|The majority of not for profit organisations are expected to qualify as NFFEs as very few will be carrying on a business as Financial Institutions.
If a not for profit organisation does qualify as a financial institution, then it will need to subject any financial accounts that it maintains to due diligence.
The Greendale Quaker Society sets up a scholarship fund for the benefit of children of Greendale, who exceed 90% in the entrance exam for Greendale College. The GQS Scholarship Fund is an Investment Entity.
In 2004, Thomas Green scored 93% in his exam and the Society agrees to fund the Greendale College fees.
Thomas is a beneficiary of the GQS Scholarship Fund and will be for the duration of his time at Greendale College, but as this benefit was due to his becoming a member of the beneficiary class and conditional upon his exam score, this will not qualify as a financial account.