Establish a Scholarship
Create a scholarship that supports students today and continues over time.
At the Community Foundation for Mississippi, scholarship and award funds are often established to honor a person, recognize a profession or school, or carry forward a commitment to education. These funds can support students from pre-K through postgraduate study. CFM works with you to set up the fund, guide key decisions, and manage the process so the scholarship can be awarded fairly and consistently year after year.
Starting a scholarship fund is a straightforward process. CFM works with you to set up the fund, guide key decisions, and manage the process over time.
Establish the Fund
Setting up a scholarship fund begins with defining its purpose and structure, along with making the initial gift.
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All scholarship awards must be made through a dedicated scholarship fund at the Community Foundation for Mississippi.
To establish a fund, you will:
Select a fund name
Identify fund advisors
Recommend a scholarship review committee
Establish objective, non-discriminatory selection criteria
Complete the Scholarship Fund Agreement
Make a gift to the fund
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Scholarship funds are often named in honor or memory of a person, family, or institution. As the donor, you determine the name of the fund.
Donors or family members may serve as fund advisors. When selecting advisors, consider who can best carry out the purpose of the fund over time and whether you want to involve the next generation.
Fund advisors help guide the mission of the scholarship fund, while the scholarship review committee is responsible for reviewing applications and recommending recipients.
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The minimum amount required to establish a scholarship fund is $25,000.
Scholarship funds are typically endowed, meaning the fund is invested and a portion is used each year to support scholarships. This allows the fund to continue providing support over time.
If the fund does not reach the $25,000 minimum within three years, it will become part of the Community Foundation’s broader scholarship fund, which supports area high school seniors who maintain at least a B average and demonstrate financial need, with priority given to students involved in community service.
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Scholarship funds are managed according to CFM’s policies.
The annual payout is calculated at 4.5% of the average fund balance over the previous 12 quarters
Funds are subject to an annual administrative fee (typically 2–4%)
Contributions can be made at any time and in any amount, subject to gift acceptance policies
Example endowment levels:
$25,000 fund → approximately $1,000 annual scholarship
$50,000 fund → approximately $2,250 annual scholarship
$100,000 fund → approximately $4,500 annual scholarship
$125,000 fund → approximately $5,000 annual scholarship
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If you are age 70 ½ or older, you may be able to make a qualified charitable distribution (QCD) from your IRA directly to a scholarship fund.
Define How the Scholarship Works
You will work with CFM to determine who the scholarship supports and how recipients are selected. These decisions help ensure the scholarship reflects your intent and can be awarded consistently.
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The donor typically defines the purpose of the scholarship when the fund is established.
Eligibility criteria may include:
Students from a specific school or geographic area
Students pursuing a particular field of study
Students who meet academic or financial qualifications
Eligibility should be clearly defined, but not so narrow that it limits the pool of qualified applicants.
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Selection criteria are used to evaluate applicants and determine recipients. These may include:
Grade point average and standardized test scores
Extracurricular activities and community involvement
Letters of recommendation
Volunteer or work experience
Career and educational goals
Personal or financial circumstances
Demonstrated financial need (based on FAFSA or CSS Profile)
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Scholarship criteria must be:
Objective
Non-discriminatory
Designed to create a competitive selection process
IRS rules require that the pool of applicants be large enough to constitute a legitimate scholarship program. CFM may recommend adjustments to ensure compliance.
Final scholarship criteria must be approved by the Community Foundation’s Board of Trustees before awards are made.
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CFM provides a standard scholarship application that reflects your criteria and keeps the process consistent and manageable.
If a custom application is developed, it must be reviewed and approved by the Community Foundation. Custom applications should clearly state requirements and remain as simple as possible while collecting necessary information.
A rating system may be used to evaluate applicants. Selection criteria can be weighted to allow for consistent comparison across applicants. CFM staff can assist in developing and using these tools.
Set Up the Review Process
Each scholarship fund must have a review committee to ensure awards are made fairly and in line with the purpose of the fund.
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A review committee must be established for each scholarship fund.
The Community Foundation has a scholarship review committee made up of volunteers from the Foundation’s Grants Committee. Scholarship fund advisors are welcome to use this committee.
You may also recommend your own scholarship review committee. All members must be approved by the Community Foundation’s Board of Trustees.
For scholarship programs that benefit employees or family members of employees of a corporation, the Community Foundation’s scholarship review committee must manage the entire scholarship award process.
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Scholarship review committees must meet the following requirements:
At least three members
Donors or fund advisors may serve on the committee
Non-family members must make up the majority
Donors and fund advisors may not control decisions directly or indirectly
Including individuals from different community sectors can improve objectivity and broaden awareness of the scholarship.
While not required, it may be helpful to include someone with experience in college admissions or financial aid.
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Scholarship review committee members are responsible for:
Reviewing applications
Participating in award decisions
Promoting awareness of the scholarship
They also help ensure the original intent of the scholarship fund is followed.
Because scholarship funds are assets of the Community Foundation, all programs must follow established guidelines. CFM relies on donors and committee members to help ensure compliance.
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Scholarship applications contain sensitive personal and financial information. Committee members must keep all information confidential and may not disclose it outside the review process.
All committee members are required to sign Conflict of Interest and Confidentiality Agreements and must avoid situations that could influence or appear to influence decision-making.
Application & Selection Process
Once the scholarship is established, CFM manages the application, review, and award process each year.
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CFM supports the full application process by:
Promoting the scholarship opportunity
Accepting applications
Verifying eligibility
Preparing materials for the review committee
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To recommend scholarship recipients, the review committee must complete a Scholarship Recommendation Form and submit it to CFM along with meeting minutes documenting how decisions were made.
If the Community Foundation’s scholarship review committee is used, this documentation is submitted on behalf of the fund.
Recommendations are then reviewed and approved by the Community Foundation’s Board of Trustees.
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Scholarship awards are typically paid directly to the student’s college or university in mid-July.
Payments are not made directly to individuals
Schools are notified of CFM policies and must report if a student does not enroll or withdraws
If a student withdraws or does not enroll:
Funds are returned to the Community Foundation
Funds are credited back to the scholarship fund
The committee may choose to re-award the funds or return them to the fund balance
If receiving the scholarship immediately could affect other financial aid, CFM may delay payment to a later academic period if it benefits the student.
Communication & Announcements
CFM can support communication and visibility for the scholarship and its recipients.
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CFM may assist with outreach and promotion of the scholarship, including communication with schools, organizations, and, when appropriate, media outlets.
Press releases may result in news coverage or brief announcements.
All press releases and printed materials must be approved by the Community Foundation. Copies of published materials should be shared with CFM for record keeping.
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Materials announcing scholarship awards should acknowledge that the scholarship is managed by the Community Foundation for Mississippi.
For example: “This scholarship award was from the (Fund Name) at the Community Foundation for Mississippi.”
If the scholarship honors an individual or was established by a donor or organization, including that background can help provide context and make the announcement more meaningful.