FISK UNIVERSITY Nashville, Tennessee
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1 FISK UNIVERSITY Nashville, Tennessee POLICY FOR THE ESTABLISHMENT AND ADMINISTRATION OF NAMED ENDOWED SCHOLARSHIPS GENERAL GUIDELINES It is the policy of Fisk, in the pursuit of its vision to be the best small liberal arts university in America, to encourage the establishment of scholarships that will enhance educational opportunities for its students. This policy provides guidelines for the establishment of new scholarships named by or for a donor, and the administration of such named scholarships by Fisk University. To generate a meaningfully-sized operating gift, Fisk University has set a minimum amount that must be in place for a fund to function as an endowment. (Any size gift is more than welcome if the donor wishes the funds to be distributed in whole or in part over a limited number of years.) NAMING OPPORTUNITIES An individual or organization may establish a new endowed scholarship at Fisk University, named by or for the donor, or in memory, or in honor of a person or organization selected by the donor, by choosing one of the following options and fulfilling its terms. The name specified by the donor will remain associated with the scholarship as long as the scholarship is funded in perpetuity, where an endowed fund is created. A donor may also prefer not to name a scholarship. In the event that a donor does not designate the name for the scholarship, Fisk University, in its sole discretion, may use the name of the donor, or any part of thereof, unless specifically prohibited in writing, in advance, by the donor. Anonymous donors shall be considered as an express, prior written request not to use the donor s name in the title of the scholarship. Page 1 of 5
2 CONDITIONS The donor may establish special conditions for awarding the scholarships such as: (1) the academic major of the recipient; (2) the geographical origin of the recipient; and, (3) a minimum grade point average. The University must agree, in writing, to any special conditions placed on the awarding of such scholarships. The University alone, through the Scholarship Committee, will select all scholarship recipients in accordance with donor conditions, and reserves for itself the right to establish conditions for the awarding of all scholarships. TIMING AND TYPES OF NAMED ENDOWED SCHOLARSHIPS The awarding of a named endowed scholarship will commence at the beginning of the academic year following the time at which the full minimum commitment contributed to the University has been invested for one full calendar year, or when earned income has reached an adequate amount to make the award at the stated level. A named endowed scholarship may be established with a fund of not less than $100,000, payable within four years. The endowed scholarship options are noted below: Endowed Full Scholarship. Minimum amount of commitment = $750,000 This fund may be created with a minimum contribution of $750,000, contributed as a single payment upon establishment of the endowed fund, or with an initial contribution of $187,500 and the balance contributed over the following three years. Endowed Partial Tuition Scholarship. Minimum amount of commitment = $250,000 This fund may be created with a minimum contribution of $62,500, contributed as a single payment upon establishment of the endowed fund and the balance contributed over the following three years. Endowed Partial Scholarship Award. Minimum amount of commitment = $100,000 This fund may be created with a minimum contribution of $100,000, contributed as a single payment upon establishment of the award, or with an initial contribution of at least $20,000 and the balance contributed over the following three years. Page 2 of 5
3 INVESTMENT OF ENDOWED FUNDS Fisk University will invest the principal contributed by the donor and any additional contributions to the Fund; and, Fisk has the sole discretion to determine the type of investment or investments to be made and if invested in more than one account, the amount to be invested in each account. The principal will be invested in perpetuity or until the investment becomes impossible or more costly to administer than the economic benefit to be reaped through continued investment. For administrative purposes, the University may retain up to 5% of the income produced by the fund in any given year to cover the expenses of fund management and investment, reporting requirements and other administrative costs. Unused earnings, if any, will be reinvested with the corpus. The University, in turn, agrees to furnish the donor an annual report including the amount of principal in the endowed scholarship account, the amount paid for a scholarship award, and a scholarship recipient profile. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. Page 3 of 5
4 AGREEMENT FOR THE ESTABLISHMENT OF A NAMED ENDOWED SCHOLARSHIP In consideration of the desire of (Donor) to honor and/or memorialize and to assist deserving students, Fisk University by and through its duly designated officer, the Vice President for Institutional Advancement, hereby agrees to the following: 1. An endowed scholarship account shall be established at the University, which will be known as: 2. The Donor/Donor Organization will contribute funds in the initial amount of $ to Fisk University for the establishment of this endowed fund. 3. Net annual earnings generated by the fund after the corpus reaches the minimum amount for the type of scholarship and has been invested for a minimum of one year, shall provide the funding for one or more scholarships per academic year. The number and amount of scholarship awards shall be determined each year, based upon the amount of net earnings of the fund. Unused earnings will be reinvested with the corpus. 4. The first award of the will be made for the Academic Year. 5. The recipient(s) of this scholarship shall be a student enrolled and in good standing at Fisk University, who meets the following criteria: (i.e., major, classification, minimum grade point average, etc.) Page 4 of 5
5 A. B. C. 6. Scholarship recipients will be selected by the University s Scholarship Committee. 7. Each year, the donor will be provided with an annual report to include the corpus of the fund, the amount of scholarship funds awarded and the recipient(s) of the scholarship(s). 8. The University welcomes the contribution of additional monetary gifts to the fund. 9. Funds shall be administered in accordance with the current University policy for restricted scholarship accounts. 10. The terms of this agreement may be altered in writing by the mutual consent of the donor and the Vice President for Institutional Advancement, Fisk University. Notwithstanding anything to the contrary above, upon the death of the donor, Fisk University shall use its best efforts to continue the intent and purpose of donor as manifested through this agreement. Donor Donor Jens Frederiksen, Ph.D. Vice President for Institutional Advancement Page 5 of 5
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