Income Matching
Undergraduate Scholarship
Indiana University Bloomington is allocating $10 million in matching funds over five years to provide four-year scholarships to incoming freshmen. Endowment funds received between September 1, 2004 and June 30, 2010 for the purpose of establishing undergraduate scholarships are eligible for the match.
The match will consist of an annual payout equal to 5 percent of the donor's original gift and will be available for gifts of at least $50,000 ($250,000 for named endowments in the Wells Scholars Program). Payouts will be in perpetuity.
To take an example, Janet Jones donates $50,000 to endow a scholarship in the School of Journalism at IU Bloomington. Assume that the payment from the endowment is $2,500 per year (that is, 5 percent of $50,000, the current spending policy of the IU Foundation Board of Directors).* The match is 1:1 on this principal amount ($50,000) in perpetuity. Thus, in addition to the $2,500, the School of Journalism receives another $2,500 every year from the campus for scholarship support.
A maximum of $4 million will be allocated for the Bloomington campus. The match opportunity will be in effect until the funds are committed. The source of funds for the match will come exclusively from the University's base budget in perpetuity. The IU Foundation will not guarantee the match portion of the gift. Allocations will be made in accordance with an approved allocation plan.
Endowments can be unrestricted, or can be restricted to students in the College, a specific department, program, or activity. Campus matching funds may follow the donor's designation regarding the student's intended area of study or activity. However, undergraduates are encouraged to explore the wide range of courses and careers offered on the IUB campus; as a result, they often change majors. The campus hopes donors will specify that the matching funds can follow students to their new areas of study.
Matching funds for pledged endowments and bequest expectancies will be held in reserve until the endowment is established. However, matching funds will be provided annually if the donor agrees to provide an annual gift equal to 5 percent of the pledge or expectancy.
The IU Bloomington Provost, in consultation with the University President and the IU Foundation President, reserves the authority to limit eligibility. In particular, it should not be possible for gifts that will be matched to deplete all matching monies. In order to determine the upper limit of a specific gift, a brief written proposal should be submitted to the IU Bloomington Provost.
Any gift that is eligible for the match must be administered by the IU Foundation or IU and not by an outside trustee.
Responsibility for authorizing exceptions to this policy rests with the IU Bloomington Provost, in consultation with the President of IU.
* The current spending policy and the investment policy set by the IU Foundation Board of Directors determines that actual payment from an endowment fund.
