Annual gifts are contributions that are received and are intended to be spent in support of a particular academic program or cause. Endowment funds are invested, and a portion of the earnings are allocated to the program or cause supported by the endowment.
Endowed scholarships are the most common form of endowment.
A good rule of thumb is that for a scholarship of a given amount, the endowed fund must be 20 times that amount. This amount may be contributed over as long as a five year period. If a smaller gift is right for you, remember that anyone can contribute to any existing endowment.