For this type of endowment, the annual award increases in proportion to the annual average costs of education. The donor selects the percentage of annual tuition, room, board, and fees they wish to supply through their scholarship fund. We recommend a minimum of five percent. As costs increase, so does the annual award amount. Therefore, donors have great satisfaction knowing their scholarship fund provides a significant resource, relative to the rising costs of education, throughout the term of the scholarship.
Since annual awards are not limited by annual investment earnings, the fund principal may be used frequently to meet the annual award goal. Therefore, the fund will likely exhaust itself within a term of years. The actual scholarship term is dependent upon tuition costs and investment performance. We can offer projections based upon historical figures. We recommend initial funding of between $15,000 and $50,000.