Scholarships: Frequently Asked Questions
About the Program
What is the America's Charities Scholarship Program?
America's Charities offers fully managed scholarship administration for companies and organizations that want to invest in education without the administrative burden of administering in-house. We handle everything from policy design and application site buildout to application review, award disbursement, with an emphasis on IRS compliance — so you can focus on what matters most.
What is a scholarship, and how is it defined for this program?
A scholarship is a monetary award paid to an accredited educational institution or vocational school on behalf of a student selected through a competitive application process. The purpose is to aid with tuition to improve or enhance a student's educational acumen and can focus on a student’s literary, artistic, musical, scientific, teaching, or similar capacity, skill, or talent.
Who can sponsor a scholarship through America's Charities?
Any company or organization that wants to invest in students and education can partner with us. We work with corporations, foundations, community organizations, and associations. Both employee-focused and community-wide scholarship programs are available.
Is the scholarship program IRS-compliant?
Yes. America's Charities designs every program to meet IRS requirements for tax-exempt charitable scholarship awards. Key compliance requirements include:
- IRS-compliant eligibility criteria
- Competitive application process
- Funds must be used for qualified educational tuition
- Awards are paid directly to the accredited educational institution or vocational school (we do not disburse to individuals)
Eligibility & Program Design
Who is eligible to apply for a scholarship?
Eligibility is customized for each program. Common eligibility options include:
- Students at primary or secondary schools, colleges, universities, or vocational schools
- Full-time or part-time enrollment status
- Specific fields of study or proposed course of study
- Geographic region (national, regional, state, or local)
- GPA or academic performance thresholds
- Financial need
- Community or extracurricular involvement
- Employee and/or employee dependents (for corporate programs)
Can a scholarship program be limited to employees or their families?
Yes, with important IRS guidelines in place. For employee and dependent scholarship programs:
- All employees and/or dependents may receive preference, but the program must remain open to outside applicants.
- No conditions may require the recipient or their parent/guardian to remain employed by the company.
- A minimum employment term may be set for eligibility but may not exceed three years.
- Scholarships cannot function as extra pay, an employment incentive, or a fringe benefit.
- Eligibility must not be tied to an employee's position, duties, or services.
What types of educational institutions are eligible?
Scholarship recipients must attend an accredited educational institution or vocational school, which is defined as a school with a faculty, a student body, a physical location, and a curriculum that prepares students for gainful employment. The institution must be authorized under federal or state law and accredited by a nationally recognized accreditation agency. Programs cannot be designed to benefit students at a specific for-profit institution; they must be open to all eligible accredited institutions.
Can sponsors set selection criteria?
Yes. Sponsors work with our team to establish pre-determined, objective selection criteria tailored to their goals. Options include:
- Academic merit - GPA, class rank, test scores, transcripts
- Essays or personal statements
- Letters of reference or teacher recommendations
- Financial need documentation
- Leadership, community service, or extracurricular involvement
- Skills or special talents (artistic, scientific, athletic, etc.)
- Biographical information, internship, or work history
- Confirmation of enrollment or acceptance letter
Award Structure & Funding
How is the scholarship amount determined?
The sponsor determines the total funding pool and the number and size of individual awards. Scholarships can be structured as one-time awards or multi-year awards. The sponsor also determines whether recipients may reapply in subsequent years and whether a lifetime maximum applies.
How are scholarship funds disbursed?
In accordance with IRS best practices, scholarship funds are paid directly to the recipient's accredited educational institution or vocational school (not to the individual student). This ensures funds are used for their intended charitable purpose and simplifies compliance reporting.
What expenses can scholarship funds cover?
Scholarship funds may be used for qualified educational or vocational school tuition and fees required for enrollment or attendance at an accredited institution.
Expenses that are not covered include room and board, books, travel, optional equipment, and payments for teaching or research services.
What are the sources of funding for a scholarship program?
Funding sources are defined by the sponsoring organization. Common sources include corporate charitable budgets, foundation grants, employee giving campaigns, or a combination. America's Charities will work with you to identify the right funding structure during implementation.
Implication Process & Timeline
What does the implementation process look like?
Our team guides you through a structured six-step process:
- Policy Design: We draft your scholarship criteria, eligibility rules, and award structure.
- FAQ Creation & Finalization: Program-specific FAQs tailored for applicants.
- Seed Funding: Funding is confirmed and secured prior to launch.
- Application Site Creation: A branded, secure portal is built and finalized.
- Launch: Coordinated promotion and rollout to your applicant pool.
- Selection & Award: Competitive review, selection, and disbursement to institutions.
How long does it take to launch a scholarship program?
Timelines vary based on program complexity and sponsor readiness. During your initial implementation call, our team will work with you to establish a launch date, application deadline, and award date that align with your goals and academic calendar.
What is the application site, and how is it customized?
America's Charities builds a secure, branded application portal for each scholarship program. The site can include your organization's logo, colors, and program name. Language translation support is also available for programs serving diverse applicant pools. The site is designed and finalized in collaboration with your team before launch.
What happens after the application deadline?
Once the application window closes, our team manages the review process using the pre-determined selection criteria established in your policy. A selection committee evaluates applicants, and award recipients are notified on the scholarship award date. Funds are then disbursed directly to the recipient's educational institution or vocational school.
Ongoing Program Management
Can recipients reapply in future years? Â
Yes, if the program allows it. Sponsors choose between one-time scholarships and multi-year awards. For programs that permit reapplication, a lifetime maximum award amount or number of awards may be set. These details are established during the policy design phase.
How does America's Charities ensure compliance over time?Â
We provide full IRS-compliant reporting for every program cycle. Our team monitors program activity, ensures proper disbursement to institutions, and supports sponsors with any compliance questions that arise throughout the program's lifecycle.
Can a scholarship program be modified after launch?
Program parameters (such as eligibility criteria, award amounts, or application timelines) can typically be adjusted between program cycles. Any modifications are reviewed by our team to ensure continued IRS compliance before being implemented.
Getting Started
How do we get started with America's Charities?
Getting started is simple Reach out to our team to schedule an initial 60-minute introductory call to review your goals and answer questions. After signing with us, we will begin drafting your scholarship policy and make recommendations on criteria and program design. We will provide a scholarship outline in advance, so you know exactly what to expect.
What information should we have ready before the first call?
It helps to have a general sense of the following before your introductory call:
- Your organization's scholarship goals and intended beneficiaries
- Estimated number of applicants and awards
- Anticipated funding amount and source(s)
- Preferred geographic reach (national, regional, state, or local)
- Preferred launch and award timeline
- Any branding requirements (logo, colors, program name)
Who do we contact to learn more?
For more information or to schedule your initial call, please contact our team or visit www.charities.org/Scholarships. We look forward to partnering with you to build a scholarship program that makes a lasting impact.