How can I create a budget-friendly and tax-efficient scholarship for my non-profit organization?

I totally understand your concerns about creating a budget-friendly and tax-efficient scholarship program for your non-profit organization. Determining eligibility criteria can be a bit tricky, but a good starting point is to consider the mission and goals of your organization. Since you're providing educational resources to underprivileged students, you might want to focus on need-based scholarships, which would help students who genuinely need financial assistance.

As for the tax implications, the IRS allows non-profits to offer scholarships, but there are some rules to keep in mind. For example, the scholarships must be awarded based on merit or financial need, and they can't be used to pay off existing debt. Additionally, the scholarships must be offered to students who are pursuing a degree at an accredited institution. You can find more information on the IRS website, specifically Publication 1179 for details on non-profit scholarship rules.

Another thing to consider is how you'll administer the scholarship program. You might want to create an application process, which could include essays, letters of recommendation, and financial information. This will help you evaluate candidates and ensure that your scholarships are going to students who truly need them. It's also a good idea to set up a committee or a panel to review applications and make decisions about scholarship recipients.

I hope these suggestions help you get started on creating a budget-friendly and tax-efficient scholarship program for your non-profit organization. Remember to stay organized, keep track of your expenses, and seek professional advice if you need it. Good luck, and I hope this helps your students achieve their academic goals!