Calumet Educational & Literary Foundation, Inc. Proudly encouraging and helping young adults pursue their educational goals P.O. Box 2085, Augusta, Maine 04338-2085
Guidelines on Starting a Scholarship
Establishing a scholarship is actually quite easy, and it is a most wonderful way to ensure that someone special will be remembered forever. While many of our scholarships are named in honor of those who have passed on, a scholarship can also be done for one who survives.
The simplest way to start a scholarship is to make a tax deductible lump sum contribution that will yield an annual income from its investment. The return on the principal will be awarded annually. For example, the family of Ernest J. Couture, namely Cleo and Alice Townsend Couture, generously donated $100,000 several years ago. This sum was added to other contributions the family made in funding a smaller existing scholarship. This money is conservatively invested by professional investment advisors hired by the Foundation Trustees. In 2014, this endowment generated almost $3,600 to be given out in scholarships to deserving students.
Using this as our working example, you can see that if someone wanted to establish an annual scholarship award of $1,000, the Foundation would currently be required to invest close to $30,000, depending on the method of investment employed.
From time to time, additional money is added to various scholarships. This raises the principal sum and yields a greater investment. As a result, the annual award can be increased without ever decreasing the principal. The Robert Fuller Scholarship is a good example. Over the years, Mr. Fuller has personally made additional donations, and the annual award which was once $200 is now in excess of $6,000!
Scholarships can also be started with smaller amounts contributed in annual installments. The Gerald Rancourt Scholarship is an excellent example. In 2005, $2,275 was raised at an annual event, and it was anticipated that future year contributions would be at similar levels. In 2014, the endowment fund had reached $12,386. In a few more years, it is anticipated that the fund will be able to increase its award from the minimum amount of $500 that has been awarded since its inception.
The individual or family that requests the establishment of a scholarship also selects the criteria for the scholarship award. For example, someone with a passion for music may want an annual award of $1,000 to go to a student already enrolled in college and majoring in music or maybe they wish for the award to go to a high school senior accepted to a college or university to major in music. The criteria can be specific or broad, and the Foundation officers will gladly provide guidance to help meet your desires.
The Foundation carefully administers every step of the scholarship including: fund management, application processing, candidate screening, selecting a recipient, and award presentation. Scholarship sponsors may be involved in one or more of these steps if they so wish.
For more information about starting a scholarship, please select the "contact us" button and get in touch with us. We will be happy to meet with you and answer your questions.
For more information on the scholarships we mentioned above or our other scholarships, please select the "scholarships and more scholarships" buttons.