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 Establishing Scholarship Funds at Millsaps College
Types of Funds
Sponsored Scholarships – Sponsored scholarships may be named by a donor who wishes to provide annual assistance for deserving Millsaps students but is not interested in establishing an endowed fund. The minimum gift amount for a named sponsored scholarship is $2,500 annually. In the case of sponsored scholarships, the gift amount for the fiscal year is awarded in full for the following fiscal year. For example, a donor gives $5,000 to a sponsored scholarship in 2008-2009. The entire $5,000 is awarded to a student for the academic year 2009-2010. It is preferred that the donor make a commitment over at least five years in order to assure the funding of the scholarship throughout a student’s education at Millsaps. However, if the donor decides not to contribute in a given year, no award is made for the following year. After three years of having no gifts contributed for the scholarship, the scholarship becomes inactive.
Endowed Scholarships – Endowed scholarships may be named by a donor who wishes to provide educational assistance in perpetuity for deserving Millsaps Students. The minimum gift amount for a named endowed scholarship is $25,000. To fund a full scholarship (tuition, room and board, fees, etc.) an endowed fund of $600,000 is required. An endowed fund of $400,000 will fund a full tuition scholarship. Endowed scholarship gifts may be made in one gift or paid over a period of 3-5 years. The scholarship is typically not awarded until the fund reaches at least the $25,000 level. In the case of endowed scholarships, the principal is invested along with other endowed funds and only a portion of the earned income is awarded each year. The remaining earned income is reinvested so that the fund continues to grow. In advising donors regarding the amount of award they might expect their gift to produce, we use a conservative 5%. So, if a donor gives $25,000 for an endowed scholarship, the award will likely be $1,250.
Types of Gifts Accepted for Funding Scholarships
Scholarships may be funded with immediate gifts of cash or stock or through planned gifts such as annuities, bequests, trusts, insurance, real estate, etc.
Establishing Criteria
The donor may have special interests for awarding the scholarship that need to be clearly determined and stated in the scholarship agreement. In establishing a scholarship, an attempt should be made to keep criteria as simple as possible. Under no circumstances, can scholarship criteria refer to or even imply that the award is being made to an athlete. This would be a direct violation of NCAA rules.
Investment Policies
Endowed scholarship funds follow the standard investment policies of the College as stated in the scholarship agreement form.
More Information
For more information about getting involved with funding Millsaps
Scholarships, contact:
Vernon King
Director of Development
601-974-1035
e-mail: kingve@millsaps.edu
To contribute to a currently established scholarship click here. |
