4 Essential Steps to Grow Higher Ed Scholarship Programs—and Improve Student Retention

Expanding access to higher education is a top priority for colleges and universities—and donor-funded scholarships are one of the most direct ways to make that possible. Supported by alumni, families, and community partners, these programs give institutions the ability to open doors for students who might not otherwise enroll.

But access is only the beginning. Scholarships awarded by institutions also help students stay enrolled. Research shows that institutional aid programs can improve retention, with scholarship-supported students more likely to continue their education.

Students who receive scholarship support often see meaningful long-term benefits, including:

• Stronger academic performance
• Higher achievement rates
• Greater year-to-year persistence
• Improved likelihood of graduating

Institutions are already seeing this impact in practice. A recent University of Wisconsin–Madison study of their flagship aid program found that it not only expanded access and enrollment but also led to higher second-year retention rates among participants compared to similar students.

That matters because early persistence is one of the clearest indicators of long-term success. According to the National Center for Education Statistics, students who return after their first year are far more likely to complete their degrees, making retention a critical milestone on the path to graduation. 

For advancement and scholarship teams, the takeaway is clear: growing donor-funded scholarship programs doesn’t just expand access—it helps more students stay enrolled, persist, and ultimately graduate.

Step 1: Build Relationships with Students & Alumni 

Scholarship fundraising has a major advantage over most other advancement efforts: a built-in community of people who have personally experienced the impact of your institution’s mission. Alumni who received awards while they were enrolled don’t just understand what scholarships are—they know firsthand how that support can change what’s possible for students.

That connection is powerful—but it doesn’t automatically translate into long-term support. To grow donor-funded scholarship programs, institutions need to engage students early, helping them understand not only the value of their scholarship, but the role of donors in making it possible. When students see themselves as part of that story, they’re more likely to become advocates, ambassadors, and future supporters themselves.

Engagement doesn’t require entirely new programs—it can be embedded into moments that already matter, like networking opportunities, campus events, and student milestones. The goal is to help students connect their experience to a broader narrative of generosity and opportunity.

Over time, this approach strengthens both donor relationships and the pipeline of future supporters. Engaging individuals early in their journey leads to stronger, more sustained relationships.

Step 2: Actively Fundraise for Scholarships

Fundraising for scholarships is most effective when campaigns emphasize both the impact of awards on students and the role donors play in making them possible. When messaging clearly connects giving to real outcomes, it becomes easier to inspire donors—and especially alumni—to support scholarship programs.

Effective engagement requires making that connection tangible. Highlighting the difference scholarships make, sharing real student stories, and creating opportunities to give through targeted appeals, campaigns, or events reinforces the value of continued support. Just as importantly, the giving experience itself should be simple and accessible, removing friction and making it easy for donors to contribute at any level. Institutions like Morehead State University have seen how customizable, user-friendly donation forms can support these efforts.

Students play an equally important role in strengthening fundraising. When institutions create opportunities for students to participate and share their experiences, they bring the impact of giving to life in a way that resonates deeply with donors. Teams can build this into existing engagement efforts by:

• Involving students in stewardship via impact videos, thank-you notes, and alumni success stories
• Hosting scholarship recipient networking events to build community, connect donors and students, and showcase real outcomes
• Highlighting donor impact during campus events and key student moments
• Introducing student fundraising challenges—capitalize on campus rivalries between different graduating classes, programs, Greek life organizations, sports teams, and other student groups

Embedding these efforts into the student experience rather than treating as standalone initiatives makes them more authentic and sustainable over time.

Connecting donor support with student outcomes furthers these efforts by making it easier to share meaningful updates and demonstrate impact. Wake Tech Foundation offers a great example of how connecting scholarship and fundraising efforts can create a clearer view of impact and improve donor engagement. When donors see the direct impact of the gifts they’ve made, they are more inclined to continue giving, if not increase their gift size.

Step 3: Celebrate & Steward Your Donors

When you do receive gifts for your scholarship program, it’s important to recognize and celebrate your donors. Acknowledging their contributions at events and across channels such as social media, email newsletters, and annual reports not only shows appreciation—it also reinforces the impact of their support and nurtures a culture of generosity within your community.

One of the most effective ways to steward donors is to demonstrate the difference they make in students’ lives. Connect your donors to their scholarship recipients by sharing thank-you messages, updates, and milestones that link to real outcomes and bring their generosity to life. Solutions like Blackbaud Award Management help streamline this process, making it easier for students, scholarship administrators, and advancement teams to communicate and keep donors meaningfully engaged.

Consistent stewardship also creates opportunities to deepen relationships. Students who engage with donors are more likely to become donors themselves. When donors feel connected to the students they support and see the results of their giving, they are more likely to continue contributing—and, in many cases, increase their level of support.

Step 4: Build Momentum Over Time

Growing a successful scholarship program doesn’t happen overnight. It takes time to build relationships, engage donors and students, and create the kind of sustained support that drives meaningful impact.

That’s part of the process. As you continue to connect donors with student outcomes, highlight impact, and strengthen stewardship, you start to build momentum—one gift, one story, and one relationship at a time.

Those efforts add up. What begins as individual contributions can grow into a strong, sustainable program that expands access, supports student retention, and deepens engagement across your entire community. Most importantly, it can change the trajectory of students’ lives.