How to Invest in Scholarship Funds

Many collegiate, religious and nonprofit organizations accept donations for scholarship funds.

Before donating your hard earned money to a scholarship fund, you want to understand an organization and its core values. Organizations like American Institute of Philanthropy dedicate their efforts to making sure charitable donations are distributed where promised. When you invest in a scholarship fund, you can mitigate the risk of possible mismanagement of your donations by contributing to a collegiate, religious or civic organization with a proven reputation for success. Choose an organization with whom you have an existing relationship so that you can monitor the impact of your donation.

Instructions

1. Contact your alma mater. If you graduated from a college or technical school, chances are there is a development fund in place for alumni providing you with a credible source for your donation. If you are not an alumni, but still have a relationship with a college either through a family member or volunteer work, investigate their scholarship donation opportunities by contacting the development office.

2. Create a list of religious and civic organizations in your community with a proven impact on helping the community. Choose organizations within 20 miles of your residence so that you can participate in volunteer work or fundraising activities.

3. Write a pledge letter to the collegiate, religious and civic organization(s) informing them of the amount you would like to invest. If you plan to invest regularly in the scholarship fund, request a meeting with the fund manager to discuss the goals and strategic plan of the fund.

4. Request to join a committee related to the scholarship fund. Donating your time helps the organization to succeed while ensuring that your investment makes the most impact.

5. Write your check or arrange an annual auto draft from your bank account to the organization.

Tips & Warnings

• Most charities must be registered with the Office of the Secretary of State before receiving monetary donations.

• All donations are not tax deductible. Speak with a CPA before selecting a scholarship fund to invest in if you want to ensure you get a tax deduction.

References

• American Institute for Philanthropy: Tips for Donating
• American Foreign Service Association: How to Establish a Scholarship