An endowed scholarship is a permanent fund in which the principal remains intact and invested at all times. Scholarships are awarded from the allocated income earned on the principal investment in accordance with Northeastern Illinois University Foundation Board’s Endowment Spending Policy. All contributions to the fund increase the principal balance.
Frequently Asked Questions:
What is the minimum dollar amount required to endow a scholarship?
How can the scholarship corpus be endowed/funded?
Funding can occur through an outright gift of cash or appreciated stock, or through a multi-year pledge. Also, scholarships can be endowed through a bequest or other charitable giving instruments (e.g. gift annuities, trusts, etc.).
How soon will an award be distributed following the establishment of the endowed fund?
Generally, scholarship awards are distributed one year after the corpus is fully funded at the minimum level of $20,000. An exception is made if the donor wants the scholarship to be activated sooner and elects to make a separate gift equivalent to the desired award, which is then distributed to a qualifying recipient for the semester immediately following the donor’s contribution. In the meantime, the endowed corpus is accumulating earnings.
How is the endowed scholarship named?
By the donor, in consultation with the Foundation.
Who determines the parameters or the restrictions?
The donor, in consultation with the Foundation.
Who selects the scholarship recipients?
The Northeastern Illinois University Admissions and Financial Aid Offices, based on the criteria established by the donor.
Is there a contractual agreement?
Yes. It reflects pertinent information regarding institutional policy and endowed scholarships, the name of the scholarship, specific terms and conditions relating to the award and the University’s stewardship commitment.
How does the Foundation inform donors about the status of their endowed scholarship fund?
The Northeastern Illinois University Foundation is committed to “stewarding” endowed scholarship gifts. Each year following the formal financial audit, the Foundation sends each scholarship donor an Endowed Scholarship Report indicating the endowed scholarship’s earnings.