Establishment of Endowment and Scholarship Funds

It is the 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 naming funds.

In order that the Delta State University Office of Advancement may properly administer current use and endowment funds, a set of guidelines must be written and approved by representatives of the donor, and the Vice President for Advancement. The guidelines can be detailed or broad in scope.

Gift Levels: giving levels that offer donors choices in the form of pre-set dollar amounts.

Endowment Funds: a fund that is invested to provide long-term support for a cause in perpetuity. A portion of the fund is made available annually while the remaining assets are retained in the fund to provide for growth over time.

Open Funds: a fund that can continuously raise, invest, and distribute capital for as long as the fund is in operation.

Current Use Funds: a fund that can be completely expended during a short period of time and its use can either be restricted or unrestricted.

Fund Restrictions: restricted funds are assets given not to be spent on various projects or initiatives, but are used to fund specific projects or programs. Unrestricted funds are donations that may be used for any purpose so long as it meets the aims and objectives of the Foundation’s mission.

Establishing a Current Use Fund (Scholarship or Program Support)

Current Use Scholarship

Current Use scholarships may be established through the DSU Foundation with a minimum gift of $1,000. The Office of Advancement coordinates the donor’s intent with the college/school or unit and with the Department of Financial Aid and Scholarships. Guidelines must be developed for every scholarship and copied to all parties involved. Scholarships are open funds and may receive additional gifts through cash, bequests, trusts, etc. Donors may provide specific requirements for scholarships; however, due to certain tax laws, the Foundation will not accept scholarship gifts by which recipients are selected by the donor. Therefore, a University approved scholarship committee administers the awarding of all scholarships. This practice protects both Foundation and the tax deductibility of the donor’s gift.

Current Use Scholarships are awarded as contributions are received. No earnings accrue to a current use scholarship.

Guidelines for a current use 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 a current use 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.

Current Use Program Support Fund

A Current Use fund for the purpose of supporting a specific College or Program at Delta State University may be established at the DSU Foundation with a minimum gift of $1,000. The current use fund balance is available for disbursement at any time at the request of the appropriate University personnel.  All expenditures must be approved by the appropriate Dean, Chair, Director and also the appropriate Vice President or Athletic Director.

No earnings accrue to a current use program support fund.Each new program support fund will be established by completing a program support fund request with the Office of Advancement and approved by the appropriate authorizing personnel.

Each new program support fund will be established by completing a program support fund request with the Office of Advancement and approved by the appropriate authorizing personnel.

Establishing an Endowed Fund (Scholarship or Program Support)

Endowed Scholarships

The establishment of an endowed scholarship requires a minimum 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.  The established guidelines must 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.

Endowed Program Support

Endowment funds for the purpose of supporting a specific College or Program at Delta State University may be established through the DSU Foundation.  An annual allocation for expenditures of funds is made based on the average of the previous 3 years ending fund balances.  All expenditures must be approved by the appropriate Dean, Chair, Director and also the appropriate Vice President or Athletic Director.

Responsible Office and/or Policy Owner: Office of Advancement

• Endowment Guidelines
• Current Use Scholarship Guidelines

Active

Revised/Approved by Academic Council: 04/25/2019
Revised/Approved by Cabinet: 05/22/2019; 08/21/2023