When foundations and nonprofits provide funding to individuals and organizations, it is not uncommon for them to be supporting both at the same time, which means that they are managing multiple types of funding programs with very different processes and systems. Scholarship programs are generally focused on the individual, are time-sensitive, and are often selection-based, while grants are generally organization-centric, compliance-centric, and budget-centric, with deliverables and reporting tied to the grant itself. When both programs are represented within the same organization, it is critical to understand that the software you choose will have a direct impact on the efficiencies, fairness, and accuracy of the processes.
This guide will walk you through the following information: What is scholarship management software, how is it used by foundations and nonprofits, how does it compare to grant management software, the potential for the two to be used in unison, the most critical aspects of scholarship management, and finally, the structure and transparency that Fluxx offers to the grant management side of the house.
What Scholarship Management Software Is
Scholarship management software is generally used to run the entire scholarship program, from the application of the applicant to the review, selection, and even the tracking of the award itself, in terms of whether it has been disbursed or not.
Scholarship management software is generally used to manage large numbers of applicants, to ensure that applicants are eligible to apply, to collect the necessary information that is needed to make the selection, such as transcripts and letters of recommendation, and to ensure that the selection is fair through the use of rubrics.
Because scholarships are often time-sensitive, tied to the academic calendar, and are highly applicant-centric, the software is generally designed to track deadlines, permissions, and even communications to the applicant.
How Foundations and Nonprofits Use It
The foundations and nonprofits use scholarship management software when they fund individuals, especially students, trainees, or members of communities, who want to acquire some form of education, training, or professional development.
- A community foundation can have many named scholarship funds with different eligibility criteria, selection committees, and award sizes.
- A nonprofit organization can offer scholarships with a specific mission, like serving first-generation students, workforce upskilling, or equity-focused education.
- The process can involve coordination among staff, volunteers, and donors, and even external reviewers.
- Scholarship management software can ensure the process is consistent and predictable, even with many stakeholders and over time.
Comparing It To Grant Management Software
The process and activities involved with scholarship management and grant management software can be similar, like the receipt, review, approval, and tracking of awards.
The only difference lies in the purpose for which the program is designed.
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Category
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Scholarship Management Software
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Grant Management Software
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Primary purpose
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Run scholarship programs, including application, selection, and award administration.
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Manage grants, including receipt, review, approval, payment, and closeout.
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Typical recipients
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Individuals, especially students or trainees.
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Organizations, like nonprofits, universities, or public sector agencies, and individuals.
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Core workflow focus
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Eligibility, application, reviewer scoring, recipient communication.
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Compliance, budget, deliverables, reporting, audit history.
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Common data collected
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Transcripts, essays, letters of recommendation, enrollment verification, demographics.
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Organizational documents, budgets, grants, milestones, performance metrics, financial documentation.
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Review process
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High volume, committee-based scoring, and reviewer rubrics.
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Programmatic and financial review, due diligence, and approvals based on governance.
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Reporting needs
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Application volume, selection results, demographics, and award distributions.
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Outcome reporting, budget vs. actuals, compliance, and audit history.
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Risk and compliance profile
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Sensitive personal data, calendar-based deadlines, consistent selection governance
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Restricted funding rules, reporting, payment, and documentation, as well as audit trails
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While scholarship management software is built to handle applications, applicant volume, and funding rules, as well as communication and notification, grant management software is built to handle institutional funding, funding rules, and reporting, as well as budgeting and payment schedules, and more.
How It Works With Grant Management Software
Many foundations have both scholarship and grants programs, and the most effective and efficient organizations will have a strategy that integrates both, rather than thinking of them as separate entities. Scholarship management software will handle all aspects of a scholarship program, and grant management software will handle all aspects of a funding infrastructure, such as governance, budgeting, and reporting, as well as a number of other functions.
A good example is a foundation that has a scholarship management software to handle all aspects of a scholarship program, and a grant management software to handle all aspects of a grants program, such as restrictions, reporting, and more, to ensure that a scholarship award is aligned to a grant award and all restrictions and rules that are set by a board of directors or a finance department.
Scholarship Management Software Features To Look Out For
When shopping for scholarship management software, there are a number of features to look out for, and they include:
- Eligibility and rules configuration: This is a feature that will allow a user to set up a number of rules, such as GPA, geographic location, school enrollment, demographic, and program, and filter applications according to a number of criteria.
- Applicant portal and document collection: This is a feature that will include a clean and simple interface for an applicant to upload a number of documents, such as transcripts, essays, recommendations, financial information, and identification, as well as more.
- Workflow and deadline controls: Configurable stages for intake, review, committee scoring, approvals, and award acceptance, all with deadlines and reminders.
- Review committees and scoring rubrics: Structured review tools that clearly communicate reviewer expectations and aggregate reviewer scores for transparent decision-making.
- Communication and notifications: Integrated messaging for sending confirmations, reminders, award notifications, and decline notifications.
- Reporting and analytics: Application volume, demographic information, reviewer activity, award counts, and year-over-year trend reporting.
- Security and permissions: Role-based access for staff and reviewers, as well as the ability to manage sensitive applicant information.
- Disbursement and recipient tracking: Ability to track award acceptance, disbursement, and renewal for multi-year scholarship programs.
How Fluxx Helps
Fluxx was built to bring much-needed order, consistency, and accountability to the complex funding process, but particularly to the grant management process, as these rules and regulations are non-negotiable. For foundations that manage both scholarship and grant programs, Fluxx supports the institutional funding process in a way that is both auditable and scalable, allowing for the standardization of the funding process from intake to review, approval, disbursement, and reporting for both programs.
Fluxx helps foundations streamline grant management by centralizing grant information, ensuring role-based permissions, and tracking requirements and deadlines. It also provides real-time visibility into the pipeline, approved grants, and grants that have been paid, as well as grants that are due next. As such, when scholarship programs and grant programs exist, the same level of discipline and process, including the ability to standardize the funding process, is what makes reporting to leadership and governance structures stronger.
Bringing Both Programs Into One Funding Strategy
Scholarship programs and grant programs have different recipients and different mechanics for their operations, but they have the same mission objective: converting funds into measurable impacts. Scholarship software helps foundations and nonprofits deliver fair, efficient, and well-organized scholarship programs. Grant software helps institutions track their grant operations, ensuring compliance and outcomes over time.
If you’re managing scholarships and grants, the best approach is to view these two funding types as part of a single, integrated system.
If you’re ready to take your grant operations to the next level with more structure, more visibility, and better outcomes, schedule a demo of Fluxx.
