Guidelines for Establishing Named Scholarship Fund
A donor may establish a scholarship in their name or in the name of one they wish to honor by providing an annual gift. Phi Theta Kappa recognizes individuals, families, foundations, companies, associations, and organizations providing funds for merit or need-based scholarships to defray costs of pursuing associate, bachelors, and graduate degree programs at regionally or governmentally accredited institutions. Students selected for these scholarships must demonstrate exceptional academic and leadership abilities. Donors may make an annual gift each year to fund the scholarship or may establish an endowment for funding the scholarship permanently. In the case of an endowment, investment earnings from the donor’s gift are used to fund the named scholarship each year; the principal is not spent. Investment earnings should provide funds for a $1,000 minimum scholarship to be awarded annually.
Establishing a scholarship fund is a great way to bring recognition to your region’s support of the regional chapters. To initialize a scholarship fund, a minimum principal amount of $25,000 will be established with payment goals of $5,000 per year over a five-year period. The Sample Region will announce the creation of the new fund and solicit individual contributions through fund promotional materials, publications and / or direct mail.
The first scholarship will be awarded at the end of the first full year interest income reaches the scholarship level. The selection of the award recipient is chosen by the Phi Theta Kappa Scholarship Department (headquarters staff) according to guidelines and criteria in this document. The Phi Theta Kappa Investment Committee is responsible for overseeing the fund.
While named scholarships will be tracked separately, they will be combined with all other funds in the endowment for investment purposes. At the end of the five-year donation period, if contributions have not reached the $25,000 goal, an extended goal may be established. An alternative would be for all donations received to date transferred to the Phi Theta Kappa general scholarship fund.
While scholarships are typically awarded in the amount of $1,000, this figure may increase or decrease due to fluctuations in interest rates and student needs. Although $25,000 is the minimum amount to establish a fund, contributions of any amount can be made at any time. There is no limit to how large the fund can be - a larger endowment will produce a greater number of scholarships.
If you are interested in establishing a named fund, please contact the Advancement office at 601.984.3537. A Scholarship Endowment Agreement will be created and will outline the terms and conditions. The endowment will be established upon receipt of the initial payment of $5,000, and you will receive annual reports of its status.
Guidelines for Establishing A Named Scholarship Fund:
- Make a commitment to donate a minimum of $25,000.
- Specify the fund’s name
- Review the Scholarship Endowment Agreement
- Make the initial payment of $5,000 to start the fund
- Make minimum payments of $5,000 annually over a five-year period. (You may make larger payments if desired to fulfill the pledge before the end of the five-year term.)
View a sample Scholarship Endowment Fund Agreement Established by a Region.
View a sample Scholarship Endowment Fund Agreement Established by an Individual.
Please consult with a financial advisor to look at Ways to Give and What to Give in your lifetime that may be advantageous not only to you and your family, but also to Phi Theta Kappa. A Letter of Intent is a first step in providing information about your goals and expresses a plan for financial support of Phi Theta Kappa. To discuss the various options listed above, please contact Dr. Nancy Rieves at 1-800-946-9995, extension 3537.
Giving To Phi Theta Kappa
Contribute to Our Endowment
Contribute today to these Giving Opportunities by completing a Letter of Intent, especially for contributing to the endowment, or a Donor Card. Both are PDFs.
