{"id":52146,"date":"2021-05-07T11:02:32","date_gmt":"2021-05-07T15:02:32","guid":{"rendered":"https:\/\/www.tun.com\/blog\/?p=52146"},"modified":"2024-03-21T20:35:56","modified_gmt":"2024-03-22T00:35:56","slug":"how-to-start-a-memorial-scholarship","status":"publish","type":"post","link":"https:\/\/www.tun.com\/blog\/how-to-start-a-memorial-scholarship\/","title":{"rendered":"How to Start a Memorial Scholarship"},"content":{"rendered":"\n

Every year, millions of students struggle to find the funds to attend college. Awarding a scholarship to a student in need makes a substantial difference in their lives, and can go a long way to help them avoid the trap of post-graduate student debt. <\/p>\n\n\n\n

If someone you love has recently passed, creating a scholarship in their name can be a wonderful way to honor their life and legacy. On its face, setting up a scholarship appears to be a complicated process, but with the right guidance, it can be quite easy and painless.<\/p>\n\n\n\n

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Need help with your scholarship?<\/strong><\/h4>\n\n\n\n

The University Network is happy to help you. Just give us a call at (917) 397-2650<\/strong>, email us at sales@tun.com<\/strong>, or schedule a free consultation below:<\/p>\n\n\n\n

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Schedule a Co<\/span>nsultation<\/strong><\/a><\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n
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  1. How will the memorial scholarship be funded?<\/a>
  2. Determine the size of awards<\/a>
  3. Determine if you want to create an endowed or non-endowed scholarship fund<\/a>
  4. Determine if you want to manage the scholarship independently or use a third party\u00a0<\/a>
  5. Who do you want to help?<\/a>
  6. Establish eligibility criteria and detail the application process\u00a0<\/a>
  7. Spread the word about your scholarship<\/a>
  8. Conclusion<\/a><\/ol>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\n\n\n
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    In this article, we\u2019ll discuss how to create a memorial scholarship in someone\u2019s name, with attention to key steps in the process and common pitfalls to avoid.<\/p>\n\n\n\n

    How will the memorial scholarship be funded?<\/strong><\/h2>\n\n\n\n

    Before you start to build your scholarship program in earnest, you should settle on a funding method. Scholarships can be funded through a variety of means. Families, nonprofits, or businesses may finance scholarships directly, or they can solicit donations and outside funding. <\/p>\n\n\n\n

    If you decide to take donations, you will need to set up a fund at a bank or with a nonprofit that can accept donations on your behalf. You can solicit donations personally or raise funds through crowdfunding campaigns and fundraising events like auctions, raffles, or bake sales. Depending on the terms of your scholarship, donors may be able to receive tax benefits for their contributions. <\/p>\n\n\n\n

    During this part of the process, it is important to consult a tax advisor or lawyer to ensure that you are properly reporting donations and following the appropriate legal guidelines. <\/p>\n\n\n

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    Determine the size of awards<\/strong><\/h2>\n\n\n\n

    Once you have raised enough funds for the scholarship, you can start to determine how large the whole fund will be and how much each award will be worth. As part of this process, you will have to start considering how the scholarship will be distributed. How much will you award each recipient and how many awards will you give out per year? Will students be paid in one lump sum, or is the award spread out over multiple years of college? Will the scholarship be offered once or on a recurring basis? <\/p>\n\n\n\n

    When you\u2019re offering a scholarship for the first time, it is generally a good idea to start with a relatively small reward and a limited number of applicants and recipients. You don\u2019t want to start out by overextending your scholarship beyond the funds available or the resources at your disposal.<\/p>\n\n\n\n

    Determine if you want to create an endowed or non-endowed scholarship fund<\/strong><\/h2>\n\n\n\n

    There are two principal types of scholarship funds: endowed and non-endowed funds. <\/p>\n\n\n\n

    A non-endowed scholarship<\/strong> is funded through a one-time gift that is disbursed until the funds are depleted. The fund exists only temporarily and can only be replenished with a new donation. If you want to make a small scholarship donation, you most likely will have to create a non-endowed scholarship.<\/p>\n\n\n\n

    An endowment<\/strong> is a type of scholarship fund in which the fund is set up as an investment account and earnings gained from a large principal deposit are used to finance awards. The principal is never touched, so the fund is permanent and self-sustaining. However, an endowment fund requires a large principal deposit. For example, a $1,000 award will generally require a deposit of around $20,000.<\/p>\n\n\n\n

    Each type of scholarship has its benefits and drawbacks. If you have a substantial amount of money to use for a principal investment and are interested in setting up a long-term scholarship program, an endowment may be the best option for you. If you are looking to create a temporary scholarship program or a one-time gift, a non-endowed fund would suit your purposes better.<\/p>\n\n\n\n

    Determine if you want to manage the scholarship independently or use a third party <\/strong><\/h2>\n\n\n\n

    One of the important decisions you will make early in the process of building a scholarship is determining whether you want to manage the whole scholarship process on your own or have it managed by a third party like TUN.<\/p>\n\n\n\n

    For details on TUN\u2019s scholarship management services, which includes creating a scholarship program, managing the scholarship, and promoting it, check here<\/a>.<\/p>\n\n\n\n

    Also, many local community foundations and nonprofit organizations will set up and manage a scholarship fund that you want to organize. Working with a third party group with experience organizing funds can help you set up your fund properly to avoid common legal and tax issues.<\/p>\n\n\n\n

    Universities and colleges typically accept scholarship donations and contributions. If you make a large enough contribution, some may help you establish a scholarship endowment fund for their students. This is a good option if you want to tie your scholarship to a particular college.<\/p>\n\n\n\n

    If you want to set up your scholarship independently, you have a few different options:<\/p>\n\n\n\n