The Endowment
The Endowment takes a long-term view to make this fund a stable source of money for deserving students who meet established criteria. The Endowment is perpetual. Donations to the Endowment are not spent. Only 90 percent of the earned interest is subject to disbursement in any year to students who are in dire financial need. Donations given to the Endowment are invested safely and conservatively, so as not to ever lose any of the principal. At least ten percent of the annual investment income is re-deposited into the principal to ensure that the Endowment will grow each year, in addition to any new donations.
Albert Einstein's famous quote about compound interest ("It is the greatest mathematical discovery of all time.") is literally being put to the test when it comes to this Endowment. Utilizing the policy of spending no more than 90 percent of the interest in any year and re-depositing at least ten percent of the earned interest, Einstein's theory will become at least partially applicable.
The power of compound interest will help to guarantee that the Endowment will become more and more important each year to help finance the postsecondary education of many students who are, or will become, leaders in the on-going struggle to achieve equal rights for every citizen, regardless of sexual orientation and gender identity or expression.
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The Endowment (Continued)
The Endowment utilizes a financial institution which provides access to the highest and safest investments throughout the United States. The Endowment makes certain that funds donated cannot be lost in risky investments. A detailed accounting of the investments is available to any person wishing to have the information, whether or not a donation is made.
All donations given are tax deductible on your state and federal income taxes, to the extent allowed by law. The Alabama Scholars Endowment is designated as a 501(c)(3) charitable organization.
Contribution Levels
- Founders: $10,000 and above
- Co-Founders: $5,000 and above
- Legacy Society: $2,500 and above
- Sustainers: $1,000 and above
- Donors: $500 and above
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