Scholarship endowment or scholarship fund?

[Aiming_4_55]

Anyone start a scholarship endowment or fund?

I have a few years to go before I hang up the corporate j*b as I have a few personal non-financial areas to become comfortable with along with topping off my kids 529 funds.

When I attended college, I worked full-time ($7/hour), struggling with schedule and homework, etc. I received Federal financial aid and State grants, and a few small scholarships ($500 and $1,000). Very limited assistance from family, say $20 to $100 in total per year. Money was just not available. All in all, I graduated with no debt.

To pay it forward, I was wondering how I could help. I don't need my name on anything. I'm thinking it would be a nice thing to do. Maybe, it's not enough, but I was thinking $50k as funding, increasing to $100k over time. I'm thinking this would be 3 - 5 years out before I pull the trigger.

Any good or bad experiences to share? How do I limit administerative fees? Is my funding amount just too low and look for other avenues to help?

 

[Meadbh]

I haven't set up any scholarships, but, having worked for a university, I can tell you that they welcome such donations and have the systems in place to help/encourage donors to achieve their objectives. If you have a specific educational institution in mind, contact their planned giving department.

 

[spncity]

Yes.

Didn't have enough to give all in one chunk, but had the vision thanks to a mentor. So I started very early and contributed something most years. It seemed like it took forever to build it up to where it awards a small scholarship each year.

It continues to be one of my most rewarding philanthropic ventures.

 

[Aiming_4_55]

I haven't set up any scholarships, but, having worked for a university, I can tell you that they welcome such donations and have the systems in place to help/encourage donors to achieve their objectives. If you have a specific educational institution in mind, contact their planned giving department.

Thanks Meadbh. I googled and found some information too.

 

[Aiming_4_55]

Yes.

Didn't have enough to give all in one chunk, but had the vision thanks to a mentor. So I started very early and contributed something most years. It seemed like it took forever to build it up to where it awards a small scholarship each year.

It continues to be one of my most rewarding philanthropic ventures.

Hi spncity - when you say "small scholarship", I was thinking a few scholarships ranging from $1k to $2.5k per year, is that too small?

I was hoping $50k to $100k would allow for annual small scholarships. I know this won't be a full ride, but I'm hoping the help and recognition help each person in a positive way.

 

[spncity]

Hi spncity - when you say "small scholarship", I was thinking a few scholarships ranging from $1k to $2.5k per year, is that too small?

I was hoping $50k to $100k would allow for annual small scholarships. I know this won't be a full ride, but I'm hoping the help and recognition help each person in a positive way.

With the interest rates nowadays, the amounts for my scholarship fund are smaller than that. Even so, these kinds of scholarships seem to be very much appreciated by the recipients. It can feel like a real boost of recognition. At least that's what I have found.

Nobody has declined any of my scholarships because they were too small
And I keep plugging away building its value through (usually) annual contributions.

You can also figure out what your criteria would be. Do you want it to be financial need? Outstanding grades?

In my case, I leave the decision up to the department chair and ask that they give it to someone they believe has some notable talent or "star" power and the ability to make an impact for good.

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[marinauser]

Typically, you can endow a scholarship at a college for $25,000 or $50,000. Of course, they would be very happy to take more. The money goes into the general endowment investments and the spending rate is then typically 4 to 5% of the value each year. So a $50,000 endowment gift would usually generate a yearly $2000-2500 scholarship. Current interest rates in my experience have only a marginal impact on the yearly scholarship since most endowments are invested significantly in the stock market and seek a particular total return over the long term. I have seen scholarships designated for a student in a particular major, from a particular geographic area, in a certain year of their college program, or completely up to the school.

 

[Hermit]

If you will have RMDs at 70.5, using Qualified Charitable Distributions can stretch your money a lot farther. QCDs come right off your gross income.

 

[braumeister]

Besides the colleges themselves, many membership organizations have programs that provide scholarships, grants and interest-free loans to eligible students. I give generously to these programs and that scratches my scholarship itch.

 

[RE2Boys]

Locally, we have a community foundation that administers possibly a hundred scholarship funds (among many other things). Each fund has it's own criteria, some very specific, some very general. My son received a $500 grant from a fund that specified graduate of a certain HS that intends to major in computer science, as an example. Most require an essay from the prospective applicants.

 

[Taxman59]

How much is a well endowed scholarship? [emoji2]

 

[pb4uski]

Less than a well endowed mistress.