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 of which is held in perpetuity, invested and from which only the return on investment is used for scholarships. Endowment funds provide a predictable stream of income, providing a base upon which present programs can be built, and making long-range planning possible. This type of fund protects the charity in years when other income may be reduced.
b) Contributing annually – yearly smaller investments
Contributing annually as the name suggests will require the donor to make a contribution per year for the life of the scholarship. This requires smaller investments compared to the endowment and does not include investing the funds.
**Please note, all agreements with UWIDEF attract a management fee which helps offset administrative expenses (including managing the portfolio, preparing annual reports, selection processes and bank charges) and are administered through the Office of Student Financing on campus for transparency.
Once you decide which option is best for you based on preference and available capital we move on to step 2: Developing the Scholarship Criteria.
This is an easy process. The donor indicates their interest and specifies some guidelines for the scholarship 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 scholarship offering which must be signed by all parties involved. Once the funds have been transferred to our management, the scholarship will become available for the following academic year.
Mentorship, internship or work/study components to provide added value can be included as a condition of the award. Students receive valuable exposure through work experience while the organizations receive assistance in completing certain tasks.
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, if a donor provided an un-endowed gift of $250,000 and designated it for an undergraduate scholarship on a yearly basis, at the end of twelve years, the donor would have donated $3,000,000.00.
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 earnings. At the end of a similar twelve-year period, this fund would still be giving annual scholarships and would have grown in value, even without
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 can then select a candidate based on their application or based on an interview session coordinated by the UWIDEF office.