Eagle Scout project funding

[cjbeckert]

I understand the issue of Scout funding will be a moot point after 2019 but until then we press on. Recently I've had a situation surface concerning a donation to cover supplies for an Eagle Scout project which lead to a question about funding such projects.

A local business wrote a check to the troop to pay for a portion of the supplies for an Eagle Scout project. I'm assuming the check was made payable to the troop to claim a tax deduction. The Eagle candidate's parents then gave the check to the ward to process. The ward was at a loss as how to proceed and did the right thing by not processing it. They pushed the question up to the stake finance clerk. That would be me. Based on the information provided and all the guidance I could find (CHI, Help Center, this forum) I boiled it down to one central question to resolve this issue: Who originally funded this project? In this case the parents fronted the project funds so the company check should be made to them though that may disqualify the check as a charitable contribution. (Not a tax accountant so I won't venture a guess there.)

This left me questioning Eagle project funding. I've written many checks over the years from Budget and OAMFA to cover typical Scout expenses (camp outs, awards) but never for an Eagle project's expenses. The only thing I've found thus far addressing Eagle Scout project funding specifically is guidance from BSA (see 9.0.2.10). Based on that guidance, funds are held by the beneficiary of the project or the troop (the BSA entity). Additionally, it's the beneficiary's responsibility to provide proof of financial gift, not the troop or Church. Am I correct in the reading of both Church and BSA guidance that the Church is not in a position to handle any Eagle Scout project funds unless it is the beneficiary of the project?

[daveywest]

The issue here is The Church does not certify the tax status of this type of donation (as with any donation entered into an "Other" account). That's not really an issue if the donor is willing to write the check to The Church on behalf of the troop. The donor can still maintain documentation of the donation and claim the deduction when they file their taxes.