What is a Scholarship Endowment and How do they Work?

Endowments are long-term investment accounts with a minimum balance requirement. The Virginia Tech Foundation endowment accounts invested with the intent that the principal of the original gift can be used to provide a perpetual stream of financial support to a scholarship. Each year a portion of the invested gift’s annual income is distributed in accordance with the guidelines set by the donor. In recent years, the annual income has averaged about 4.25% of the endowment pool’s market value, which then equates to around $2.2 million in annual income for the Virginia Tech Athletic Fund. Net returns in excess of the spending rate increase the market value of the endowment pool and are used to manage and grow the fund principal. The pool is invested over an infinite time horizon with the goal of maintaining the value in real terms and in turn providing a steady flow of income.

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How to Make an Impact

Endowed scholarships may be established with a minimum gift or pledge of at least $100,000. In turn, the gift may be made through a single gift or through installments pledged over a period of time (usually 5 years). Donors also have the opportunity to continue to fund their endowed scholarship after the original commitment is fulfilled as the income available for scholarships will increase with the value of the endowment.

Endowment gifts can be made through a variety of methods including cash (check or credit card), securities (stocks, bonds, mutual funds, etc.), and corporate matching gifts. Also, contributions made to establish an endowed fund are considered charitable gifts to the Virginia Tech Athletic Fund and are tax deductible.

Appreciation and Recognition

Virginia Tech Athletics and the Hokie Club will annually name a student-athlete scholarship recipient for the endowed scholarship in accordance with the criteria (sport, position, area of academic study, hometown, etc.) established by the donor. An endowment fund that provides spendable income for a full scholarship will receive one student-athlete while all other endowments may share a student-athlete recipient if necessary.

Other Benefits:

  • Opportunity to name the fund in honor or memory of an individual or family.
  • Fund will be matched with a specific student-athlete recipient who’s life will be directly impacted every year in accordance with the criteria (may be shared if partial scholarship).
  • Gift will be recognized on the “Hokie Club Endowed Scholarship” wall in Cassell Coliseum.
  • Cumulative gift credit that will impact your rank based on the Hokie Scholarship Fund Priority Point System.*

*Your gift to endow an athletic scholarship at Virginia Tech is greatly appreciated! Please note that endowed scholarship gifts do not count toward any scholarship seating or parking minimums for football and/or men’s basketball. Only annual gifts to the Hokie Scholarship Fund go toward scholarship seating/parking minimums and activate Hokie Scholarship Fund Priority Point ranking.

For more information or if you are interested in established an endowed scholarship, contact the Hokie Club today!