Endowed scholarships are important for the future of the College of Science and Engineering and its students, as they provide permanent, ongoing support through income earned on the endowed funds.
- Endowed scholarships, which are established with gifts of $25,000 and above, begin to generate scholarship funding once the full level of the endowment is realized.
- The College of Science and Engineering endowment is professionally managed and invested for growth through the University of Minnesota Foundation. The college’s endowment spending policy preserves and increases the value of the endowment, and a portion of the interest earned on the principal, currently 4.5%, is used to fund the scholarship. By protecting the principal investment, the endowment provides scholarship support in perpetuity, which over time, will increase as the value of the principal increases.
A gift of… provides a permanent annual scholarship of…
$250,000 $11,250 – one full-tuition scholarship
$500,000 $22,500 – two full-tuition scholarships
$750,000 $33,750 – three full-tuition scholarships
$1,000,000 $45,000 – four full-tuition scholarships
- When you establish a scholarship at the College of Science and Engineering, you will be invited to participate in determining the criteria for the award. For example, you may wish to consider giving preference to student recipients majoring in a specific discipline, or to students who are low income, or to student with high academic achievement, or some combination of these criteria. The college will be happy to assist you in deciding what the student qualification should be for your scholarship support. You will have the opportunity to name the fund in your own name, in honor or memory of someone, or in the name of your company. Most importantly, you will have the opportunity to meet the student recipient of your named scholarship when possible, which is a meaningful occasion for students and donors alike.
Ways to fund an endowed scholarship
- An endowed scholarship may be funded through an outright gift to the college, paid in a lump sum or over a period of up to five years. For instance, a $100,000 endowment may be established through a gift of the entire amount, through five annual installments of $20,000, or through some other pledge payment plan. Given recent market fluctuations, you may wish to time your payments according to increases in the market. The college is flexible and will accommodate you in any way possible. After the endowment is established, additional gifts to the endowment may be given at any time to increase the endowment principal.
- Many donors find that it is often advantageous to make gifts of appreciated property or securities to the college. By making a gift of appreciated securities, you can save income taxes twice. First, you save by receiving a charitable deduction for the current value of the stock. Second, you save by eliminating payment of capital gains tax on the stocks increased value. Please contact Kim Dockter at 612-626-9385 or email at email@example.com for assistance with the transfer of stock.
- You may also endow a scholarship through a deferred gift, such as a bequest, life income gifts (charitable gift annuity, charitable remainder trust, etc.), life insurance, or qualified retirement plan assets.