P.S. Why should she be expected to cover the bank fee, when the only reason (as far as is known) that the check bounced is that the club's treasurer waited 4 months before depositing the check and didn't check with the parent who wrote it before doing that? And if the club's treasurer accepted the check, and didn't return it promptly on account of its having been submitted after the deadline, the parent (and student) were reasonably assuming all this time that the slightly late payment had been accepted.
Sounds to me like there's enough adult blame to go around here, that an otherwise deserving student shouldn't lose the scholarship just because neither her parents nor the scholarship-giving club could get themselves organized. Give the kid the scholarship and then resolve to get the booster club's administrative matters better organized next year, so you'll be in a position to point the finger at parents who can't get organized enough to follow simple instructions. As it stands now, the booster club is not "above reproach" in this matter.
4000 students at this school and eight (8) parents volunteer.
Our daughter graduates from this school next year so the spot is open for you to take over.