Creating a scholarship fund. (community, relative, gifted, graduate)

[JIMANDTHOM]

We are thinking/planning on starting a scholarship at the University.


We will be making an appointment with the proper people sometime soon to discuss this. It may also lead to the creation of a smallish endowment fund or the like. I have read different articles, searched on CD etc.


Anyone do this---any thoughts you have?


Thanks.

[oldsoldier1976]

Originally Posted by JIMANDTHOM

We are thinking/planning on starting a scholarship at the University.


We will be making an appointment with the proper people sometime soon to discuss this. It may also lead to the creation of a smallish endowment fund or the like. I have read different articles, searched on CD etc.


Anyone do this---any thoughts you have?


Thanks.

I have not done this but it sounds great. I hope you are able to do that. I have seen some groups put together a scholarship fund. They base it on need or in some cases open it to members of a particular group. Most of the ones I have seen give small scholarships to several kids a year after submission of a theme paper or having lost a soldier parent. There are several Go-Fund-Me scholarship groups.

[thinkalot]

Most smaller scholarship funds that I am aware of are kind of specific. They would have to go to XYZ High, major in Special Education, and attend ABC University.

[borninsac]

If you're a financial "heavy hitter", you could create your own private foundation if you'd like a legacy that's a little more personal. Otherwise, using the University would definitely be efficient. I've thought about it too as a down-the-road charitable act.

Lots of clever ways to engage in advanced charitable giving that can provide some nice present tax benefits but, again, you've got to have a minimum amount to make it worth while. Things like charitable remainder trust and charitable lead trust come to mind.

Best to you in your philanthropy journey.

[Aredhel]

I'm in the process of endowing a scholarship at my undergraduate university; it will take me five years to fully fund it, but after that point I can continue to add to the endowment whenever I wish. Your university will be able to work with you to make the process relatively easy. The hard part is figuring out what parameters you want to set on the scholarship. Mines' pretty general (limited to biological and physical science majors, and they have to have a GPA over 3.0, but no other special qualifications are needed to apply for it).

[Flamingo13]

here is the personal finance thread (which should be of help) http://www.city-data.com/forum/personal-finance/

[rjm1cc]

Originally Posted by JIMANDTHOM

We are thinking/planning on starting a scholarship at the University.


We will be making an appointment with the proper people sometime soon to discuss this. It may also lead to the creation of a smallish endowment fund or the like. I have read different articles, searched on CD etc.


Anyone do this---any thoughts you have?


Thanks.

If you put money into the fund now and the University controls it you will get a tax deduction now. Depends on your total assets if you can do this.

You will find that most of the large brokers and mutual fund companies will let you set up charitable trusts with then that give you a tax deduction now and you had out the money to who you want when you want.

see https://www.fidelitycharitable.org/?...ork=o&device=c just to get started on things to think about.

[StealthRabbit]

Option B: (as above)
consider creating a "Donor Advised Fund". (Quite flexible and EZ to add to in high earnings / high tax yrs)
Heirs (subsequent trustees) can designate gifts as they choose. (or as you specify in transfer agreement)

Both Vanguard and Fidelity Charitable offer the service + local community foundations (Vanguard and Fidelity allow you to control the investments +/-; as well as designate the gifting, as well as use systematic gifting (annual / qtrly... $500 minimums) Very simple, very convenient, very handy doing annual gifting; very useful as a personal tax planning tool.

https://www.vanguardcharitable.org/
https://www.fidelitycharitable.org/

You might want to take a semester and attend your chosen higher edu establishment. I did that and was REALLY disappointed in what was being delivered (quality of current tenured profs) and the quality of the 'entitlement' students (?) who were attending (filling chairs).

Then.... I have recently been asked to interview new technical "college hires" Oh MY!!! (I sold what little stock I had remaining in this company )

Stuff (EDU and medical) has really changed!

[JIMANDTHOM]

Thanks all.

I wish we were high net worth or income but we did OK. We are not really concerned about the tax benefits although won't forgo them either.


This is very much a give back to our alma mater and with the hopes that it can help our little corner of the UP.

Thoughts have been to
1-- make it course of study specific (probably Nat Resource/Sciences) The greatest wealth we have up here is in our water and wilderness etc.
2-- also thinking of making it more for students/trolls from "down below" the Mackinaw Bridge
3-- initially fund with 5-10K
4-- provide 2 scholarships each semester of 500-1000 each and add extra funding each year to rebuild the total. This would be at the start.

We will have a better idea of the final/total amount, in a couple of years, after we are done with the remodel of our new/old house. We are putting way more into it than we shall ever get back, but trying to make it work for our "last house".



Anyway please keep the thoughts and recommendations coming.

[StealthRabbit]

Yes, you can do the small scholarships to local U, and specify it to environment and local students (Community foundations do this too, and probably the infrastructure is ALREADY in place at your U or the local community foundation) For less that $10,000 annual gifting, you want to do something that already has capability, and not burden the staff / procedures.

the Charitable Trusts / Donor advised funds have $1000 - $5000 minimums and $500 / yr minimum distributions. (and MICRO fees / overhead)
https://www.fidelitycharitable.org/faqs.shtml#start


We initially were in a Community Foundation, but it was very expensive, had terrible 'earnings returns', and became inflexible.

For a rant discrediting Charitable Trusts and Donor Advised funds, here is an article written by a college aligned prof named Madoff. (our Community Foundation got very angry and testy when we transferred to Vanguard... & I knew why... Taking away their pig trough / ez money)
https://www.philanthropy.com/article...les-for/153809

We started small, and over the yrs of employment and distributions / property sales we grew our foundation to be self supporting for perpetuity. (or 100% can be gifted out tomorrow). It will also be a very useful tool if we ever reach RMD age.