How Do You Create An Educational Scholarship Fund?
• Determine what type of scholarship you want to set up (based on duration of the award): (a) A One-Time Scholarship – a one time donation exhausted when awarded. (b) An Annual Scholarship – fund it annually, periodically or a one-time donation to be distributed over a period of years until exhausted. (c) An Endowed Scholarship – a self-sustaining fund with the interest earned on the account funding the scholarship. An Endowed Scholarship can be set up at some colleges for as little as $10,000. • Decide how much the scholarship will award annually and how you will fund it. (a) How much and how often will you contribute to the fund? (b) Can you get others to contribute on a one-time or periodic basis? • Establish the criteria for the award. • Name your fund. • Meet the Educational Scholarship fund legal and IRS requirements. Decide who will administer the scholarship. This will often determine who does the work to create the scholarship as well as implement the scholarship administratio
