What is an Endowed Scholarship?
If you would like to create a fund that will provide scholarships to students for years, an endowed scholarship can be a great option. An endowed scholarship requires you to donate a larger amount of money up front. If this is something you’re able to do, your money will help a greater number of students.
- Money is provided to award the scholarship annually forever or until revoked
- Endowment amount is determined using a [4%*] capitalization rate (e.g. a $1,000 annual scholarship would require a $25,000 endowment). The investment earnings fund the scholarship.
Temporarily Endowed Scholarships
- Endowments can be established in two ways:
- Donor determines the amount of the scholarship to endow and the amount of the endowment. DSF will award the endowed scholarship until the funds, and earnings thereon, are depleted applying a [4%*] earnings rate.
- Donor makes an endowment contribution to fund the award for a set number of years.
- Contribution is made to award a scholarship for one year and may or may not renew each year
For all scholarship types:
- Scholarship may or may not have specific criteria attached (e.g. student is involved in music, student plans to study education, student is a female athlete)
- The minimum amount of an annual scholarship award is $500.
*Rate is approved by the DSF Board.