Back to School Isn’t Just for Kids: Scholarship Donors Provide Hope to Students in Need
Fall has arrived, and kids are back in school. Many high school seniors are working on their college applications, while underclassmen are ensuring they have the right course-load and extracurricular activities. Unfortunately, many of our students are also worried about how they might pay for college. Tuition continues to rise faster than wages and inflation, and financial aid increasingly comes in the form of loans rather than grants or scholarships. CICF’s scholarship funds offer hope to students and their families, increasing their chance of academic and future financial success.
CICF works with donors and their professional advisors to customize scholarship funds that are not only meaningful to scholarship recipients but also to donors.
CICF has three options for named scholarship funds:
- designated scholarships
- Blue Ribbon scholarships
- outside selection committee scholarships
With a designated scholarship, donors select a high school or college for their scholarship. Working with the chosen school and CICF, donors can craft other criteria such as fields of study or demographic profiles. The school then runs the application and selection process using its existing scholarship award processes to make an award or awards of at least $1,000 per student. The minimum to start a designated scholarship is $25,000. This is an endowed fund, which is invested by CICF for slow and steady growth, with 5 percent of the fund balance awarded for scholarships annually.
For a Blue Ribbon scholarship, donors select general criteria, such as field of study, demographics, type of school to attended, etc, and CICF runs the online application process. CICF’s experienced Blue Ribbon Selection Committee then reviews the applications and makes the scholarship award or awards of at least $3,000 per student. Donors with Blue Ribbon scholarships have the option of participating on the committee and meeting the recipient(s). The minimum to start a Blue Ribbon scholarship is $100,000. This fund can be either endowed, with 5 percent of the fund balance awarded in scholarships, or a pass-through, where up to 100 percent of the assets of the fund can be awarded in scholarships in a given year.
For an outside selection committee scholarship, donors select the general criteria that reflect their interests and work with CICF to create the online selection process and appoint a selection committee for the scholarship. The selection committee reviews the applications and makes the scholarship award or awards of at least $3,000 per student. Due to federal law, CICF must make the final authorization of the scholarship award(s). Donors with outside selection committee scholarships have the option of serving on the selection committee and meeting the awarded student(s). The minimum to start an outside selection committee scholarship is $250,000. This fund can be either endowed, with 5 percent of the fund balance awarded in scholarships, or pass-through, where up to 100 percent of the assets of the fund can be awarded in scholarships in a given year.
A REAL SCHOLARSHIP STORY
Dr. Flora Belle Bryant recently worked with her estate planning attorney, Marya Jones, and CICF staff to create a future Blue Ribbon scholarship fund through her estate plans, the Flora Belle and Herbert Bryant, Jr. Second Chance Scholarship Fund. For Dr. Bryant, this scholarship fund is her life’s legacy. The criteria reflect Dr. Bryant’s belief not only in the importance of education, but also in giving opportunities, and second chances, to those who come to discover the importance of education as they mature and learn from mistakes they have made. Education has played a significant role for much of Dr. Bryant’s family–her great-uncle was the first principal of Crispus Attucks High School and most of her relatives have earned advanced degrees.
The Second Chance Scholarship is limited to nontraditional applicants, 25 years of age or older, who are not “A” students at the point of entry. Recipients must attend a 2- or 4-year degree or certificate program at an accredited Indiana college, university, community college or trade or vocational school, or a college or university outside of Indiana that is a historically black college or university. Preference is given to black applicants.
For many donors, like Dr. Bryant, a scholarship fund is an appealing alternative to a donor-advised fund. Knowing that their gift will empower a young person – or many – to go to college, or learn a trade is particularly meaningful for donors who are passionate about education.
To learn more about how CICF can help your clients create a scholarship fund, contact Mary Stanley, director of charitable gift planning, at (317) 634-2423, ext. 319 or firstname.lastname@example.org or Sarah Weaver, senior gift planning advisor, at (317) 634-2423, ext. 510 or email@example.com.