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http://uabsports.com/news/2017/11/9/gene...ships.aspx

What does this mean for a student-athlete already (thought to be) on athletic scholarship, such as, Smallwood. Does this free up his scholly?

I think it means the scholarship is paid for with donor money rather than money from standard operating funds. IMHO if we could get more of the olympic/non-revenue sports schollys' paid for those programs would not be a drain on the departments bottom line

You have to understand, Scholarship does not have to mean full ride with tuition books and housing paid for. The endowed scholarships could be for $500, or $1000, or whatever. So this money is in addition to their athletic scholarships, not a replacement for.

I'm pretty sure D1 men's and women's basketball, softball, and P5/G5 football scholarships are full-rides, including books and housing. Most others are partial. I guess the question is, then, does this "repay" the athletic department for some of said athlete's benefits?

These awards serve several purposes:

1. They are an honor to receive because someone has set them up to "honor" an athlete that deserves it.

2. If the athlete is not on a full ride, one of these helps that athlete offset his/her costs. The scholarship counts toward the NCAA allowable scholarship total for that sport. I'm sure the head coach has a huge hand in who receives this amount since it affects the amount available for others.

3. If the athlete is on a full ride, then for him/her, it is just an honor. But for the athletic department, it saves that amount of money from the annual fund. In a way, you could say that all these scholarships are donations to the annual fund because no matter who they are given to, the annual fund benefits.

For Football & Basketball, I don't think they mean anything because all schools still have the usual limits. 13 for basketball.
Of course, nobody ever accused $tansbury of playing by the rules.
He was supposed to have 15-16 scholarship players before he starting losing them by the half dozen.

My understanding is for student-athletes that already get full tuition the scholarship is just a nice recognition, but the financial benefit resides in the annual fund in that that's less money the annual fund has to spend on that student's scholarship.

If the student-athlete doesn't already have a full scholarship, the financial benefit goes to the student-athlete.