A scholarship fund is a noble initiative to contribute to society, but the process of establishing one requires extensive research, which is an important component that should not be overlooked. Before taking the plunge, one must closely identify the purpose of starting the scholarship fund- “What is the point of doing this work in the world?” or “What sort of assistance is required by the students in your community, peer group, or your own company?”

Before you can convince others, you should consider what motivates you to help students and what gaps you intend to fill. What specifically drives you to help students? What are the gaps or needs you want to fill? Once you're satisfied with the answers, the next step is to closely identify the students you want to help. This, too, necessitates a dedicated research process that allows you to empathise with the needs of the students and comprehend the financial and social implications that threaten their education. 

Finally, you must ask yourself, "What impact can I make with this scholarship fund?" or "How does this scholarship fund  provide students in need with the best chance of success?"

Let us go over these stepping stones—WHY?, HOW?, and WHAT?—in depth to gain a better understanding of the process that will ensure the success of your scholarship fund.

How to Start a Scholarship Fund: Ask Yourself WHY?

A scholarship fund without a purpose is a shot in the dark that may fail to accomplish anything.

To determine your goal, you should first understand the needs of the community. For example, a family's socioeconomic status can have a significant impact on children's educational opportunities. This not only has an impact on children's academic performance, but it also leads to early dropouts, child labour, and unemployment. Other psychological consequences of the same situation include impairment of a child's confidence and emotional intelligence, social isolation, substance abuse, violent behaviour, and depression. This eventually has strong inter-generational effects on the education and social mobility of the children hailing from disadvantaged families.

Several government-funded surveys, as well as those conducted by non-profit and private organisations, identify several educational challenges. The Annual Status of Education Report, the All India School Education Survey, the National Achievement Survey, the Mission Education Survey (Smile Foundation), and a variety of other reports provide adequate information on the state of education in society and the critical needs of students.

For example, the 2021-22 report by Unified District Information System for Education Plus (UDISE+) revealed that the annual dropout rate of secondary school students in India stood at 12.6 per cent. Whereas a U-Report poll of the United Nations Children’s Fund (UNICEF) conducted in India on International Women’s Day 2022 revealed that around 38% of the respondents knew at least one female student who had dropped out of school.

• The 2021-22 report by Unified District Information System for Education Plus (UDISE+) revealed that the annual dropout rate of secondary school students in India stood at 12.6 per cent

•  A U-Report poll of the United Nations Children’s Fund (UNICEF) conducted in India on International Women’s Day 2022 revealed that around 38% of the respondents knew at least one female student who had dropped out of school.

Going offline and meeting people in the community, visiting local schools and colleges and speaking with the students to identify their overlooked needs can also be beneficial. A similar approach could be followed when you are seeking to help your peers or families within your organization. Communicate with them and try to comprehend their situation so that you can determine how your assistance can ease their burden.

Furthermore, the scholarship fund could also be directed towards promoting a particular cause, mitigating a crisis or even supporting a specific field of education like sports, music, law, nursing, chartered accountancy to encourage more and more students to pursue and excel in the same.

How to Start a Scholarship Fund: Ask Yourself HOW?

To empathise with students, you must shun the notion that all students follow a traditional educational path. This will be the first step in determining ‘HOW’ you can help the students who are in need. The stereotype of finishing school, going to college, earning a degree, and entering the workforce is only true for a small percentage of students. The rest have to take more winding routes that involve negotiating socio-economic challenges, working part-time or full time, taking long breaks, and balancing family obligations with school.

A student looking for financial assistance could be - 

1. Hailing from underprivileged/low-income families

2. An orphan/ ward of single parent/caregiver

3. A single caregiver/ parent 

4. Looking for ways to become financially independent from parents

5. Employed full time or part-time

6. Lack a traditional school education

7. A school or college drop-out 

Challenges for First Generation Learners

First-generation students come from families without a school- or college-going tradition. In such cases, lack of academic guidance from the family, coupled with financial constraints, can create obstacles ranging from managing the course fees to navigating the social life in a school or college campus and, ultimately, the student's academic performance. Therefore, first-generation students struggle to obtain an education, let alone a desired one.

Financial Needs Beyond Course Fee

Monetary difficulties hardly ever leave the side of first-generation, low-income, and other students in financial need. While some scholarships can cover tuition, other miscellaneous expenses such as lodging, transportation, food, and medical bills, among others, can quickly cause finances to spiral out of control. This also leads to a number of drop-outs. Many students choose not to continue their studies because they are concerned about the financial difficulties they will face if they move to larger towns or cities for school or college. 

Thus, a real and deeper understanding of student needs can help ensure your scholarship program addresses all the barriers preventing them from pursuing their dream education.

How to Start a Scholarship fund: Ask Yourself WHAT?

For a successful scholarship programme, consider the impact your financial assistance can have on the lives of the students. Despite the vast differences between today's college students, there are some common elements that can support their educational goals. A crucial component of a scholarship programme is to provide the students in need with three important things -  social capital, cultural capital and financial capital.

Financial Capital 

Financial capital is the most obvious of the three. But the assistance can also extend beyond tuition fees to cover other educational or living expenses. You must decide whether you want the scholarship to be a one-time award or a renewable one—the latter is effective in offering long term help, but it also represents a larger financial commitment.

Cultural Capital 

Cultural capital is providing students with "institutional knowledge"—understanding how the financial aid system works, managing campus life, and being prepared for networking opportunities that may help them make the most of college experience. Apart from monetary assistance, grooming, mentoring, or upskilling opportunities, when included in scholarship programmes, can also boost confidence and prepare students for life in and after school or college.

Social Capital 

Social capital entails building and nurturing relationships with and among students for the creation of empowered communities. A scholarship fund can be a huge source of support for students individually and can lead to the formation of a platform where all scholarship recipients can come together and receive or provide support to one another through peer learning. Additionally, successful recipients will always have the opportunity to contribute to the programme in the future, whether through monetary or other forms of assistance.

These three stepping stones, if given careful consideration, can help you carve a scholarship fund that not only serves a larger purpose in society but also fulfils your personal goals.