A major component of managing a scholarship account is calculating how much money you need to raise. Currently, the IU Foundation distribution policy is approximately 4.5% annually. In order for these distributions to accumulate, the balance must be invested in the principal side of the endowed account.
For example, if you want to raise money for a $1,125 scholarship, you will need to know how much money you should have in your endowed account to generate this amount. Your calculation would look like this:
$1,125/4.5% = $25,000
An investment of $25,000 will be required to generate distributions of $1,125. Use this template to calculate how much is needed to fund the scholarship(s) your chapter wishes to award. Please contact your IUAA liaison with questions regarding the status of an account’s investments.