A growing number of companies are finding it attractive to start institutional scholarships as a way to motivate the youth and more importantly, give back to the community. The rationale to establish scholarships at the corporate level is largely informed by the need to assist students achieve their dream of graduating from college, support causes the company cares about and strengthen relationship with host communities as part of CSR. There are additional incentives in establishing an endowment scholarship fund, among them are tax benefits. According to the online financial services resource Bankrate, donors that have made cash gifts throughout their lives can take a charitable deduction of up to 50% of their adjusted gross income calculated on an annual basis. If the gifts exceed 50% of the donor’s adjusted gross income, the difference can be rolled over to the next year and beyond.
On the other hand, donations made at death via a will or trust can attract unlimited charitable deductions provided the fund meets the required threshold. To enjoy immediate income tax deductions, gifts below the $5.25 million estate exception are better gifted during life. Individuals and businesses that offer education scholarships also receive college publications and invitations to various college events. The invitations provide a perfect opportunity for businesses to market the scholarship and meet key stakeholders, including university president, faculty and students. With the scholarship offer, business leaders will also be able to see firsthand the impact of the scholarship. The amount provided in the scholarship often determines the level of appreciation accorded to the donating organization. However, the size of the endowment scholarship, a business or organization is allowed to offer depends on the school’s guiding principle.
How businesses can start a scholarship
There are a number of things businesses need to consider before establishing an institutional scholarship targeting college and university students. First, it is important to point at the merits of establishing a scholarship. According to the recruitment resource After College website, you can start by checking if the business organization has a running scholarship or an endowment program. If the scholarship exists, find ways to strengthen and make it more impactful. The other important steps in creating a scholarship include performing competitive analysis, providing the details of the scholarship and writing a pitch for the scholarship.
Most big companies have scholarship programs running under the aegis of Corporate Social Responsibility or diversity program. The programs can act as a tunnel to help businesses tap future talents. If the business doesn’t have a scholarship program, you can devise strategies to sell the idea and convince the board of the need to establish one. Through a competitive analysis, you can give the board good examples of how competitors are using scholarships to lure students and tap future recruits. Once a go ahead to establish a scholarship fund is received, critical details governing the fund must be provided.
The key items include the amount to be awarded, the number of scholarships to doll out and a statement on whether the scholarship will be strictly for education related expenses or anything else the recipient chooses. The other important aspects include the timelines, eligibility requirements and an internal memo on how the scholarship ties with the business aims. The next step is writing and pitching the scholarship proposal. When doing the write up, consider the budgetary allocation. The scholarship budget can potentially be sought from the marketing department or the university recruiting office.
Marketing a scholarships
Even with a scholarship in place, businesses may still experience problems attracting recipients, who include students and fresh graduates. According to Scholarship App, businesses can market their scholarships directly through universities and colleges, charitable organizations, parents and sports associations. The school is an important point to kick-start the campaign. The donor can target school counselors charged with offering scholarship recommendations and advice to students. The other key channel is using advertising media outlets like radio, newspapers, websites and flyers.
Rusty Tweed Drug-Free Scholarship
The Rusty Tweed administered scholarship, now on its second year, is offered to college and university students as well as high school seniors with acceptance letters to join a college or university. The Rusty Tweed Drug Free Scholarship awards $1,000 to students who write the winning essay on the stated topic. The topics generally revolve around the campaign to promote drug free living. The submission deadline for the latest round of scholarship is slated for April 30, 2019. The entries are must be submitted via the online form available on the scholarship website. Besides the essay, applicants need to furnish the scholarship administering committee with particulars, including name, email, address, phone contact and name of the college or university they are attending.
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