SCHOLARSHIP FUNDSSCHOLARSHIP FUNDS

Lutheran Community Foundation offers three types of scholarship funds:
  • LCF Field of Interest Fund for Scholarships
  • Donor Advised Designated Scholarship Funds
  • LCF-Administered Scholarship Fund

Note: The Foundation advises that donors and/or financial advisors consult with Foundation staff if there is interest in setting up a scholarship fund.

General Scholarship Funds:

1) LCF Field of Interest Fund for Scholarships

By giving to this fund, your gift is combined with the gifts of other donors, and utilized to address needs in the area of scholarships. Grant distributions from these funds will be focused in the Lutheran community, based on criteria consistent with the Foundation's mission and vision.

Gift Minimum: None

 

Custom Scholarship Funds:


2) Donor Advised Designated Scholarship Funds

You can establish a permanently-endowed fund at the Foundation that provides scholarship support to a specific, accredited educational institution through a Donor Advised Designated Scholarship Fund. You can designate the educational institution and have the option of recommending scholarship criteria. Selection of recipients is made solely at the discretion of the institution.

Gift Minimum: $5,000 per educational institution

3) LCF-Administered Scholarship Fund

Create a customized scholarship fund that is administered by the Foundation.

Minimum: Varies according to complexity, typically $500,000 or more

When you establish a Designated or LCF-Administered Scholarship Fund:

  • Scholarship grants can be awarded in your name, or in memory or honor of another. You may also choose to remain anonymous.
  • You can designate scholarships for any level of education from preschool to postgraduate studies, providing the application and selection process is through an accredited educational institution. Pre-school and K-12 scholarships only apply for private institutions that charge tuition.
  • Scholarship grants are made payable to the educational institution and can be used to defray educational expenses such as tuition, fees, books, supplies and equipment required for study.
  • A percentage of your gift is distributed annually, according to the Foundation’s Distribution Policy.

How to Establish a Scholarship Fund at the LCF

  • Complete and return the Fund Workbook and send it to the LCF. The LCF drafts a Fund Agreement based on charitable requests made by the donor, and sends it to the donor for signing. The financial representative also receives a copy.
  • If the client wishes to give stock, include copies of either the stock certificates or the most recent brokerage statement. LCF will contact you with specific instructions on how to transfer the stock.
  • The signed Fund Agreement is returned to the LCF along with the charitable gift.
  • Review your compensation options from Thrivent or American Funds.

Resources to Support Your Work


Benefits to you, the Professional Advisor

LCF will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds. (details)

Important Guidelines to Consider when Establishing a Scholarship Fund:

For complete list, see guidelines on TheLCF.org (Donor Advised Designated Scholarship Fund guidelines, LCF-Administered Scholarship Fund guidelines)

Charitable Class. Benefiting recipients need to be members of a “charitable class”. In general, a charitable class is a group of applicants that is large enough so that an indefinite number of individuals may benefit. “All the graduating seniors at a local high school” is a common and generally acceptable class. A class that includes members of a single family, on the other hand, wouldn’t qualify as a charitable class and thus is not acceptable. Religious, race-based, ethnic and gender limitations pose special questions, and must be discussed with Foundation staff.

Applicant Criteria. The following are generally-accepted criteria to consider if you are establishing a scholarship fund:
Financial need.
Achievement in academics (GPA, test scores, etc.), athletics, music and the arts, community service, leadership or character.
Superior performance or work in a particular field of study.
Enrollment or acceptance to an accredited educational institution in the United States (college or university, public or private, community college or vocational/technical school, seminary, etc.).

Selection Process and Other Concerns.
Relatives of donors are ineligible to receive scholarship grants from a donor-established scholarship fund, and members or relatives of the board of the Foundation and its staff are ineligible to receive scholarship grants from the Foundation.

Due to the complex administrative procedures, the Foundation discourages “renewable” scholarship awards.

IRS rulings suggest serious issues regarding roles of donors and/or fund advisors in the selection process.

The Foundation cannot administer scholarships through church congregations.

Fundraising Policy. Due to IRS restrictions, the Foundation cannot accept checks given by individual supporters in response to fundraising events (i.e. golf tournaments, banquets) for charitable funds at the Foundation. Gifts from such fundraising events must be made payable to the individual organizing the event, and are not eligible for a charitable tax deduction through the Foundation.