Ways of Funding an Award

Endowed Awards

To establish an endowed award, a donor or group of donors sets up a capital fund at the University to support the award in perpetuity. The University uses only the investment income generated by the capital to provide the annual award.¬†UBC’s Endowment Management Policy #113¬†currently allows for expenditure of income at a rate of 3.5% of the capital in the endowment fund, with remaining income generated on the fund being carried forward for eventual deposit into the capital account. In this manner, the fund continues to build for the future, enabling the University to increase the value of the award over time. To establish this type of award, the Endowment Fund Terms of Reference must be agreed upon by the donor and by the University, laying out the framework in which the fund will be administered. Suggested minimum capital for establishing named award endowments are as follows:
Award Type Capital Investment Annual Award at 3.5%
Fellowship $200,000 $7,000
Scholarship $30,000 $1,000
Bursary $30,000 $1,000
Prize or Service Award $30,000 $1,000
Donors often choose to endow new awards at levels which substantially exceed the above minimums, keeping in mind the expenses students must face annually for tuition fees, text books, and living expenses. Donors may also initially establish an endowment at the above levels and then add to it over time until it increases to provide an ever-higher level of award support.

Annually Funded Awards

Some donors choose to fund their awards on a year-to-year basis with an annual gift. To establish an ongoing named annual award, a donor must commit initially to at least three years of support, after which the award can be renewed one year at a time. The Development Office contacts annual award donors by mail each fall for confirmation of support for their awards for the coming year. Minimum requirement to establish an annually funded award is $500 per year for a prize and $1,000 per year for a scholarship, bursary or service award. Annual graduate fellowships are normally funded at a minimum of $16,000 per year. An Annual Award Agreement must be signed by the donor when the award is being established.

Annual/Endowed Combination

It is possible to fund an award on an annual basis, at say $1,000 per year, while also making additional gifts to build an endowment fund over time, with the goal of eventually having the annual award fully supported by endowment income.