Scholarships
Scholarships are a popular gift that make a college education more affordable for students and their families.
A scholarship can range from a small, one-time stipend to annual, full-ride support that covers tuition, housing, and supplies. While scholarships for students to attend a specific university are usually administered by that institution’s financial aid office, donors can also establish independent scholarships for students that meet certain criteria, such as pursuing a degree in music at a university of their choice.
Scholarships can include:
- Helping students participate in a study abroad program.
- A one-time financial award based on an essay contest.
- Supporting students in specific disciplines.
Scholarships cannot be given directly from a donor to a student. They are usually administered in the following ways:
- Through a college or university for students at that institution.
- Through a community foundation.
- Through an independent scholarship organization.
- Through a private foundation, in certain circumstances.
The risk of scholarships
Scholarships can be transformative for students, but they are complicated to structure and administer well. They require consistent monitoring from the donor to ensure that awards are being given according to the set criteria. Even when fully funded, schools do not always award the available number of scholarships. The Moritz family structured their gift at Ohio State University to award 30 law scholarships per year. However, the family discovered that only a fraction of these scholarships were being administered, despite a wide availability of qualified students. The school used the funds to pay for salaries and fundraising activities.
Challenges can extend beyond how funds are used to the eligibility requirements themselves, which have historically been tied to factors such as financial need, race, gender, age, and academic performance. Race and gender may no longer be approved criteria for eligibility in the future. Scholarships administered by the university may be subject to different rules and regulations than those administered by an outside institution, such as Scholarship America or a community foundation.
How FAR helps you
FAR helps donors and their advisers weigh whether a scholarship gift is the right fit. We can help you:
- Determine relevant eligibility criteria.
- Establish reporting requirements for the university.
- Find the best giving vehicle for your gift.
Make Every Dollar Count
Giving to higher education is an opportunity to create lasting impact. With so many options, how do you ensure your gift aligns with your values and goals?
Download our Intelligent Donor’s Guide to navigate the complexities of college giving with confidence and strategy.
