Scholarship and Financial Aid Services
 
The Community Foundation of Northeast Alabama (the Foundation) is a qualified 501(c)(3) nonprofit philanthropic organization operating primarily as a permanent collection of endowed funds for the long-term benefit of Calhoun County and northeast Alabama. The Foundation provides opportunities for donors to achieve their varied philanthropic interests, benefit from professional investment services at greatly reduced fees, and promote the betterment of the community through grants and scholarships.

In general, the Foundation disburses monies strategically to nonprofit organizations and educational institutions to meet existing and emerging community needs. Currently, the Foundation administers more than $20 million in total assets. Among the various fund options of the Foundation, donors may establish their own specific scholarship or student financial aid program. The following information summarizes some of the services that the Foundation offers.

Program Options

To apply for any scholarship or award, a student must complete the Foundation's application and follow clearly defined guidelines and criteria.  Each fund has its own guidelines but utilizes a common application form. Foundation staff are responsible for promoting and publicizing each fund, screening all applications for eligibility and completeness, coordinating all selection committee meetings, and administering all scholarship disbursements and renewals.
 
In general, scholarship awards are based on merit, and financial aid awards are based on need.  A program may give priority to either merit or need, or a combination of both for selection of recipients. The donor, in consultation with the Foundation or their professional advisor, defines the scholarship criteria as outlined below.

Minimum Contributions

Research has indicated that most scholarships are awarded to high school seniors but there is little funding for on-going support past the freshman year. In an effort to fulfill a donor's intention to help students complete their education, and not simply begin their post secondary education, The Foundation has adopted the following requirements:
  • Educational funds can begin with an initial gift of $10,000.
  • Awards may not begin unit the fund has reached $50,000 or can support one semester of tuition at a state two or four-year college or $2,500.
  • Funds that provide a minimum award of $2,500 are renewable annually until the student completes the two or four-year program.
Merit Based Scholarships
Scholarships or merit based awards may be determined by evaluating an applicant considering some or all of the following factors:
  1. Verified academic ability through the use of grade point average, transcripts and standardized test scores or ranking.
  2.  Demonstrated concern for school and community including community volunteerism and/or regular participation in school activities.
  3. Life experience based on voluntary or paid work experience.
  4. Teacher or advisor recommendations outlining a student's strengths and abilities.
Financial Aid Awards

Any financial aid based program will consider the applicant's ability to succeed in higher education or vocational training and document one or more of the following:
  1. Verify current family income if the student is a dependent.
  2. Consider family size, number of family members in school, and any unusual financial expenses.
  3. Document financial information through tax returns of applicable individuals.
  4. Request a copy of the student's Federal Student Aid Report.
Criteria Selection

Other options can also be established depending on the donor's goals and priorities. Care is needed in establishing a broad class or pool of applicants to ensure that the fund is viable and meets IRS charitable standards. Also, a donor should consider the long-term significance of the program so as to avoid termination due to a lack of applicants. Naturally, donors and their family members are ineligible to receive an award in any amount. Some additional parameters a donor may wish to consider include:
  1. Identification of an area of special study, such as English, mathematics, pre-med., nursing, etc.
  2. Applicants can be limited to a certain academic ranking such as the top 25% or a specific grade point average.
  3. Awards can be limited to a charitable class such as company employees or dependents, a qualified minority, age, gender or heritage grouping.
  4. Applicants can be in a defined situation such as a single parent, foster children, and home schooled children.
  5. Awards can be established as future incentives for younger children to encourage their academic progress.
  6. Awards can be limited to institutions of higher learning in a specific geographic area like Calhoun County or seniors from a specific high school.
  7. Limitations can be established for full-time students or part-time students, returning students or second career students.
  8. Awards can be given for needed skills in the community such as physical therapists, pediatric dentists, emergency personnel, etc.
  9. Awards can promote continuing education for a profession or trade.
  10. Awards should truly support the completion of an education.
  11. The amount of the award can be set (a minimum of $2,500.00) or it can be determined by the amount available to distribute (no less than $2,500).
  12. Awards can support tuition only or it can include institutional room and board, books, fee and other institutional expenses.
Related to these issues, the Foundation staff will (i) assist in establishing criteria appropriate to the donor's wishes and values; (ii) ensure that the Internal Revenue Service will approve the defined award or program class; (iii) establish application procedures, due dates and timelines and (iv) draft application, guidelines and other promotional materials.

Application Intake and Review

The Foundation staff will (i) promote scholarship or financial aid programs through press releases and mailings to appropriate eligible applicants; (ii) intake of application materials including, but not limited to application form, personal statement or essay, letter(s) of recommendation, transcripts, ACT/SAT scores, and financial information; and (iii) prepare applicant files.

Decision Process

Depending on the due dates of the applications and review meeting, staff will (i) manage all correspondence (ii) conduct preliminary screening of the applicant pool for eligibility; (iii) prepare applicant data for committee review; (iv) establish the amount available for distribution from the fund; (v) arrange logistics of review committee meeting(s) and mail out all application materials; (vi) attend review committee meeting, prepare committee minutes, report results to the Board of Trustees for final approval; and (vii) notify donor of final recipients.

Award Process

The Foundation staff is responsible for (i) notifying all students of application results; (ii) mailing award recipient's confirmation forms; (iii) preparing a certificate and award medallion for all public award presentations; (iv) reviewing information and disbursing checks to educational institutions; and (v) conducting follow-up review of recipients and documenting their academic progress.

Miscellaneous Services

The Foundation manages all correspondence, including press releases, acknowledgments, letters of appreciation, and meeting scheduling. Publicity of the program is announced in the Foundation newsletter and in the annual report. Investment and administrative management fees for the above services are published in the Foundation's Fee Policy.
 
The Community Foundation staff provides an independent, program specific guidelines for each scholarship or financial aid program. This includes a tribute outlining the reason for establishing the fund and a if possible a photograph of the donor.
 
For more information or assistance in formalizing a scholarship program, please contact the Community Foundation (256) 231-5160.