Editor's Column: How to Leverage Your Scholarship Donation

These are tough times in Michigan, and donations to our scholarship funds are very timely to help us achieve our mission.  The good news is, any donation you make in the next calendar year could be leveraged with an extra $1 for every $2 donated.

This is MSU’s new Spartan Scholarship Challenge, announced by President Lou Anna K. Simon in October. 

You might remember a few months ago, when an anonymous donor gave $10 million to MSU, with $7 million targeted to help needy but high-performance students.  MSU will use that donation to leverage scholarship donations, so that $7 million in donations will grow to $21 million in endowed scholarships.

Robert Groves, MSU vice president for University Advancement, realizes that Spartans want to help Spartans.  With this challenge, he is expecting alumni, donors and friends to step up and give scholarship funds into this new program designed to make the most of their gifts and dramatically increase the amount of aid available to MSU students. This initiative is available until December 31, 2010.

“When it comes to financing a college education, many students and their families face tough decisions,” says Groves.  “At the same time, the importance of a college education has never been greater.  The support of our alumni, donors and friends is critical for the opportunity of higher education at Michigan State to remain within reach for many students.”

MSU Simon says the challenge could significantly build MSU’s endowment—the key to providing scholarship funds for students both now and in the future.  Typically, a minimum of $30,000 is needed to begin an endowment but during the match opportunity the minimum will be $20,000.  Gifts below $20,000 can be directed to a university-wide Spartan Scholarship Challenge fund. 

MSU Student Ilycia Shaw knows firsthand about the difference receiving a scholarship can make.   During her freshman year of high school, an illness forced her mother into early retirement.  “A scholarship was the only option,” Shaw said. “I found that MSU has some of the best scholarship programs available for hard-working and determined students such as me.”  Ilycia is now a proud Spartan sophomore with a high grade point average, majoring in Hospitality Business.

Unlike funds that are expendable, endowed funds have a lasting effect because the total amount of the gift is invested.  Only a portion of the invested income earned is spent each year.

The steady stream of income generated from endowed funds provides the assurance the university needs to recruit and retain the best and brightest students and provide access to a world-class university education, Groves noted.

Upon fulfillment of the Spartan Scholarship Challenge, MSU will be able to offer an estimated $1 million in new financial aid each year on a permanent basis, including aid for women and minority students.  As many as 1,000 students would receive Spartan Scholarships totaling at least $1,000 per student, per year and the aid would follow each recipient throughout his or her college career.

The match opportunity expires when the $7 million made available through previous gifts has been exhausted or by Dec. 31, 2010, whichever comes first.

For more information about the Spartan Scholarship Challenge, visit www.givingto.msu.edu; contact Director of Development for University Scholarships and Fellowships Jennifer Bertram at (517) 432-7332; or speak with the development officer in your college or unit.