Can organizations establish InvestEd scholarship programs?
Not-for-profit entities, such as 501c(3) organizations and state and local governments have the ability to set up scholarship accounts within the InvestEd Plan. There are many reasons that not-for-profit entities may find InvestEd scholarship accounts attractive. No beneficiary has to be named at the time a scholarship account is set up. In addition, there’s no maximum contribution limit. At the time the scholarship is awarded, the organization simply completes a transfer of ownership form for the portion of the account they wish to grant to any given recipient. This recipient must use the money for higher education expenses.
