Question for accountants

amother

Aubergine

Fri, Dec 29 2017, 11:58 am

I work for a nonprofit.(501c3) If it agrees to make a donation to my grandchildren's school and the school then considers it as if my children fundraised (from me)to pay their tuition bill is that considered taxable income for me?

I'm not getting a reduction in salary to do this. I would be asking them to pay our grandchildren's tuition rather than take a raise. They have no current obligation to give me that raise. They can say no to either request.

If not, is there any legal way such an agreement can be done?

amother

Puce

Fri, Dec 29 2017, 12:06 pm

amother wrote:

I work for a nonprofit.(501c3) If it agrees to make a donation to my grandchildren's school and the school then considers it as if my children fundraised (from me)to pay their tuition bill is that considered taxable income for my husband and I? I'm not getting a reduction in salary to do this. I would be telling the nonprofit to pay our grandchildren's tuition rather than take a raise. They have under no current obligation to give me that raise. I'm asking them to pay the tuition rather than asking for a raise. They can say no to either request.

If not, is there any legal way such an agreement can be done?

What does your 501c3 do such that making disbursements to school would be a reasonable use of its money?

amother

Aubergine

Fri, Dec 29 2017, 12:09 pm

It primarily helps disadvantaged children but I certainly see it make donations to many other charitable causes. Religious schools (usually Catholic) included.

amother

Emerald

Fri, Dec 29 2017, 12:12 pm

It's only (somewhat) legal if you work for a school. Even then it's officially supposed to be a benefit offered to all employees not just to one.
If they're not a school it would be unethical if not illegal for them to use funds meant for their tax-exempt purpose for another cause. You can ask for a raise and use the money for your grandchildren but it will be taxed. Unfortunately there's really no way to pay tuition pre-tax.

Mommyg8

Fri, Dec 29 2017, 12:15 pm

amother wrote:

How? Isn't that the point of the QTR?

amother

Emerald

Fri, Dec 29 2017, 12:17 pm

Mommyg8 wrote:

How? Isn't that the point of the QTR?

Which part are you questioning. QTR is only a benefit available for people who work in a school/educational institution. OP does not.

amother

Puce

Fri, Dec 29 2017, 12:19 pm

Ok. So it would be giving money to your grandchildren’s school to their ‘disadvantaged students fund’ - and then your grandchildren’s parents would apply for a scholarship from this fund, because their children meet this criteria (disadvantaged).

And you’d ask your employer to do this in lieu of a raise? That’s quite problematic.