What is an Endowed Scholarship?
Once funded, a permanent scholarship fund produces an annual income in perpetuity. Assuming for example the endowment grows at 8% per year, about 5% of the fund balance would be awarded to students annually.
What is the minimum gift needed to establish a scholarship fund?
Currently, a minimum of $50,000 is needed to establish a permanent scholarship.
What is the difference between a permanent scholarship and a 10-year term scholarship?
Once funded, a permanent scholarship fund produces an annual income in perpetuity. Assuming for example the endowment grows at 8% per year, about 5% of the fund balance would be awarded to students annually.
How long do I have to meet the minimum funding requirements?
You have up to five years to meet the minimum funding requirements.
Can I establish a scholarship in memory of a loved one or to honor a special person?
Yes. You may select the name of the scholarship fund (e.g. John A. Doe ’40 Memorial Scholarship Fund).
What is a Memorandum of Understanding?
A Memorandum of Understanding, or MOU, is the document that describes how the scholarship will be initially funded and awarded over time. Norwich staff will work with you to create this document. You may limit scholarship awards by:
● Academics (i.e. course of study, academic major, etc.)
● Lifestyle (i.e. civilian or Corps of Cadets, on-line programs)
● Class (i.e. freshmen, sophomores, juniors or seniors)
● Region (i.e. residents of Vermont)
● A scholarship fund with too many restrictions may go unused, so please consider keeping any limits as flexible as possible.
Note: Scholarships are awarded only to those with a demonstrated financial need. NCAA regulations prohibit athletics scholarships for students participating in Division III sports.
I know a student who would be perfect for my scholarship; can I select my own recipient?
IRS regulations prohibit donors from selecting the student who will benefit from their scholarship.
How are scholarship funds managed by the University?
Scholarship funds are added to University’s pooled endowment, which is professionally managed and invested. The Board of Trustees determine endowment payouts using a three-year moving average of the endowment’s market value multiplied by Board-determined percentage which has historically been five percent (5%).
What is the scholarship awarding process?
To qualify for a scholarship, students must first apply for financial aid using the Free Application for Federal Student Aid (FAFSA). Doing so will allow students to be considered for all types of financial aid, including scholarships. The Office of Financial Aid, under the supervision of the Chief Financial Officer, then identifies and selects students with financial need who qualify for your scholarship.
The student(s) awarded your scholarship are then sent a financial award letter naming all sources of their financial aid, including the scholarship award.
Do scholarship awards reduce other types of financial aid available to the student?
Using federal guidelines, financial aid is defined as the difference between the University’s total cost of attendance and the student’s Expected Family Contribution (EFC). This difference is then reduced by grants, scholarships and other forms of non-federal student financial assistance, which includes any Norwich scholarship.
Since a Norwich scholarship reduces the student’s financial need, Norwich must then reduce the other sources of financial aid it provides to the student.
What information can I find out about my recipient?
The Family Educational Rights and Privacy Act (FERPA) allow students to keep their “Directory Information” private. If the student chooses not to keep their information private, each year you will receive the student’s name, class year, residency, and academic major if they are in the residential programs. Our on-line programs have stricter privacy guidelines, so student information will be limited. Norwich encourages scholarship students to write thank-you notes to donors and to share a bit about their background, interests, and professional goals. Through these interactions, lifelong friendships have developed.
How will Norwich keep me informed about my scholarship?
Each year, Norwich will send you, or a designated person, a report that includes:
● Recipient name and their Directory Information (for residential programs)
● Book Value: total of all gifts made to your fund
● Market Value: fund balance after investment performance, deposits and withdrawals
● Fund Payout: Scholarship award for the academic year
You will also be invited to the Annual Scholarship Dinner held each spring. This is a wonderful opportunity to meet fellow donors and the students who benefit from your generosity.
