Giving to the A-State endowment is an opportunity to change lives—both now and for
generations to come. Endowed gifts provide vital support for students and faculty
while establishing a permanent legacy that honors or memorializes an individual, family,
or organization.
What is a Scholarship Endowment Fund?
A scholarship endowment is a permanent fund in which the principal amount remains
intact and invested at all times. Scholarships are awarded from the allocated income
earned on the principal investment in accordance with the ASU System Foundation endowment/spending
policy.
Endowing a scholarship is easy! Discuss the following steps with a development officer
or another member of our University Advancement team. We are here to translate your
philanthropic goals into action that will impact A-State students today, and for generations
to come.
Step One
What is the purpose of your endowed scholarship?
Endowed scholarships can be established for a variety of reasons. From supporting
the program from which you graduated, to memorializing a beloved friend or family
member, privately funded scholarship endowments can carry a name that characterizes
its purpose, as well as target specific audiences.
- Memorial or honorary scholarships
- Specific identified academic field
- Extracurricular activities
Step Two
What is your desired level of impact?
Endowed scholarships can provide annual financial assistance to students in increments
of $1,000 per year. An easy rule of thumb to remember is that for every $25,000 endowed,
$1,000 can be awarded annually, after year four. Until the endowment is fully funded,
the donor may wish to make annual contributions to fund the award. Once fully funded,
endowed accounts are allowed to spend up to four percent of their five-year average
market value, annually.
- $25,000 endowment – can yield $1,000 for scholarships, annually
- $50,000 endowment – can yield $2,000 for scholarships, annually
- $100,000 endowment – can yield $4,000 for scholarships, annually
Step Three
How would you like to fund your endowed scholarship?
An endowed scholarship must reach a minimum of $25,000. You may decide to fund it
entirely on your own, or with the help of friends and family members. Your employer
might offer a matching gift program, which can be directed towards the establishment
of a scholarship.
In addition to tax benefits for contributions, future funding through a gift in your
will may include estate assets, helping Arkansas State’s educational mission while
reducing possible capital gains or estate taxes. Contact a professional advisor for
specific details.
Donors may also make use of a pledge option to fund your endowed scholarship over
a period of five years. This option requires a Statement of Intent document which
will outline your intent to gift a specific dollar amount over a fixed time schedule.
This document is not legally binding, and alterations to the plan can be made at any
point along the way.
Step Four
What criteria should be used for selection of a recipient?
The donor chooses the criteria that fits their vision for the investment. We strive
to select best qualified student(s) for your criteria. Common examples include:
- Financial need
- GPA
- Leadership skills
- Writing skills demonstrated by application essay
- Interest demonstrated in specified major/activity
- Geographical location
Step Five
How is my endowment fund managed and invested?
The ASU System Foundation, in partnership with a team of licensed fiduciary advisers,
will manage and steward your fund to ensure that your scholarship lasts in perpetuity.
A Memorandum of Agreement will be drafted and signed clearly outlining the policies
and practices of the ASU System Foundation for investing your funds.
Congratulations, you have just established an endowed scholarship at Arkansas State
University! Now sit back, and let University Advancement take it from here. You will
receive an annual endowment report showing the balance and earnings at the beginning
of each calendar year.
Publicity
A-State will draft and submit a press release to appropriate news media outlets announcing
the establishment of your endowed scholarship once it is fully funded. You will have
the chance to provide input and review the draft.
Recipient Selection
Private scholarships are awarded on an annual basis. Students can apply each year
beginning in October. Scholarship applications must be submitted by February 1. Applicants
are reviewed by a scholarship committee assigned to each academic college at A-State.
Scholarship Award
Awarded funds are applied directly to a student’s account through the Office of Financial
Aid after verifying that the student is enrolled and meets the criteria established
by the donor.
