At FundMiner, we believe that data-driven stewardship can unlock transformative impact.
By Aimee Furrie, Customer Success Lead at FundMiner
Scholarships in higher education. These problem-solving, life-changing, world-improving dollars are made possible through generous philanthropists that believe in building bridges where systems have left gaps.
There is an invisible journey for these funds, as the path between donor intent and student impact is layered, nuanced, and rarely seen outside institutional walls. While this repeatable process may appear to run like clockwork, behind every scholarship is a complex system of matching, ethical decision-making, and stewardship, that determines whether philanthropic dollars truly expand access or inadvertently reinforce these systemic gaps.
As institutions serve increasingly diverse student populations, and as donor demographics and expectations continue to evolve, fund stewardship isn’t just a back-office function; it’s a strategic lever that has the power to transform an advancement operation.
The Invisible Force: How Fund Management Can Make or Break Donor Trust
The Matching Process: Behind the Scenes
At some institutions, like UW–Madison, students don’t apply for donor-funded scholarships directly. Instead, financial aid officers use FAFSA data to match students to available funds based on donor criteria. This process is designed to be equitable and efficient.
“The students don’t apply for our scholarship; they are awarded automatically... It’s almost like a matching process behind the scenes.”
— Ms. S., Senior Director of Development
This behind-the-scenes work removes barriers for students who may not have the resources or familiarity with higher education financial systems to navigate complex applications. It also allows institutions to honor donor intent while maintaining fairness in distribution. It’s a clear example of equity in action, and a reminder that good stewardship starts with thoughtful systems.
For donor relations professionals, understanding the intricacies of the unique student scholarship experience within their specific institution allows for stronger collaboration and more streamlined stewardship practices as the advancement office seeks to close the loop in providing stories of impact back to generous donors.
Balancing Donor Intent with Equity
One of the most nuanced challenges in fund stewardship is reconciling donor preferences with institutional priorities. Donors often want to support students who reflect their own backgrounds, specifically focusing on geographic, academic, or socioeconomic similarities. While well-intentioned, this can create a narrow lens through which scholarships are awarded.
“Donors typically want to look for replicants of ourselves... sometimes what they’re hoping to do creates an inequitable status quo.”
— Ms. K., Associate Director of Financial Aid
This tension is echoed in broader research, with findings that donors increasingly prefer restricted funds. While these funds provide great opportunities to support students, they can complicate equitable distribution. This presents a unique opportunity for stewardship professionals, who act as translators and educators, guiding donors toward inclusive giving that aligns with institutional goals.
Donor preferences come from what they know. Through storytelling, stewardship offices can broaden this knowledge, offering new perspectives and opportunities for generous individuals and families to grow their impact.
Stewardship with Student Dignity
Another critical component of stewardship is respecting student autonomy and honoring their stories. At UW–Madison, students are asked whether they’re comfortable having their information shared with donors. If they decline, they still receive their full aid package, simply without the donor engagement.
This practice reflects a growing awareness that philanthropy should empower, not obligate. It also underscores the importance of thoughtful stewardship policies that prioritize student dignity alongside donor recognition. This is where stewardship professionals can really shine, as navigating these priorities requires a great deal of intention, thoughtfulness, and creativity.
Stewardship as Strategy
Fund stewardship isn’t just about compliance -- it’s a strategic lever for equity. By refining matching processes, educating donors, and respecting student boundaries, institutions can ensure that philanthropic dollars truly move their missions forward and serve their students well.
As the student population continues to evolve, so must our stewardship strategies. The future of fundraising lies not just in raising more, but in raising better.
Footnotes:
- Interview with Ms. S., Senior Director of Development, UW–Madison. November 1, 2021.
- Interview with Ms. K., Associate Director of Financial Aid, UW–Madison. November 22, 2021.
- Shaker, G. G., & Borden, V. M. H. (2020). Analyzing three decades of philanthropic giving to U.S. higher education (1988–2018). Philanthropy & Education, 4(1), 1–42. https://doi.org/10.2979/phileduc.4.1.01
- Meyer, H.-D., & Zhou, K. (2017). Autonomy or oligarchy? The changing effects of university endowments in winner-take-all markets. Higher Education, 73(6), 833–851. http://www.jstor.org/stable/26448729
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