What is a scholarship fund? A scholarship fund is a tangible link to the future that helps others pursue their educational goals. A scholarship fund can serve as a tribute to a family member, alma mater or specific subject area. Scholarship funds provide access to quality education and learning opportunities, which help create and sustain healthy communities.
Value and benefits
Personal: A scholarship fund can be established in honor or in memory of a loved one or to reflect a particular interest. You can name it for yourself and/or your family or ensure anonymity.
Community impact: A scholarship fund can enable countless students to achieve their academic aspirations and provide an avenue for increased opportunities. In addition, the NCCF serves as your charitable-giving resource, providing due diligence to help you make wise scholarship recommendations and leverage the impact of your gifts.
Tax deductibility: Contributions to a scholarship fund are tax-deductible in the year the gift is made. Because the NCCF is a 501(c)(3) public charity, each gift receives the maximum tax deduction available under federal law.
Accountability: You will receive quarterly statements outlining all fund activity, including the fund balance, grants made, additional gifts received, investment returns and administrative fees.
Administrative ease and cost-effectiveness: Scholarship funds are designed to make charitable giving simple and efficient. The NCCF handles all fund maintenance, provides administrative support of the scholarship selection process and manages due diligence, record-keeping, investment oversight and tax reporting ─ all for a simple, low fee. There are no start-up costs for establishing a new scholarship fund.
Professional services: Professional services: A fund established with the NCCF is subject to our investment policies and will be administered expertly by professional investment managers selected by the Foundation’s Finance Committee. Funds, which have access to greater diversification, are pooled for investment purposes and are generally charged lower fees than if they were invested separately. All of this contributes to maximizing earning potential.
Lifetime gifts: A scholarship fund may be established now for charitable giving during your lifetime, and/or named as the charitable beneficiary of your estate, retirement plan, life insurance policy or other planned gift arrangement.
- Contact NCCF staff to customize a scholarship fund for yourself, your family or your organization.
- Name the scholarship fund whatever you choose.
- Make an initial contribution of $40,000 (additional gifts may be added at any time, in any amount).
- Your gift is invested.
- Establish criteria for scholarship eligibility in consultation with NCCF staff.
- Discuss potential scholarship committee members with NCCF staff.
- Conduct a scholarship process annually at your discretion.
- Grantmaking begins (the NCCF currently recommends an annual distribution of 4% of the fund’s average balance).
- There are no start-up fees; an administrative fee of the fund’s balance is charged annually.