Regulatory Authorities

U.S. Department of Education's Office for Civil Rights
Enforces key federal civil rights laws that prohibit discrimination in programs or activities that receive federal funds. Applies to state colleges and universities, vocational schools, proprietary schools, libraries and museums that receive U.S. Department of Education funds.

• Title VI
  Prohibits discrimination on the basis of race, color and national origin.
• Title IX
  Prohibits discrimination on the basis of sex. Also see the page Title IX and Sex Discrimination.
• Title II and Section 504
  Prohibit discrimination on the basis of disability.
• Age Discrimination Act
  Prohibits discrimination on the basis of age.
• Nondiscrimination in Federally Assisted Programs
  Explains how Title VI applies to financial aid.

Internal Revenue Service
Provides guidance on charitable giving regulation and maintaining tax-exempt status.

• IRS Form 5578, Annual Certification of Racial Nondiscrimination for a Private School Exempt From Federal Income Tax
  See Definitions on page 2 and Section 4.5 Scholarship and Loan Programs on page 3.
• IRS Form 1023
  See Schedule B, Section II Establishment of Racially Nondiscriminatory Policy on page 14.
• IRS Publication 3833
  Defines "charitable class."

Articles and Publications

• Access & Diversity Collaborative. Early insights: how the SCOTUS ruling is impacting admission policy and practice. College Board, March 2024. 7 p. 
  Following the Supreme Court ruling in the summer of 2023, ADC sponsors identified the need for insights on how their peers were navigating the new legal landscape. Through this survey, College Board sought to establish a baseline understanding of policy and practice changes by ADC sponsor institutions. (Source: Excerpt.) 
• Affirmative action. Washington, DC: National Association of Independent Colleges and Universities, 2023.
  This issue brief describes the history of affirmative action in U.S. higher education. It then discusses recent developments and their implications for practices and policies at both public and private colleges and universities.
• Childress, Rasheeda. "Can donors still support race-conscious programs? Supreme Court Ruling leaves college fundraisers in uncharted territory," Chronicle of philanthropy (July 17, 2023).
  The Supreme Court’s recent ruling that upended the use of race in admissions decisions may also apply to scholarships and other efforts supported by donors, experts say. (Source: Excerpt.)
• Coleman, Arthur L.; Keith, Jamie Lewis. Federal nondiscrimination law regarding diversity: implications for higher education financial aid and scholarship policies and programs. College Board/Education Counsel/NASFAA, 2019. 27 p.
  This guide gives undergraduate and professional school enrollment officials practical, actionable information and guidance on the design and implementation of financial aid and scholarship policies that advance diversity goals through consideration of race, ethnicity, and sex. (Source: Introduction.)
• Jaschik, Scott. "Does the Supreme Court order apply to financial aid?" Inside higher ed (July 5, 2023).
  This article analyzes how the Supreme Court ruling banning affirmative action applies to scholarships.
• Knox, Liam. "Affirmative action fallout sours donor relations," Inside higher ed (June 13, 2024). 
  The University of Missouri system is removing racial criteria from endowed scholarships, saying they run afoul of the Supreme Court’s affirmative action ban. Donors feel disrespected—and some may be ready to go to court. (Source: Publisher's description.) 
• Knox, Liam. “Reading between the lines on affirmative action,” Inside higher ed, July 17, 2023.
  The Supreme Court’s decision only explicitly addressed admissions. But legal experts say it could have much broader implications and that colleges would be wise to prepare accordingly. (Source: Publisher's description.)
• Matherly, Charlotte. "Colleges face demands to stop considering race in student scholarships," Chronicle of philanthropy (Sept. 19, 2023).
  Following the Supreme Court's affirmative action ruling, the higher education sector is facing pressure to stop considering race as a factor when awarding scholarships.
• Questions and answers regarding the Supreme Court's decision in Students for Fair Admissions, Inc. v. Harvard College and University of North Carolina. Washington, DC: Department of Education, Office for Civil Rights, August 14, 2023. 7 p. 
  This document provides institutions of higher education with information about the Court’s decision. The Departments of Justice and Education will continue to address all complaints of race discrimination by applying the relevant legal standards under civil rights statutes and will vigorously enforce civil rights protections, including prohibitions against racial discrimination. We hope you find the Questions and Answers below to be helpful in implementing lawful admissions programs on your campus, consistent with the recent decision. (Source: Excerpt.)
• Sun, Jeffrey C.; Russo, Charles J. "Are race-conscious scholarships on their way out?" Chronicle of philanthropy (April 23, 2024).
  Are scholarships that use race as part of their criteria a thing of the past? The short answer is “no.” But based on a review of the 2023 Supreme Court decision and other precedent, such programs will have to pass a tough judicial test. Even then, race can’t be the only factor. (Source: Excerpt.)
• Takagi, Gene. "Charitable class," Nonprofit law blog (Jan. 2, 2007).
  Explains the IRS definition of "charitable class" with a reference to IRS Publication 3833.

