Understanding Scholarship & Recognition Services

Introductory Note: We have often received inquiries from corporations and other organizations about Scholarship Programs -- to understand the value, features, and benefits ,of these programs and. how they are different from Tuition Assistance Benefits. To provide greater clarity, we reached out to ACT Inc, a leader in providing scholarship and recognition programs and one of EdLink’s two parent organizations. This article helps to provide an initial understanding of Scholarship Programs.

Scholarships are a form of corporate philanthropy. They can build or promote corporate identity, enrich communities by supporting education, and ultimately improve the lives of individuals through charitable and worthwhile pursuits. Although the purpose of a scholarship is to provide money toward the cost of education, scholarships and recognition programs differ greatly from tuition assistance programs.

Corporate scholarships celebrate accomplishments or provide recognition based on a specific set of criteria rather than across a broad spectrum. Scholarships (or recognition programs) always involve competition, and the program specifications can vary widely. For example, the Wal-Mart Foundation (supported by Wal-Mart, Inc.) offers several scholarships, each with a different focus.

The Sam Walton Community Scholarship
A $3,000 college scholarship available to graduating seniors with at least a 2.5 cumulative GPA and a demonstrated financial need.

The Wal-Mart Associate Scholarship
A $3,000 college scholarship available exclusively to Wal-Mart associates or dependents of associates who are graduating seniors with at least a 2.5 cumulative GPA and a demonstrated financial need.

The Wal-Mart Higher Reach Scholarship
A college scholarship of up to $3,000 available to Wal-Mart associates who have been out of school for at least one year.

Walton Family Foundation Scholarship
A $13,000 scholarship paid out over four years. Applicants must be dependents of Wal-Mart associates, have at least a 22 ACT or 1030 SAT (Critical Reading + Math) score and prove financial need.

Corporations (or their foundations) often enlist the aid of organizations like ACT to help facilitate their programs for a number of reasons. First, the administration of scholarship programs is not the primary business of the corporation or foundation. It is, however, the business of ACT; so, ACT can easily and efficiently organize the labor necessary to complete various tasks even if the program is highly cyclical in nature. Second, ACT has access to one of the finest educational research groups in the world. This unit is able to help develop and score unique applications based on the desired goals of the program, and can reduce large candidate pools to a manageable number using proprietary and proven methods. Third, there may be legal or ethical reasons why organizations choose to outsource to a third party given the nature of competitiveness. Often, hiring an organization like ACT can be much more cost-effective than trying to manage a program in-house. Always, the experience and objectiveness an organization like ACT can bring to a program is invaluable.

Another way corporations use scholarships is to recognize specific accomplishments, achievements, goals, or the financial need of a particular set of employees or dependents of employees. Scholarship programs differ from tuition assistance programs because they are limited to a particular set of individuals sharing a particular trait or set of traits, and are competitive in nature. These types of programs can often be a valuable benefit for employees, and the award money can be offered to a significant number from the overall applicant pool. Scholarship money can also be used to promote industry-specific needs (such as advancing a particular skill) for those showing amazing potential, or to recognize the financial need of high-performing, but lower-paid, employees or their children. It can be celebrated internally and used as a model to encourage employees to fulfill their dreams or potential, and honors education—and self improvement—in a way that other programs may not.

In today’s economy, as with tuition assistance programs, the use of scholarships is as important as ever. Many organizations have increased their giving to compensate for specific financial need. However, very few organizations have decreased or eliminated giving—which is a true testament to the strong philanthropic nature of domestic corporations.