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 Type of
Scholarship Fund
The first step is to determine whether you would like to
establish an "endowed" scholarship or an "annual" scholarship:
Endowed Scholarship
Endowed scholarship funds are designed to be permanent and
perpetual and can be created with gifts totaling a minimum
amount of $12,000. Funds are contributed in full at the
outset or with an initial commitment that is added to over
time until the minimum endowment level of $12,000 is
attained. 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 $12,000 would yield one $500 scholarship...a fund
with a balance of $25,000 would yield one $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.
Annual Scholarship
Annual scholarships can be established with yearly gifts
that are awarded directly to the scholarship recipient.
Unlike an endowed scholarship described above, an annual
scholarship is not a permanent fund and is awarded only as
long you (or others) choose to contribute to the fund.
Annual
Scholarship - Building to Endowment
A third option
allows you to award the scholarship prior to it being
fully-funded to endowment. With sufficient funds, annual
scholarship awards are made from the principal while you
continue to contribute to the fund with the intent to
fully-fund it as a permanent endowment.
Step 2: Establish Scholarship Criteria
As a
scholarship donor, you choose the name of the scholarship as
well as the criteria. Our staff will be happy to help you create
the criteria for your scholarship. Endowed and annual
scholarships at TCF 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 TCF scholarships are made available
February 1st of each year and are due to our office by April
1st. Typically, your selection committee will meet and carefully
review the scholarship applications submitted by students and
select the most deserving recipient(s) based on the
donor-established criteria. 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.
