Memorandum 39 – Named Endowed Scholarships and Funds
Reviewed and approved February 2011
This policy helps to ensure that Named Endowed Scholarships are processed accurately, efficiently, and professionally.
The minimum amount to establish a named endowed scholarship or fund is $25,000. If a donor wishes to build a (scholarship) fund over a period of years, s/he can establish a named (scholarship) fund which becomes part of “The Norwich University Named Scholarship” fund (the criteria for awards would fall under the general university guidelines) until it totals $25,000.
Agreements for gifts for endowment purposes, where the use of income is restricted or specific, should include the following clause:
In the event that at some future time Norwich University is unable to award the Fund’s income on the basis of the prerequisites, the earnings may be used at the discretion of the Board of Trustees. Income may be added to the principal of the Fund, if deemed appropriate by the Trustees. All restrictive criteria should be preceded by the word(s) “preference being.”
The Office of Development and Alumni Relations, Financial Affairs Office, and the Office of Student Financial Planning are responsible for administering Named Endowed Scholarships using the following guidelines.
Responsibilities of the Office of Development and Alumni Relations
- Solicitation of funds to establish the endowed scholarship.
- Notify the Financial Affairs Office and the Office of Student Financial Planning that a new named endowed scholarship has been established.
- Provide the Office of Student Financial Planning a criteria sheet for all scholarships to include account number, name of scholarship, text and criteria, name/address of donors.
- Annual stewardship letter to the donor. Work with the Office of Student Financial Planning to coordinate thank you letters from scholarship recipients to living donors.
Responsibilities of the Financial Affairs Office
- Assign endowed Fund number.
- Investment and management of the funds.
- Provide the Office of Student Financial Planning with a list of Funds (estimated income) available for awards for each endowed scholarship by May 31 each year with a copy to Office of Development and Alumni Relations.
- Provide any financial information necessary to the Office of Development and Alumni Relations for stewardship letters.
- Answer questions from donors with regard to the Fund, i.e., investment policies, book value, market value, and income earned.
Responsibilities of the Office of Student Financial Planning
- Award scholarships by identifying the appropriate students with financial need that meet the criteria specific to the scholarship.
- Work with academic divisions (when scholarship criteria dictates) to identify eligible students for specific awards.
- If a student receives an award from an endowed scholarship—enclose a note with their financial aid packet informing them and requesting that they contact the Office of Development and Alumni Relations to make arrangements to write a thank-you letter to the scholarship donor.
- Provide the Office of Development and Alumni Relations with a list of scholarship recipients by October each year.
- Vice President of Development and Alumni Relations: Ext. 2300