Establishing a new, named scholarship
Each endowed named scholarship is permanently endowed when the fund reaches a minimum of $25,000. Awards are made from earnings off the principal. Guidelines are established by the donor and an officer of the NMU Foundation. Through solicitations, or subsequent gifts from the original donor made within three years, the fund must grow to $25,000. Once the fund reaches endowment status, awards will be made from the earnings of the fund based on NMU Foundation spending guidelines. The principal will remain intact and earnings are applied to the principal. Subsequent gifts to the scholarship are also applied to the principal. As the principal grows, so may the amount and/or number of awards.
Example: John Doe wishes to establish a scholarship to help Political Science students, who show an interest in pursuing a law degree. He makes an initial gift of $15,000 and the NMU Foundation works with John to gather a list of prospective donors for the scholarship, mailing solicitations to those who might also be interested in funding such a scholarship. The scholarship is allowed three years to reach $25,000, when it will become endowed in perpetuity. (If the fund does not reach the amount required to be fully endowed within three years of its inception, one-half of the amount in the fund will be deposited into the General Endowed Scholarship fund at NMU. The remainder of the named fund will be administered as an annual scholarship to be awarded within a three year period. General Scholarship Fund criteria will be used in awarding the remaining funds in the named scholarship.)
With an initial gift of $2,500 and a commitment for the same amount to be provided by the donor on an annual basis for the next three years (for a minimum total commitment of $10,000 over four years), the establishment of a named annual scholarship will be acknowledged and created by the NMU Foundation.
The initial amount of the gift (a minimum of $2500) will be awarded or distributed after two successful pledges have been made. The maximum amount of the award in any given year is the amount available in the fund at the time that the award is made.
Awards will be made based upon a set of guidelines created by the NMU Foundation in collaboration with the donor. The gift may be awarded for as many years as the funds are donated. The name associated with this fund will remain with the fund until such time as the fund is depleted or discontinued.
Example: Jane Smith wishes to establish an annual scholarship in honor of her father who was an NMU English professor. She wishes to assist a student in the English Department with financial need. She gives a gift of $2,500 initially to begin the fund, then $2,500 each year for at least the next 3 years. Friends of Jane also contribute to the scholarship.