Moving Forward: Creating a Foundation
Over the past few years, based on suggestions from the membership, research by staff and volunteers, and the ever increasing demand for support which frequently translates to increased funding requirements, the USAWOA has looked for ways to improve our efforts in the scholarship arena. It was concluded that the best way to do this was to create a separate foundation. Early in 2003, CW5 Frank Meeks, then National President of USAWOA, asked CW4 (Ret) Bob Scott to tackle setting up a Scholarship Foundation.
Why did we create a foundation?
We felt this action was necessary due to the USAWOA federal tax categorization. The Internal Revenue Service determined that USAWOA was a Not for profit, Social Welfare Organization. The precise IRS categorization was 501(c) (4). USAWOA was assigned this category by the IRS in 1974.
First, we wished to become eligible for participation in the Combined Federal Campaign (CFC). We learned that it is extremely difficult for 501(c) (4) organizations to participate in the Combined Federal Campaign.
Secondly, we sought to clarify the tax deductibility question for the present and future potential financial donors.
The 1972 IRS tax category designation letter to USAWOA clearly stated that: As a social welfare organization contributions to you are not deductible by donors. You should advise your contributors to that effect. Therefore, we took action to establish an official, charitable organization related to replacing the current USAWOA program. This was in the form of a foundation to administer the scholarship program. The IRS categorizes charitable organizations as 501(c) (3). Gifts to 501(c) (3) organizations are fully (and generally unquestionably) tax-deductible. Also, virtually all of the organizations now participating in the CFC are 501(c) (3) organizations. By establishing the foundation, we became eligible to participate in the CFC and clarify the tax deducibility situation regarding donations to the foundation.
While the foundation is structured as a stand-alone entity, we can accept and hope for financial support from both individuals and from corporate organizations. The foundation cannot succeed or even exist for very long without this critical support. This new approach to what was excellent efforts by USAWOA in the past will hopefully result in increased members donations and encourage corporations to also donate to both projects. This will of course increase the benefits derived by the membership as well as enhance the reputation of USAWOA as an organization that is greatly concerned about its members, their families, the organization and the Warrant Officer Corps. I assure you that the final results generated by the foundation will not differ from the final results generated by USAWOA Headquarters staff, only the path by which those results are achieved.
Here’s where we are with these actions.
The Commonwealth of Virginia approved the request to incorporate The United States Army Warrant Officers Association Scholarship Foundation on 28 March 2003.
Then USAWOA President CW5 Frank Meeks appointed the initial Directors of the Foundation. The Directors then held an organizational meeting (17 April 2003) to elect Foundation officers. The Foundation Officers at that time were CW4 (Ret) Don Hess, Chairman; CW5 (Ret) Richard Scalzo, Secretary; CW4 James White, Treasurer; and, directors CW4 (Ret) Bob Scott and CW4 (Ret) Frank Stamey.
On 3 April 2003, the IRS assigned the Foundation an Employer Identification Number (EIN) and in July 2004 the IRS granted the Foundation Non-Profit Status under 501(c)(3) of the Internal Revenue Code, We have moved on to completing implementing actions such as separating bank accounts and accounting systems; apply for Authorization to Solicit in the jurisdictions that require this process. There are 40 states or entities that require this authorization. Finally we will apply for inclusion in the CFC for 2004.
Grantham University Online – The USAWOA Scholarship Foundation, in conjunction with Grantham University, is proud to award Grantham University On-Line Scholarships. This annual scholarship covers 4 years of online courses, books and fees and is valued by GranthamUniversity at $40,000.00. Grantham University offers both undergraduate and graduate degrees in a variety of fields. Eligibility includes active members of the USAWOA and their family members.
Allnatt Scholarship Fund Created – During the 2005 the USAWOA Scholarship Foundation received funding from the John and Jean Allnatt Estate. The funding received is adequate to fully fund several annual Allnatt Scholarships each year.
National CFC Campaign – The USAWOA Scholarship Foundation was accepted as a participant in the National Combined Federal Campaign (CFC). The CFC Campaign runs from September 15th to December 15th each year.
USAWOA Scholarship Foundation Fund Raising – There are several ways each of you can contribute to insure we can meet our award commitments. First, you can set up an allotment to the USAWOA Scholarship Foundation. Second, you can have your financial institution create an Automatic Clearing House (ACH) transaction to be taken from your account on a recurring cycle, weekly, bimonthly, monthly, quarterly, etc. And finally you can write a check and mail it to the Foundation. See more about the rationale leading to this change and how the above methods work.
National CFC Campaign Disqualification – In May 2012, the Foundation was advised that the Office of Personnel Management, (OPM) which oversees the Combined Federal Campaign (CFC), had denied our annual submission for inclusion in the upcoming (2012-2013) campaign – See More.
Questions about the Scholarship Foundation may be addressed to:
USAWOA Scholarship Foundation
462 Herndon Pkwy, Suite 207, c/o USAWOA
703-742-7727, Fax 703-742-7728, Send Email
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USAWOA Scholarship Foundation