Trustees Endowed Scholarship Challenge

The Methodist University Board of Trustees has created an endowment fund to match donor gifts up to $12,500 to establish forty new unrestricted endowed scholarships to help students with tuition costs.

The minimum to establish an endowed scholarship is $25,000 and may be funded over one to five years. Once the scholarship reaches $25,000, scholarships are awarded annually.

Endowed scholarships allow donors to set aside fund that are permanently invested and designated for tuition relief for qualified and deserving students. The principal is retained in perpetuity and cannot be spent. The revenue from the endowed scholarship provides annual scholarships. Scholarships may be named in honor or in memory of the donor or a loved one.

Flow chart of setting up an endowed scholarship

Trustees Endowed Scholarship Challenge FAQ

Does this match only apply to new endowed scholarships? Can this match be used if I contribute to an existing endowed scholarship?

This match only applies to new, unrestricted endowed scholarships established after March 1, 2016. It may not be used to add to existing endowed scholarships.

Will these endowments only be used for scholarships?

Yes, this endowment challenge match will only be use to establish new, unrestricted endowed scholarships. We welcome challenge gifts for other types of endowments and gifts to the general endowment.

Can I restrict my endowment to fit certain criteria? How will the scholarships be awarded?

No, you may not restrict these scholarships. The Director of Financial Aid will award these scholarships to deserving students.

Can the scholarship carry my name or that of a loved one?

Yes. You may name the scholarship after yourself or a loved one. The student receiving the scholarship will know the name of the scholarship they are receiving. The scholarship contact will be invited to the annual scholarship luncheon in November and will have the opportunity to meet the student receiving their scholarship.

Is the maximum match $12,500?

Yes. You may contribute any amount to the scholarship, but the maximum match amount is $12,500. For example, if you contribute $12,500, the match will be $12,500. If you contribute $20,000, the match will still be $12,500.

What is the minimum and maximum I can contribute?

The minimum amount for an endowed scholarship is $25,000 total. It may be paid over a period of up to 5 years. The scholarship will not be awarded until it reaches the $25,000 total. There is not a maximum amount. The sky is the limit!

Can I fund this endowment over a few years?

Yes. You can take up to 5 years to reach the $25,000 minimum amount or $12,500 with the match. The scholarship will not be awarded to a student until it reaches the $25,000. Most donors will continue to contribute to their scholarship annually and will leave a gift in their will to their scholarship.

Will my gift be matched along the way or once I reach $12,500?

Your gift will be matched once you reach a minimum of $12,500.

Can I set up multiple endowments with this match?

No. Only one endowment challenge match is available per donor. This is to encourage new donors to establish endowed scholarships.

Can I fund my endowment with a planned gift?

No. Most endowments are built with planned (estate) gifts, but this endowed scholarship match is only available to gifts received. You can fund it with gifts of cash, stock, and other securities and assets. Talk to the Advancement staff to discuss ways to give.

Will the scholarships be awarded to undergraduate and graduate students?

These scholarships will be awarded only to undergraduate students seeking their first bachelor’s degree.

How much would a student receive annually from a $25,000 endowed scholarship?

A $25,000 endowed scholarship would provide a scholarship of approximately $1,125 per academic year. The scholarship will be awarded from the interest income and earnings generated by the endowment. Endowment funds shall be invested and managed in accordance with the Methodist University Investment Policy which is set and overseen by the Investment Committee of the Board of Trustees. The Investment Policy, as of January 13, 2015, states that endowment accounts pay out, on an annual basis, the amount of 4.5% of the average market value of the preceding 12 quarters, determined as of March 31. This payout amount is changed from time to time by the Investment Committee.