Creating Scholarships - Westminster College - Fulton, Missouri
At Westminster College, the word "scholarship" is another word for "opportunity" - the opportunity for deserving students to attend one of the best liberal arts colleges in the nation. A scholarship helps offset the costs of tuition, books and living expenses. We are proud to say that hundreds of individuals who believe in the mission of Westminster have established student scholarships. It would be an honor to add your name to this prestigious group of loyal supporters.
When you choose to endow a scholarship, you make an investment in the power of education to transform an individual's life. You provide the opportunity for generations of students and partner with the College to help prepare Leaders of Character who are committed to the values of Integrity, Fairness, Respect and Responsibility. You give something of lasting value. And, you show your gratitude to Westminster College and your belief in its commitment to the future.
An Endowed fund is an account, the principal of which is preserved in perpetuity; i.e. the principal is never spent. Only the income earned by that account on an annual basis is spent, only for the scholarship purposes as established by the donor. The College Trustees have established the minimum for an Endowed Scholarship at $25,000, which may be pledged over as many as five years.
A donor may also name annual scholarships. All annual scholarships are awarded within the academic year. The donor may also augment his endowed scholarship with an annual scholarship gift, to assist a student even more. The recommended minimum amount for an annual scholarship award at Westminster College is $1,000.
There are several opportunities for you to specify the kind of scholarship you would like to support. You have great latitude in deciding the type of student you want to help. Among the options:
- Merit-based scholarships are awarded on various measures of academic excellence.
- Need-based scholarships make it possible for qualified students without adequate resources to attend Westminster College.
- Designated scholarships benefit students from a particular part of the country, a specific town or high school, or students from the freshman class or upperclassmen.
Establishing Endowed and Annual Scholarships
All scholarships established through Westminster College must be compatible with the general purposes of the College. The Development Staff will work with each donor to create a Memorandum of Agreement that outlines the wishes of each scholarship donor with regard to how that particular scholarship function and be awarded each year. This memorandum states the eligibility criteria, as well as procedures for expenditure of funds and other related topics.
There are many options to consider when investing in scholarship gifts. Tax advantages vary with individual circumstances and type of gift. Among the options:
- A gift of cash, the most direct way to give, can be deducted from your taxable income in the year it is donated.
- A pledge payable over as many as five years may be more convenient for you. No award will be made until the account reaches endowment level. However, you can supplement your pledge payments with an additional amount that will be given as an annual award, under your endowed scholarship name.
- A gift of appreciated securities offers you the advantage of a charitable deduction, plus avoidance of capital gains tax on the appreciated portion of the gift.
- A deferred gift, also called a planned gift, is arranged with the Development Office during your lifetime, but benefits to the College do not accrue until a later time. A bequest, the most common deferred gift, can provide significant estate-tax savings for you. Other deferred gifts include life insurance and annuity income agreements.