How to Start a Scholarship Fund

1. Create and sign a Scholarship Fund Agreement with your Community Foundation. 

This agreement: 

1. Establishes the Fund Representatives for the scholarship. These individuals will be added to our Donor Portal system to be able to check fund balances and activity.

2. States the purpose and eligibility requirements for the scholarship.
3. Defines if the scholarship will be expendable or endowed. Endowed funds have a certain balance that acts as principal, and 4% of the year-end balance is added to “available to spend” and can be awarded as scholarships for perpetuity. For a scholarship fund to be endowed, it must have a minimum balance of $25,000. 
4. Designates how you would like your fund managed (investment risk tolerance)

2. Determine your scholarship criteria and create an application. 

Criteria could include: the amount and number of scholarships to be awarded, if it is specific to certain schools or majors, high school activities, GPA minimums, or if financial needs. We have current applications that we can use as a place to start creating your application. 

3. Market the scholarship opportunity to high school counselors, college departments, and organizations. 

The Greater Manhattan Community Foundation (GMCF) will do this! Most applications are submitted directly to GMCF and distributed to the appropriate selection committee. If applications are returned to a high school counselor or organization, GMCF must receive copies of the applications. 

4. Determine a scholarship selection committee to select recipients or use the Greater Manhattan Community Foundation’s committee. 

Selection committee members will sign forms that state they used the criteria set forth in the application to select a recipient and that there are no biased reasons that would keep a committee member from making an objective recipient selection. The GMCF selection committee is made up of trustees and meets in April. If you or your family would like to participate on the selection committee, your representation should be limited to less than a majority of the committee.

The GMCF Scholarship Coordinator will notify students of their award by e-mail or mail (or work with your local high school to announce at a scholarship night/banquet, etc.). The awardees will be asked to return a Student Information Form that gives us their contact information and identifies the school they are attending. We also require students to provide proof of enrollment before distributing funds. 

Once we receive the above information from the students, GMCF will issue a check directly to the school. The student will be notified by mail when the check is sent. Most scholarships are paid in full for the first semester. If the scholarship pays half each semester of the school year, the student must provide proof of enrollment for the second semester as well.