Scholarships provide financial support for students, easing the burden of education expenses and reducing student loan debt after graduation. Scholarships can be merit-based or need-based, and may include one-time awards or ongoing recurring scholarships. They can be awarded as lump sums or instalments, and can be used for tuition fees or other purposes such as living expenses or technology and equipment. Scholarships can also be tied to certain conditions, such as maintaining a minimum GPA or committing to work in the field of study after graduation.
Scholarship programs are often sponsored by individuals, clubs and organizations, charities and foundations, colleges and universities, government agencies, businesses, industry associations, and more. Some are based on a specific topic or activity, while others are aimed at students from under-served communities or students with unique talents and interests.
Creating a scholarship fund is an excellent way to make a lasting impact on students, and benefits both donors and recipients. Donors get the gratification of knowing they are making a difference in students’ lives, and recipients receive the funds to cover their education expenses without accumulating debt. Creating a scholarship requires careful planning to clearly define eligibility criteria, set clear application requirements, and create a fair selection process for applicants. It’s also important to consider the time investment — setting up a new entity, establishing tax-deductible donation options for friends and family, and ensuring adherence to donor regulations can require 40 hours or more of your time.