Forfeited Deposit $$

Share Your Experiences, Read About Other Experiences. Please keep posts organized by school and expected year of graduation.

How DO Law Schools Use Forfeited Deposit Money?

Added to the school's endowment
5
12%
Merit scholarships
2
5%
Admissions budget booster
9
22%
Recruitment slush fund
1
2%
End-of-cycle kegger for admissions staff
19
46%
?
5
12%
 
Total votes: 41

User avatar
bigjinjapan
Posts: 247
Joined: Sun Jan 16, 2011 3:02 am

Forfeited Deposit $$

Postby bigjinjapan » Mon Jun 06, 2011 11:01 am

As someone who's forfeiting a decent chunk of deposit money this cycle, I got to thinking: what's the status of this money? Here you've essentially gifted this money to the schools: can you claim a tax break for charitable donation? More importantly: how do they dispose of the money?

Here I've created a poll with my 5 most likely uses for forfeited deposit money. Vote for your favorite or feel free to add your own.

User avatar
2011Cycle
Posts: 406
Joined: Sun Aug 15, 2010 8:08 am

Re: Forfeited Deposit $$

Postby 2011Cycle » Mon Jun 06, 2011 11:05 am

bigjinjapan wrote:As someone who's forfeiting a decent chunk of deposit money this cycle, I got to thinking: what's the status of this money? Here you've essentially gifted this money to the schools: can you claim a tax break for charitable donation? More importantly: how do they dispose of the money?

Here I've created a poll with my 5 most likely uses for forfeited deposit money. Vote for your favorite or feel free to add your own.


No more a gift than any other non-refundable deposit(hotels in Vegas, cruise reservations, etc)

User avatar
bigjinjapan
Posts: 247
Joined: Sun Jan 16, 2011 3:02 am

Re: Forfeited Deposit $$

Postby bigjinjapan » Mon Jun 06, 2011 8:32 pm

2011Cycle wrote:
bigjinjapan wrote:As someone who's forfeiting a decent chunk of deposit money this cycle, I got to thinking: what's the status of this money? Here you've essentially gifted this money to the schools: can you claim a tax break for charitable donation? More importantly: how do they dispose of the money?

Here I've created a poll with my 5 most likely uses for forfeited deposit money. Vote for your favorite or feel free to add your own.


No more a gift than any other non-refundable deposit(hotels in Vegas, cruise reservations, etc)


As I understand it, most universities are not-for-profit institutions (as opposed to for-profit universities that have been in the news lately). I would think that they should have to be more accountable for their money than a for-profit business would be. And if the money really does go into the merit scholarship pit, wouldn't that be a charitable donation?

User avatar
2011Cycle
Posts: 406
Joined: Sun Aug 15, 2010 8:08 am

Re: Forfeited Deposit $$

Postby 2011Cycle » Mon Jun 06, 2011 8:38 pm

bigjinjapan wrote:
2011Cycle wrote:
bigjinjapan wrote:As someone who's forfeiting a decent chunk of deposit money this cycle, I got to thinking: what's the status of this money? Here you've essentially gifted this money to the schools: can you claim a tax break for charitable donation? More importantly: how do they dispose of the money?

Here I've created a poll with my 5 most likely uses for forfeited deposit money. Vote for your favorite or feel free to add your own.


No more a gift than any other non-refundable deposit(hotels in Vegas, cruise reservations, etc)


As I understand it, most universities are not-for-profit institutions (as opposed to for-profit universities that have been in the news lately). I would think that they should have to be more accountable for their money than a for-profit business would be. And if the money really does go into the merit scholarship pit, wouldn't that be a charitable donation?


If U.S. tax deductibility rules were based on outcomes, your presumption would have merit. Unfortunately, for tax purposes a charitable contribution must have from it's initial contribution be explicitly for the purpose of a gift, without any known or expected return of value. When we place seat deposits, the return we receive is that seat being geld for us and when we enroll it goes toward tuition. Unfortunately, when we lose it, we by choice forgo the value we have received and the school is under no obligation to return it --hence, the deposit converts to a donation of a sorts but not a charitable deduction at all.
Last edited by 2011Cycle on Mon Jun 06, 2011 10:57 pm, edited 1 time in total.

minuit
Posts: 611
Joined: Thu Jan 07, 2010 1:39 pm

Re: Forfeited Deposit $$

Postby minuit » Mon Jun 06, 2011 10:17 pm

GW has 2k worth in deposits from me. I wrote in my withdrawal letter that I hope it contributes to a scholarship for someone else, but who knows. Probably highly unlikely.




Return to “Law School Acceptances, Denials, and Waitlists”