Question 1

What is an endowed scholarship?

Accepted Answer

An endowed scholarship is a fund that provides ongoing financial aid to students through the interest earned on a large initial donation of $25,000 or more. The principal amount of the donation remains intact, and the earnings are reinvested to support future scholarships. This ensures that students can receive sustainable support for higher education.

If you are interested in starting an endowment please fill out the form on our Contact page or email contact@outforeducation.org.(mailto:contact@outforeducation.org)

Question 2

What is the minimum amount to create an endowment?

Accepted Answer

The minimum threshold for an endowed scholarship is $25,000. The goal is to give out 4% a year in scholarships (but could vary based on rate of return).  For example, a $100,000 endowed scholarship will enable Out for Education to give out $4,000 in scholarships each year. The principal is kept in the endowment, allowing it to grow in the future.

Question 3

Can I establish an endowment in my will or estate?

Accepted Answer

Absolutely. A new endowment can be created, or additional funds can be provided to an endowment you previously established.

Question 4

Can I specify certain recipients?

Accepted Answer

Donors can determine scholarship criteria (as long as it meets with board approval and Out for Education scholarship guidelines).

For example, the endowed scholarship could be for University of Houston students only, or only engineering majors. We suggest keeping any requested restrictions broad in nature in order to impact the greatest number of students.

Question 5

How many years do I have to fully fund the endowment?

Accepted Answer

The Endowed Scholarship can be funded over a period of 5 years. The year the endowment reaches $25,000, Out for Education will award a scholarship in honor of the donor from general funds.

The year after this threshold is met, the first ENDOWED scholarship will be awarded.

Question 6

Is my donation tax-deductible?

Accepted Answer

Out for Education is a 501(c)3 non-profit organization. Donations are deductible to the fullest extent of the law.