Agency Funds and Scholarships
Hello All,
We recently received a request from one of our agency funds to distribute funds to an institution for named scholarship recipients. My understanding is that agency funds are intended to support the nonprofit and must be distributed directly to the nonprofit. I am curious if any Community Foundations allow their agencies to disburse funds for this purpose. If so, what are your policies/processes?
Thank you for any guidance and comments on experiences.
Best Answer
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Yes, with agency funds the grants must go back to that agency. If they are awarding scholarships and sending money to an institution, it sounds like the agency should have set up a scholarship fund instead, even if the money came from that nonprofit agency.
Alternatively, you could grant to the agency and they could distribute scholarship awards. It would be through their own process so you wouldn't be involved with who the recipients are or selection, etc.
Hope that helps!
3
Answers
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Yes, with agency funds the grants must go back to that agency. If they are awarding scholarships and sending money to an institution, it sounds like the agency should have set up a scholarship fund instead, even if the money came from that nonprofit agency.
Alternatively, you could grant to the agency and they could distribute scholarship awards. It would be through their own process so you wouldn't be involved with who the recipients are or selection, etc.
Hope that helps!
3 -
Thanks, Dara! That is exactly what I was thinking, but it is nice to have confirmation. Very helpful!
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