Establishing a Scholarship

Guidelines for Establishing a Scholarship

Creating a scholarship is one way you can assist students and leave a legacy at Texas A&M University-Kingsville. It's also a very meaningful way to honor family and friends.

The following are the steps taken to establish a scholarship at Texas A&M University-Kingsville:

Step 1: Determine Type of Scholarship Fund

The first step is to determine whether you would like to establish an "endowed" scholarship or an "annual" scholarship:

Endowed Scholarships

Endowed scholarship funds are designed to be permanent and perpetual and can be created with gifts totaling a minimum amount of $25,000, contributed in full at the outset or with an initial commitment that is added to over time until the endowment level of $25,000 is attained. The contributions will be added to the Texas A&M University-Kingsville Foundation pooled investment fund and will share on a pro-rata basis in the earnings from the investment of the funds. The principal of the fund is invested to produce income, and an annual award is made to a student/s. The principal remains untouched, so the endowment can last into perpetuity.

Annual Scholarships

Annual scholarships can be established with an outright gift of $1,000. Unlike an endowed scholarship described above, an annual scholarship is not a permanent fund and is awarded only as long you (or others) choose to contribute to the fund.

Step 2: Establish Scholarship Criteria

As a scholarship donor, you choose the name of the scholarship as well as the criteria. The Office of Advancement is available to help you create the criteria for your scholarship. Endowed and annual scholarships at Texas A&M University-Kingsville are awarded to deserving students based upon area of field of study, merit, financial need, academic achievement, and/or other criteria. The university must agree to any special award conditions established by the donor.

Step 3: Administration of Scholarship Funds

Typically, a selection committee carefully reviews the scholarship applications submitted by students and selects the most deserving recipient(s) based on the donor-established criteria. Major contributors of a scholarship fund are notified annually when the scholarship recipient(s) has been selected and are informed of the recipient(s), as well as the amount of the award. Recipients write a thank-you note to the donor, and will have an opportunity to meet at an annual scholarship "donor thank-you" event.

Tax Benefits of Funding a Scholarship

An outright gift in the form of cash or appreciated securities will allow you to receive immediate tax benefits in the year you make the gift to Texas A&M University-Kingsville. In the case of appreciated securities, you may also avoid capital gains taxes.

You can also provide for your scholarship in your estate plans. Estate gifts are an easy way to establish a scholarship without affecting your current income or assets.

Frequently Asked Questions

How are university scholarships named and how is the selection criteria established?

The major benefactor of a scholarship establishes the scholarship name. You can establish a scholarship in your own name or choose to name it for a friend, family member, or a favorite faculty member. You also aid in establishing the criteria by expressing your intentions for the award. The university will draft the criteria according to your specifications and present it to you for your approval.

How are university scholarships awarded?

Foundation scholarships for current students are advertised on the Texas A&M-Kingsville website and applications are collected online. Typically, a selection committee carefully reviews each application and selects the most deserving recipient(s) based on the established criteria. Foundation scholarships available to incoming freshmen are awarded by the Financial Aid Office.

Will I receive notification when a student is awarded the scholarship?

You will be notified annually when the scholarship recipient(s) has been selected. You will be informed of the name and hometown of the recipient, as well as the amount of the award and status of the fund.