My husband and I are involved with a local merchant’s association. Over the last several years , our business has organized an event that raises money for scholarships to give to local students. Between donations ( sponsorship of the event ) and community participation in the event , we typically gross $15,000.00 per year.
We got involved because we were sponsoring other organizations events and figured this was a good way to give back to our own community ( that and recognizing the need for merit based, local scholarships )
In the last two years , we have contemplated either backing out or going it alone without the participation of other merchant members. We have a few issues over how it should be run, who should be allowed to apply and how decisions are made.
When it began , it was merit based only. Applicants had to reside in ONLY a certain part of the town . A short essay, 2 letters of recommendation and resume as well as where the student would be attending school. Pretty typical , I think.
Now , they are requiring a copy of the FAFSA.
It’s not that I don’t realize that this is sometimes a standard with scholarships, but I don’t think anyone on the committee ( we are not involved with the decision making with who gets awarded ) has any business looking at parent’s finances. The committee consists of a gas station owner , a farmer and another small business owner.
This bothers me…it seems more nosy than official.
Out of the money raised for this scholarship program, over 90% comes from the efforts of us and some absolutely amazing people that are affiliated with our business , so it would have a big impact on the organization , which is why we are torn about carrying it out on our own.
Does anyone here have any input as to how scholarship committees , whether at colleges and universities or private sources make the decisions based on family finances ?
If the scholarship is “need-based” it seems reasonable to ask for the FAFSA. Both my sons applied for a few community type scholarships and although they didn’t ask for a copy of the FAFSA, they did ask for our annual income, etc…
If it is need-based, it would be a lot less intrusive to look at the FAFSA EFC – I don’t see any reason why the scholarship org would need to see the full FAFSA will all the data.
None was totally need-based, but almost all said need was a factor. The one I best remember is from a PTA because I used to be its scholarship chair. There was a rubric that scored GPA, essay, ECs and need. The app listed a range of income levels – less than $25K, $25K-$45K, etc.
This scholarship wasn’t originally a need based at all…strictly merit. The issue is , we got involve because it was merit based. Without discussion , voting or any other communication amongst members ( including us ) , the criteria has changed. I find it intrusive to require financials when there I don’t find anyone in any position to make that decision. It isn’t anyone with any kind of financial / accounting background.
I don’t think they have any clue what formula to follow to base their decisions.
Last year , we had some rather generous corporate sponsors because my husband had a customer that was an executive with a utility company. They told him that they could likely get a bigger donation , but it would need to opened to other students as well. We liked the idea , but the old folks turned their noses up . This year , they didn’t donate anything , not that am surprised.
AS far as trying to influence the members who like to move the goal posts and requirements , we have tried. Some members have walked away from the organization because they were frustrated with the lack of flexibility when it came to expansion . My husband told the president that he wants them to accept applications from students that have volunteered their time over the last few years , at least from the proceeds of this particular event. We also have had donors who have supported us generously that we believe should be allowed to have their own children apply…we will see how that goes and perhaps make our decision when the results are known
There is an annual scholarship that this organization gives out that is unrelated to our contribution. It comes from an endowment from a local that passed away before we were members.
In the last two years , nepotism played a larger role than it should have according to the criteria listed in the actual application , but that is another issue
If need-based component is included, asking for FAFSA info from every applicant seems to be a huge waste. Asking for income level as Yds said simplifies review, but it also opens the door for some potential fraud. IMO, if you put something on the application along the lines that the finalist will have to provide documents in support of the income stated on the application will cut down on fraud. And then ask the finalist for FAFSA prior to handing the check.
I agree with BB, but with a caveat. If you are fairly confident that it would just be a formality to have your selected families hand over their FAFSA, because you are confident that the winners will indeed prove to have financial aid, then BB’s suggestion is great.
On the other hand, we have seen over and over on this board that families believe they have financial need, and scholarship granters disagree. So it would be best, rather than presenting the demand for a FAFSA as the last hurdle before the grant, to select some “Semifinalists” and ask for their FAFSA, realizing that some appealing students will not turn out to have need as you define it. You could then award the scholarships to your favorite candidates who demonstrated need. Of course you would make clear throughout the process that your scholarship was need-based.
But my question is , who should be qualified to make that decision ? Shouldn’t it be someone who has some background in finance , banking , accounting , or perhaps even having experience in a financial aid office at a college or university ? Or even a basic grasp on what it costs to send a child to college.
This strikes me as a bunch of nosy folks poking around their neighbor’s bank accounts . I don’t see how they can make a determination based on a FAFSA without knowing how to analyze the data.
The reason we got involved in the first place was because it was merit based and local.
Maybe I am just looking for another reason to end our affiliation with the group and do it on our own
I’m not familiar with financial aid requirements, but doesn’t FAFSA calculate an EFC? Can’t you just use that?
You could be right that it’s nosy neighbors. But if I were involved in granting scholarships like that, I’d want the money to go to meritorious students in my community who needed the money. That has nothing to do with nosiness, and everything to do with wanting to help out people in my community who need help.
If you don’t feel comfortable with being involved in awarding scholarships that are based on both merit and need, then it sounds like it’s time for you to end your involvement with this group.
I always thought the honor system on the scholarship with which I was involved was a little too loose. I like the idea of asking finalists to submit the FAFSA confirmation page, which tells you the EFC and whether they are Pell eligible.
It sounds like you want to keep it merit based, and that the criteria changed. They did not change themselves, who changed them? If you are contributing most of the money, you should retain most of the control. Is something going on with this merchant’s association you don’t feel comfortable with?
Also note that a need based scholarship may benefit the college more than the student. Since scholarships are applied to need first, your award may only reduce the school provided financial aid, and not really make college more affordable for the student. If you don’t include need, you may actually have a better chance at helping someone afford his preferred college.
I agree that it seems a little weird to have people who are not financial aid officers look over someone’s FAFSA. We all probably share too much information anyway, and maybe businesses are used to seeing information on credit applications and have processes in place to protect the data, but something is going to leak.
@MomofJandL I have always heard that the school may take away what they give you if you have an outside scholarship, but that was not our experience (3 different kids, 3 different schools). Our schools still gave us the same that they originally offered, the extra money came out of loans, parent contribution and student contribution. I suppose if the outside scholarship was even more than that, they would have decreased the “free money” too.
I suspect FAFSA is used to verify that family falls withon the income category specified by the scholarship. Some scholarships ask for parents’ and/or student tax returns to verify that fact. For example:
See, if it was based on the EFC, my own child ( who isn’t the reason for our uneasiness here ) wouldn’t look like she is needy. We are pretty tight when it come to cash on hand and also our ability to borrow due to business related strains.
You can’t tell everything by what EFC says at all, which is why merit based scholarships are appealing to people like us and others. It doesn’t show that there is a non-legally binding agreement to pay for tuitions for a non-dependent child , or any other situations
That seems to be where this is heading. Either we stop altogether or branch out on our own. It’s a very labor intensive endeavor , and we hoped they would respect our points of view , but it doesn’t seem like that’s happening.
We have a handful of people that work with us that commit themselves and their family members in ways that are far more effective than the group we are at odds with. There is a couple that have a son that doesn’t live in the right zip code to be eligible , but in another two years, he will be of age to become an applicant. To us, because of his mothers’ dedication should be in a top spot for a scholarship
