Guidelines for Establishing a Scholarship
The University of the Arts Scholarship Program strives to accommodate its donors and does so through the offering of two different models of scholarships. These scholarships are referred to as either "Named Scholarships Without Criteria" or "Named Scholarships with Criteria." Both models permit endowed funds to earn sufficient interest to award scholarships within one year or less of the scholarship's establishment.
Scholarship gifts for the University's endowment are never spent. Instead, they are prudently invested according to the University's Endowment Investment Policy. Every year, a percent of each scholarship fund's market value is awarded to students according to the donor's wishes. Any remaining earnings are reinvested in the fund to help assure continued growth.
Named Scholarships Without Criteria
A commitment, outright or via planned gift, of $25,000 or more is made to establish a Named Scholarship Without Criteria. The University will award the scholarship when the principal of the fund (either through gifts or earned income) reaches $25,000. Awards are distributed by the Financial Aid Office to individuals demonstrating need and making academic progress. Scholarships are awarded from the income and thus the principal of the scholarship fund is never invaded. Similarly, in the case of planned gifts, awards are also not made until the fund reaches $25,000.
Named Scholarships with Criteria
A commitment, outright or via planned gift of $100,000 or more is made to establish a Named Scholarship with Criteria. The donor can specify the year, major, hometown, need, and/or GPA of the scholarship recipients. The University of the Arts will award the scholarship when the principal of the fund (either through gifts or earned income) reaches $100,000. Awards are distributed from the income and the principal of the scholarship fund is never invaded. The University will ensure that the donors' specifications are followed in selecting recipients.
Awarding Scholarships Prior to Reaching the $25,000 or $100,000 Endowment Levels
Even though a scholarship fund is not at the $25,000 or $100,000 endowment level, the scholarship may still be awarded. For instance, while a scholarship's endowment grows, the donor may make additional gifts to the restricted side of the scholarship account. These gifts can then be awarded in conjunction with the endowment agreement, on an annual basis. This way, particularly in the case of planned gifts, a donor can see the recipients benefit immediately. Gifts of at least $1,000 are required for these awarding circumstances. Once the endowed fund reaches the desired level, the scholarships are awarded from the income and annual restricted gifts are no longer required.
Scholarship Funding Options
There are many ways to fund a scholarship. Frequently used options include cash, securities, bequests, planned giving, life insurance gifts, or real estate and personal property. Many scholarships are funded through the giving of smaller donations from numerous people. This is especially common for scholarships that are established to honor or to memorialize individuals. For additional ease, all donations made by credit card to the University of the Arts Scholarship Program may be made online.
Establishing a scholarship at the University of the Arts allows individuals to make an eternal impact on more than just students and the University, but also on the worldwide artistic community. To maximize the impact that you would like to make with your scholarship, various aspects should be considered. Some questions you may want to ask yourself include:
- What would I like the scholarship's name to reflect?
Considerations for Named Scholarships with Criteria:
- Will the scholarship be awarded to only those students who have financial need or will the scholarship be based on artistic merit alone? (Some scholarships' criteria address both.)
- Will the scholarship be restricted to students enrolled in a specific school or major, or open to all departments? (For undecided donors, the Development Office is happy to recommend departments that have significant need for student funding.)
- Will the scholarship support undergraduate students, graduate students, or both?
- Will the scholarship recipient(s) have the award renewed yearly or only receive it once during their studies at the University?