Endowed Scholarships
Many Friends and Alumni of the University have already established permanent scholarship funds for various reasons:
- To honor their loved ones
- To recognize what the University has done for them and to give back to their alma mater
- To show appreciation of favorite professors who have left a lasting mark on their education
- To support programs of special interest
- To give financial aid to CNU students in need
What is the impact of endowed scholarships on CNU?
Endowment gifts strengthen the University's permanent financial base, funding student aid through merit and need-based scholarships.
How are endowed funds invested and scholarships calculated?
Endowed funds are not disbursed. The CNU Educational Foundation invests the funds and disburses the fund's earnings as scholarship awards. The Foundation's policy is to invest endowed funds, disbursing 5 percent of the endowed fund's market value each year and re-investing excess earnings to provide a hedge against inflation in future years.
How can I determine the level of my scholarship?
The minimum level to establish a named endowed fund at CNU is $25,000. The following table illustrates the initial gift required to fund scholarships at various levels, based on full in-state tuition and fees, including room and board.
Initial Gift |
Scholarship |
Award Impact on Student |
|
$25,000 |
$1,250 |
Approximately 22% of tuition & fees. |
|
$50,000 |
$2,500 |
Approximately 43% of tuition & fees. |
|
$100,000 |
$5,000 |
Approximately 86% of tuition & fees. |
|
$266,520 |
$13,326 |
Full tuition, room and board. |
Do I have options in making my gift?
Many donors choose to give an outright, one-time gift to establish an endowed fund while others make a multi-year pledge until the minimum endowed level of $25,000 is attained, at which point disbursements can be initiated from the fund. Others make gifts of stock or include a bequest in a will or trust to initiate a scholarship at their death.
Can I build endowment and start my annual scholarship award now?
Yes. Some donors wish to have scholarship awards begin right away although the minimum endowed level has not been reached.
For example, a recent donor wished to establish an endowed fund of $25,000. He pledged $30,000 over a five-year period, committing to a gift of $6,000 each year. He instructed that $1,000 each year be given as a scholarship award and that $5,000 be set aside in a fund to build his endowment. At the end of five years, he will attain his goal of a $25,000 endowed fund, and five students will already have benefited from an annual award of $1,000. His endowed fund of $25,000 will then be expected to produce an award of $1,250 each year in perpetuity.
For more information on establishing an endowment or scholarship fund, please contact:
Lucy Latchum
Director of Scholarships and Gift Planning
(757) 594-7702
llatchum@cnu.edu
