A gala dinner took place in Queenstown on Wednesday night at which more than $30,000 was raised.
Good Group chief executive Russell Gray, one of the proponents of the scheme, said coupled with funds already secured, about $50,000 had been raised, enough to cover the costs for the first year and some for the second year.
The scholarships will be for six players from the Southern Lakes for two years. Recipients will get $5000 a year for two years to go towards university study, or studying for a trade, and accommodation costs, travel and coaching.
Gray said the support from the Queenstown community was great.
"It showed that plenty of people still care a lot about Otago rugby and want to get in behind Otago rugby from the ground up."
The responsibility of awarding the scholarships would go to Otago coach Phil Mooney and Otago player development manager Tim Colling.
A sub-committee set up in Queenstown, made up of Kelvin Collins, Simon Spark and Rob Fiske, would also help advise on players.
Gray, a former Otago Rugby Football Union chief executive, said the scheme would hopefully help out young, talented players in the area and aid Otago rugby in the future.
ORFU chairman Wayne Graham said he was very pleased with the fundraising.
The days of Otago just sitting back and waiting for players to come were well and truly over, he said.
Players at school were being targeted by other unions.
"You've got to get out there and be proactive. You can't sit back and do nothing or they [players] will be away," he said.
