What is the difference between a Fund 520 and a Fund 525 account? Which one should I set up?

Reviewing the donor intent and what kind of expenditures are allowed will help decide which fund to use:

520 – Used when expenditures are not restricted to just scholarships. A 520 can accommodate for scholarships with a function 80.
525 – Used when donor intent states the gift is to be used for scholarship only.