Named and endowed scholarships give donors an opportunity to celebrate their commitment to education and golf. These special scholarships provide an enduring legacy for individuals, families and organizations to pay tribute to an individual or achievement. Named scholarships funds consist of temporarily restricted assets, while endowed scholarship funds are made up of permanently restricted assets so that they may be awarded in perpetuity.
The Endowed Scholarship Program was created to provide an ongoing, permanent source of funding for future scholarship recipients. Endowed Scholarships Funds are comprised of permanently restricted assets. Named Scholarships are similar to endowed scholarships in that they offer a wonderful way to pay tribute to a loved one or honor someone with a love of golf and education. Like endowed funds, they are subject to donor-imposed restrictions. Named scholarship funds differ in that they are not permanent funds, but rather, temporarily restricted assets. Temporarily restricted funds are intended to be totally expended for a specific purpose over a period of time. From memorial contributions to birthday celebrations and other events, there are many ways to establish a named scholarship. There is no minimum amount required to establish a named scholarship.
Who should endow a scholarship? Prospects for sponsoring scholarships are many: individuals that have spent their lives in service to golf, families that have been prominent in the game and/or are active golf supporters, or any individual or institution with a love of the game, a recognition of the benefits of higher education and an appreciation of the financial needs of less fortunate college bound young men and women.The ideal candidate is an individual, family or organization that has a love for and appreciation of the game of golf, and would like to provide a permanent memorial by creating a scholarship in their name.
How will donor contributions be recognized? With the donor’s permission, the CSF will announce the establishment of the endowed fund to the local and golf media. Annually, the recipients of the scholarship will be announced to the press. Donors will receive a special item of thanks. Each year, the fund will be listed in the Annual Report of the CSF, showing the current recipient(s).
What connection will donors have with the Scholarship Fund going forward? Each year, donors will receive information from the CSF regarding the candidates for that year’s award, describing the candidates’ service to golf and personal profiles. Once an awardee is determined, donors will be welcomed to congratulate the scholarship recipient. From time to time, donors and scholarship recipients might be brought together at a social event sponsored by the CSF.
How will a donor’s philanthropic goals be achieved? The Program allows donors to “personalize” a scholarship by determining those issues which are most important to them, and to direct funds to be used in a targeted fashion. For example, donors might require that the recipient(s) of their fund be affiliated with a particular member club, or reside in a specific geographical area (such as inner city youth), or pursue a designated line of study. One hundred percent of the funds contributed will be invested and one hundred percent of the income from those funds will be paid out in scholarships.
How will the investment principal of the scholarship funds be invested? The CSF Investment Committee oversees the investment of the funds. The conservative principles guiding the investments are set forth in the CSF Investment Policy and Guidelines, which is available upon request. Investment results are reviewed quarterly and are audited and reported annually. Donors will receive an annual summary of their fund’s activity, including investment results, awards made and current balances.
How large is the scholarship award in any given year? Generally, 5% of the principal amount of the endowment is made available for the award(s).
What does a donor have to do to get started? The donor and the CSF will enter into an Endowed Scholarship Program Agreement, which stipulates the details of the scholarship and the obligations of both parties. Funding methods will be agreed upon and the fund will be established as soon as funds are received by the CSF.
How may initial contributions be made? There are many different ways to establish and make initial and ongoing contributions to an Endowed Scholarship Fund. To establish a new endowed scholarship, an initial minimum commitment of $50,000 is required. This amount can be contributed all at once, or can be contributed over a period as long as five years. There are several methods of funding an Endowed Scholarship Fund.
Cash Contributions can be made with a one-time contribution or can be funded over a period as long as five years. Cash contributions are fully tax deductible. Appreciated Stock or Other Assets allow donors to capture certain tax advantages. The CSF will sell the stock or asset and credit the donor’s endowed fund with the proceeds. The donor will be allowed a tax deduction for the sale value of the asset. Planned Gifts: Donations from family Charitable Foundations, Charitable trusts or other 501(c)(3) funds may be used to fund endowed scholarships. Memorial Donations: Naming the CSF and, more specifically, the Endowed Scholarship Program of the CSF in an individual’s will, can provide the basis for the establishment of an Endowed Scholarship Fund. Often, contributions from friends and loved ones, when added to the direct bequest of the deceased, can form the nucleus of the Endowed Scholarship Fund. Memorial Tournaments: What better way to honor a deceased love one than to conduct a memorial tournament in the sport he or she so loved and to use the proceeds to establish an Endowed Scholarship Fund. Our staff stands ready to provide guidance and assist in such an effort.
If you would like to learn more, please contact Johanna Gavin, Senior Director at 914-347-2340.