How to Create a Scholarship

1) Set Your Goals

Knowing your goals and your target audience will help define the scholarship administration and funding process. Ask yourself questions like:

•  What’s driving you to start a scholarship, and what impact do you hope to have?
•  What students do you want to serve?
• Will you focus on new high school grads, current college students or nontraditional (and often underserved) groups?
• Are you providing assistance to your employees, their families or a community population?
• Are you serving a specific population or field of study?
• Will you be focusing on students’ financial need, or other criteria?

Having clear goals will shape everything that follows.

2) Determine Your Budget 

To start a scholarship fund with a real impact, we recommend a minimum award amount of $1,000. Our sponsors’ average award is just over $3,500. Awards of $5,000 or more are considered prestigious—the kind of award that makes a tangible impact, and consequently one a student will never forget. When choosing your scholarship award amount, make sure to consider the following, and don't forget to budget for administrative time and effort: 

• How can you afford to best help your community?
• Is your scholarship criteria inclusive enough to attract a significant number of applications? 
• How do you want to support your scholarship award winners throughout their education? 

Tip: If your budget is limited, you can still make a meaningful difference. Consider offering a one-time award and choose narrower eligibility criteria to ensure you're funding exactly who you want to impact.

3) Choose Eligibility Criteria

Be specific about who you want to support. Scholarship applications can consider some or all of these criteria: 

• Academic achievement
• Financial need
• Field of study or career interest
• Geographic region or community ties
• Personal values or characteristics (e.g., leadership, perseverance)

Well-defined criteria not only help students understand if they qualify but also simplify your review process.

4) Design a Simple, Fair Application

Whether you're reviewing applications on your own or working with a partner like Scholarship America, clarity is key. Ask for only the information you truly need to make a decision, and make your process as transparent as possible. For smaller programs, a short online application and personal statement may be all you need.

5) Plan for selection and award distribution

Decide how you’ll choose recipients and how funds will be distributed. Will you review applications yourself or bring in a committee? Will the money go directly to the student or through a college financial aid office?

For programs with multiple reviewers or larger award amounts, it’s especially helpful to bring in support to ensure fairness, consistency, and compliance.