Charitable non-profit for provding educational financial aid (In India)

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RookieInvestor
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Joined: Sun Aug 16, 2015 4:30 pm

Charitable non-profit for provding educational financial aid (In India)

Post by RookieInvestor »

My late father had a wish to set up a scholarship of some kind and provide financial aid to meritorious high school students who are poor and financial challenged. I intend to work on his wish and set up a charitable non-profit here in US but with an aim to provide scholarships to those needy students.
My plan is to put aside some initial money ( my own) into this non-profit and invest that money into various investment schemes and use the returns as a way to fund such scholarships. Obviously, it will be at a small scale to start with and I have to figure my ways out to make it meaningful and impactful. I also understand that it will claim a good bit of my time ( & my wife's) to run this thing.I am doing the ground work now on assessing the need, the regions and types of students we should target to fund and the criteria to use to judge their meritrocacy and the financial hardship.
However, before I start off, wanted to see some advice from this forum on the dos and donts and if its even feasible.
Here are my beginner's questions:

1. Is it allowed to set up such a non-profit in US but do the charitable work in India?
2.What if I set up a non-profit directly in India and just fund it from here? Will that be more cleaner?( I believe US citizens of Indian origin with OCI can set up such entity)
2. What are the tax consequences for #1 and/or #2? How are the expenses and taxes handled? Does it roll up to our joint filing?
3. Post retirement (in few years), either I or my wife may run this full time if it becomes viable. For such, do you have to be an employee of this non-profit and hence do we need to address payrolls and other logistics around running such as entity? Is there an easy reference anywhere to know of those logistics.
3. Can charities be run like S-corp,LLCs or do they have a different special designations? (I.e. if I set up a charitable here in US)

Thanks in advance for your inputs.
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