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Named Giving Opportunity:

Named Scholarships

Endowed v. Non-Endowed | How to Set Up | Selection Criteria | Discrimination Policy | IRS Rules

Now is a great time to set up a scholarship endowment or support an existing endowment!

Pellissippi State was recently awarded a Title III Endowment Challenge Grant from the U.S. Department of Education. This grant will match every donation given to an endowment, dollar for dollar, up to $362,000.

Scholarships derived from endowments are derived from the endowment income. The corpus of the money that makes up the Endowment Fund cannot be used for any purpose other than investment.

The scholarship fund and the income from the endowment fund will be used to provide scholarships. The minimum gift amount for endowing a named scholarship is $15,000 pledged over a period of years, no longer than ten years.

GIVE NOW to double the value of your gift to the Scholars Today and Tomorrow Endowed Scholarships.

Scholars Today and Tomorrow (STT) is one of the Foundation’s existing scholarship programs. Gifts to support STT scholarships are split 35 percent for scholarships and 65 percent for endowment. See Scholarships for additional information on the Scholars Today and Tomorrow endowment and other scholarships.

Or GIVE NOW to double the value of your gift to Set Up and Name a New Scholarship Fund

Choose an Endowed Scholarship or a Non-Endowed Scholarship

Endowed Funds: the principal is maintained in perpetuity and the investment earnings are distributed according to the wishes of the donor. Endowed scholarship gifts are split 1/3 for scholarships and 2/3 for endowment unless the donor states a different preference. For a limited time, donors can double the value of their contributions to an endowed fund of their choice through the Title III Endowment Challenge Grant.

Non-Endowed Funds: restricted funds must be disbursed at the direction of the donor as indicated by criteria. Both principal and earnings may be distributed.

Take the first steps today to set up a Named Scholarship.

Named endowments and named funds must be established by a Memorandum of Agreement between the donor and the Foundation. You can give $1,500 a year for up to 10 years to set up a named scholarship endowment. Or you can set up a named scholarship that will be distributed to an eligible applicant each year for as long as you agree to fund it. A Memorandum of Agreement (Endowed) is used to establish a named endowed scholarship. A different Memorandum of Agreement (Invoiced) is used to establish a non-endowed scholarship.

Selection Criteria for Scholarships: Donor Options

In establishing an endowment or fund, the donor has the following options in specifying certain criteria for selection of an award recipient and/or purposes for the use of the funds given. We will work with you to ensure that the scholarship you support helps students in accordance with your desires.

Amount of Award

The cost for in-state tuition and books is approximately $1,500 per semester for full-time students at Pellissippi State. (This estimate is based on $1,207 for tuition and fees and $300 for books. Special fees, such as for private music lessons, certain physical education courses, graduation, and test fees—such as the ACT Test—are not included in this estimate). Current information on fees is available through the link below:
http://www.pstcc.edu/departments/business_finance/cashier/fees.html

Duration of Award

Do you want to award the scholarship for one semester or will it continue for subsequent semesters? A donor may request a preference associated with renewal of a recipient’s award(s) in subsequent semesters.

Frequency of Award

Do you want to offer the scholarship each semester or once per year?

Enrollment Status

Do you want the scholarship to be designed specifically for part-time students (students enrolled in less than 12 credit hours each semester)? The two sample agreements either require the student to be full-time or give preference to full-time students.

Year in School

Is the scholarship available to new students at Pellissippi State or do you want the recipient to have a specified class standing or to have completed a specified number of semester hours of college work?

Minimum Grade Point Average (GPA)

Is the scholarship available to all students or must they maintain “satisfactory progress” or a minimum GPA?

Program of Study

Is the scholarship available to all students or only to students enrolled in courses in a particular Pellissippi department or program of study?

Degree Sought

Is the scholarship available to all students or must they be specifically pursuing an Associate of Arts (A.A.) degree, an Associate of Science (A.S.) degree, an Associate of Applied Science (A.A.S.) degree, or a certificate?

Educational Goals

Do you require that the scholarship recipients intend to continue to a 4-year college or university after graduating from Pellissippi State Technical Community College, or is the scholarship directed toward students in a career/technical program? ( Pellissippi State offers 20 programs that prepare students for business and technical careers. These programs are designed for the student whose primary educational goal is entry-level employment or career advancement rather than transfer to a baccalaureate institution.)

Student Organizations

Is the scholarship available to all students or must they be members of a sponsored student organization at the College?

Employer-Sponsored Scholarship

A donor may request that applicant eligibility be limited to an employer’s employees and their spouses or dependents, provided that the population is sufficient to allow for consistent use of the award and further that final selection of recipients be made in accordance with policies of the Foundation.

Financial Need/Aid

Is the scholarship available to all students or must they demonstrate financial need?

Other Criteria

Donors who wish to include other criteria should discuss the criteria with the executive director of the Foundation or the director of Major Gifts before a Memorandum of Agreement is drafted. The criteria must not conflict with the mission of the Pellissippi State Foundation or the mission of the College (see http://www.pstcc.edu/misc/ppm/00-01-00.htm).

Policy on Discrimination

Foundation policy prohibits discrimination against recipients being considered for an award on the basis of race, religion, sex, age, national origin, color, disability, or any other basis prohibited by federal, state, and local laws and regulations.

IRS Rules for Charitable Deductions

The Internal Revenue Service will not recognize a contribution for charitable tax deduction if the donor retains any control over the gift funds or how they are used. Therefore, a donor may not participate in the selection of scholarship or award recipients or structure the criteria so narrowly as to limit selection to a small population comprised solely or primarily of individuals related to the donor or that the donor would choose without this restriction.

Link to Foundation Office Endowment Guidelines

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