A scholarship provides the financial resources for students to pay for tuition, books, fees and other costs of attendance. Starting a scholarship means giving students peace of mind, allowing them to perform better in class. Naming a scholarship can also be a great way to honor a loved one or promote an organization’s brand.
Types of Scholarship Funds
- Endowment: Endowments are established with an initial gift of at least $10,000 and are permanent sources of scholarship funds. The principle gift is invested, and the earnings are used as a consistent source of aid for students.
- Pass-Through: Pass-through scholarship funds are established with an initial gift of at least $2,500 and are used to help students immediately. Unlike endowments, they are not permanent and exist only as long as donors contribute to them.
Many donors choose to set up both types of funds to maximize their impact. Establishing a pass-through fund can allow an endowment to grow for greater giving potential while still meeting students’ immediate needs. Additional donations can be added to all funds after they are established.