A church would like to award a scholarship to a young person attending a Christian College. Should the check be made payable to the student or the institution?
The check should be made payable to the institution. We recommend that additional information be communicated to the institution including the name of the student and a note related to the scholarship with wording such as:
Here's the problem:
A check made out to the student could be viewed as compensation for services rendered by the student to the church. It also has the potential for abuse in the management of charitable donations.