3 Easy
Steps to Establishing a Scholarship
Establishing a
scholarship fund is easier than you might think. Our
knowledgeable staff will meet with you, discuss your goals for
the fund and help you navigate the three steps found below.
Step 1: Determine How You Will
Establish the
Scholarship Fund
The first step is to determine whether you would like to
establish an "endowed" scholarship from the outset or
if you prefer to "build to endowment" over a three-year period.
Endowed Scholarship
Endowed scholarship funds are designed to be permanent and
perpetual and can be created with gifts totaling a minimum
amount of $15,000. Funds are contributed in full at the
outset. The principal of the fund is invested to produce
income, and an annual award is made to a student(s). The
principal remains untouched, so the endowment can last into
perpetuity.
Note:
There is currently a 4.5% spending policy, so a fund with a
balance of $15,000 would yield at least a $500 scholarship...a fund
with a balance of $25,000 would yield at least a $1,000 scholarship
-or- two $500 scholarships. The principle will remain intact
and earnings above the 4.5% are applied to the principle.
Subsequent gifts to the scholarship are also applied to the
principle. As the principle grows, so may the amount and/or
number of awards.
Building to Endowment - Seed Fund
A second option
allows you to build the scholarship to the $15,000 endowment
level over a period of three years.
A $1,000
minimum gift is required to establish a
Seed Fund. A
funding plan must also be submitted at the time the Seed
Fund is established that includes a detailed, reasonable
approach to raising the required fund minimum by a specific
date that is no more than three years from the date the fund
is established. Distributions will not be made from the
fund until the fund minimum is reached.
Step 2: Establish Scholarship Criteria
As a
scholarship donor, you choose the name of the scholarship as
well as the criteria. Scholarships may be awarded to deserving students based
upon area of interest, school, geographical origin, leadership
potential, merit, financial need, academic achievement and/or
other criteria of your choosing.
CLICK HERE to view list of
Existing Scholarships (click on different scholarship funds to
see samples of various criteria).
Step 3:
Administration of Scholarship Funds
Applications for Community Foundation scholarships are made available
February 1st of each year and are due to our office by April
1st. You (or your designees) may serve on
the selection committee provided that certain criteria are met.
You (or your designee) are notified annually when the
scholarship recipient(s) has been selected and are informed of
the name and hometown of the recipient, as well as the amount of
the award. Recipients often write a thank-you note to the donor,
and in some cases, the recipient and donor are able to meet.
