Corporate foundations often wish to award scholarships to further their charitable missions and to help brand their parent companies. This ability is one of the unique advantages of a private foundation over other charitable vehicles.
Companies may also use their corporate foundations to award scholarships to their own employees and their employees’ children. However, these “employer-related scholarship programs” are strictly regulated to prevent abuse, and it is more difficult to obtain IRS approval.
This white paper provides an overview of the standards that a corporate foundation must follow when implementing an employer-related scholarship program.