Establish a Scholarship Fund

An ideal way of supporting scholarship needs and university initiatives, especially for those who wish to make gifts of less than $25,000, is to contribute to an already established scholarship or gift fund. Such gestures can be a meaningful way to honor or memorialize an esteemed colleague, family member, or friend.

The donor may direct the gift to any established scholarship or gift fund in the Foundation. These include university initiatives, named scholarships, departmental general scholarship funds, or the Foundation’s General Scholarship Fund. There is no named scholarship or named scholar when the gift is less than $25,000. However, the Foundation notifies scholarship recipients that their awards were partially funded by a specific donor, or through a series of memorial or tribute gifts. The Foundation encourages scholarship recipients to thank the specific donor, or to acknowledge the grant to the honoree or deceased’s family.

Because of their size, named current-use scholarships are considered prestigious. Each carries a donor’s name or a name designated by the donor; and recipients may use the designation on their curriculum vitae. Donors may restrict scholarship recipient selection to:

• Course of study
• Entering or returning students
• Need-based or merit
• Geographic area

The named current-use scholarship may be granted over a maximum of eight semesters (four academic years) unless the donor continues funding the scholarship. Minimum gifts of $25,000 are required to create or extend a named current-use scholarship. The donor has a maximum of three years from time of pledge to fulfill each commitment of $25,000 or more. Should the donor not fulfill the commitment, the Foundation may transfer the funds to an existing scholarship fund whose purpose, in the judgment of the Foundation, most closely reflects the donor’s intent. The Foundation tells scholarship recipients the name of their grantor and encourages scholarship recipients to thank donors.

The Foundation requires a minimum commitment of $50,000 to create a named endowed scholarship account. Distributions will begin from the Fund no sooner than 18 months following the attainment of the minimum value of $50,000. An initial gift of $10,000 is required to establish the account. Regardless of size of the final commitment, the originating donor and others have five (5) years to complete the endowment funding. If at least $50,000 has not been given in five years from the date of the gift agreement, the Foundation, after consulting with the originating donor, will determine whether to use the accumulated funds to create a named current-use scholarship or incorporate them into another existing endowed account.

Endowed scholarships are the University’s most prestigious. Each carries a donor’s name or a name designated by the donor; and recipients may use the designation on their curriculum vitae. As with named current-use scholarships, donors may restrict scholarship recipient selection to:

• Course of study
• Entering or returning students
• Need-based or merit
• Geographic area

The Foundation makes endowed scholarship distributions in perpetuity. All funding and management of, and granting from, an endowed scholarship is governed by the Foundation’s Gift Acceptance Guidelines. The Foundation tells scholarship recipients the name of the philanthropists who initiated their scholarships and encourages scholarship recipients to thank donors.

In all cases in creating a current-use or endowed scholarship, donors must understand that actual scholar selection criteria and processes follow established University protocol. When a donor presents an initial gift less than the required minimum to establish a current-use or endowed scholarship fund, the donor is responsible for ensuring that the scholarship is funded at the required minimum level.

The Foundation and originating donor sign two original gift agreements when establishing a current-use or endowed scholarship fund. The agreement specifies the terms and conditions of funding the scholarship and includes the donor’s restrictions for recipient selection. One original is given to the originating donor and the other remains in the Foundation Office, and a copy is sent to the relevant academic department (if any).

The Foundation’s spending policy is to distribute annually no more than five percent (5%) of the average market value of the endowment for the three previous fiscal years. Funds not spent in one fiscal year will be carried forward into the next fiscal year and will be available for spending in accordance with relevant restrictions and Foundation priorities.

To help finance the operations of the Foundation and generate more unrestricted funds, the Foundation has adopted the following policy.

• All endowed (permanently restricted) funds will be assessed two percent (2%) annually. However, under no circumstance is an endowment to be assessed if the account falls below $5,000 or it will reduce the fund to a value less than the original historical value of the endowment.
•  Accounts endowed during the second half of the fiscal year will not be charged an admin fee for that year. The assessment will begin in the subsequent year.
• Partially funded endowments (whose corpus has not reached the required minimum $50,000) will not be changed the 2% administrative fee, but instead will accrue interest to one of the UDC Foundation’s unrestricted accounts.
• Once an endowment if fully funded, interest will then accrue to its companion temporary restricted account and the annual administrative fee will commence.
• All non-endowed (temporarily restricted) funds will not be charged an administrative fee, but will instead accrue interest to one of the UDC Foundation’s unrestricted accounts.
• Earnings from foundation and corporation grants will accrue to one of the Foundation’s unrestricted accounts unless otherwise stipulated or restricted by the grantor. The grantor will be recognized for the full amount of the grant.
• Donors are to be notified in their gift agreement letters or otherwise that a portion of their gift may be allocated to cover administrative costs.

The Foundation accepts cash gifts (i.e., cash, checks, money orders, credit cards, direct deposit, payroll deduction, online giving, and wire or electronic transfer).

Checks and money orders should be made payable to UDC Foundation and submitted to:

UDC Foundation, Inc.,
4200 Connecticut Avenue, N.W.
Washington, D.C. 20008

A completed gift transmittal form (downloaded from website) that includes the name of the account, purpose of the gift, donor, and donor affiliation (i.e., alumni, employee, friend, and company) should accompany gifts. Online giving can be completed through the University’s website at www.udc.edu. For all other gifts, contact the UDC Foundation or Office of Development.