Connecticut Architecture Foundation (CAF) Endowed Scholarship Funds
CAF endowed scholarship funds are designed to be permanent and perpetual. They can also be created with gifts totaling a minimum amount of $25,000, contributed in full at the outset or with an initial commitment that is added to over time until the endowment level of $25,000 is attained. The principal of the fund is invested to produce income, and an annual award is made to a student or group of students. The principal stays untouched, so the endowment can last into perpetuity.
Endowed scholarships named to memorialize someone are one of the most common forms of philanthropy. Providing funds for students to complete an education is not only a worthy charitable cause, but the endowment creates a scholarship in perpetuity. Which means the foundation invests the financial gift and uses the return on the investment to fund scholarships. CAF uses a financial advisor to invest and monitor the funds.
Generally, a contribution of at least $25,000 to $50,000 is needed to set up an endowed scholarship, which will provide an award every year in the future.
Bear in mind the amount of the scholarship is based on the return on investment from the endowed principal. If the initial gift is $50,000 and the investment nets a 5 percent profit in the first year of the endowment, then the available scholarship money is $2,500 for the year. To avoid spending the principal, the endowment will have to grow at an annual rate of 5 percent to keep the $2,500 scholarship constant from year to year. The foundation may advise rolling over a portion of the annual investment returns to build the endowment and, over time, increase the scholarship’s annual value or to create funds for additional scholarships.
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 the CAF Foundation. 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 or planned gifts are another way to establish a scholarship without affecting your current income or assets.
Frequently Asked Questions
How are CAF Foundation scholarships named?
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, organization or a favorite faculty member.
How is the selection criteria established for the scholarship I am establishing?
You can aid in establishing the scholarship criteria by expressing your intentions for the award. The CAF Foundation will draft the scholarship criteria according to your specifications and present it to you for your approval.
How are CAF Foundation scholarships awarded?
Foundation scholarships for current students are advertised on our web site; applications are collected online. A selection committee carefully reviews each application and selects the most deserving recipient(s) based on the established criteria.
Will I receive notification when a student is awarded the scholarship?
Yes. You’ll be notified annually when the scholarship recipient(s) has been selected. You’ll be informed of the name and university of the recipient, as well as the amount of the award and status of the fund.
Ready to Get Started?
Leave a legacy to future architects, while honoring family and friends by creating a named scholarship through the CAF Foundation. Contact us at email@example.com or 203-865-2195