That would be one scholarship in perpetuity. The one I help with has a little over $5M in prinicpal to endow one 4 year scholarship every year. There are certain measure that would be taken if the expense gets too high or the projeted yield gets too low on the invested funds. Mostly, it's make it up with more $$. That has not been an issue except for 1 year in the last 30.So endowing a $30k scholarship means giving enough cash to invest for consistent returns every year of $30k in today's dollars. So it is inflation + x% based on the amount given. Let's say we target 3.5% inflation and returns of a nice safe 3% on top of that. So, 6.5% returns (which is pretty darn good) requires something like $461k...so let's call it an even $500k to endow a scholarship.
Finance nerds, is that about right?
Actually, my friends need to upgrade theirs!If I put my tinfoil hat on, I wonder how much of a contributing factor their financial backing for the buyout and the new coach is in us looking for a new AD.
I believe Cabrera when he says that he wasn’t happy with the direction of the AA. If some of our big donors are actually laying out big bucks, they had to want something. (It might have been one of those concessions where “we were going to do this anyway, so we can give them what they want”).
LOL, most people do