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How many times have your chapter’s fundraising efforts been
hampered because donors couldn’t claim a tax deduction for their gifts?
Even though the Society of Professional Journalists is generally
exempt from paying Federal income tax as a 501(c)(6) business league, gifts
to SPJ and local chapters are not considered charitable contributions and, thus,
are not deductible. Only 501(c)(3) charitable organizations — like the Sigma
Delta Chi Foundation — can offer donors a tax deduction.
Recognizing this as an opportunity to add real value to the SPJ
experience, the Sigma Delta Chi Foundation board of directors is announcing
a unique program to allow chapters to create their own special “account”
within the SDX Foundation.
Called Chapter Scholarship Funds (CSF), the special funds are
designed to allow chapters to solicit tax deductible gifts for scholarships
without any of the headaches associated with maintaining a 501(c)(3) foundation.
The set-up process is simple. Chapter leaders execute a letter
of agreement with the SDX Foundation and the fund will be established with
the receipt of the first gift. All gifts must be made payable to the Sigma Delta
Chi Foundation with the CSF name in the memo section of the check. The chapter
is responsible for all the fundraising; the SDX Foundation acknowledges all
gifts, handles the accounting and provides periodic updates to chapters on their
CSF.
Functioning much like a donor-advised fund within a community
foundation, the idea behind the CSF is to create a fund that will be sustained
in perpetuity. In order to accomplish this, only a portion of the fund — typically
five percent — will be made available for scholarships. So you would need
to have $10,000 in the CSF to make a $500 scholarship. We can help you create
a scholarship application if you don’t have one already. You review the
applications and make your recommendation to the SDX Foundation. Once approved,
we cut and send the check directly to the recipient’s college or university.
What’s the catch? Five percent of each CSF gift goes to the
SDX Foundation for unrestricted use. So for every $100 donated to the SDX Foundation
for the Timbuktu Pro Chapter Scholarship Fund, $95 goes into the CSF and $5
goes to the SDX general fund. Exceptions can be made for extraordinary circumstances
such as a chapter that already has a fund sitting in a savings account somewhere
and wants to transfer it to the Foundation.
In addition, 10 percent of the annual earnings on the CSF are designated for
unrestricted use. That’s 10 percent of the total earnings, not the first
10 percent! For example, if your chapter’s CSF has dividends, interest
and realized gains of $100 in any given year, $90 goes back into the CSF with
the remaining $10 going to the SDX general fund.
You may be saying to yourself, “It seems like the Foundation
is taking a pretty big cut for itself.” But consider this: it would cost
a chapter several thousand dollars to set up its own 501(c)(3) charitable organization,
not to mention the time and expense associated with maintaining it. The Internal
Revenue Code spells out very strict rules by which charitable organizations
must abide. Failing to follow these rules could be disastrous for not only the
chapter, but also for the donors who may have already claimed a deduction. By
using the SDX Foundation, all the hard work is already done. The Foundation
subjects itself to a rigorous independent audit each year and consults with
tax counsel frequently. All your chapter needs to do is go out and raise the
money.
Questions about the Chapter
Scholarship Funds? Call 317/927-8000 ext 216 or send an e-mail Julie Grimes.
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SDX Chapter
Scholarship Fund
Introduction
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The work of the Sigma Delta Chi Foundation depends on time, talent and financial support from journalists and others who support these goals. Our online giving process will only take a few moments. Please visit our donation page to support SPJ and the SDX Foundation.
Who we are
Since its founding in 1961, the Sigma Delta Chi Foundation has promoted excellence and ethics in journalism. SDX is a tax-exempt, 501(c)(3) organization that supports the educational programs of the Society of Professional Journalists and serves the professional needs of journalists and students pursuing careers in journalism.
Liberty and self-government require a well-informed public. It is the responsibility of journalists to provide fair, balanced and accurate information in a comprehensive, timely and ethical manner.
SDX helps by:
— Advocating for open government
— Promoting integrity
— Encouraging excellence
— Fostering diversity
— Inspiring new generations of talented journalists
— Protecting freedom of speech and press
Through the years, SDX has created a legacy of worthwhile programs to achieve these aims, including:
— Pulliam/Kilgore Freedom of Information Internships
— Eugene C. Pulliam Fellowship for Editorial Writers
— Eugene S. Pulliam First Amendment Award
— Diversity Toolbox/Rainbow Sourcebook
Contributions to the Foundation help support these and other programs:
— SPJ Convention & National Journalism Conference
— Ethics in Journalism Week
— The Ethics AdviceLine
— Diversity Leadership Outreach Program
— National Freedom of Information Coalition Annual Conference
— Eugene C. Pulliam Editorial Writing Fellowship
— Training on the Go newsroom training seminars
— SPJ Narrative Writing Workshops
— Eugene S. Pulliam First Amendment Award
— Spring Journalism Conferences
— Mark of Excellence Awards honoring collegiate journalists
— Reporters Committee for Freedom of the Press
— National Conference of Editorial Writers Minority Writers Seminar
— Annual Surveys of Journalism and Mass Communications
The work of the Foundation depends on time, talent and financial support from journalists and others who support these goals.
Contribute to the SDX Foundation
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