Chapter Q & A

What does it cost to have a chapter in our community?

As of July 1, 2005, the cost of beginning a new local chapter is $350 and the renewal cost per year is $350. This fee includes all legal work to receive a 501c3, non-profit status and to file tax forms. It also includes numerous support materials. If a chapter's income is over $25,000 a year, they will need to file a 990 form and this can be done by the chapter, or it can be done on behalf of the chapter by the national office for a $150 fee. Most chapters are amazed at the low cost of maintaining a chapter and chapters who are in need of filing a 990 feel the fee is very reasonable for the work required.

What are the advantages of having a DFS Chapter?

Local opportunity to donate and receive tax deduction. There are examples around the state of people who wished to donate to scholarships for local kids; however they would not qualify for a tax deduction because a school is not a 501c3 tax-exempt organization. Schools fall under a different category. This is why some schools have developed a public school foundation which is a 501c3 and provides the tax benefit to the donors. A public school foundation has a mission of supporting all facets of public school from new bleachers to continued education grants for teachers. Scholarships for graduates are also possible, but there is rarely an organized, community-based effort to target the growth of scholarships. The mission for a Dollars for Scholars program is to promote all types of post-secondary education for local students by creating scholarships. The DFS organization has many tools and techniques available for local programs to review and adapt for local use. The numbers of scholarships provided and the dollars available will not grow on their own, but an organized effort will assure that as many local students as possible will find support and will hear the 'message behind the money'- Our community values education, we are behind you, and we wish you well in your future.
Another important advantage to creating a local DFS organization is related to the selection and distribution of local awards. If your community currently provides 5 scholarships and all 5 are applied to and awarded separately, then it is possible for the same student to receive 2 or more of these awards. Communities know that there are many deserving students. While it is certainly an honor to be the top of the class, there are many deserving students beyond the valedictorian. As a result, coordination of awards becomes very attractive to communities. DFS organizations ask everyone to complete a common and very thorough application. Scoring of applications is completed by a committee without names of students and using a point system that is very fair and easy to compute. Chapters can award as many students as possible, given all local guidelines and these are all determined by the local board. For more examples, see other parts of this website.
Any other organization can provide a pass-through scholarship. In other words, a local club or business may sponsor a scholarship and provides the dollars to do so, but all application and selection work is done for them. This organization may have a representative on the awards committee, but a coordinated effort means more students are recognized and awarded scholarships. In the end, a coordinated, community-based effort receives far more recognition and publicity than one group could on its own and all parties involved receive maximum benefit from the scholarship program.

What is the difference between what the state office does and what the local chapter does?

A local chapter is operated by the local board of directors to benefit local students. Raising dollars and providing recognition and publicity for local efforts. The state office is operated by a statewide board of directors to:

develop more chapters
train and support all chapters
coordinate projects to benefit all chapters such as the Collegiate Partner Program and publicity efforts
bring the best resources from the national level to our state and local chapters
develop and distribute new regional and state level scholarship opportunities