Models for Need-Based Scholarship Support

Philanthropic Models for Scholarship Funds


Wentworth Institute of Technology has secured financial support for need-based scholarships using the following philanthropic models:

  • One-year current use gift to be spent within a year of the date of the receipt of the gift;
  • Multi-year current use gift to be spent within a specific period of time (typically up to five years);
  • Establishment of an endowed scholarship fund, with income to be spent annually once the fund earns at least $1,000; and
  • Endowed scholarship fund or a multi-year current use gift to be spent within a specific period of time, coupled with co-op opportunities for scholarship recipients at the donor’s offices. This model helps corporate donors to establish a pipeline for future employees.

Specific Information Related to Endowed Scholarships

Minimum Fund Amount

Wentworth has established a minimum endowment amount of $25,000. If the minimum amount is not attained within five years, Wentworth, after notice to the Donor, may convert the fund to current use.

Management and Investment of Funds

Every endowed fund will be established on the books and records of Wentworth as a separate fund for accounting purposes. The fund will be managed and invested by Wentworth on a pooled basis in accordance with investment policies and procedures of the Board of Trustees. Any unexpended income will be added to the fund balance at the end of each fiscal year.

Endowed funds may be supplemented by any other gifts that the Donor or others may designate as part of the fund, subject to approval by Wentworth.

Scholarship Award Process

The Office of Financial Aid will select the scholarship recipients and administer the endowed funds. Wentworth will make distributions from the endowed funds available to the Office of Financial Aid on an annual basis, in accordance with Wentworth’s spending rate policies in effect at that time. The designated scholarships will be distributed at the time the endowed fund earns at least $1,000 in a given fiscal year, and in each year thereafter, unless the fund goes “underwater.”

Scholarship Fund Criteria

For either endowed or current use scholarships, the Donor may designate specific, preferred criteria for selecting the student scholarship recipients. In case Wentworth is unable to select a student who meets all of the criteria in a given year, we include the following “opt out” language in all endowed fund agreements: “The purpose of the Fund will be to provide need-based scholarships to deserving Wentworth students, with preference for …...”

Potential criteria may include, but are not limited to:

  • Students majoring in specific departments;
  • Students coming from specific geographical locations or schools;
  • Students having specific minimum grade point averages;
  • Students having specific skill sets or qualities; and/or
  • Students participating in specific activities on campus.
Alternative Applications
 

If, in the judgment of Wentworth, it should become impossible or impracticable to fulfill the stated purposes of an endowed fund due to changed circumstances, operation of the law, or lack of students who meet the specified scholarship criteria, then the endowed fund will be used to support the mission of Wentworth in such a manner as will, in the judgment of Wentworth and the Board of Trustees, fulfill as nearly as possible the original purposes of the endowed fund.

Stewardship

Wentworth provides stewardship reports to all endowed fund and current use donors regarding the financial aspect of their funds as well as information about all scholarship recipients. Wentworth will also arrange for meetings and visits between donors and their respective scholarship recipients, if requested to do so by the donor.