How to Start a Scholarship Fund

The Community Foundation for Rockbridge, Bath and Alleghany administers scholarship funds to assist capable and deserving students based on the criteria established by fund donors. All awards are subject to the availability of funds. Specifics of the Foundation’s scholarship program are subject to change.

With CFRBA, it is simple to be a part of changing someone’s life for the better. By starting a permanent scholarship fund with us (e.g. the Jane M. Doe Scholarship Fund), you can honor a loved one, help students attend college, and more for generations to come.

Here are a few simple steps to help you get started:

1. Talk with us and share your ideas for helping others achieve their educational goals. You should also speak with your attorney, accountant and/or other professional advisor.

2. If a scholarship fund is right for you, you will need to decide whether to make a gift with assets you have today or use your will for a bequest or other gift in the future.

3. You will also need to decide the criteria for scholarship recipients. Perhaps it is the college they will attend or a certain field of study. We can help you select criteria that work well.

4. Complete an agreement with our Foundation.

5. Make an irrevocable gift of at least $10,000 or arrange for a future gift through a bequest or other estate plan.

6. When we receive your gift to start the fund, we will sign the gift form and return a copy to you along with an acknowledgement letter that will serve as your official receipt. Please retain this letter for your tax records. (Note: Regardless of the number of distributions from your fund, you need only this one letter for tax purposes.)

7. We will happily provide you with the names of students who receive scholarships from your fund and arrange for you to meet with them in person, if you wish.

Why use CFRBA to administer my Scholarship Fund?

Given CFRBA’s public charity status (that is, CFRBA is a 501(c)(3) organization as defined by the IRS), you will receive the maximum tax advantage allowed by Federal law for all donations made to your fund. CFRBA will work with you to set up your scholarship fund with very little paperwork, will oversee the prudent investment of your endowment funds, and will handle all paperwork associated with your scholarship and handle the distributions from the fund.

How much do I need to contribute to start a scholarship fund with CFRBA?

You can create a scholarship fund with a minimum contribution of $10,000, and you have five years to reach that $10,000 amount (including your contributions and investment earnings on your fund). No distributions will be made from your fund until it reaches the $10,000 level. You can contribute to your fund at any time and in any amount. You can encourage others to contribute to your fund as well.

What criteria are used in selecting scholarship recipients?

Donors have set out specific criteria for recipients of their scholarship, such as city or county of residence, the school to be attended, course of study, and/or other factors. Generally, scholarship committees consider such things as demonstrated academic ability, concern for school and community as shown through extracurricular activities and volunteer service, voluntary or paid work experience that supports the student’s goals, and any unusual circumstances which, in the Committee’s opinion, make an applicant more worthy of consideration. You will need to form your own committee which will determine the criteria and make the selections each year.

What is the amount of most scholarship awards?

Award amounts are based on the amount of funds available, the number of winners selected, and individual financial needs. Amounts are not predetermined but generally range from $350 to $1,000.

Scholarship Fund Options

• In memory or honor of someone
• Personal recognition
• Agency or group recognition

Fundraising

If you wish to raise money for your scholarship at a public fundraising event, please review CFRBA’s Fundraising Policy document and submit a completed Fundraising Application to CFRBA for consideration well in advance of the fundraising activity. You have the responsibility to understand and adhere to CFRBA’s Fundraising Policy, which keeps the Foundation in compliance with applicable laws and IRS guidelines.