A scholarship fund is a way to give back to the community. It provides an opportunity for students who might not have the financial means to attend college. It also helps the donor get tax benefits and feel good about giving back to those in need.

However, there are some cons of creating a scholarship fund as well. The donor has to be careful that they are not taking away opportunities from other people by providing scholarships for only their family members or friends.

They also have to make sure that the fund is not used for anything other than scholarships. An individual or company may be able to turn a scholarship fund into their own personal bank account, which is not fair to the other people who are trying to use the scholarship money for tuition.

There is also the risk of fraud where someone might take advantage of the system and create false information on their application that will make them eligible for a scholarship when they are not eligible at all ..