Regulatory Authorities

Internal Revenue Service
Provides guidance on tax issues related to charitable giving.

IRS Publication 526
Defines a charitable contribution on page 2 as "a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value." Also see Not Deductible as Charitable Contributions on page 2 and Contributions You Cannot Deduct on page 6. 

CASE Resources

CASE Global Reporting Standards
The CASE Global Reporting Standards are a common set of standards, guidelines, and definitions for reporting the results of educational philanthropy activities at schools, colleges, and universities across the globe. Previously referred to as the CASE Reporting Standards and Management Guidelines, the new book represents worldwide standards in institutional fundraising, with new definitions for educational philanthropy and important guidance around gift counting, funds received, new funds committed, and donor control and influence. For excerpts on donor control and donor influence, see the CASE Global Reporting Standards Donor Control and Donor Influence Flyer.

Other Resources

• Donor control [webinar]. Council on Foundations.
  This webinar recording from the Council on Foundations in collaboration with the Iowa Council of Foundations explores the tricky business of donor control. The webinar gives an overview of donor control and looks at case studies and examples. 
• Fuerst, Rita A. "Dilemma of contingent gifts," Exempt organization tax review 16, no. 1 (January 1997).
  Discusses the IRS and legal definitions of a charitable gift, conditional gifts, permissible conditions and control over gifts.
• Greenfield, Nathan M. "Do donors have too much influence over universities?" University world news (April 25, 2021).
  Considers ethical issues around donor control in higher education.
• Hall, Holly. "Taking control of everything," Chronicle of philanthropy 17, no. 12 (March 31, 2005).
  This article provides examples of ways some donors have attempted to control their gifts and how institutions have responded with consideration of the legal, tax and ethical implications.
• Indiana University Foundation. "Donor control over charitable gifts," Options in charitable estate planning (Winter 2010).
  Examines six issues related to donor control over charitable gifts: acceptable and unacceptable restrictions; gifts subject to conditions subsequent; the partial interest rule; permissible control over investment of the gift; final say over use of the gift; and gifts under scrutiny.
• Rothschild, Jr., Alan F. "The dos and don'ts of donor control," ACTEC journal (Spring 2005).
  Donor restrictions on gifts must be carefully planned to ensure the limitations do not endanger the tax deductions of the contribution. This article is available via HeinOnline. 

CASE Resources

• Aliabadi, Sonbol. "Students can't wait: supporting vulnerable students' basic needs — amid the pandemic and beyond," Currents 46, no. 6 (November/December 2020).
  Sonbol Aliabadi, executive director of the Sierra College Foundation, discusses the passion and hard work necessary to assist community college students when they need it the most.
• Bennett, Gayle. "More than a penny for your thoughts: college awards scholarships to alumni-recommended students," Currents 36, no. 6 (July/August 2010): 7.
  The College of Santa Fe awards scholarships to students who are recommended by an alumna or alumnus. It's a way for alumni to feel they are giving back to the school without costing them anything.
• Budd, Ken. "From fundraising to free tuition," Currents 45, no. 2 (March/April 2019): 36-41.
  By offering full scholarships to every medical school student, New York University has earned big headlines and big dollars.
• Coleman, Toni. "The amazing feats of super women donors," Currents 39, no. 8 (October 2013): 8.
  An Atlantic Cape Community College women's giving circle founded to help at-risk youth finds creative inspiration in superheroes.
• Coleman, Toni. "The debt: university president repays father's education investment," Currents 38, no. 7 (September 2012): 7.
  The story of an Alabama sharecropper's financial contribution to his son's college education is the inspiration behind a new scholarship fund at Morgan State University.
• Coleman, Toni. "Giving by example: former scholarship students start their own fund," Currents 37, no. 9 (November/December 2011): 6.
  A group of Morehouse College alumni who received scholarships from Oprah Winfrey start their own scholarship fund, spurring other alumni affinity groups to do the same.
• Coleman, Toni. "Giving is inn: how a new hotel will help fund scholarships," Currents 39, no. 6 (July/August 2013): 10.
  Rollins College's new hotel will provide shelter to visitors while generating revenue for scholarships.
• Daily, Laura. "An honorable gesture: supporting scholars is no small change for one community college foundation," Currents 41, no. 7 (October 2015): 10.
  Providing microscholarships increased membership in Phi Theta Kappa at Klamath Community College.
• Fernandez, Kim. "Fundraising 101: tragedy provides focus—and funds—for student foundation," Currents 35, no. 5 (May/June 2009): 7.
  The Illinois State University Student Foundation coordinates successful fundraising events for student scholarships.
• Godfrey, Cullen M. "Bizarre bequests and strange scholarships: from left-handed tennis players to cat-loving English majors, some givers—and their gifts—come from the land of odd," Currents 35, no. 5 (May/June 2009): 40-43.
  The National Scholarship Research Service gathers data annually on some 250,000 scholarships. This story is about the 1 percent of those that are quite unusual, even silly.
• Lombardo, Emily. "A new kind of endowment: the University of Oklahoma LGBT Alumni Society's endowed scholarship supports student internships and service," Currents 44, no. 3 (May/June 2018): 8.
  The University of Oklahoma LGBT Alumni Society's endowed scholarship supports student internships and service.
• Lombardo, Emily. "One hot scholarship: how Rowan University turned hot peppers into a $20,000 scholarship fund," Currents 44, no. 4 (July/August 2018): 10.
  A scholarship funded by hot sauce.
• Paradise, Andrew. Results from the 2014 CASE survey of community college foundations. Washington, DC: Council for Advancement and Support of Education, 2015. 67 pages.
  This CASE white paper presents the findings of a survey of 122 community college foundations in the U.S. and Canada. It includes benchmarking information on scholarship fundraising and administration.
• Ruben, Barbara. "Rocking scholarships from Metallica: grants focus on trades at 10 community colleges," Currents 45, no. 4 (July/August 2019): 9.
  Scholarships from Metallica at 10 community colleges.
• Taylor, John. "Pay it forward?" Currents 42, no. 5 (July/August 2016): 13.
  A donor wants to set up a scholarship that encourages repayment. Should students sign a nonbinding letter stating their intent to pay back the scholarship within five years?
• U.S. Supreme Court ruling on affirmative action – what now and what’s next? Washington, DC: Council for Advancement and Support of Education, 2023.  
  In June 2023, the U.S. Supreme Court ruled on the use of race-conscious admissions policies at colleges and universities. The ruling has the potential to significantly alter the admissions landscape, with implications for advancement practices as well. This recording of a session from CASE's 2023 Summit for Leaders in Advancement addresses how institutions are working to adapt practices and respond to their communities. Speakers: Vern Granger, Director, Undergraduate Admissions, University of Connecticut, Board Chair, National Association of College Admission Counseling (NACAC); Ishan Bhabha, Partner, Jenner & Block; Alonda Thomas, Chief Communications Officer and Associate Vice President for Marketing and Communications, Jackson State University; and Kevin Heaney, Vice President for Development, Princeton University. Session transcript also available. 
• Walker, Theresa. "Building something more: historic renovation paired with push for scholarship funds," Currents 37, no. 3 (March 2011): 6.
  The College of Liberal Arts and Sciences at the University of Illinois at Urbana-Champaign uses a website, social media, video and photography to highlight the facelift of an institutional landmark while investing in the future with a scholarship program for its students.

Other Resources

• Carrasco, Maria. "The rise of mental health scholarships," Inside higher ed (March 22, 2022).
  Scholarships for students struggling with anxiety, depression and other psychological disorders have proliferated in recent years, often funded by donors who lost loved ones to mental illness.
• College confidence: what America knows about paying for college. Sallie Mae, 2022. 40 p.
  This study explores high school families’ understanding of college financing. The research examines what college-bound students and parents know about financial aid, the FAFSA, scholarships, and student loans. The report evaluates perceptions, exposes common misconceptions, and gauges how prepared high school families are to pay for college. (Source: Publisher's description.)
• Jimenez, April M. Assessment of Cal Poly Pomona practices in administering scholarships and philanthropic funds. M.A. thesis. California State Polytechnic University, Pomona, 2019. 72 p.
  Scholarship management at Cal Poly Pomona requires involvement of various university divisions and departments that face an array of challenges which impact their ability to successfully administer and award scholarships, and fully service students due to procedural obstacles and bureaucratic tendencies. The purpose of this Applied Public Administration Project is to understand scholarship administration through assessment of current business practices and identification of existing inefficiencies across departments at Cal Poly Pomona. In order to provide information to campus partners and leaders, this project examines administration of scholarships from receipt of philanthropic gift (donation) to student receiving financial aid in the form of a scholarship. (Source: Abstract.)
• Mitchell, Mark J. "Merit-based awards: trends and perspectives," NAIS Knowledge Center (Nov. 2020).
  Explains the National Association of Independent School's position on merit-based financial aid.
• Supiano, Beckie. "At one university, matching students with scholarships just got a little easier," Chronicle of higher education (Jan. 29, 2009).
  Highlights the automated process used by the University of Michigan for matching students with criteria of endowed scholarships.
• York, Michelle. "What's in a name? Some obscure scholarships often go begging," New York times (Jan. 3, 2006).
  Examines the consequences of endowed scholarships that have criteria that is too restrictive. If students who match the criteria cannot be found, the scholarship funds remain unused. Some schools have gone to court to ease the restrictions.