By funding a scholarship, for-profit and not-for-profit companies can help more people in their community afford a university education. These fellows, meanwhile, use their new skills and knowledge to make a positive difference in their families, communities and the world. You can choose the name of your scholarship and set eligibility criteria. They can decide, for example, whether the scholarship is needs- or performance-oriented and whether it is limited to students in a given field. This way, you can ensure that the scholarship promotes the reputation and mission of your organization. Whether you choose a scholarship or a regular scholarship, your organization donates money to ease the financial burden of college for one or more students. The main difference lies in the management and financing of scholarships. If you receive a scholarship, the university manages the funds for the long term. However, they have some control over how the funds are used. When you make your donation, you will be asked to submit a Notice of Intent indicating how your foundation will be used. The university will respect your wishes and will not leave the director intact, so your scholarship will remain a consistent source of help for students.
Most colleges set a minimum amount for scholarships. However, a foundation scholarship does not need to be fully funded immediately and you can increase your endowment over time. You can also set up a scholarship service created after your death by your trust or will. The larger your foundation wealth, the more it will earn by investing – and the more good it will be able to do. On the other hand, if you create a scholarship, donate a large amount of money to the university for a specific purpose. This fund must be permanent, so that the money you give is never actually spent. Instead, the capital income generated by your endowment fund will be used to fund your scholarship for years to come. Once you have chosen to offer a scholarship, you have to make another choice: will you create a scholarship or fund a regular scholarship? Do you want to know how Submittable can optimize your process? Contact us anytime for a free demo of our scholarship management software.
Creating a scholarship service is a wonderful opportunity to honor a loved one, give something back to your community, or build a charitable reputation for your brand. A scholarship offers several advantages to the person or organization that gives: a regular scholarship is quite simple. They set aside a certain amount of money to fund a scholarship. All the money you donate goes directly to the funding of this scholarship in the same year. If you want the scholarship to be renewed every year, you need to give more money the following year. From the university`s perspective, a regular scholarship is a one-time donation rather than an annual commitment.