What is a scholarship fund?
It is a way to help others pursue their education—with a focus of the donor’s choice. Scholarships can support students who are graduating from a particular school, attending a particular school, or studying a specific subject.
A scholarship fund is a way to give that is:
- Personal: You can establish a scholarship in honor or in memory of a loved one, name it for yourself and/or your family, or to reflect a particular interest.
- Enduring: You can make a permanent impact on the lives of the recipients, who in turn are very likely to continue the tradition of helping others when they are able.
- Flexible: You can provide a scholarship now or plan a gift from your estate.
- Efficient: You benefit from the most advantageous tax treatment for a charitable gift. And we take care of all administrative details.
- Involved: Donors and their families may arrange to participate in the selection of scholarship recipients.
Who is it for?
A scholarship fund is ideal for families, individuals, and groups who:
- Value education
- Want to give others an opportunity to pursue their dreams
- Want to establish a legacy to honor or remember someone who was special in their life
- Are interested in active involvement in the selection of scholarship recipients
- There is no fee to establish a scholarship fund.
- Scholarship Funds are charged 1.5% of the fund balance for endowed funds or 10% of the amount to be distributed ($500 minimum) for non-endowed funds, plus any out-of-pocket expenses such as investment management fees, sales commissions, or other handling fees incurred directly by the fund.
- Scholarships may be endowed (ensuring that they are awarded in perpetuity) or established as non-endowed funds (which allow you to make awards of up to 100% of the fund)
How to Get Started
- Discuss a scholarship fund with your financial advisor or a member of ETCF’s fund development staff.
- ETCF will work with you to customize a Fund Agreement.
- Make an initial contribution.
- Establish criteria for the scholarships.
- Begin awarding scholarships.
- The typical scholarship cycle for funds established by November 1st and funded by December 31st in a given year includes:
- December 1st through February 1st applications are accepted
- March 2nd through April 30th selections are made
- The second Thursday in May ETCF host a scholarship reception to announce the recipients.