True, the winners must demonstrate acutely
above-average merit. Rhodes’ will spelled out the criteria in four points that
say absolutely nothing, however, about socioeconomic or geographic origin,
religion, field of study or grade point average—imperatives that schools
frequently hear from present-day donors. Instead, he requested that Rhodes
scholars are to be selected based on: “Literary and scholastic attainments;
energy to use one’s talents to the full, as exemplified by fondness for and
success in sports; truth, courage, devotion to duty, sympathy for and protection
of the weak, kindliness, unselfishness and fellowship; and moral force of
character and instincts to lead, and to take an interest in one’s fellow
beings.”
Universities, of course, encourage donors to support efforts
to welcome students who would not otherwise attend college, but they do insist
that benefactors allow a broad definition of the term “disadvantaged.” The
evolution of Funderburke’s stipulations displays this notion. When he first
approached OSU, he wanted money to go to Fisher College of Business students who
had participated in one of several mentorship programs at the Lawrence
Funderburke Youth Organization in Columbus and to students who had consumed
their athletic scholarships a few semesters short of graduation. Out of his
protracted meetings with school officials, however, another approach emerged. He
agreed that if there are too few applicants in either group, the university can
open up the application process to other needy students.
One of the reasons OSU has been so pleased with
Funderburke is that he
has not balked at using the word “preference” instead of
“requirement.” |
One of the reasons
OSU has been so pleased with Funderburke is that he has not balked at using the
word “preference” instead of "requirement.” As it now stands, students who have
been in his youth organization get first preference. If no applicant fits that
description, the money can go to students who participated in one of two Boys
and Girls Clubs in the Columbus area. In the past five years, 75 students have
been involved in Funderburke’s youth organization, while hundreds have passed
through the doors of the Boys and Girls Clubs. Even so, he has agreed that if
this pool of applicants is small enough to leave further money available, it can
go to any needy, deserving students in any program at OSU, at the discretion of the school’s scholarship selection
committee.
Another reason that a tightly targeted scholarship endowment can
put the school in a tight spot is that nine decades after Cecil Rhodes,
universities in the United States found themselves under attack for affirmative
action quotas, and indeed any evidence of favorable treatment toward certain
groups. Today California, Florida and Washington prohibit scholarships available
only to certain ethnic groups. The other concern that scholarship committees
increasingly confront in a multicultural world is proving racial status. Must an
“African-American” have two African-American parents, or just one?
Schools
also face heightened IRS scrutiny vis-à-vis narrowly defined scholarships.
Rebecca Dukes, vice president of university advancement at New Mexico State
University, remembers a donor who wanted to set up a scholarship for a single
mother who had a child enrolled at a particular day care center. “We thought
there can’t be too many people who fit that profile,” Dukes says. “We checked
with our attorneys on that one, and had to deny it.” The IRS is likely to rule
that a scholarship that narrow is, in fact, a gift—in other words, an award that
seems tailored for one particular student.
Even if you are giving a
substantial endowment to set up scholarships for students, a college or
university will likely want to meet with you several times to discuss the
parameters of the scholarship. They will ask what you hope to accomplish with
the gift. Is it to bring more accomplished scholars to the university? Is it to
help students in financial need? The university will want to collaborate with
you in designing a gift agreement that will meet your goals, as well as those of
the university as a whole.
You have some say in the matter, of course. It is
reasonable for you to insist, for example, that the school be amenable to
reviewing the agreement periodically. Once you give a gift, the IRS stipulates
that you should have no control over that money, but a savvy development
department will give you the opportunity to tweak the scholarship requirements
under some circumstances. If demographics or particular disciplines change over
time, ideally the school should be willing to make changes to the agreement so
that you can make certain you continue to support the students you really wish
to help.
|
