Establishing a Scholarship or Award

Philanthropy and education have long worked hand in hand in the United States. From the legendary Andrew Carnegie to Brewster’s own C. V. Starr, private contributions to public schools have allowed educators and students alike the opportunity to expand their horizons, extend their resources, and reach ever higher levels of academic and personal achievement. 

The Brewster Education Foundation (BEF) builds off this legacy by raising funds for K-12 academic innovation and post high-school scholarships. Endowed awards are the primary monetary foundation for scholarships and awards. Using criteria established jointly by donor and the Foundation, endowed scholarships and awards allow students and teachers to receive the benefit of your generosity for many years to come. 

While the most common award is a money scholarship given at high school graduation, there are several types of endowments possible. For example, your award can provide the opportunity for a student to attend leadership training, a scientific competition, or other educational activities that have profound effects on students’ learning and maturity. BEF will work closely with you to achieve your vision for your endowed award.

 

What is an endowment?

An endowment is a permanent fund of money specifically held to pay for a scholarship or award. Endowments are invested to grow the principal endowed amount. The resulting interest from the invested funds is used as the capital that pays out a scholarship or award. This allows asset allocation without significant risk to the endowment principal. Each endowment is accounted for separately in the Foundation’s financial management. This ensures proper stewardship for all endowed funds.

Based on the size of your award and how often the donor wants it distributed, a fund endowment will be established. These funds are typically named to honor an individual, although the fund name is completely at the donor’s discretion. Tax deductible contributions to the endowed fund can come from you and others, now and in the future.

 

How do I establish an endowed scholarship or award?

The first step is to notify the Foundation of your desire to establish an award. Then, review the checklist below:

Contact BEF to share your desire to endow a scholarship or award

Schedule a meeting with BEF representatives to talk through your goals and timeline. Some things to think about before the meeting are:

  • Official name of the award

  • Type of award (scholarship, funding for an activity, etc.)

  • Amount of the award

  • Do you want to contribute now, or schedule contributions over a longer timeframe?

  • Eligibility criteria

  • What you would like the recipient to know about the honoree

  • Whether you want to participate in the recipient selection and/or the award presentation

  • Whether you want others notified to contribute to the award 

Typically, establishing an endowed fund can be completed in one meeting.  

How much should I endow?

Larger Investments, coupled with a higher rate of return will obviously result in a greater annual dollar award. Clearly, annual rate of return on investment will dictate what the yearly scholarship award will be. Our funds are invested conservatively, by a money manager, to insure that we maintain the endowment in perpetuity.

$5,000.00 is the minimum amount necessary for an endowment for an annual award. Donations received totaling less than this can be handled in two ways:

  • distribute the funds in one or more years until the fund is exhausted; or

  • invest the funds while soliciting additional donations, and begin the award at a later date 

The Foundation will manage both the funds and the granting of the award. You get to take satisfaction in your philanthropy and know that you have made a difference in students’ lives.

 

Recognition

Your endowed scholarship or award will be listed with all other Foundation awards on our website, in our literature, press releases, and other publications. Each year’s recipient will receive a biography of the honoree that can contain, if you desire, a contact address for a communication from the recipient.