What is a Scholarship Fund?
A permanently restricted account established at MBF by a donor that regularly distributes earnings from the Fund to award scholarships. Often, these special endowments bear a name in honor or memory of an individual or family.
A donor wants to make a gift that will provide support for educational scholarships through a perpetual stream of income. The donor may wish for the scholarships to be awarded to students attending a particular educational institution or to students studying for a particular degree. There may be a desire to allow for additions by family or friends to grow the scholarship fund.
Donor and MBF develop an agreement that will govern the scholarship fund account. Donor initiates the fund with an immediate contribution and/or by making provision in their estate plans to make contributions from the estate distributions.
Reliable Stream of Scholarships to Worthy Students – Some donors plan to grow their scholarship fund to an amount that will produce annual scholarships of a particular dollar amount.
Multiple Giving Opportunities – Contributions may be made in varying amounts at many different times and from many contributors during the donor’s lifetime and in the years beyond. Additions may also be made by estate bequests. Gifts may be made in the form of cash, financial securities, mutual funds, real estate, life insurance and retirement fund designations, and many other ways.
Tax Deductions – Contributions made during lifetime may qualify for federal income tax deductions. Additions from an estate settlement may qualify for federal estate tax deduction