What criteria does High Meadow School (HMS) use to allocate financial aid grants?

It is important to note that work exchange is considered compensation and must be reported as non-compensation income on an individual’s income tax return. To facilitate this, HMS issues a 1099-NEC form in January to those who receive work exchange packages and complete their work exchange hours.

In the summer of 2024, the school investigated with their financial auditors whether work exchange could be considered a tax-deductible donation of service to us as a nonprofit organization. Unfortunately, this option is not available to us because there is a clear exchange of tuition credit for the professional services rendered.