Scholarships

Demand scholarship

• $5,000 minimum to establish fund
• 100% of the balance is available for spending
• Established for gifts designated for current scholarship support that should be invested in the short-term, low-risk pool

Demand scholarship example

A couple—both graduates of the U of M—is interested in creating a scholarship for students from their hometown. They create a scholarship for students from the county where their hometown is located, with a preference for students from their former high school.

They make an outright gift of $40,000 to provide two students a scholarship for each of their four years at the University. The fund will close when the two students graduate, unless additional contributions are made to increase funding and/or support additional students.

Endowed scholarship

• Established for gifts intended to exist into perpetuity
• $50,000 minimum to establish fund (funds are pooled for investment purposes)
• Investment earnings and spending allocations are performed on a monthly basis; investment return in excess of the spending policy is reinvested to the fund principal
• Scholarship awards are made through allocating 4.5% of the five-year trailing average of the fund principal

Endowed scholarship example

Influenced by her experience as a scholarship recipient, a local nonprofit leader wants to give back to current U of M students. Her scholarship allowed her to take advantage of the many extracurricular activities the University offers, so this donor makes a commitment of $250,000 to support students who have a commitment to volunteerism and serving the community. The scholarship will support four students per year with $2,500 scholarships each year. The students will receive the scholarships for each of their four years at the U.

Quasi-endowed scholarship

• Treated like endowments for investment purposes, but can have a greater impact through a larger threshold available to be awarded (up to 20% of the total balance)
• $25,000 minimum to establish fund

Quasi-endowed scholarship

An alumnus of the University who moved away after graduating has recently retired and is interested in supporting students. Wanting to make a greater impact now—but still provide support over the long term—this donor establishes a quasi-endowed scholarship because of his interest in providing a larger scholarship award over a longer term. His initial gift of $150,000 is supported with additional annual gifts of $15,000. His scholarship awards four separate $5,000 scholarships each year.