Donations versus Grants

[SemperParatus 1]

For Eagle projects, our District has a 'policy' that scouts are strongly discouraged from soliciting donations to help fund a project, but it is okay to seek grants.

 

I have a scout whose Eagle project has a budget of $3,000, about half of which he intends to earn through fundraising efforts - the remainder through 'grants'.

 

Anybody want to venture a guess as to the difference between a donation and a grant? So far, the District has not been able to explain. I am advising the scout that a grant would be monies contributed by nonprofit organizations/government agencies that would have an interest in the project's completion. Am I wrong? Anybody ever run into this before?

[EagleInKY 14]

I think your definition is close. Soliciting donations conveys the idea that he is going door-to-door to homes and businesses asking for a donation to help fund this product. That is never allowed.

 

Soliciting a grant is IMO the process of going to a group or government agency that provides monies for non-profit groups. We have successfully received such grants in the past. They have to be given in the name of your charter sponsor (assuming they are a 501©3 institution.

 

So, the difference is fairly the clear in my eyes. "Door-to-door solicitation" vs. going to a group that says "we give money to those who have a worthy cause and ask for it".

[Trevorum 24]

I am not an attorney but I don't think a granting agency/organization must have "an interest in the project's completion". And donations needn't be "door to door". I think, in general, a for-profit business would make a donation, while a non-profit would make a grant.

[Trevorum 24]

Also, a grant needn't be given in the name of your chartering org. An individual can recieve grants as long as they agree to abide by any attached strings (eg., college students recieve grants as long as they agree to stay in school). In this case, the Eagle candidate could recieve a grant for Civic Improvement or some such rubric and would then be obliged to follow through on his proposal.

[EagleInKY 14]

Every grant I've ever been involved with required that the recipient of the funds be a 501©3 organization. (Admittedly, I'm not talking about college grants.) That's why I made that statement. Since a pack and troop don't qualify as such, they need to rely on their CO. I'm not sure about the laws around individuals.

 

The reason I used the "door-to-door" reference is that the concern is in the solicitation. If you are running a food booth at the county fair and a person comes up and hands you $20 and says "I was a Scout and I'd like you guys to have this", then that's okay. Council won't complain about that. But, if you go door-to-door in your neighborhoods or to the local businesses and say "we're building a gazebo at the park and would like you to donate money for it", that's what they don't want to have going on.

[scoutldr 732]

I'm not a CPA,but... I think the term "donation" carries with it the connotation of "tax deductible charitable donation". Giving money to an individual so he can earn Eagle does not qualify because the individual is not a bona fide charity, regardless of how he spends the money. An individual Scout may, however, acccept a "grant" which is not tax deductible, and may even be considered taxable income to the individual.

[Trevorum 24]

Not at donations have to be tax deductible (or indeed involve the Gov't). In fact, the best donations (IMHO) are made without any expectation of any return consideration.

 

Every Eagle candidate accepts donations of labor. He can certainly also accept donations of cash or kind from individuals (eg., his baseball coach) or from businesses (eg., his neighbor's family owned restaurant). A donation generally has no strings attached.

 

By contrast (at least in my experience) grants are made by non-profit organizations in accordance with the purposes of their charter. Grants can be to other organizations (like a troop) or can be made to an individual who meets certain qualifications. Grants usually have some kind of strings attached (ie. the recipient is obligated to do something specific).

 

[Eamonn 61]

District Policy??

Everything the Lad needs to know is in the Eagle Leadership Project Guidelines.

Tell the District to go pound salt.

Eamonn.

[scoutldr 732]

On this side of the pond, we pound sand, not salt. Salt goes on our Freedom Fries...(i mean, "Chips"). Come to think of it, we put it on chips, too. But not on our crisps, which are made with apples.