Funding a Scholarship
Image credit J'Hannah R.M. Glencross
Eastern Maine Community College is fortunate. Setting up a Scholarship Fund is a great way to support EMCC students with financial need. Often it is the difference that makes staying in school possible.
Establishing a scholarship fund is easy when considering the following:
- Determine what type of scholarship you want to set up. Will it be a One-Time Scholarship – a one-time donation that will be exhausted when awarded, or an Annual Scholarship? This type of scholarship can be funded annually, periodically or a one-time donation that will be distributed over a period of years until exhausted. You might want to also consider an Endowed Scholarship – a self-sustaining fund with the interest earned on the account funding the scholarship. An Endowed Scholarship can be set up for as little as $10,000, however to offer you some perspective, $15,000 will give you an annual award of approximately $500.
- Decide how much the scholarships will award annually and how you will fund it. How much and how often will you contribute to the fund? Can you get others to contribute on a one-time or periodic basis?
- Establish the criteria for the award. We administer many scholarship funds that have been created on behalf of EMCC students and are available to answer any questions in case you get "stuck" in figuring out your criteria.
- Name your fund.
- Meet the Educational Scholarship fund legal and IRS requirements:
- The scholarship must be awarded on an objective and nondiscriminatory basis.
- No grants may be awarded to an officer, manager or trustee of the organization, nor a member of the selection committee, nor to a substantial contributor.
- Family members of these individuals are also not eligible to receive grants.
- The group of applicants from which the recipients are selected must be sufficiently broad as to be considered a charitable class.