Inspired by the experience in CuO-based superconductor that a larger spacing distance between CuO planes induced a higher T(C), some researchers synthesized (Sr(3)Sc(2)O(5))Fe(2)As(2) and related compounds with spacing distances between FeAs planes as large as 15 Å and expected a higher T(C). Our density functional calculations indicate that the Fermi surface of (Sr(3)Sc(2)O(5))Fe(2)As(2) is very similar to that of LaOFeAs, while the projected band structure shows some differences. From Fermi surface nesting and the calculated Lindhard response function χ(q), we predict that a spin density wave (SDW) and stripe antiferromagnetism (AF) may exist in the undoped compound and that electron or hole doping will suppress this SDW state. Similar to LaFeAsO, both the stabilization energy and the moment are very sensitive to the As atom positions. Because of the considerable similarity to LaFeAsO, (Sr(3)Sc(2)O(5))Fe(2)As(2) is expected to become a superconductor with electron or hole doping.