Can a chapter set up its own scholarship in memory of someone, or for another reason?

Yes.

What recordkeeping or other formalities should we observe?

  • The scholarship guidelines should be in writing, and approved by chapter members.
  • The scholarship should be open to all chapter members.
  • It is best to establish a committee of more than one person to decide who will receive the scholarship.

What should be included in the guidelines? 

  • Purpose of the scholarship.
  • Statement that all members are eligible.
  • Other conditions to be met, if any.
  • Who is responsible for determining the recipient; that is, the members of the committee.
  • Procedure and deadline for applying.
  • Frequency and number of awards.
  • Amount to be awarded.
  • Deadline by which the committee will determine the award.
  • Date on which the award will be announced.

Is it necessary to set up a separate bank account?

No. It could be part of the annual budget. That is, the chapter can budget a certain amount for scholarships in one year. Accounting should be maintained so that the amount of scholarship(s) awarded in one year does not exceed the amount budgeted. Chapter members, or its board of directors, could approve going over budget.

What about setting up a reserve fund for accounting purposes?

Not required, but can be done. The board of directors or chapter members would need to vote to set it up, and it would be necessary to track the incoming and outgoing amounts. Since a reserve fund would be part of the chapter's financial assets, it would still be necessary to budget for the payment.

Other questions?

Contact your region director.