Assessing fees on scholarships & rules for endowed scholarships
1. We are trying to see what other Foundations are doing regarding assessing fees on both pass-through and the creation of endowed scholarships. Do you charge a percentage of the scholarship to cover admin. costs?
2. Does anyone have a formula you follow for how to handle the interest that an endowed scholarship accrues. For example: an endowed $25K scholarship usually throws off a $1,000 scholarship which is 4% of the endowment. However, we have historically been making over 4% returns on our investments - do you take any % annually to cover overhead? - do you roll the remaining to the corpus or keep some as a cushion for next year?