After enjoying a rewarding career as a physician, you may feel inspired to give back to the next generation of medical students. One meaningful way to do this is to create a scholarship fund that helps break down financial barriers for those pursuing careers in healthcare. Whether you want to support future students at your alma mater or honour a loved one through a named scholarship, the impact of your contribution can be profound.
Setting up a scholarship involves several key decisions. You’ll need to determine specific eligibility criteria, choose how the fund will be administered and decide on the structure — whether the scholarship will be a long-term commitment or a one-time award. By carefully considering these factors, you can establish a scholarship that reflects your values and makes a lasting difference.
Deciding on scholarship criteria
One of the first steps is deciding on the criteria for eligibility. For example, some scholarships are based on academic merit while others focus on financial need.
Merit, financial need or demographics
If your goal is to support students who excel in their studies, a merit-based scholarship based on academic achievement might be the best choice.
However, financial need is another consideration. This can really make a difference for students who struggle with the cost of medical school. Financing your medical school education is often a challenge, and a well-designed scholarship can help reduce this burden for many aspiring doctors.
You can also choose to target specific demographics, such as:
- students from groups that are under-represented in medicine, including Indigenous, Black or other marginalized communities
- first-generation medical students
- students from rural areas, where access to medical education is often more limited
Taking these considerations into account will allow you to tailor the scholarship to meet the needs of particular groups while ensuring that your contribution aligns with your values and priorities.
Eligibility: alma mater vs. broader reach
Some physicians prefer to give back directly to the institution that helped shape their own career. Others may choose to offer the scholarship to any medical student across Canada, to broaden the impact.
Whichever option you choose, ensure the criteria will attract and benefit the applicants you want to help. For instance, if you’re motivated to support students from rural areas because you practised in a rural community, your scholarship should be explicitly designed to reach those students.
Choosing who will administer the fund
Once you’ve defined scholarship criteria, the next step is deciding who will manage the fund. Several options are available, depending on the level of involvement and control you’d like to have.
University or college
Many physicians work directly with their alma mater or a Canadian medical school to establish a scholarship. These institutions already have administrative structures to handle scholarship funds and the credibility to attract qualified applicants, and can guide you through the process, helping you design the scholarship and manage the distribution of funds.
By collaborating with an educational institution, you can be confident that the scholarship will be efficiently managed, allowing you to focus on its purpose without worrying about the administrative details.
Provincial medical foundations
Check with your provincial medical society and their affiliates, such as the New Brunswick Medical Education Foundation, as they often have experience managing scholarships for medical students. The Canadian Federation of Medical Students is another organization that could help ensure your scholarship reaches the right candidates.
A medical association can assist in both the administration of the fund and the selection of recipients. Working with them allows you to support students while leveraging the organization’s expertise in selecting future healthcare professionals who best align with your criteria.
Personal charitable foundation
If you prefer complete control over the scholarship, consider establishing your own charitable foundation. This option offers the most autonomy, allowing you to directly manage the funds, determine the recipients and participate in the selection process. An example of a foundation that supports individuals in setting up charitable donations is Aqueduct, a personal charitable foundation offered by Scotia Wealth Management.
Setting up a foundation gives you more flexibility for planned charitable giving, but also requires a greater level of administrative effort. You’ll need to ensure compliance with all financial and legal regulations, which can complicate the process.
Deciding on scholarship structure
The structure of your scholarship will determine how long it lasts and how it impacts students over time. Two common structures include perpetual scholarships and one-time donations.
Perpetual scholarships
A perpetual scholarship is designed to last indefinitely. You provide a significant lump sum, and the interest, dividends or investment gains are used to fund the scholarship each year. The principal remains untouched, allowing the scholarship to continue supporting students for generations.
Benefit: A perpetual scholarship builds a lasting legacy. It ensures your contribution will continue helping students year after year, creating ongoing funding opportunities for future medical professionals.
One-and-done scholarships
If you prefer immediate impact, a one-and-done scholarship involves a one-time donation to fund a specific group of students (or a single student) for a set period. For example, you might fund a student’s tuition for four years or offer a scholarship for one academic year.
Benefit: This approach allows you to see the immediate results of your donation without having to manage a long-term fund. It also provides flexibility if you’re not interested in continuing the scholarship, or if the amount you wish to give is more modest.
Reviewing legal and regulatory requirements
Establishing a scholarship requires a solid understanding of the legal and regulatory framework to ensure compliance with anti-discrimination laws and other relevant policies.
Setting up a scholarship fund can also involve complex financial and legal decisions. Consulting with a lawyer or financial planner can help you navigate regulations and ensure the scholarship is legally sound. For example, a lawyer can assist you in drafting the terms of the scholarship, while a financial planner can advise on how to structure and invest the funds.
Finally, it’s crucial to ensure that your fund complies with both provincial and federal requirements.
Conclusion
Setting up a scholarship fund allows Canadian physicians to make a lasting, meaningful contribution to the next generation of healthcare professionals. Whether you choose to honour your alma mater, support students from underserved communities or create opportunities for those who face financial challenges, your scholarship will make a real difference.
Establishing a scholarship involves careful planning — defining criteria, choosing how the fund will be administered and ensuring legal compliance. However, the effort you invest in creating a scholarship will leave a legacy that supports medical education and healthcare in Canada for years to come.
If you’re ready to take the next step, contact Mark Kennedy, Financial Consultant, MD Management Limited, at mark.kennedy@md.ca and start making a lasting impact on the future of healthcare in Canada.
MD Financial Management and Scotiabank are proud to support a medical education scholarship through The New Brunswick Medical Education Foundation.
MD Financial Management provides financial products and services, the MD Family of Funds and investment counselling services through the MD Group of Companies and Scotia Wealth Insurance Services Inc. For a detailed list of the MD Group of Companies visit md.ca and visit scotiawealthmanagement.com for more information on Scotia Wealth Insurance Services Inc.
The above information should not be construed as offering specific financial, investment, foreign or domestic taxation, legal, accounting or similar professional advice, nor is it intended to replace the advice of independent tax, accounting or legal professionals.
