@cricket34
Grants and scholarships in excess of the cost of education are always taxable. Cost of education meaning tuition, required supplies, and sometimes room and board, depending on the tax provision being considered. Since the overseas project is not coursework, there is no "cost of education" to consider.
Furthermore, I expect there is no particular requirement that he actually perform the project, or that he perform well enough to "succeed" (whether that means publication or something else). It's basically free money on the promise of doing work. If anyone else paid your child $10K to do a project, your child would be an independent contractor and would deduct their expenses and pay tax on any net profit after expenses. The fact that the child is a student, and the money is being paid by a charitable foundation rather than a for-profit company, seems like it should change things, but it probably doesn't.
I think the most likely answer will be a schedule C, but @Hal_Al is another expert who know a lot about college issues. The alternative is to report it as a taxable scholarship in excess of tuition, which will make it taxable income but not subject to social security or self-employment tax, but will not allow the deduction of expenses.
