Establish a Named Fund
One of the most popular ways to help students and the school is through a named fund, which can be set up by an individual or a group of donors. These funds often have a specific purpose based on the intent of the donor to help students and support numerous programs at the school. These funds are also a way for donors to maintain personal contact with students.
Alumni & Friends oversees more than 160 named, or endowed, funds that provide grants, scholarships, and other benefits to the school and its students. An endowed fund is typically given in the name of the donor, friend, former faculty member, relative, or the donor’s graduating class. The scholarships from these funds are made on the basis of need, talent or any other legal criteria in accordance with the donor’s wishes. For student awards, faculty members recommend a student that meets the fund’s criteria and each of these recommendations are vetted through the Grants Committee of Alumni & Friends of LaGuardia.
The scholarships are given to students or programs each year. Each student who receives an award is asked to write to the donor and provide a picture and samples of his or her work, if possible. We have seen many heartfelt and grateful letters that donors have received.
We strive to retain the fund’s principal through careful investment management and we expect these scholarships to be awarded in perpetuity.
How to Set Up a New Fund
A new fund will be considered endowed once it has reached $15,000. Awards will be made one year after the $15,000 minimum is reached. A minimum contribution of $2,000 is necessary to initiate a new “fund-in-formation.” A&F will aggregate and manage funds-in-formation for two years from the date of the initial contribution. If the fund reaches the $15,000 minimum by that time, it will be considered permanently endowed and scholarship grants will commence. If it has not reached that level, the funds will be transferred into A&F’s general endowment, which annually provides scholarships to the school and its students.
Awards are given to a student or a program which meets the criteria you set, and are made equal to 4% of the principal amount. For example, a fund with $15,000 will distribute $600 annually, and a fund with $100,000 will distribute $4000 annually. The amount of future awards may vary based on market conditions. Additionally, A&F deducts an annual management fee in the amount of 1.25% of principal. For funds over $25,000, the fee is reduced to .75%.