Steps to start my own college scholarship fund?

I'm interested in helping others by starting a scholarship fund for college-bound students. Does anyone know the basics of how to set this up and what legal or financial steps are necessary?

This is a generous impulse, and it's wonderful that you're considering this action. Creating your own scholarship fund involves a few key steps.

1. Decide the Purpose: Determine not only who will be eligible to apply for your scholarship, but also its purpose. Is it for those demonstrating academic excellence, involvement in community service, or perhaps students interested in a specific field of study or from a particular geographic area? These criteria can help you tailor the fund to your vision.

2. Fund Your Scholarship: Determine the fund source that will sustain the scholarship. You could choose to fund it yourself, solicit donations, or even organize fundraising events.

3. Establish the Scholarship Criteria: Develop the application criteria. This can include a range of requirements or achievements such as GPA, extracurricular activities, essays, or letters of recommendation. Specificity can help you attract the type of applicants you envision benefiting from your scholarship.

4. Legal and Financial Considerations: You'll need to comply with certain legal and tax requirements, which often involves establishing a non-profit organization. If you directly offer scholarships, the donations wouldn't be tax-deductible and you may be personally liable for any complications. Additionally, creating a non-profit will ensure the fund remains separate from your personal finances. Alternatively, you can collaborate with an established non-profit organization to manage the scholarship for you.

5. Promote Your Scholarship: Once everything is set up, you'll need to make sure students are aware of the opportunity. There are several platforms including high school guidance departments, college financial aid offices, and websites like Appily where you can promote the scholarship.

Remember, it is always a good idea to consult with a legal or financial advisor when taking on this kind of endeavor. They'll help you navigate all the rules, regulations, and requirements, ensuring that your good intentions lead to the best possible outcome.