Net Proceeds and Scholarship Funding Policy

1. The commitment Mychoice Awards LLC dedicates 100% of net proceeds from optional winner marketing campaigns to its Georgia student scholarship program. Net proceeds are not gross sales and are not the same as scholarships already paid. Free voting, basic participation and earned recognition do not depend on a purchase. A paid promotion is a commercial service, not a promise of a tax-deductible charitable contribution.

2. Calculation Net proceeds equal collected campaign receipts, minus refunds actually owed or returned for those receipts, minus documented eligible campaign costs. Do not count the same refund, receipt or cost twice. Refunded purchase principal reduces receipts; a separate processor refund fee may be an eligible cost only if actually charged and not already included. Amounts held for legally required taxes are accounted for separately, not portrayed as scholarship revenue. Only these direct campaign costs are deductible: media/advertising spend for delivering the campaign; third-party production and fulfillment of purchased campaign materials/services; payment-processing fees; and actual nonrecoverable processor refund/chargeback fees attributable to campaign transactions. Each deduction needs supporting records and an authorized cost review. Costs must be allocated reasonably to the campaign and not recovered twice. Owner compensation, profit distributions, general company overhead, unrelated expenses, penalties and unspecified other costs are not deductible under this version. A future change to eligible categories must be published prospectively and must not retroactively reduce an existing scholarship allocation.

3. Example If collected campaign receipts are $1,000, customer refunds are $100, and documented eligible direct campaign costs are $200, net proceeds are $700. The entire $700 is allocated to scholarships. That allocation is not a claim that $700 has already been awarded or paid to a school.

4. Reconciliation and stewardship Finance reconciles receipts, refunds and costs before recording a scholarship allocation. Unresolved costs are not treated as settled deductions. Negative net results allocate no new scholarship money; the documented negative balance and later refunds are carried forward so that money is not allocated twice. Previously paid awards are not automatically charged back to students merely because a later accounting period is negative. Scholarship funds and obligations are tracked distinctly in the ledger. Unawarded funds remain committed to eligible scholarships; they are not reclassified as owner profit. A round opens only with a defined funding balance, dates and award limits. Closing a campaign does not entitle the operator to divert its scholarship commitment.

5. School payments and reporting Scholarships are selected under the published rubric and conflict policy and paid directly to the recipient's chosen eligible school under the Eligibility Policy. Returned unused school payments remain scholarship funds. Public reporting distinguishes reconciled receipts/costs and allocation from committee awards and confirmed institutional payments. Scheduling or recording an intended payment is not proof a transfer occurred. This policy does not represent that Mychoice Awards LLC is a tax-exempt charity or that a purchaser may deduct a payment as a charitable contribution. The company must comply with applicable charitable-solicitation, sales-promotion, accounting and tax requirements; this policy does not replace a required registration or establish an exemption.