Here are some of the FAQs we receive about the endowment. If you have additional questions or are interested in creating a fund, contact Patty Sitorius at email@example.com or 800.775.2585.
What is an endowed fund?
An endowed fund provides a permanent source of funding for a specific program or scholarship. The basic plan underlying an endowed fund is simple. The principal of your donation is never spent. Instead, it is invested in accordance with the investment policies of the Hastings College Foundation and only a portion of the earnings generated from the fund are used to fulfill the purposes for which the fund was created - thus ensuring the fund will continue to provide ongoing financial aid to Hastings College and its students for many years to come.
How do I establish an endowed fund?
Usually, the first step is to decide for whom you would like to name the fund and then work with the Foundation staff to establish an endowed fund agreement. Typically, the agreement outlines the name of the endowed fund, specific details of the fund (for example with an endowed scholarship, the type of student you would like to receive the scholarship - geographic area, academic profile, major field, financial need, etc.), and renewal requirements.
What is needed to fully fund an endowed scholarship?
When an endowed scholarship fund balance reaches $20,000, it is considered fully funded. Each year, five percent of the growth of the fund is budgeted to be awarded in the form of a scholarship. Any realized gain above five percent is returned to the fund so the corpus remains untouched and continues to grow.
You can establish an endowed professorship with a gift of $500,000 or an endowed chair with a contribution of $1.25 million. The college uses only five percent of the growth of the fund each year to help support the base salary of the faculty member named to the professorship or chair, ad well as a modest salary stipend and professional allowance for research, conferences, and curricular development. Gains above five percent are returned to the endowed fund so it continues to grow.
Can others add to the fund?
Yes, many times donors, friends, family members and alumni combine their efforts and pool their gifts in order to honor an individual by establishing an endowed fund.
What if I do not have the funds right now to establish an endowment?
Many of our stakeholders begin an endowed fund with the intention that the endowment will be funded over a period of years or through their estate plans. As long as individuals are contributing to the fund at a meaningful level, the fund will be considered active. For example, a donor can establish an endowed scholarship fund and add $5,000 to the fund for four years.
Will Hastings College keep me updated on my endowed fund?
Once your fund has become operational, we will provide you with a yearly endowed fund report that provides detailed information, such as:
- Financial status of your fund
- Endowed fund recipient biographies
- Hastings College updates and information
Besides a gift of cash, are there other options to contribute or establish an endowed fund?
Securities, Real Estate and Personal Property
Gifts of real estate or securities can have special benefits for both the donor and the recipient. You may give real estate or securities as a current gift and receive a charitable deduction for the full fair market value of the gift. Gifts must meet certain criteria in order to be accepted by the college.
Electronic Funds Transfer
You can request the information online that is needed to implement an electronic funds transfer from your credit card or bank account. To set up withdrawals from your credit card, we simply need the card information and schedule of payments. For a bank account debit, we will also need a copy of a voided check.
Many companies offer matching gift programs to encourage employees to make charitable contributions. Matching gifts are a great vehicle for donors to maximize the impact of their gift. Some companies will even match gifts made by employee spouses and retirees. To multiply the power of your gift, check with your human resources representative, request a matching gift form and send it completed and signed with your next gift to Hastings College.
Can I establish an endowed fund through my estate?
In some cases, donors elect to establish and fund an endowed fund through their estate plans. Endowed funds may be established through a variety of planned gifts such as:
- Bequest through a will
- Insurance policy
- Retirement plan
- Charitable gift annuity
Can I contribute more than $20,000 to an Endowed Scholarship Fund
Yes, many times our stakeholders will continue to add to an endowed fund so the scholarship awarded can increase or so the scholarship can be awarded to more than one student.
Can I support an existing scholarship fund?
Yes, even though Hastings College manages approximately 200 endowed scholarship funds, there are a few that are not fully-funded. If you wish to support any of these, please note to which fund you would like to designate your gift.
Are all gifts tax-deductible?
Gifts to the Hastings College Foundation are tax-deductible to the extent allowed by law. It is recommended that you also consult with a tax attorney or financial advisor.