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  • 1.  Scholarship Committees and Donor Control

    Posted 10-22-2024 09:26 AM

    Our institution has had a history of fundraising for departmental scholarships and asking the alumni (some of whom donated to the scholarship) to serve on the selection committee.  We have intentionally either removed these committees (allowing financial aid to make the decision) or changed their makeup of the committee to be employees within that department.  For nearly all of them, this has gone extremely smoothly.

    However, we have one committee, which also happens to have been the first one of this kind created at our institution, which is trying to update its conflict of interest policy to allow its alumni to still select scholarship recipients.  Their suggestion is that those who have contributed over $500 within the last 5 years are ineligible to serve on the committee and anyone who donated prior to that or less than that is outside of the realm of influencing their contribution.  Mind you, this is an endowed scholarship so their contributions continue to feed the payout every year.

    Members of our advancement team, including myself, feel that this gesture is not enough to escape the realm of donor control.  I have spent more time than I probably should have searching the internet to find some source that might help the institution navigate this difference of opinion in a meaningful way.

    If any of you have a resource you could share or a strong opinion one way or the other, we would appreciate the insight.

    Joel



    ------------------------------
    Joel Clasemann
    Director of Advancement Services
    The College of Saint Scholastica
    jclasema@css.edu
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  • 2.  RE: Scholarship Committees and Donor Control

    Posted 10-22-2024 10:11 AM
    Joel, page 24 of the latest CASE Standards should be all you need as backup. This page discusses donor influence and donor control. The introduction to the 1st edition of the Global Standards also emphasized these rules.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Scholarship Committees and Donor Control

    Posted 10-22-2024 10:16 AM
      |   view attached
    Also, if you need an IRS document, I am attaching one of the original references. This summary dates back to the early 1990s but references rulings that pre-date that by three decades. Meaning, these are not new IRS concerns!

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





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    Donor Control Issues.pdf   11 KB 1 version