An endowed scholarship is a permanent fund where the principal amount is invested, and the generated interest or investment income is used to fund scholarships. This ensures that the scholarship can support students in perpetuity.

The minimum amount to establish an endowed scholarship is $1 million USD. This threshold ensures that the endowment can generate sufficient income to fund at least one scholarship annually without depleting the principal.

1. Investment Strategy: The $1 million principal is invested in a diversified portfolio, managed to achieve a balance between growth and income. This strategy aims to protect against inflation and increase the fund's value over time.

2. Payout Rate: A typical annual payout rate for scholarships ranges from 4% to 5% of the fund's average market value, calculated over a set period. This rate is designed to preserve the principal while providing consistent support.

3. Growth in Perpetuity: Reinvesting any excess earnings back into the principal helps the fund grow over time. This growth ensures that the scholarship can increase its support as educational costs rise, securing its impact indefinitely.

1. Scaling Up: For larger endowments ($2 million, $3 million, etc.), the process is similar, but the potential impact grows. A $2 million endowment can support twice as many scholarships as a $1 million fund, and so on. The exact number of scholarships depends on the annual payout rate and the cost of tuition and fees at the approved college prep institutions.

2. Flexibility: Donors have the option to designate their scholarship funds for particular CPSAF-approved institutions, such as IMG, Anthem Prep, Montverde, SPIRE, Wasatch Academy, or Prolific Prep. They can also target their support towards specific sports, including basketball, soccer, American football, track & field, or swimming, in accordance with CPSAF-approved institution guidelines. Alternatively, donors may choose to support a specific university athletics pipeline. This level of customization enables donors to tailor their philanthropic efforts to reflect their personal values and interests.

3. Visibility and Recognition: Donors often have the opportunity to name the scholarship. This can serve as a lasting tribute to the donor or someone they wish to honor.

• Principal: $1,000,000 USD

• Annual Payout Rate: 4.5% (for illustration)

• Annual Scholarship Amount: $45,000 USD

This $45,000 can be allocated to one or more scholarships annually, depending on the cost of tuition and other expenses at the chosen institution.

• $2 Million Endowment: Generates $90,000 USD annually, potentially funding two scholarships of $45,000 each or adjusting the number and size of scholarships based on current needs and costs.

• $3 Million Endowment: Generates $135,000 USD annually, further increasing the number of scholarships or the amount available per scholarship.