Disbursement Management
Kaleidoscope’s full-service disbursement platform makes it easy to distribute and track money awarded to recipients. Leverage Kaleidoscope’s industry-leading technology to make awarding and disbursing payments a seamless and positive experience, while eliminating the administrative burden from your team.
Step 1
Award Acceptance
Kaleidoscope builds an Award Acceptance form that is sent directly to students to gather their information, like student IDs and addresses. We serve as students’ point of contact and are here to answer questions and guide them through the acceptance process.
Step 2
Collection of Funds
We will create a dedicated account for the disbursement of your organization’s funds, which is updated and reconciled daily.
Step 3
Funds Disbursement
Payments can be processed via wire, ACH, check, Stripe and on a virtual Kaleidoscope Pre-Paid Debit Card. Our team verifies all data provided by students on their Award Acceptance forms, and we track and verify the receipt and use of funds.
Step 4
Disbursement Reporting
Kaleidoscope works with entities across the spectrum, and we will work with your unique program needs to ensure all taxable events are recorded and reported accurately.
FAQs
Scholarship displacement is the practice where universities reduce the financial aid packages of students who receive private scholarships, effectively leading to students paying the same amount out of pocket. Kaleidoscope’s disbursement management features allow you to circumvent this problem by allowing you to disburse funds directly to students and ensure that your funds are reaching them.
Funds that are used for expenses for required courses such as tuition, books, etc. are still exempt from tax, while funds that are used for other expenses such as room and board, travel, optional equipment, etc. may be subject to tax. Our disbursement reporting tools will determine which IRS forms should be provided to your awardees.