To create an Educational Scholarship Fund there are some steps you need to take to think it out carefully. You must take into consideration what type of scholarship you would like to set up, who will this scholarship help? How long do you want the scholarship fund to continue?  How much the scholarship will be for? What the name of your scholarship fund will be, and who can you get to help you administer the scholarship? These are all very important decisions that you need to make.

Here are some steps you can take that will help you set up an Educational Scholarship Fund.

What type of scholarship would you like to set up?

A.) A One-time scholarship: where the donation is only used once.

B.) An Annual Scholarship: Where you fund it every year, or you set up a certain amount for the scholarship and it continues yearly until exhausted.

C.) An Endowed Scholarship: this is a self-sustaining fund, set up to earn interest so it can continue to fund itself going forward indefinitely.

What is the amount you want to set up for your Educational Scholarship fund?

A.) On a one-time scholarship you can decide to use whatever amount you want, from a few hundred dollars to thousands of dollars, to paying a student’s entire college education.

B.)   On an Annual Scholarship you can choose any amount, but it must be replenished on a yearly basis.

C.) With an Endowed Scholarship you can set this up to collect interest so the scholarship continues on for as long as the money lasts.

How to Create an Educational Scholarship Fund

What is the purpose of your Educational Scholarship Fund?

A.) Will the money be used for Tuition? This means the money would only be used to pay for the college tuition.

B.)   Can the money be used for room and board? This would mean the money could only be used for paying for a dorm room or apartment for the student at the college.

C.) Should the money be used for buying books and supplies? This would limit the money to only being spent on the books and supplies that the student would need for their classes.

D.) Or should the money be used for any or all of the above? This would mean the student could use the money for all of their college needs, whatever they may be.

Who will Benefit from your Educational Scholarship Fund?

A.) Will it only benefit full-time students or part-time students?

B.)   Do you want your scholarship to help someone who is in need financially?

C.) Do you want a student who can prove outstanding performance on an academic level?

D.) Do you want your scholarship to be awarded to anyone who meets other criteria regardless of finances?

E.)   Do you want to distinguish your scholarship for only a certain kind of student?

1.)   Like only natural red heads, left-handed students, brown haired students?

2.)   Students who are majoring in Math or Students or specializing in in Science

What will the name of your Educational Scholarship Fund be?

Naming your scholarship can be very important. The nice thing is you can name it whatever you want within reason of course. You can name it in memory or honor of a loved one or you can choose to name it for a college. You can also name it for a certain type of student you wish to help, like a minority or an attribute the student may have that you wish to honor, like brown eyes or red hair. Just make sure you choose a unique name that no other scholarship is named after.

Once you have made all these decisions and are ready to go ahead with your Educational Scholarship there are some compliance issues you need to address that have to do with state and Federal laws, including Internal Revenue Service (IRS) guidelines. You will also want to check out any tax exempt rules you need to comply with also.

There are four different ways you can go about setting up your Scholarship:

1.)   You can administer the Educational Scholarship yourself. You can keep full control of the scholarship this way but it also means you have to do all the work, and the work to set it up can be substantial.

2.)   You can have a private scholarship administration service set up your Educational scholarship for you; they will charge you a fee, usually a percentage of the fund, for setting up this award, but they can make it simple for you if money is not a huge issue.

3.)   A non- profit organizations can set up your Educational Scholarship for you, even though they may charge you a fee. They only problem with this you may need to do a search of non-profit organizations that will fit your needs.

4.)   A College or University can also set you an Educational Scholarship for you; this is actually one of the best ways to go as it is cheaper in terms of money and time. The only problem with this is then the scholarship is usually set up for just that College or University depending on your state laws.

Following these tips and suggestions should make it far easier for you to manage and set up your Educational Scholarship. For more information you can always search the internet or contact a local College or University for any help you may need in getting started.

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