FAQS
1. What is the minimum amount to open a fund?
The minimum to open a scholarship fund is $25,000. You may also contribute to an existing scholarship fund that matches your passion.
2. What are the fees involved?
The Foundation’s annual fee is 2%. We find this to be very competitive, especially when compared to most universities, which charge 5-6%.
3. What the difference between and endowment and non-endowment fund?
Endowment funds are permanent funds where the principle is invested and grants made through interest, dividends and grants. Because the principle is not spent, the endowment funds provide scholarship assistance in perpetuity. Non-endowment funds are not permanent, where the entire fund is available immediately for grant making.
4. What size scholarship will I award?
It is entirely up to you. We only ask that you don’t award less than a $500 scholarship.
5. What criteria can I use to award scholarships?
The scholarship staff will work with you to find the best criteria to match your passion and attract the optimal number of applications. If you aren’t sure what type of scholarship you’d like to offer, our staff will be happy to review options with you.
You can begin by
clicking here to download a Scholarship Fund Worksheet.
6. Am I required to give out a certain amount of scholarships every year?
No, every year you have the option to award as many scholarships as you want, or none at all.
7. Can I be involved in the selection process?
Yes. There are some IRS rules that must be followed, but you can choose to be as involved as you’d like.
8. What kinds of scholarships are needed most?
The Foundation offers a wide variety of scholarships for graduating high school seniors, current college students, adult re-entry, and trade or vocational school students. Due to the recession, cuts in education funding and an increasing desire by many to learn new skills through education, all scholarships are in high demand.
9. Will I hear from my recipient(s)?
Yes. You will receive thank you notes, progress reports and, if you choose, you may sit with your recipient at a Scholarship Celebration Luncheon. You also have the option to remain anonymous.
10. Can I direct a scholarship to a specific student?
No, per IRS rules there must be a competitive process. A particular student may not be pre-identified to receive a scholarship.
11. Is the scholarship paid to the student in cash?
No, a check will be made payable to the student’s school and applied toward the student’s account. This ensures your scholarship is used properly and for its intended purpose.
12. Can other people contribute to my scholarship fund?
Yes, and we encourage it! Your family, friends, coworkers, and others can all direct donations into your scholarship fund.
13. Can I direct my scholarship to a specific institution, college or university?
Yes, you can designate a particular college (perhaps your alma mater!) to receive your scholarship funds. The Foundation is happy to set up an annual payment to the institution of your choice.
14. What are the tax benefits of setting up a scholarship fund?
The tax benefits of setting up a scholarship fund are the same as establishing other funds through The Foundation. For more information, visit the
Tax Benefits of Giving page.
For more information on establishing or donating to a scholarship fund, please contact Director of Scholarships Arzo Nasiri at
arzo@sdfoundation.org or 619-235-2300.