There are two options for setting up a named scholarship:
a) Forming an Endowment Fund
The creation of an endowment requires one large investment. The principal is held in perpetuity, invested and only the return on investment is used for scholarships. Endowment funds provide a predictable stream of income, which allow for a base upon which programs can be built, and this allows for long-range planning.
b) Contributing annually – yearly smaller investments
Contributing, annually as the name suggests, will require the donor to make a contribution every year for the life of the scholarship. Using this method, the donor can make an annual gift to renew the scholarship.
Once you decide which option is best for you, we move on to step 2: Developing the Scholarship Criteria.
This is an easy process. The donor advises UWIDEF of the intended beneficiary and specifies some guidelines, including area of study, tenure, value and other special criteria or terms for the award.
For endowments, UWIDEF will draft an agreement specific to the offering which must be signed by all parties involved.
Mentorship, internship or work/study components to provide added value can be included as a condition of the award.
Today tuition ranges from $260,000 to $3M for undergraduate degrees per year.
Scholarship donors may be interested in providing one sum without additional contributions. For example, a donor may provide a gift of $250,000 and designate it for an undergraduate scholarship on a yearly basis.
Another option is for the donor to provide $3,000,000.00 as a single endowed gift. This money would remain as an investment and an annual scholarship of approximately $150,000 would be given from the fund’s earnings.
In this final step, the donor may choose to be included in the scholarship awarding process. That is choosing a recipient from a shortlisted set of candidates which the Office of Student Financing (OSF) provides to UWIDEF. The donor then selects a candidate based on their application or based on an interview session coordinated by the UWIDEF office.