The San Angelo Area Foundation makes it easy to create a scholarship fund.
Items to consider ahead of time:
- What do I want to name the fund?
- Do I want the fund to last in perpetuity (endowed)?
- How much do I want the recipient to receive each semester?
- Do I want the recipient to receive awards every semester?
- Do I want to target a particular field of study?
- Do I want the scholarship to only be awarded for a specific college the student desires to attend?
- Do I want the student to be from a specific high school?
Many donors who desire to establish a fund can easily do so by contacting the Foundation and working with the staff to answer the questions above. The Foundation then prepares an agreement, and the Fund is created. The amount required to establish an endowed fund will depend upon the answers above to semester awards and ability to renew the scholarship. For example: if a donor desires to award a $2,500 scholarship each year to the same recipient for four years, and they also want a new scholarship award to a new recipient each year in successive years, then the annual pay-out under this example would be $10,000. This would equal a $200,000 endowed gift in order for this scholarship example to last into perpetuity. The Foundation is able to customize each scholarship to the size and style a Donor wishes to create and there is no need to establish a separate entity or trust account to handle this type of fund. Donations to Funds at the Foundation are considered charitable and are fully deductible from federal income tax. (Be sure to consult your professional tax advisor.)