The Scholarship Foundation of St. Louis is a federally qualified independent nonprofit organization under Section 501(c)(3) of the Internal Revenue Code. The Foundation adheres to principles of operational transparency, and its financial records are open to the public. Internet links below provide direct access to The Scholarship Foundation’s Form 990 federal nonprofit tax statements and to annual reviews of its financial statements by independent accountants.
The Scholarship Foundation is registered with the Secretary of State of Missouri, participates in the charity information service coordinated by the Missouri Attorney General, and meets 19 of 20 accountability standards set by the charity information service of the Better Business Bureau of the St. Louis region. Addressing the BBB standard for outside auditing would be prohibitively expensive for The Scholarship Foundation. Instead, it submits all financial statements to an external CPA firm for review, and the written reviews are available for public inspection.
Three principal sources provide funding for The Scholarship Foundation’s financial aid programs and its student advising and counseling services: loan repayments by previous recipients of Foundation interest-free educational loans, financial contributions from the public, and revenue generated by sales at the Foundation’s ScholarShop upscale-resale retail locations.
The Foundation maintains strict cost controls in all phases of its operations, with fiduciary oversight provided by a 30-person volunteer board of directors. In 2012, 89 cents of every dollar taken in went to programs benefiting students.
- 97 percent of Scholarship Foundation interest-free loan funds are repaid without default. The national student loan default rate is three times higher.
- 88 percent of Scholarship Foundation students complete their postsecondary studies and receive degrees, a rate almost twice the national average.
- 20 percent of Scholarship Foundation donors are former students who received the organization’s interest-free loans for postsecondary education -- a testament to the Foundation’s strength, sustainability, goals, and accomplishments.