Establishing Scholarship Funds
Sponsored scholarships may be named by a donor who wishes to provide annual assistance for deserving Milligan students but is not interested in establishing an endowed fund. The minimum gift amount for a named sponsored scholarship is $2,500 annually with a commitment of four years. 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 four years in order to assure the funding of the scholarship throughout a student’s education at Milligan. 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.
Giving for sponsored scholarships may be designated for scholarships in specific majors, merit scholarships, need based scholarships, athletic scholarships, work study, or grants.
Endowed scholarships may be named by a donor who wishes to provide educational assistance in perpetuity for deserving Milligan students. The minimum gift amount for a named endowed scholarship is $25,000. 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 typically use 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.
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.
Endowed scholarship funds follow the standard investment policies of the college as stated in the scholarship agreement form.
For more information, contact Jack Simpson, Vice President, at 800.447.5922.
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