An endowed scholarship is one where a donor makes a gift that is invested in the university’s endowment pool. Each year, a portion of the earnings is used to fund the award to a student or students. The current spending rule for endowment funds is that 4% of the value of the endowment is spent on the award annually. Endowed scholarships are named by the donor. They can be named for the donor, or for a different individual or individuals specified by the donor.
Each endowed scholarship has a gift agreement that is signed by the donor and the university that lays out the terms of the gift. The minimum gift required to establish an endowment is $25,000. With the current spending rule, an endowment of that size that has been invested for a complete year will generate an annual award of about $1,000 depending on market fluctuations.
Steps to creating an endowed scholarship:
- Make the commitment to support USU-Brigham City students.
- Determine the following:
- Scholarship amount
for receiving the scholarship
- Provide a brief description on why the scholarship was created.
For your scholarship, USU will:
- Promote the award, gather and review applications, conduct interviews, and award the scholarship
- Provide a charitable tax receipt
- Receive an annual financial report of the performance of your endowment.
- Supply a report of students receiving the scholarship
- Have the student(s) receiving the scholarship write a thank-you letter
- Arrange a photo opportunity for recipient and donor as requested
For more information about creating a scholarship to help make local students’ college dreams a reality contact:
Dr. Thomas Lee
USU Brigham City