Anonymous donation leads to new scholarship
An anonymous donor has created a new University of Indianapolis scholarship after contributing $250,000 to the school.
The scholarship is named the University of Indianapolis Faculty Scholarship Fund and will be available to undergraduate Indiana residents after the endowment has been processed and completed by the Financial Aid Policy Committee, which develops a memorandum of policies for the new scholarship.
“This is one of the largest single scholarship gifts to the university ever,” said Mark Weigand, vice president for student affairs and enrollment management.
Director of Development Andy Kocher explained that many details about the Faculty Scholarship Fund are being held in strict confidence at the donor’s request.
“The donor who approached us was very fond of the University of Indianapolis,” Kocher said. “This person had heard and seen good things about the university.”
Students at UIndy benefited by certain scholarship funds are asked to write a letter to the donor, so he or she can learn about the student. Eventually, they meet at the Donor Scholar Luncheon that is held each spring and attended by the students, their parents and the donors. In this case, however, the anonymity of the donor has changed this tradition.
“This case is not normal,” Kocher said. “The donor has asked instead that the student benefitted write to someone who has made a difference in their lives. It is more of a mentoring process. It’s an exciting opportunity for the students.”
Financial Aid Director Linda Handy explained that UIndy relies heavily on scholarship dollars. When the school uses a lot of scholarship money, there is a large reduction in federal and state aid. Endowment money, however, does not cause the school to lose federal and state aid; therefore gifts such as this anonymous donation are very beneficial to the university.
Kocher also noted the importance of endowment money to UIndy.
“Student aid is always one of the most pressing needs,” he said.
Weigand said that although the full scholarship likely will not be available this coming school year, a portion of the money may be available to students. Once the Faculty Scholarship Fund is completely in place, only about $20,000 to $25,000 will be used each school year. The total amount of $250,000 will not be used at once; the money will actually gain interest each year, so it will never run out.
“This is a wonderful gift because such a large sum of money will help so many students,” Weigand said.
According to Kocher, endowment money at the University of Indianapolis follows a series of guidelines before becoming available to the student body. First, the gift must be a minimum of $25,000 for up to five years, so at least $5,000 can be available each school year. Next, a memorandum of understanding must be completed to decide what the scholarship will be named and whom it will benefit according to the preferences of the donor. Finally, the memorandum is signed by a series of people at the school and eventually made available to the students.
