Merit scholarships are typically awarded on the basis of academic, athletic or artistic merit, in addition to special interests. Some merit scholarships also consider financial need, but rewarding talent is the primary objective.In most cases the scholarship sponsor has a set of criteria they use to select the winners from among the qualified applicants. Sponsors can have a variety of goals in offering a scholarship.ome merit scholarships also consider financial need, but rewarding talent is the primary objective. In most cases the scholarship sponsor has a set of criteria they use to select the winners from among the qualified applicants. Sponsors can have a variety of goals in offering a scholarship.