Top 5 Common Mistakes Scholarship Providers Make with Donors
Scholarships play a critical role in expanding access to education, but working with the donors who support scholarships can present unique challenges. The key to building long-term, successful relationships with donors is understanding their needs while also setting up clear processes and expectations. Here are the top five mistakes scholarship providers often make when working with donors—and how to avoid them.
1. Asking "How" Instead of "Why"
It’s easy to start donor conversations with logistical questions like, “How will you set up the criteria for this scholarship?” or “How will you use the fund?” While these are important, leading with the “why” is crucial. Donors are investing in education for a reason, and understanding that reason is invaluable.
Ask them:
Why are you choosing to center your philanthropy on education?
Why is post-secondary education important to you?
Why do you feel our organization is the right partner for this?
Understanding the motivations behind their giving helps ensure the relationship is grounded in shared values and goals. The “why” reveals their passion, making it easier to align the scholarship’s purpose with their—and your organization's—broader philanthropic aims.
2. Starting with Services Instead of Impact
It’s easy to get caught up in the logistics of scholarship management—such as investment options, eligibility requirements, and donor participation—but prioritizing impact is essential. Donors want assurance that their contributions are making a meaningful difference. When you begin with services, it can lead to unnecessary customization, creating confusion and misalignment with the organization’s broader goals.
Instead, start by asking the donor, “What kind of impact do you want to achieve through the scholarship we’re creating together?” This approach ensures that the scholarship aligns with both the donor's vision and your organization’s mission. By centering on impact rather than getting bogged down in every detail, you establish a flexible structure that can adapt as students’ needs evolve.
Standardizing the management of scholarships not only provides consistency but also keeps the core purpose—the donor’s desired impact—at the forefront. This focus facilitates easier adjustments when changes are necessary, as you can always return to the foundational purpose and explain how these changes will further support those goals. Ultimately, this strategy helps maintain alignment with your organization’s mission, ensuring long-term sustainability and a positive impact on students.
3. Asking Questions That Don’t Need Answers
Scholarship programs should have a clear, structured policy in place. Keep the expertise centered within your team (the scholarship professionals!) and avoid overwhelming donors with basic operational questions that they don’t need to influence, like:
How many times a year do checks go out?
What does the scholarship cover (tuition, cost of attendance, etc.)?
What happens if a student takes a gap year?
Your policy should educate donors on your standardized approaches to these issues. When working with donors, focus on clarifying the vision for the scholarship. Ask, “Is anything unclear about how we manage the fund?” or “Are there engagement opportunities you were hoping for that I didn’t mention?” This approach shows that you’re focused on the donor’s experience while keeping the conversation centered on what really matters—their goals and impact for students.
4. Not Creating Opportunities for Donor Engagement
Scholarships are one of the few options most donors have to give directly to an individual they can put a name to or meet! For many donors, scholarships are more than just a financial commitment—they’re a personal connection. Without clear engagement opportunities, donors may become dissatisfied or, worse, seek inappropriate direct contact with recipients.
To avoid this, provide meaningful opportunities for engagement:
Invite donors to serve on scholarship or organization committees.
Offer opportunities to attend student events or awards ceremonies.
Offer opportunities to learn about the state of higher education and the experiences of today’s students.
Provide annual updates on the students they’re helping.
Create mentorship or career panel events where donors can interact with students in a structured, meaningful way.
These interactions build a deeper connection between the donor and the scholarship recipients, ensuring a positive and impactful experience for both parties.
5. Allowing Toxic Relationships to Continue
Most donors have good intentions, but occasionally, a relationship can become harmful. Abusive behavior, boundary violations, or inappropriate contact with students are serious red flags that can damage the organization and its recipients.
If a donor exhibits behavior such as:
Public criticism of staff or recipients,
Harmful, racist, classist, or otherwise offensive remarks, or
Disregard for program rules or IRS regulations,
it’s crucial to address these issues directly. Philanthropy is meant to help, not harm, and protecting the integrity of your program and the well-being of your recipients should always be a priority. Engage senior leadership in these conversations and outline both the timeline and the consequences of continued problematic behavior. Be clear: “If these concerns continue, we may have to terminate our relationship.” Ensure the donor understands the potential impact on the fund, and if necessary, provide options for transferring or winding down the scholarship.
Conclusion
Avoiding these common mistakes can help scholarship providers build stronger, more effective partnerships with their donors. By focusing on impact, creating opportunities for meaningful engagement, and addressing issues proactively, you’ll ensure that your scholarship program serves both the donor’s goals and the students’ futures in the best possible way.
Don’t miss the chance to learn more!
Students First Consulting’s very own Sarah Battersby will be presenting on this topic at the upcoming National Scholarship Providers Association EmpowerED Conference in Salt Lake City a few weeks. Be sure to catch her session "Navigating Donor Relationships to Achieve Maximum Impact for Students."
