Looking to establish a donor-advised or endowment fund with the PA Foundation?
Individual donors or donor organizations may wish to establish a donor-advised or endowment fund with the PA Foundation. The information below provides an overview of this opportunity.
Definitions
Donor-Advised Fund: A donor-advised fund is a specific type of fund where the primary purpose is to provide scholarships or awards to qualified students and/or awardees. The funds are held in the PA Foundation’s operating bank account (not in an investment account) and do not earn interest. The donor may decide whether to donate funds and have PAF manage both the accounting and the entire scholarship administration, or to maintain the scholarship administration themselves while PAF manages only the accounting and minimal administrative tasks. Outlined in this document are the scope of work and fee structure for services offered.
Endowment Fund: An endowment fund is a financial reserve created to support a scholarship or award over a long period. Typically, the principal amount of the fund is invested, and the income generated from these investments is used to provide scholarships/awards. The endowment is designed to ensure that funding for scholarships/awards continues indefinitely, allowing donors to offer financial aid to funding recipients for many years to come. The minimum initial required funding to establish an endowment fund is $25,000. A scholarship fund will be only available for funding disbursement if invested funds are generating a net positive return after fees.
Scope of Work
Donor-Advised or Endowment Fund – Account Only (Minimal Administrative Management)
The donor retains decision-making authority in selecting the individual students or institutions to whom the scholarship is awarded based on their selection criteria. The majority of non-financial administrative functions are managed by the donor/fund contact. PAF is responsible only for holding the funds in its operating bank account and disbursing the funds to selected recipients at the request of the donor.
Donor-Advised or Endowment Fund – PAF Provides Administrative Management
The PA Foundation assumes all management and administrative responsibilities for the scholarship/award fund, including decision-making authority in selecting the individual recipients for scholarships/awards based on selection criteria. Management responsibilities include but are not limited to: development of criteria/essay prompts; maintenance of website, application form, and application platform; scoring analysis; recipient notification and compilation of award acceptance materials; and other administrative tasks associated with disbursement of funds.
Fees
Minimum funding amounts apply to establish a new fund, and all funds are charged annual fees according to the PA Foundation’s fee structure. For more information on fees and minimum funding values, please contact the PA Foundation.