Funded by generous alumni, faculty and friends of the university, scholarships are pivotal for students whose skills and potential for success often exceed their financial resources. By providing these essential funds, visionary donors can change a student’s future for the better – forever.
Donors may choose to establish endowed scholarships, which exist in perpetuity, or annual scholarships.
Endowed scholarships support students in perpetuity by creating a lasting legacy that honors an individual or individuals for whom the scholarship is named. A donor may establish an endowed scholarship with a minimum gift of $25,000. The University of Colorado Foundation invests and manages these funds, and, based on performance, 4 percent to 4.5 percent of the endowment’s fair market value becomes available annually to provide scholarship awards to students (e.g., a gift of $25,000 can provide an annual scholarship of $1,000). The larger the endowment, the greater the annual award available to students.
Donors often work with us to establish an endowed scholarship with a pledge payable over time (up to five years). While contributing at least $5,000 annually to build the principal of the endowed fund, donors can also provide additional annual gifts to award scholarships while the endowment builds. These gifts generally equal the anticipated annual disbursement of the fund once it is fully endowed. When the principal reaches the desired level of funding ($25,000 minimum), the endowment is considered fully funded and provides awards in perpetuity.
Students benefit from an annual scholarship within a fiscal year a donor funds the award. The minimum amount required to establish a named annual scholarship is $10,000, which can provide more than 80 percent of the annual tuition and fees for two full-time students. Unlike endowed scholarships, annual scholarships do not exist in perpetuity but remain active as long a donor continues to contribute to the fund.