How to Establish an Impactful Scholarship

Starting a scholarship is an important contribution to the community. Entreprenuer and philanthropist Max Gorin has endowed a scholarship in his name. The 1,000 academic scholarship focuses on the needs of deserving high school seniors who have been accepted to an accredited university. College students are also accepted as long as they are not in their final year of study. 

Gorin believes strongly in the power of scholarships to transform students’ lives. While individual scholarships may be small when compared to the total cost of tuition, every little bit helps students overcome crippling student loan debt. Gorin believes that his scholarship will be a force for good in the community. 

The process of endowing a scholarship can be difficult, but Gorin was willing to put in the work to create a positive outcome for college and high school students. 

The first step in starting a scholarship is determining and allocating proper funding. Scholarships often vary in value, ranging from $100 to $10,000 or more. Typically, this funding is provided either by collecting donations, or through the philanthropy of a sponsor.  

The second step is to decide on the target population for your scholarship. Gorin focuses on fostering future entrepreneurs and small business owners. Other scholarships may be intended for students going into specific professions or in certain major fields of study. Still others will often focus on specific minority groups in need of better representation.

Third, you will need to decide whether you plan to administer the scholarship yourself or whether you would prefer to entrust it to a scholarship management service. Busy entrepreneurs may not have the time to manage the day-to-day details of their scholarship funds but should maintain a level of involvement whenever possible. 

Fourth, you will have to create a questionnaire or an essay topic for your prospective scholarship recipients. This essay topic may shine a light on an important issue faced by your business, or it may present a challenge to your scholarship applicants. It is best to keep this essay at about 500 words. Not only will this make the process easier for applicants, it will also limit the workload required to award the scholarship. 

Fifth, you will need to deal with the tax implications of your decision to start a scholarship. Make sure that you have a qualified accountant ready to help you with the details, as the process can be complex. Scholarships do hold a tax benefit for the donor, but this is not the main focus of most entrepreneurs who offer them to youth in need. 

Sixth, you will need to promote your scholarship. Sending details about your scholarship to the financial aid offices of many different colleges and universities is a great way to start. Begin a website with application information as well. 

Finally, you will need to select your winners and award the scholarship. It is best to pull together a committee of trusted individuals who can help you decide which scholarship application is the best and in keeping with your goals for creating the fund. 

Max Gorin is an example of a successful entrepreneur who wants to give back to the community. Gorin works to serve as a model to uphold for other entrepreneurs, showing what kind of impact an individual donor can have on a student’s life.