Endowed Scholarship Funds FAQs

Endowed Scholarship Funds
Frequently Asked Questions
What is an endowed fund?
An endowed fund is a gift of cash or assets that is given to AUB to be invested in perpetuity.
An endowed fund can be unrestricted, providing a resource that can be used to meet
current university expenses, or it can be restricted for specific purposes.
Only a portion of the money that the endowed fund earns is spent; the balance is
reinvested. This enables the endowment to provide both immediate funding and a longterm source of financial support. These funds are managed by the Board of Trustees of AUB
as part of the university’s overall endowment of almost $500 million.
What is AUB’s spending policy?
AUB’s spending policy is to annually disburse 4.2 percent of the moving average market
value of its portfolio. We expect that the money that is invested will earn more than 4.2
percent annually. Therefore, the size of the endowment is expected to grow over time, thus
ensuring that more money will be available to support the specific purpose of the endowed
fund in the future.
Why would I want to establish or contribute to an endowed fund?
Donors who establish, or contribute to, an endowed fund, do so because they want to make
a gift that will benefit AUB not just today, but for generations to come.
Many donors also choose to establish a named endowed fund because they want to honor a
particular individual in a way that ensures a prestigious, permanent association with AUB.
What does an endowed scholarship fund cost?
A minimum gift of $100,000 will establish a permanently endowed scholarship fund that
will cover the partial cost of tuition. The full amount of the gift is invested. Income from the
endowed fund is then distributed on an annual basis to support scholarships according to
the terms of the endowed scholarship fund.
A minimum gift of $500,000 (depending on the faculty) will create an endowed scholarship
fund that will cover the full cost of tuition. Full tuition endowment costs per faculty are
based on a 4 percent annual yield.
150 for 150 Scholarship Initiative
Average Undergraduate Tuition Fees per Faculty - Academic Year 14/15*
Faculty of Arts and Sciences (FAS)
Humanities and Sciences
Financial Economics
Faculty of Agriculture and Food Sciences (FAFS)
Faculty of Engineering and Architecture(FEA)
Faculty of Health Sciences (FHS)
Suliman S. Olayan School of Business (OSB)
Rafic Hariri School of Nursing
Average Annual
Tuition Fee USD
Cost of Full Tuition
Endowment USD
$20,000
$23,000
$20,000
$30,000
$22,000
$22,000
$21,000
$500,000
$575,000
$500,000
$750,000
$550,000
$550,000
$525,000
*Tuition does not include the cost of accommodation, board, books, or other incidental expenses.
**The amounts are based on an exchange rate of USD $1 = LL 1,508
Can endowed scholarships be named?
Yes, an endowed scholarship can be named after the donor, after an institution, or after
someone that the donor would like to honor.
Are there named scholarship opportunities at lower amounts?
A named partial scholarship can be established with a commitment of $5,000 per year for a
minimum period of three years. Unlike an endowed scholarship, these funds are spent in
full on the scholarship during that time.
What can I do at a lower amount?
You may make a donation of any amount to the university’s “150 for 150 Scholarship
Initiative.” Gifts under $100,000 will be pooled together to create an endowed scholarship
fund.
150 for 150 Scholarship Initiative