Wednesday, March 25, 2009

Set Up A Memorial Scholarship Award At Church

A memorial scholarship award makes a difference in a loved one's name.


You can take several approaches to setting up a memorial scholarship award to honor a loved one or in memory of a special person. You may want to establish your memorial scholarship award at a church because you trust the organization to administer the fund in line with your wishes. You will have to make other decisions about your scholarship award, such as ensure the sustainability of the fund. Detailed planning can help you and the church establish a scholarship award that honors your loved one through the provision of educational opportunities for many years.


Instructions


1. Name your scholarship award. You may choose to use the church name or a person's name. You may choose to use the word "memorial" on the scholarship name or a reference to the group the scholarship targets, such as nursing students or nontraditional students.


2. Choose an organizational structure for your scholarship fund. Perhaps you plan to make a tax-deductible donation to the church to establish the scholarship fund. You may want to establish the scholarship award as a separate entity, which will require tax-exempt status from the Internal Revenue Service for donations to the scholarship fund to be tax-deductible.


3. Talk to church leadership about your plans to establish a memorial scholarship award with their organization. The church may have its own procedure for establishing such a fund, and you may need church approval before you continue.


4. Write a plan for the scholarship award that includes the application cycle, eligibility guidelines and application process. Your selection process may call for a committee to make decisions. Include in your plan the amounts and numbers of scholarships to be awarded and how much of the work of administering the fund you are asking the church to perform.


5. Determine how much money you will deposit to set up the scholarship fund. You may plan to start a small fund that you intend to add to throughout the year or annually, either through your own donations or through fundraising. For a large endowed fund, scholarship awards are made from the interest and not the principle.








6. Meet with church leaders and share your plan with them. If church leaders will administer the fund, they will need to agree to your plans. Use this second meeting as an opportunity to revise and finalize your plan.








7. Talk to an attorney about creating a contract for you and church leaders to sign, including incorporation of the scholarship plan and all agreements between you and the church for administering the scholarship award.


8. Schedule a meeting with church leaders to view and sign the agreement or contract concerning the establishment and administration of your memorial's scholarship award.


9. Open a bank account with church leadership to deposit the funds for your scholarship award. If you prefer the funds be placed in the church's accounts, you can discuss that choice with church leaders.

Tags: scholarship award, memorial scholarship, church leaders, memorial scholarship award, scholarship fund, with church, your scholarship