Creating a Scholarship at Lake Superior State University
Creating a scholarship is one of the most enduring ways to make a difference in the lives of LSSU students.
An individual may create a scholarship to honor or remember a loved one. An alumnus wishes to give back to the university that gave them the education to succeed in their career and life goals. An organization would like to help Lake Superior State in its efforts by sponsoring a scholarship in their name. Whatever the reason, the impact can be life changing for the scholar and for the benefactor.
There are many ways to fund scholarships at the University. They include gifts of cash, stocks and securities, personal or real property, bequests, trusts, life insurance policies, or memorials. Scholarships are an investment in today’s learners and tomorrow's leaders. Your financial support enables LSSU to keep its commitment to offer a high quality educational experience to its students and provides them the opportunity to succeed in their education and career goals.
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There are two types of named scholarships:
ANNUAL NAMED SCHOLARSHIPS begin with an annual contribution of $1,200 or more. The Foundation asks for a minimum of a three year commitment in this kind of support. A member of the LSSU Foundation staff works with the donor to establish guidelines for the award.
Example: Jane Smith wishes to establish an annual scholarship in honor of her father who was a LSSU English major. She wants to assist a student in the English Department with financial need. She gives a gift of $1,200 initially to begin the fund, then $1,200 each year following, as long as she is able. Friends and family of Jane may also contribute to the scholarship.
ENDOWED NAMED SCHOLARSHIPS begin with an initial gift of at least $10,000 and are permanently endowed when the fund reaches $25,000 within five years. The principal of the fund is invested and can never be invaded, with only the earnings and dividends used to fund the scholarship. Many donors are establishing an endowed scholarship through a multi-year pledge or an estate gift. Guidelines are established by the donor working with a member of the LSSU Foundation staff.
Through solicitations to other donors, or subsequent gifts from the original donor, the fund must grow to $25,000 to be fully endowed. Once the fund reaches endowment status, awards will be made from the earnings of the fund based on LSSU Foundation spending guidelines. There is currently a 4.5% spending policy based on the 20-month rolling average of the endowment market value. So a fund with a balance of $25,000 could yield one (1) scholarship in the amount of $1,125. Subsequent gifts to the scholarship are applied to the endowment principal. As the principal grows, so may the amount and/or number of awards.
Example: John Doe wishes to establish a scholarship to help education majors who show an interest in pursuing a teaching certificate. He makes an initial gift of $10,000 to create the fund, and the LSSU Foundation works with John to create a gift plan to build the fund to the minimum endowment level. The scholarship is allowed five years to reach $25,000, and is then endowed in perpetuity.
Designing a Scholarship
The donor and a member of the LSSU Foundation staff create an agreement that outlines the scholarship eligibility requirements. Donors may designate their scholarship to any of the more than 45 areas of study at LSSU. The donor may define who is eligible for the scholarship based on class rank, financial need, grade point average, geographic region, or other reasonable and legal criteria.
The LSSU Foundation encourages donors to keep the criteria as broad as possible in keeping with the University scholarship policy. The more restrictive the criteria, the less likely the LSSU Financial Aid Office can award a scholarship to eligible student applicants.
Donors may also incorporate an annual scholarship with an endowment in their fundraising plan - known as an endowment builder. A contribution of $1,200 can be donated towards an annual scholarship that is awarded each academic year while also providing additional funds towards an endowment until it grows to the minimum requirement of $25,000. The endowment's spendable earnings are then used for the scholarship award and the annual scholarship is discontinued. Donors may continue to make donations to the endowment at any time and include the scholarship fund in their estate plan.
Look here for a sample scholarship agreement.
For more information, please contact us at:
Lake Superior State University Foundation
650 W. Easterday Ave
Sault Ste. Marie, MI 49783
Phone: (906) 635-2665
Fax: (906) 635-2856