Establishment of Endowment and Scholarship Funds
It is the general policy of Delta State University that the Foundation approves the establishment and activation of named or memorial funds upon receipt of gifts by the Delta State University Foundation (DSU Foundation) as described herein.
The Foundation sets minimum gift level amounts and established approved guidelines for gift naming opportunities.
Delta State University, in all gift-naming opportunities, reserves the final right of approval for the name or names designated for any of the naming opportunities that follow. University approval cannot be granted until the donor’s name is known or until the name or names of the person or persons to be memorialized are known.
In order that the Delta State University Office of Development may properly administer endowment gifts, a set of guidelines must be written and approved by representatives of the donor, the Office of Development, and the University agency (college, department, discipline) that will be the recipient of the gift. The guidelines can be detailed or may be fairly broad in scope; however, certain elements of the gift and gift use should be a part of the document.
PROCEDURES and RESPONSIBILITIES
Two types of scholarships may be established:
The establishment of an endowed scholarship requires a minimum of gift of $10,000. Donors have up to three years to reach this minimum. Should the minimum amount not be realized within the three-year period, the scholarship will be distributed annually using interest and corpus until funds are exhausted. After it has been determined that an endowed fund is to be established, a fund number is assigned and guidelines are written.
The donor may have input into the establishment of guidelines as it pertains to gift use (academic discipline, classification, etc.), but cannot be involved in selecting the recipient. It is suggested that the guidelines not be so restrictive that they would present a problem in selecting a recipient. A draft of the guidelines is to be communicated, by the appropriate development officer, to the dean of the college/school receiving the scholarship. Original guidelines must be signed and dated by the donor, a University representative and the Executive Director of the DSU Foundation.
Endowed scholarships are established in perpetuity. The scholarships are awarded from earned income. Principal is invested in a pooled investment with earnings prorated and distributed. Additional contributions may be added to the principal after the $10,000 minimum is reached.
Each college or department is responsible for notifying the donor (if possible) when the scholarship is awarded. It is recommended that recipients also acknowledge the donor.
- Annual Scholarships
Annual scholarships are awarded as contributions are received. No earnings accrue to an annual scholarship.
Guidelines for an annual scholarship are established and approved by the donor and the DSU Foundation and presented to the college, department or unit where the scholarship will be located.
When an annual scholarship contribution is received, the funds are deposited into an appropriate account with the DSU Foundation. Once the recipient is selected, the University Office of Financial Aid is notified and the scholarship gift is applied to the student’s tuition and fees.
Interested persons are invited to contact the Office of Development for a copy of the annual scholarship and endowment guidelines.