Endowment Implementation Guidelines

• Bylaws
• Policy Document
• Procedures
• Guidelines
• Form

Three Choices for Endowment

• Named Endowment

• Building Towards Endowment

• Doors to Opportunity Pooled Fund

Endowments may serve any area on campus and are often used to fund scholarships, to meet the priority needs of an academic department, or to provide enriched learning opportunities for students.

Although a minimum of $10,000 in gifts is required to establish an endowed fund, to provide as much assistance as possible to students, larger endowments are encouraged.

Additional gifts may be added to an endowment at any time to increase the support available to deserving students or other campus initiatives as identified by the donor.

Colleges and universities typically distribute endowment earnings annually in the range of 4 to 5 percent of the endowment’s market value. The Fredonia College Foundation currently makes 4.5 percent available annually. Earnings beyond 4.5 percent are used to grow the endowment’s market value to offset inflation.

One year after a fund becomes fully endowed the permanent and on-going awards process begins, according to the wishes established by the benefactors, through a signed Memorandum of Agreement.

Named Endowment

A highly effective way to offer lasting help to deserving students or campus departments is by establishing a named endowment with an outright gift in the amount of $10,000 or more, which can be accomplished via cash, transfer of stock, a bequest or a combination of these choices.

A Memorandum of Agreement is completed with the donor, and the award process and requirements are established.

Additional gifts may be added to the endowment at any time to increase the support available from the Named Endowment.

A Named Endowment is immediately featured in publications.

The first award is made for the academic year following four full quarters after the initial gift and begins a perpetual process of providing on-going focused assistance according to the wishes established by the benefactor though the Memorandum of Agreement.

Building Towards Endowment

To establish a Building Towards Endowment fund, an initial gift of $2,000 is requested, with a six-year time frame provided to reach the fully endowed level of $10,000.

While a Memorandum of Agreement is completed at the time of the initial gift, a description of the awards process is not published until the fund has reached the fully endowed level with $10,000 in gifts.

If the fund has not realized the endowment threshold within six years, the fund balance is then re- directed after discussions with the donor. The transfer may be to an appropriate fund in the foundation, as identified in the original Memorandum of Agreement, or to the Doors to Opportunity Pooled Fund.

Doords to Opportunity Pooled Fund

A third option for establishing a lasting legacy is offered through participation in a pooled fund. A gift of $1,000 gains entry into the Doors to Opportunity Pooled Fund where contributing donors will be acknowledged through use of either their name or the name of the account they are building.

Once a donor’s cumulative giving to the account has reached the $10,000 level, the funds may be moved from their account in the pooled fund to a traditional Named Endowment. Awards are made for an academic year twelve months after funds leave the pooled fund. This is done in accordance with the Memorandum of Agreement signed by the donor at the time the funds entered the pooled fund.

Donors may also elect to leave their account permanently in the Doors to Opportunity Pooled Fund, even though their giving total to the account exceeds the $10,000 threshold required for a separate named endowment.

Doords to Opportunity Pooled Fund awards process:

Awards from the pooled fund are made in the name of the Doors to Opportunity Pooled Fund and divided between scholarships (at a minimum of 50 percent) and other priorities established by the Fredonia College Foundation Board of Directors.