If you are considering backing your community by supporting educational opportunities, then setting up a scholarship fund through a private foundation, business, or university is what you need to do. This page will walk you through the steps and how to start a scholarship fund.
Scholarship funds enable students to get money to help cover the costs of their college education. Many businesses, private organizations, and NGOs have excellent scholarship programs, and many more wish to join them by developing their own. Unfortunately, determining how to start a scholarship fund is not always easy.
Fortunately, setting up an educational scholarship fund is not as difficult as you think, especially if you follow our guide.
Here are some steps and insights into how to start a scholarship fund if you wish to support worthy students in furthering their studies.
How to Start a Scholarship Fund?
Follow these simple steps to establish a scholarship fund:
Step 1: Establish a budget.
First, you need to plan a budget. The truth is that it takes more than just handing out money to qualified students to establish a scholarship fund. You must consider what it costs to establish a scholarship fund.
Setting up the scholarship program, keeping track of candidates, publicizing the scholarship, and giving the scholarship all incur costs. You will have a better notion of how much money you can offer students after you know all the costs involved. You could use the services of a scholarship management agency. They will help you with the paperwork, usually for a modest cost.
2. Identify who you want to support.
After establishing the budget and getting the funds needed, the next step is identifying the students you want to support.
Currently, in America, there are so many students in need of financial assistance. According to Sallie Mae, families spent an average of $30,017 for college in the 2019-2020 school year. That amounts to roughly half of the average household income. Furthermore, scholarships or grants were used by seven out of ten households to help pay for college. So, while considering who to support, look at these attributes when developing the criteria for your scholarship.
3. Establish a scholarship timeline.
Your scholarship can be a one-time contribution or a recurring fund you award yearly. Another possibility is to establish a permanent scholarship endowment fund. The options are there for you!
4. Determine your eligibility criteria.
Community foundation experts can help you develop scholarship eligibility requirements and criteria that represent your interests and goals. They will use their knowledge and expertise to find the ideal criteria for attracting the most suitable applications.
5. Give your scholarship fund a name.
Your scholarship funds can be established to honor or memorialize someone important, to celebrate an individual’s passions, or on behalf of a business or group. Whatever the cause, your scholarship will be named after you. You can choose a name that matches your charity purpose(s) if you want anonymity through a community foundation.
6. Create a selection process.
Finally, you can set up a scholarship selection committee comprising education specialists who will put their years of knowledge to work for you at your scholarship foundations.
What are the Advantages of Starting a Scholarship Fund?
Obviously, scholarships are a great way to help people in the community. You can make college more affordable by setting up a scholarship fund and awards for them.
You can also improve your organization’s reputation among prospective employees and clients, as well as your visibility.
Lastly, launching a scholarship program might also have financial benefits in specific situations. You could get a tax deduction in your business if your company gives out scholarships.