Creating a Scholarship Fund
Scholarship Funds are created for a variety of reasons: as a memorial to a loved one; in recognition of an important event; to support ones alma mater; as a commitment to education; or to further a specific career field. At the Community Foundation of Washington County, MD, our goal is to assist donors in meeting their goals in the scholarship arena, and to ensure the lasting benefit an endowed scholarship.
Scholarship Funds at the Foundation are created with a minimum deposit of $5,000. This amount will provide a minimum scholarship of $250 per year. Additional deposits may be made at any time to the fund, and all deposits are eligible for a tax deduction. Gifts of stock, real property, estate or testamentary gifts, and employer matching funds are also accepted. Scholarship Funds can also be established through a Charitable Gift Annuity. Each scholarship fund is subject to a 1½ % administrative fee.
Each Scholarship Fund can be tailored to specific criteria determined by the founding donor(s). For example, high school or college designation, course of study, GPA or financial guidelines, extra-curricular activities, religious denomination, club membership, race or heritage and gender of potential recipients can be designated in the fund agreement. The Pension Protection Act of 2006 prohibits a donors advisory capacity in recommending the selection of students for scholarship awards.
Scholarship Funds are paid directly to the educational institution at which the recipient is enrolled. The funds can be used for books, tuition, and other fees related to education. Exceptions include meal plans and transportation costs. Scholarship funds not claimed or returned to the Foundation for any reason will be reinvested in the scholarship fund for future use. At no time will funds be paid directly to the recipient.
Creation of a Scholarship Fund often takes less than one hour of your time, and the completion of two documents: Scholarship Fund Agreement and Scholarship Award Guidelines. Scholarships created prior to June 30th in calendar year may be eligible for a distribution award the following year.
Steps to Create a Scholarship Fund
- DETERMINE your goals for the scholarship
- ESTABLISH the criteria for the scholarship award
- DEPOSIT a minimum of $5,000 with the Community Foundation
- ENJOY the thought of assisting eligible students reach their educational goals
For more information, please contact the Community Foundation of Washington County MD, Inc. at 301-745-5210 or via email at cfwc@cfwcmd.org.
