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  • 1.  Scholarship selection

    Posted 11-07-2025 02:32 PM

    Hello Listservers,

     

    Below is an excerpt from a recent agreement for a sizeable contribution for scholarships from a Foundation. I would appreciate input to address donor control concerns regarding selection of recipients. Too much control to be philanthropic? Thoughts??

     

    Thanks very much!!

     

    Anita

     

     

    Anita Lawson

     

    Director of Gift Administration

    University Development and Alumni Engagement

    California Polytechnic State University, San Luis Obispo

    Mobile 214.551.3961

     

     

     

     

     



  • 2.  RE: Scholarship selection

    Posted 11-07-2025 02:49 PM
    If the University is selecting the recipient, why does the Foundation need to see the redacted application? They certainly cannot comment on any aspect of the applications. That is what the control business is all about! Even if they don't know the name of the applicant, if they are allowed to provide you with feedback on the applications, the issue of control is present. The concern is that because you are beholden to them for their financial involvement, an institution might feel inclined to favor their recommendation even if you disagree.

    The best approach to scholarships is to have the donor fully disengaged from the selection process, other than establishing legally acceptable selection criteria.

    Of course, even with the above and CASE's similar stance, you should get input from Counsel. However, if you had an institutional policy - as some do - prohibiting any donor involvement beyond the selection criteria, you wouldn't have this issue!

    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




    Original Message


  • 3.  RE: Scholarship selection

    Posted 11-07-2025 02:51 PM
    PS

    Item #4 really flies in the face of the control issue - in that case, they know who they are recommending, and you know that they know that you know that they know . . . .

    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


    On Fri, Nov 7, 2025 at 3:48 PM John Taylor <johntaylorconsulting@gmail.com> wrote:
    If the University is selecting the recipient, why does the Foundation need to see the redacted application? They certainly cannot comment on any aspect of the applications. That is what the control business is all about! Even if they don't know the name of the applicant, if they are allowed to provide you with feedback on the applications, the issue of control is present. The concern is that because you are beholden to them for their financial involvement, an institution might feel inclined to favor their recommendation even if you disagree.

    The best approach to scholarships is to have the donor fully disengaged from the selection process, other than establishing legally acceptable selection criteria.

    Of course, even with the above and CASE's similar stance, you should get input from Counsel. However, if you had an institutional policy - as some do - prohibiting any donor involvement beyond the selection criteria, you wouldn't have this issue!

    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




    Original Message


  • 4.  RE: Scholarship selection

    Posted 11-10-2025 11:36 AM

    Thanks very much, John, for confirming.

     

    Please correct me if I'm wrong, but I believe we can accept the funding as long we don't issue a receipt. This would be one of several items that we may record as "non-gift" for stewardship purposes.

     

    Anita

     

     

    Anita Lawson

     

    Director of Gift Administration

    University Development and Alumni Engagement

    Cal Poly, San Luis Obispo, CA 93407-0443

    Mobile 214.551.3961

     

     

     

     




    Original Message


  • 5.  RE: Scholarship selection

    Posted 11-10-2025 11:46 AM
    I think that is correct although you will want to confirm with your CFO. It is also possible the funds could be considered taxable income to the recipient. Also so me the CFO can determine.

    John

    John Taylor Principal, John H. Taylor Consulting, LLC 919.816.5903 Big ideas; small keyboard





    Original Message


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