Alumni, faculty, staff, retirees, parents, and friends of the College often find that a named endowed fund provides a special opportunity to create a lasting legacy. These funds provide permanent, ongoing support for the College and are of great importance for our future strength. Donors who establish a fund have the satisfaction of knowing that their generosity will have a lasting impact, helping current and future generations of Western New England College students to receive an outstanding educational experience.
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Endowed funds can be established by individuals or by groups such as a family, a College class, or corporate benefactors. Naming opportunities are up to the donor's discretion. Some donors choose to create a fund under their own name. Others establish endowed funds in memory of a loved one or in recognition of someone they wish to honor.
Many donors enjoy the creativity of determining the specific purpose for their endowed funds. For example, a fund for student financial aid can award scholarships to students with specific needs or qualifications, such as a particular major. You can also determine award criteria such as class, part-time or full-time status, merit, or demonstrated financial need.
Funding: Endowed funds can be created in a number of ways, through cash gifts, gifts of securities, trusts, bequests, life insurance, or other planned gifts. Presently, a fund requires a minimum of $25,000 to become endowed. This can be donated in a lump sum or in installments over a period of up to five years. Once established, funds can be added to at any time.
Fund Purpose: The donor can determine the purpose of the fund. A very popular purpose, and one that will be useful for the foreseeable future, is student financial aid. Other fund purposes, such as for curriculum and faculty development or for specific programs, are also feasible. We request that you please contact us in advance to ensure that the purpose of your fund is helpful and practical.
Spending Policy: Once established, a certain percentage of the calculated market value of the endowed fund will be spent for its designated purpose. The fund's principal remains untouched and continues to earn interest. The College currently has a 5% spending policy, meaning that 5% of the calculated market value of the fund will be spent each year.
College policy is to hold the funds for one year after the full amount has been donated in order for the fund to build in value. If the fund were to be tapped immediately, principal would be used thus reducing the value of the fund.
Scholarship Funds: For scholarship funds, we will work with the donor to devise the scholarship criteria and description, which is published in our College catalogue and on our website. It is best not to be too specific, because the scholarship might then be very difficult or even impossible to award. Scholarships will be given to certain students as long as those students continue to meet the criteria for the scholarship. For example, a scholarship awarded to an incoming freshman would normally be awarded to that same student for the four years of their education. If the scholarship is designated only for freshmen - or any other class - it would be awarded only to that type of student.
Donor Agreement and Reporting: A simple Donor Agreement between the donor(s) and the College will be signed, which stipulates the amount to be contributed to establish the endowed fund, the time period within which it will be given, and the intended use of the fund. Each year the donor(s) for an endowed fund receives a report stating the current market value of the fund. For scholarship funds, the recipients for that year, their class years, majors, and award amounts will also be listed. Scholarship recipients are encouraged to send thank you notes to donors.
We hope that you will consider creating an endowed fund for Western New England College. Please contact us for further information.
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