An annual scholarship is a tax-deductible donation given before December 31, which is awarded the following year. Annual pledges are made for either a set number of years or until the donor discontinues funding. A minimum annual gift is typically $1,000 (or more) and the contributions are usually divided between two semesters; i.e. for a $1,000 gift $500 is awarded in the fall and $500 in the spring. The scholarship criteria such as GPA, financial need, and campus involvement is decided by the donor who establishes the fund and the university scholarship committee to allocate the scholarship is discussed and decided by the donor.
Endowed scholarships are critical in recruiting and retaining the best and brightest undergraduate and graduate students. An endowed scholarship is a long-term investment that will provide an annual award to hardworking and ambitious students year after year, generation after generation. Scholarships can be endowed with a gift of $25,000 or more; which is made payable over a 5 year period, and are awarded based on a variety of criteria.
Once the endowment reaches the $25,000 it is invested by the UWG Foundation and the interest earned, up to 5%, serves as the scholarship award each year. These scholarships like the others can be set up by an individual or a group.
When a donor wishes to contribute a lump sum to be awarded annually until the fund is depleted or reaches the endowment threshold, we create a hybrid scholarship. Gifts can still be added to this fund and, at $25,000, the scholarship can be endowed. For example, if you or your company contributed $10,000 and decided on an annual scholarship award of $1500, we would award $1500 to the student(s), then set $8500 aside to build toward an endowment. Your company or group could then contribute $10,000 for each of the next two years consecutive years. Each year, $1500 would be awarded and $8500 would be set aside toward the endowment. After three years, you would have awarded $4500 in scholarships and created an endowed fund of $25,000, which could provide much-needed student assistance for years to come.
*Reprinted from the 2015 issue of The Princeton Review’s Best 296 Business Schools. ©2014 TPR Education IP Holdings, LLC. The Princeton Review is not affiliated with Princeton University. For more information about reprints from The Princeton Review visit PARS International Corp. at http://www.TPR-licensing.com
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