Establishing a Scholarship
Creating a scholarship is one way you can assist students and leave a legacy at Texas A&M University - Kingsville. It can also be a meaningful way to honor family and friends. If you would like to set up a scholarship or have questions you would like to ask a University representative, you can do so HERE or by calling (361) 593-3917. The following are some basic steps taken to establish a scholarship at Texas A&M University - Kingsville:
Step 1: Determine the Type of Scholarship Fund
The first step is to determine whether you would like to establish an "annual" scholarship or an "endowed" scholarship:
Annual Scholarships can be established with an outright gift as low as $1,000. Unlike an endowed scholarship described below, an annual scholarship is not a permanent fund and is awarded only as long as you (or others) choose to contribute to the fund.
Endowed Scholarship funds are designed to be permanent and perpetual and can be created with gifts totaling a minimum amount of $25,000 if invested through the Texas A&M-Kingsville Foundation or $10,000 if invested through the Texas A&M University System, contributed in full at the outset or with an initial commitment that is added to over time until the gift level of $25,000 is attained. The contributions may be invested in two ways:
Texas A&M - Kingsville Foundation pools endowments to create an investment fund and shares, on a pro-rata basis, in the earnings from the investment of the funds. The principal of the fund is invested to produce income, and an annual award is made to a student(s). The principal remains untouched, so the endowment can last into perpetuity. Annual award amounts vary based on a sixteen (16) quarter outlook of the investment as well as the invested amount reaching 110% of its value.
Original Investment of Endowment: $50,000
Value of Investment over Time (once reaching 110%): $55,000
Sample award payout given a 4% average over sixteen quarters: $2,000
Texas A&M University System endowments function similar to those established through the Texas A&M University-Kingsville Foundation. However, funds are pooled among all Universities that are part of the Texas A&M University System and disburse earnings based on a twenty (20) quarter average.
Step 2: Establish Scholarship Criteria As a scholarship donor, you choose the name of the scholarship as well as the criteria. The Office of Alumni & Development is available to help you create the criteria of the scholarship. Endowed and annual scholarships at Texas A&M University - Kingsville are awarded to deserving students based upon area of field of study, merit, financial need, academic achievement and/or other criteria that does not conflict with law or policy. The university must agree to special award conditions established by the donor for this reason.
Step 3: Administration of Scholarship Funds
Typically, a selection committee carefully reviews the scholarship applications submitted by students and selects the most deserving recipient(s) based on the donor-established criteria.
Major contributors of a scholarship fund will be notified annually when the scholarship recipient(s) has been selected and will be informed of the recipient(s), as well as the amount of the award. Recipients will be asked to write a thank-you note to the donor and will have the opportunity to meet at an annual scholarship dinner hosted on the Texas A&M University-Kingsville campus each academic year.
An outright gift in the form of cash or appreciated securities will allow you to receive immediate tax benefits in the year you make the gift to Texas A&M University-Kingsville. In the case of appreciated securities, you may also avoid capital gains taxes.
You can also provide for your scholarship in your estate plans. Estate gifts are an easy way to establish a scholarship without affecting your current income or assets.
Frequently Asked Questions
How are university scholarships named and how is the selection criteria established?
The major benefactor of a scholarship establishes the scholarship name. You can establish a scholarship in your own name or choose to name it for a friend, family member or a favorite faculty member for example. You also aid in establishing the criteria by expressing your intentions for the award. The university will draft the criteria according to your specifications and present it to you for your approval as part of a partnered agreement.
How are university scholarships awarded?
Scholarship timelines are advertised on a Texas A&M University-Kingsville website and student data is collected through various application models each academic year (online, paper, etc.). Students are then matched with qualifying scholarships through official University data collection and processing. The University Scholarship Committee reviews and approves awards based on student scholarship packages and best qualifying students according to criteria outlined in the scholarship agreement. Student recipients are sent award packets through either the Student Financial Aid Office or from the College to which the student was enrolled.
Special Note: Guidelines will be reviewed annually and are subject to change based on: tuition rates, government assistance and market value/performance.
If you would like to discuss setting up a scholarship or endowment, contact our Alumni & Development office HERE.
This page was last updated on: August 23, 2013