How to Set Up a scholarship fund
Did you know that there are many scholarships that are offered by individuals or non-profit organizations and small organizations? If you want to create a fund of your own, whether to remember a loved one or to help others, here are five questions you should ask yourself about how to create a scholarship fund!
#1 How much do you want to reward students?
First, you should consider your budget. Even if it is only $500, it will help a student who needs financial aid to attend college. You don't have to donate thousands of dollars, but you may have a budget for it, or you may have people willing to fund your scholarship.
Some things to keep in mind that may affect the award amount include whether or not you form a nonprofit organization, the people you partner with (if any), and tax benefits.
#2 Who do you want to help?
Next, you'll want to think about who you'll be helping with your prize. Will the scholarship be available to all types of students or to a specific group? Some awards will be reserved for minorities, certain religions, some major institutions, and more. Others may only be available to those who have demonstrated financial need.
If your scholarship is meant to be memorable, you may want to dedicate the award to those who exemplify your loved one. Or something close to your heart. The great thing about scholarships is how customizable they are!
#3 What are the scholarship requirements?
You also need to think about how students qualify for the scholarship. It includes deadlines, eligibility criteria, application process, and whether or not the award is renewable. Here are some questions you should ask yourself to help you determine the eligibility requirements (if you have any) and how to create a scholarship fund:
What is the required educational level?
High school, college, graduate, trade school?
Is the location of the award specified?
Is there a minimum GPA, ACT, or SAT score required?
Does the student have to prove financial need?
Should the student perform volunteer or community service?
Is there a specific major or desired career field required to qualify?
What application materials will you need?
And if you include an essay, what should students write?
What is the deadline for the award?
Will there be any race, ethnicity or other restrictions on your scholarship?
Will there be different eligibility requirements for renewal?
#4 How will you manage the grant?
Of course, you cannot insert an award into a scholarship database and call it a day. Here is more work on how to create a scholarship fund.
You will need to finalize your scholarship program by making it a non-profit organization, working with a university, or partnering with the Scholarships Administration Service. The most cost-effective option is to work with a scholarship management service.
Once you have established your scholarship, you will also need to promote and market the award. This can be done through the Scholarship Management Service, but you may also want to make announcements on social media, high schools if students qualify, and any personal networks in your community.
#5 How will the winners be chosen?
How winners will be selected must be decided before the awards are launched. You'll be able to start reviewing applications once the deadline has passed, but here are some aspects you'll want to consider before and after the deadline.
How will the winners be chosen?
Do you have specific criteria or aspects that you are looking for? Will applications be ordered using a formula? If so, you may wish to include this information in the scholarship announcement and rules.
How many winners will there be?
How will you work through all the applications?
Many scholarship management services will recommend the best candidates based on your scholarship needs.
How long will it take to notify the winners?
Of course, at this point, after you get a scholarship, you may want to ask yourself, "Do I want to do that again?" Some scholarships are awarded for only one year, while others last for decades! Your budget and goals will come into play here, but it's important not to rush into a decision.
Starting a scholarship can be very rewarding and allows you to give back to students within your community while supporting a cause you believe in. Budget, goals, and more to develop a scholarship that not only benefits potential recipients, but also aligns with your intentions.