(not asking for Money)

My Dad (class of '79) passed away a couple years ago, much earlier than expected. His TAMU buddies set up and Endowed Scholarship in his honor just after his passing.

TAMU states we have 5 years to get to $25k for this scholarship to be full endowed. And now approaching year 2, TAMU wants to see the funds at least $5k (no issue).

I was looking for some thoughts or opinions from anyone who may have done this and any advice you may have. We are totally ok if don't meet the $25k goal and not meeting the 'endowment' designation but would obviously like to. Short of re-asking people who donated, any thoughts?

So his buddies didn't fund the endowment scholarship they set up?

There is an agreement that someone (one of your Dad's buddies?) executed with TAMU Foundation which outlines the agreement. Suggest asking for a copy from the Foundation to know what will happen in the event it isn't fully funded, either in a single year or over the 5 year window.

Not sure of the details or your willingness to contribute, but Company matches are an easy way to set up an endowed scholarship when finding over 5 years. Essentially makes your cash out of pocket 50%

Ag CPA said:

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So his buddies didn't fund the endowment scholarship they set up?

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You could really read between the lines there, I applaud you.

Much appreciated I will look into this

Sorry about your Dad.

We have funded endowments. One of them has my Dad's name on it.

Option 1
Set up an auction through your local A&M club. Get local businesses to donate items to be used to fund scholarships.
Throw a huge party. This is lots of work.

Option 2
Golf tournament with local A&M club with proceeds benefiting the endowment.

Option 3
Bbq fundraiser . $30 a plate and watch an Aggie sporting event together.

If you only have 2 or 3 really dedicated people you can make it happen.

One thing we did for a couple of year for my grandfathers and grandmothers endowed was to not do Birthday/Christmas gifts for a couple of years and instead gave to the scholarship fund.

Trap shooting fund raisers are fun too.

So you give the University 25K and that's for a perpetual scholarship? That doesn't seem like very much money. Are they matching it with bags of cash from the PUF or what?

PeekingDuck said:

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So you give the University 25K and that's for a perpetual scholarship? That doesn't seem like very much money. Are they matching it with bags of cash from the PUF or what?

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It's not a full scholarship, if that's what you mean.

Probably just throws off $500-1,500 a year for awards depending on the returns on the $25K, not sure how they invest it.

I guess the good news is that A&M can't take that $25K and blow it on something useless (which they are good at), it always remains to generate income for scholarship awards.

I see, yes - that's what I was wondering.

Matching gifts are the best way. BoA for example matches up to $5K, you can fund a $25K ES for half price. But it is going in his class name, if it were me I'd fund it out of the estate in his name only. If he has IRA's with an RMD due you'll get a tax break. As an aside Aggie Rings for Vets is also $25K, has a bigger impact IMO.