FriscoKid said:
Anyone ever set up an endowed scholarship before? Just an idea. Probably needs it's own thread, but I would donate a couple bucks for all of the Ags that lost kids and grandkids through this if a scholarship was created in their memory.
I have a niece that works for the A&M Foundation, she helped us with one. Of course, any of the staff there could help.
We in the Aggie Band Class of '77 set up one to memorialize our classmates who have passed. Basically you need $25,000 to begin a scholarship.
The Foundation invests your seed money, and splits the return at 1% of the endowment goes to run the Foundation. Four percent goes to the scholarship recipient.
Any return above 5% is reinvested into the scholarship endowment. So using the $25k, and assume a return of 7%, an extra $500 would be banked in the endowment above the Foundation and recipient cuts.
In that example, the recipient would get $1,000 the first year, $1,020 in year two, and hopefully more as the endowment grows.