Collaboration, Communication, and Trust: Keys to Successful Partnerships for Scholarship Stewardship

Partnering with Scholarship Administrators to ensure scholarship funds are properly and successfully stewarded seems obvious, doesn’t it? It just makes sense to develop and maintain clear lines of regular communication—not just when there’s a problem—with these colleagues; after all, they are the ones tasked with distributing donor funds to students. Working in tandem with Scholarship Administrators is essential for fulfilling our obligations to our donors, our students, and the institution as a whole. Let’s take a closer look at why strengthening these partnerships is essential.

Scholarship stewardship is not a single action or department-specific task; it is an ongoing, collaborative process that requires coordination, communication, and shared accountability. When Donor Relations and Scholarship Administration work together intentionally, the result is a stronger scholarship program that maximizes donor impact, supports student success, and upholds the institution’s mission and values.

This collaborative relationship is critical for several reasons, and offers significant benefits to all stakeholders involved in the scholarship process. At its core, effective stewardship demonstrates appreciation for donor generosity, ensures compliance with donor intent and institutional policies, and guarantees deserving students receive the support intended for them. Without a close partnership, even robust scholarship programs can fall short of their potential, leading to unused funds, frustrated donors, and missed opportunities for students.

One of the most fundamental responsibilities shared by Donor Relations and Scholarship Administration is ensuring scholarship funds are actually used each year. While this may seem straightforward, it is often one of the most challenging aspects of scholarship management. Unused or underused funds represent more than a financial inefficiency; they symbolize missed opportunities for students who could have benefited from the support. Scholarship support can reduce the hours a student must work while attending school, or enable them to pursue experiential learning opportunities that enhance their education that would otherwise be out of reach.

From a donor relations perspective, unused scholarship funds pose an equally serious concern. Donors give with the expectation that their contributions will be put to work in support of students and the institution’s mission. When funds sit idle, donors may question whether their gifts are managed responsibly or whether their generosity is truly making an impact. Over time, this perception can erode trust and make future fundraising more difficult. Close collaboration with Scholarship Administrators allows Donor Relations professionals to monitor fund utilization, identify potential issues early, and communicate transparently with donors about how their gifts are used.

Also, it’s important to ensure that scholarship funds awarding is done in strict accordance with donor intent. Scholarships are typically established with specific awarding criteria, often reflecting the needs we articulated to the donor, and that donor has generously agreed to meet those needs. Honoring these criteria is a cornerstone of ethical stewardship. Scholarship Administrators play a critical role in interpreting and applying these criteria during the awarding process. At the same time, Donor Relations professionals help document donor intent, maintain clear records, and fulfill reporting requirements by being transparent with donors about how the fund was used and sharing the impact their gift has had.

When donor intent is respected and clearly reflected in scholarship awards, donors feel confident that their wishes are being honored. This confidence strengthens relationships and increases the likelihood of continued support. Donors who see tangible outcomes aligned with their intentions are more inclined to renew their gifts, increase their giving, or encourage others to contribute to our institutions. Conversely, failure to adhere to donor intent—whether intentional or accidental—can damage relationships, create compliance risks, and harm the institution’s reputation.

When scholarship funds are consistently underutilized or difficult to award, it is essential we understand why. Rather than assigning blame, Donor Relations and Scholarship Administration should work together to diagnose the underlying issues. In many cases, scholarship criteria may be too restrictive, limiting the pool of eligible students. Requirements related to major, class year, geographic origin, GPA thresholds, or extracurricular involvement may have made sense when the scholarship was created, but they may no longer align with current student demographics or academic trends.

For example, a scholarship restricted to a specific major may become challenging to award if enrollment in that program declines. Similarly, scholarships tied to outdated career paths, industries, or populations may struggle to find qualified recipients. In these situations, the issue is not a lack of stewardship effort, but rather a misalignment between the scholarship’s design and today’s institutional realities. Identifying these patterns requires data sharing, regular communication, and mutual trust between departments.

After identifying these challenges, the partnership becomes even more critical. Donor Relations professionals can work with Scholarship Administrators to explore options for addressing the issue while remaining faithful to donor intent. In some cases, existing contingency provisions within the scholarship agreement may allow for flexibility in awarding practices. In others, it may be appropriate to engage donors in thoughtful conversations about updating or broadening eligibility criteria.

Beyond these practical considerations, a strong partnership between Donor Relations and Scholarship Administration fosters a culture of trust and shared purpose. When administrators are engaged as true collaborators rather than viewed as separate or downstream implementers, they become more invested in stewardship outcomes. This sense of shared ownership encourages proactive problem-solving, early identification of risks, and innovative approaches to scholarship management.

Trust enables open dialogue about potential pitfalls, whether they involve data limitations, system constraints, or competing priorities. It allows both teams to acknowledge constraints honestly while working together to find solutions. High-trust partnerships reduce the inefficiencies and frustrations that often arise from siloed operations, unclear responsibilities, or misaligned expectations. Instead of reacting to problems after they escalate, teams can address issues collaboratively and strategically.

Ultimately, Donor Relations and Scholarship Administrators are united by a common goal: supporting students while honoring donors' generosity and intent. Each department brings unique expertise to the table—Donor Relations professionals understand donor motivations and stewardship expectations, while Scholarship Administrators possess deep knowledge of student needs, awarding processes, and compliance requirements. When these perspectives are integrated, the institution is better positioned to deliver meaningful outcomes for all stakeholders.

By prioritizing partnership, institutions can ensure scholarship funds are used effectively, donor trust is strengthened, and their students receive the support they need to succeed. Stewardship success is not the responsibility of a single office; it is the product of sustained collaboration, shared accountability, and a collective commitment to excellence.

How are you working with Scholarship Administrators on your campuses? How have you strengthened these meaningful partnerships? We’d love to hear from you! Your experience might be the “a-ha” moment someone in our industry needs!

Written by Jan McGuire