It’s scholarship season.

More specifically, it’s scholarship hunting season as high school seniors seek scholarships to attend their chosen college or university this fall. Statistics show that more than 60% of college students rely on scholarships, and about 15% of those receive private scholarships. Someone calculated that 1.8 million private scholarships are awarded annually in the U.S.

Establishing a scholarship is a great way to extend generosity and pay it forward.

Some wish to honor a loved one who appreciated education, or help a student pursue their same major. Others simply want to lessen the financial burden and reduce the need for student loans. Whatever the reason, it is one of the more generous gestures today…giving someone you may only know on paper the opportunity to pursue their dream and desires.

However, setting up a scholarship takes some thought, and the more you spend considering the details, the more successful your scholarship. Keep these in mind:

1. Consider the type of student to help. Yes, focus on programs, academic qualifications, need or merit-based, a student from your home high school or church, or even more general than those, but do not be so restrictive that you narrow applicants and limit those who qualify. You want your scholarship to be awarded rather than dormant if none apply. Generosity is only such when it’s active.
2. Consider how you will fund it—annually, build toward endowment, or both—but give more thought to the amount. With the cost of education, whether trade school, 2- or 4- year college, you want to provide an amount that does make a difference and motivates the student to apply, do well, and keep themselves eligible if it is renewable. Once you choose the amount, consider how you will sustain it or for how long.
3. Consider the application and selection process, and how rigorous you wish both to be. Again, the amount of the scholarship may drive intensity. A prestigious, generous scholarship can justify a rigorous process, but some students will weigh the amount of time and effort against the return. A personalized process allows for more interaction and acquaintance with the student. Ask others to join in the selection to objectively narrow applicants and allow yourself to make the final selection from their chosen pool of applicants.
4. Consider with whom to set up the scholarship. A community foundation is poised to help you, and you will find it more rewarding to outline all the details and allow them or another entity to follow through on implementation. They can oversee the application and selection process, involve you where you wish, and then they follow through on the award, payment and requirements.

You can decide how connected you wish to be with your recipient, which you will find the most rewarding to see your generosity in action, even creating a friendship for the rest of your life.