Endowed Scholarship — Aquinas College - Nashville, Tennessee

Endowed Scholarship

Aquinas College is a Catholic institution of higher education owned and operated by the Dominican Sisters of St. Cecilia Congregation. As a private institution that does not accept federal funding, Aquinas College depends upon independent sources of funding to provide financial assistance to its students.

Establishing an endowed scholarship at Aquinas College is an important and lasting way to be a partner in Aquinas’ mission. An endowed scholarships assists in the formation of students who are then sent forth to teach, preach, and witness to Truth and Charity for the salvation of souls and the transformation of culture. The majority of students at Aquinas receive some form of financial aid; scholarship support is an essential part of this assistance. Endowed scholarships establish an important legacy of support for countless generations of future students. These scholarship are also a very meaningful way to honor family and friends. By endowing a scholarship, you can create a lasting legacy, see the immediate benefits of your gift, and benefit from tax deductions.

What is an endowed scholarship?

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. All contributions to the fund increase the principal balance. The principal (corpus) stays untouched, so the endowment can last into perpetuity.

How much does it cost to establish an endowed scholarship?

The minimum principal balance required to establish an endowed scholarship is $25,000. Initial contributions may be made in lesser amounts; however, no awards will be made to students until the minimum of $25,000 is reached. Subsequent additions may be contributed at any time in any amount. Funding can occur through an outright gift of cash or appreciated stock, or through a multi-year pledge. Scholarships can also be endowed through a bequest or other charitable giving instruments (e.g. gift annuities, trusts, etc.). Donors can also provide for an endowed scholarship in estate plans: estate gifts or planned gifts are another way to establish a scholarship without affecting current income or assets. The first scholarship is awarded one year after the endowment becomes fully funded.

How are endowed scholarships awarded?

Scholarships are typically awarded annually to students, according to the donor wishes and current financial aid policies of Aquinas College. Scholarships may be unrestricted, or the donor may specify that the scholarship be awarded based upon certain criteria. The donor may not, however, actually name the individual student to receive the award. Donors are given information annually about the students who receive their award. Aquinas College strives to provide an opportunity for donors to meet the students who directly benefit from the scholarship.

What is the role of the donor in establishing an endowed scholarship?

When a donor decides to commit to funding an endowed scholarship, the donor may specify certain details relating to the scholarship. The scholarship donor chooses the name of the scholarship, as well as the criteria. Scholarships can be based upon financial need and/or merit. Other criteria for awarding the scholarship may also be considered, based upon the wishes of the donor (i.e. graduate vs undergraduate, full-time vs part-time). We recommend that the donor make the criteria flexible when possible, since requirements that are too restrictive may prevent the awarding of the scholarship. Aquinas College will work with each donor individually to write an agreement that ensures the scholarship is awarded according to the donor’s wishes while meeting the needs of Aquinas students.

Why give an endowed scholarship?

A donor typically established an endowed scholarship to show support for Aquinas College and its mission. A donor may desire to establish an endowed scholarship to recognize or memorialize a loved one, friend, classmate, alumnus, professor, or business.

Are gifts made to establish an endowed scholarship tax deductible?

Yes, all gifts made to Aquinas College for the purpose of establishing an endowed scholarship are deductible for income tax purpose to the extent provided by law. Gifts made by employees or spouses of employees who work for, or who retired from, corporations that match charitable gifts, may be eligible to receive matching gifts that can also be directed to support the scholarship fund

What amount of an endowed scholarship is awarded to students each year?

Aquinas College currently follows a 5% spending rule; a $25,000 scholarship endowment will provide approximately $1,250 (5%) in scholarships annually. In the case of a pledge, an annual contribution can be made so that the scholarship can be given out before the entire pledge for the endowment fund has been fulfilled. The following chart provides examples for different levels of endowed scholarships:

Endowed Scholarship Corpus Annual Scholarship Distribution to Students
$25,000 $1,250
$50,000 $2,500
$75,000 $3,750
$100,000 $5,000
$150,000 $7,500
Endowed Scholarship Corpus Annual Scholarship Distribution to Students
$200,000 $10,000
$250,000 $12,500
$500,000 $25,000
$1,000,000 $50,000

 

What should I do if I want to establish an endowed scholarship?

Please contact Sister Cecilia Anne, the President of Aquinas College, to   discuss the next steps in creating an endowed scholarship.

E-mail president@aquinascollege.edu; phone (615) 297-7545

 

Aquinas College welcomes all students regardless of race, color, ethnicity, or national origin who desire to be part of the faith-based mission of the College to all the rights, privileges, programs and activities generally accorded or made available to students at the College. It does not discriminate based on race, color, ethnicity, or national origin in administration of its education policies, admission policies, scholarships and loan programs.

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