Restricted vs. Unrestricted Scholarships
Unrestricted scholarships allow the MECC Office of Financial Aid to select recipients on the basis of financial need and/or academic promise, and provide the maximum flexibility to serve a wide variety of student needs
Restricted scholarships allow donors to specify selection criteria such as residency, curriculum, academic standing, etc.
Annual vs. Endowed Scholarships
Annual scholarships can be established with gifts of any amount. They are released directly to students, usually for the academic year following receipt of the gift. Continuing an annual scholarship requires continued giving over time.
Endowed scholarship gifts become the basis, or “corpus,” for a perpetual fund. The funds are invested and only the earnings on the gift(s) are released to students in the form of scholarship awards. Because original donations are not expended, endowed scholarships continue through perpetuity. A minimum gift of $5,000 is required to create a named endowed scholarship, and donors may choose to provide the minimum gift through contributions over time. A gift of $30,000 creates a fully endowed scholarship. The payout rate from scholarship endowments is set annually by the donor or the MECC Foundation Board of Directors. They payout rate is typically between 3% and 5%, depending on investment performance.