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PRIZE AGREEMENTS

1.    Organization

Q: How much is the organizational funding, and when will it be paid?

 A:  Organizational Prize funds of $250,000 will be paid over a period of two years with installments of $125,000 each to be made by March 31. 

Q: How will Elevate remit organization funding?

A: All payments will be made by electronic transfer in U.S. dollars.

Domestic payments will be remitted via ACH transfer via Bill.com. Your organization does not need to create an account to receive funds.

International payments will be remitted via wire transfer. Banking details must include U.S. intermediary bank name and ABA number for transfers from our brokerage account.

Q: Which Prize Agreement is right for my organization?

A: The answer is based on your organization’s non-profit status:

Non-Profit StatusTaxDocumentationAdditional DocumentationAgreement Type
U.S. 501c3W-9IRS Letter of DeterminationDomestic 
U.S. 501c3 Fiscal SponsorW-9IRS Letter of DeterminationDomestic (Fiscal Sponsor)Publicity Agreement (Prize Winner Leader)
International Organization with U.S. 501c3 AffiliateW-9IRS Letter of DeterminationDomestic (U.S. Affiliate)
International Organization with U.S. 501c3 EquivalencyW8-BEN-EEquivalency Determination Certificate (paid by Elevate)International
International Org W8-BEN-EExpenditure Responsibility ReportInternational

Q: Are there restrictions on use of organization funds?

 A: Elevate provides unrestricted grants to organizations and we defer to your judgment on optimal allocation of the funds. However, it is important to note that there are certain legal limitations that recipients must abide by. These limitations include lobbying, participation or intervention in any political campaign or on behalf of any candidates seeking public office, and other activities directly or indirectly not in furtherance of the Prize Purpose or in contravention of the Internal Revenue Code Section 501(c)(3), as detailed in the Prize Agreement.

Q: Do I have to report on the use of organization funds?

 A: Yes, a complete report on how the funds are spent, indicating categories of expenditures, are due each September 30 until funds are fully expended. Categories may include general operating support. The Elevate team will reach out to you in advance of the due date to provide more details each year.

The following are examples of categories that would constitute a complete report of how funds have been spent:

Capital improvements: $75,000

Staffing (Marketing Coordinator): $45,000

Utilities: $5,000

Total: $125,000 

2.    Individual

Embracing the whole leader approach, the Elevate Prize allocates a specific portion of the overall funding directly to Prize winners. This gives them a unique opportunity to use unrestricted funds for their personal and professional growth, well-being, and various essential needs.

Q: How much is the individual funding and when will it be paid?

 A: Funds of $50,000 will be paid over a period of two years in installments of $25,000, each to be made by March 31.  

Q: Is the individual funding a gift or donation?

 A: The individual funding is a grant, and therefore income that Elevate will report on tax form 1099-MISC for U.S. Prize winners. 

Due to U.S. Internal Revenue Service (IRS) regulations, 30% of international Prize winners’ funding will be withheld and paid directly to the IRS by Elevate.

Q: Why does Elevate withhold 30% of the individual funding for Prize Winners from countries with a tax treaty with the United States?

 A: Elevate opts for a standard 30% withholding for all international individual prize winners due to the complexity of various U.S. tax treaties, which our small team may not fully analyze. This withheld amount is sent directly to the IRS. We suggest consulting a local tax professional for personalized advice, as Elevate cannot offer specific tax guidance.

Q: How will Elevate remit payments for individual funding?

 A: All payments will be made by electronic transfer in U.S. Dollars.

Domestic payments will be remitted via ACH transfer via Bill.com. You do not need to create an account to receive funds.

International payments will be remitted via wire transfer. Banking details must include U.S. intermediary bank name and ABA number for transfers from our brokerage account.

Q: Which Prize Agreement is right for me?

 A: The answer is based on your individual status:

Individual StatusTaxDocumentationTax WithholdingAgreement Type
U.S. CitizenW-9NoneDomestic
Non-U.S. CitizenW8-BEN30% to IRSInternational

Q: What happens if my country of residency changes during the agreement term, as some countries do not guarantee residency to foreign visitors?

 A: If your country of residency is going to change, please contact us in advance to discuss the reason for the change.

Q: Are there restrictions on use of individual funds?

 A: Given the personal sacrifices winners make in their commitment to their organizations, Elevate considers most expenditures covered by the use of individual funds to fall within the Prize’s purpose, with the exception of investment/savings accounts other than College Savings 529 plans for children or dependents (if you’re a U.S. Prize winner).

Q: Do I have to report on my use of individual funds?

 A: Yes, reporting is required each year by September 30 until funds are fully expended. Please see this sample report template. Individuals and organizations will file their own separate reports.

Q: What happens at the end of the Prize Agreement term?

A: You remain a valued member of our Elevate family! We love to keep working with our winners in programs including sourcing potential winners and identifying valuable offerings for current winners. We are in the process of building  an alumni program to ensure Elevate remains an integral part of our winners’ journeys.