May 23 by InquisitiveScouter