God Son’s Tuition

[Anonymous]

My God son is starting college (out of state public university) this fall. His parents seek “donations” to contribute to his tuition and fees. They mentioned setting up a Go Fund Me. What is the most tax effective way for the parents or the son to receive this money? All recommendations and insights are welcome.

I am not sure what we will contribute. Likely somewhere between $1-2k per year as long as he stays in good academic standing.

[Anonymous]

Oh my god please don’t set up a Go Fund Me. The school’s payment portal should have an authorized payer setting that you can be added to.

[Anonymous]

Why an OOS public if donations are needed?

[Anonymous]

Unless you define “good academic standing,” I wouldn’t bother because college can be really hard (not necessarily academically but resisting distractions).

Maybe do a $1k gift after freshman year.

Don’t mix money and family.

[Anonymous]

When I read your title, I put the possessive S after God instead of son and was wondering where Jesus was enrolled.

I think a Go Fund Me is not the right vehicle. I think a 529 or as others have said getting your name added as someone who can send in money directly to the school and then send it directly to the school.

[Anonymous]

Anonymous wrote:All recommendations and insights are welcome.

Honestly, I think that you could start a conversation with him to make sure that he and his family can afford this college choice. Sure, most people would willingly accept money to help make college tuition payments easier. But the fact that they are asking for donations from the outset suggests that they can't afford this choice. I'd worry about that.

[Anonymous]

Anonymous wrote:When I read your title, I put the possessive S after God instead of son and was wondering where Jesus was enrolled.

I think a Go Fund Me is not the right vehicle. I think a 529 or as others have said getting your name added as someone who can send in money directly to the school and then send it directly to the school.

Institute of Carpentry, Sheep Farming and Public Speaking, Nazareth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When I read your title, I put the possessive S after God instead of son and was wondering where Jesus was enrolled.

I think a Go Fund Me is not the right vehicle. I think a 529 or as others have said getting your name added as someone who can send in money directly to the school and then send it directly to the school.

Institute of Carpentry, Sheep Farming and Public Speaking, Nazareth.

Is that a T20?

[Anonymous]

Anonymous wrote:Why an OOS public if donations are needed?

Because for middle class families in state colleges often don’t turn out to be the cheapest route so you cast a wide net?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why an OOS public if donations are needed?

Because for middle class families in state colleges often don’t turn out to be the cheapest route so you cast a wide net?

DP here. I am aware if that but OP specifically mentioned needing to cover OOS tuition, implying that that is more expensive than their instate option.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When I read your title, I put the possessive S after God instead of son and was wondering where Jesus was enrolled.

I think a Go Fund Me is not the right vehicle. I think a 529 or as others have said getting your name added as someone who can send in money directly to the school and then send it directly to the school.

Institute of Carpentry, Sheep Farming and Public Speaking, Nazareth.

Also Fishing.

[Anonymous]

Sounds tacky.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I read your title, I put the possessive S after God instead of son and was wondering where Jesus was enrolled.

I think a Go Fund Me is not the right vehicle. I think a 529 or as others have said getting your name added as someone who can send in money directly to the school and then send it directly to the school.

Institute of Carpentry, Sheep Farming and Public Speaking, Nazareth.

Also Fishing.

And winification.

[Anonymous]

There are no tax implications for you. You’ll be well under the $15k annual gift tax exemption.

Depending on their income, the family might be eligible for a credit, I think it’s up to $4k or something. I would think they could claim it whether they used a gift to pay the tuition or not, but that would be a question for their tax advisor. Either way they don’t have to report the gift as income or pay income taxes on it.

[Anonymous]

Anonymous wrote:There are no tax implications for you. You’ll be well under the $15k annual gift tax exemption.

Depending on their income, the family might be eligible for a credit, I think it’s up to $4k or something. I would think they could claim it whether they used a gift to pay the tuition or not, but that would be a question for their tax advisor. Either way they don’t have to report the gift as income or pay income taxes on it.

PS I agree that if there are any fees associated with Go Fund Me it would be better to pay the school directly or write them a check. College comes with a lot of random expenses so cash is not a bad idea, imo.