CHAPTER ENDOWED SCHOLARSHIP PROGRAM
FACT SHEET
WHAT IS IT? An endowed scholarship program is a tax-deductible contribution to a Dollars for Scholars chapter for the purpose of using only the earnings from the principal of the contribution for the purpose of distributing scholarship awards.
CAN THE DONOR DEFINE THE USE OF THESE CONTRIBUTED FUNDS? Yes. The local chapter accepts restricted contributions for any purpose fitting within the mission of that chapter. In fact, special provisions are included within the endowment agreement that allows the Donor to work with the local chapter to establish his or her scholarship program.
CAN ENDOWED SCHOLARSHIP PROGRAMS BE ESTABLISHED THROUGH A WILL? Yes. There are many methods used for the establishment of endowed scholarship programs; a will is only one of them. The local chapter has the flexibility to work with the financial needs of all Donors in the establishment of an endowed scholarship program on a current or deferred basis.
CAN DONORS EVER RECEIVE THEIR CONTRIBUTION BACK? No. By law, any endowed contribution to a Dollars for Scholars chapter is irrevocable. This law allows all contributions to the local chapter to be tax deductible.
CAN ADDITIONAL CONTRIBUTIONS TO THE ENDOWMENT BE MADE? Yes. Any future contributions to the endowment will be tax-deductible by the donor and the earnings legally restricted according to the terms of the endowment agreement.
DO EARNINGS FROM THE ENDOWMENT NEED TO BE SPENT IMMEDIATELY? No. It is permissible to build the principal of the endowment to a specified level prior to spending the earnings for the scholarship program.
HOW DOES THE LOCAL CHAPTER INVEST THE FUNDS? All local chapter investments are controlled by the Governing Board of the local Dollars for Scholars chapter. Generally, all endowed scholarship funds are invested in conservative, interest-bearing securities such as U.S. Treasury Securities. The local chapter has an investment policy established by their Governing Board that is available to potential donors.
HOW DOES THE PROCESS OF ESTABLISHING AN ENDOWED SCHOLARSHIP PROGRAM BEGIN? A potential donor need only contact their chapter representative. The local chapter has all forms necessary to complete the establishment of the endowed program.
Any amount greater than $10,000 is needed to establish an endowment. Five percent of the amount endowed will be used for a yearly scholarship. For example, if a $15,000 endowment is established, a yearly scholarship of $750 will be awarded.
QUESTIONS? If you have any questions, you may contact the following members of the PSF Board:
Jane and Lonn Hanson 763-389-3743
Explanation of Scholarship Criteria
Use this information to fill in the Scholarship Form. Please mail the completed form to:
Princeton Scholarship Foundation
PO Box 462
Princeton, MN 55371
In February, you will receive a confirmation letter with all of your Scholarship Information. At that time, you will verify and make changes to your scholarship.
Criteria (You may determine what the criteria should be or if you prefer, you may elect to have the Scholarship Committee set the criteria.)
Princeton High School Senior (required)
Other Options to Consider (These are just suggestions; list what you feel is important)
Attend 2 year school, 4 year school or either
Male, Female
Pursuing a career in a particular field
Involved in Extra Curricular and/or Community Activities
Financial need a factor in consideration
2.5 or 3.0 High School GPA
Application Deadline is determined the Career Center each year.
Application Form: Princeton Scholarship Foundation uses an online application
Chosen by: The Scholarship Committee chooses the scholarship recipient anonymously, based on points earned
for activities, awards, work experience, essay, etc. but you may score an additional essay or question.
Additions to Application: If you would like to be a part of the selection process, you may require an additional
essay or additional letter(s) of recommendation that you will score anonymously.
Procedure for Collecting: Submit first marking semester grades and second semester tuition statement to:
Princeton Scholarship Foundation
PO Box 462
Princeton, MN 55371
A check is made out to the reciepent's college.
Scholarship Presenter: A family member or a representative from the High School
Notes: In this area, many people include a short paragraph about the person and/or reason for the scholarship.
