Managing Endowed/Restricted Scholarships – A Streamlined Approach Presenter: Samantha Veeder Associate Dean of College Enrollment/ Director of Financial Aid University of Rochester, Rochester NY Samantha.veeder@rochester.edu

Agenda Goal – “ideal state” Organizational challenges A case study Analysis of two different processes Communication with students Donor relations Q&A

Goal – “ideal state” An efficient process to: Determine earnings/interest income (spending levels) Identify students who meet scholarship/donor criteria Prepare aid packages Notify Development Office in time for “Gratitude Gathering” Communicate with donors

Organizational Challenges Typically involves three different divisions within the institution Finance/ Treasurer Advancement/ Development Enrollment Management/ Financial Aid

Organizational Challenges IHE’s have a culture of “silos” Lack of understanding of each other’s business process Ownership Timing Communication

A Case Study A choice between two approaches And one philosophy – supplant the financial aid budget

#1 – Transparency Early February- Financial Aid receives earnings from the Treasurer’s office to establish awarding limits Through packaging season (February-August) look for opportunities to include named scholarship in student’s financial aid package Awards are called out by name, i.e. Carrie Auchter Scholarship Typically involves “swapping out” another award

#1 – Transparency Update Development Office with recipient information Often students are offered scholarship but have not yet enrolled, or are enrolled but withdraw prior to term Often students are awarded after Development is notified Receive update from Development Office on students who have not participated in Gratitude Gathering and/or completed “thank you” portfolio FA removes scholarship from pending aid on bill until requirements are met (unnecessary re-work!)

#1 – Transparency Advantages Scholarship is listed individually on financial aid award letter Students see the dollar value of the scholarship Disadvantages Difficult to find students to “swap out” because almost all FA is merit scholarship Recipient list is “fluid” creating complications for Development in arranging Gratitude Gathering Process for updates between FA and Development is manual and cumbersome Based on “swap out” with unfunded aid, students are upset that it is not more money

#2 - Efficiency Financial Aid continues to receive earnings/ spending level from Treasurer’s Office although not needed as early Do not list scholarship by name in the award letter Instead, notify student that existing scholarship is “funded in part by the generous donation of X” Condition students ahead by including text in the Financial Aid award letter Identify recipients in one step rather than over several months, after packaging is complete and enrollment is known

#2 - Efficiency Update Development with a “final”/accurate recipient list Prepare invitations to the Gratitude Gathering in same notice as scholarship letter One communication instead of two Receive update from Development Office on students who have not participated in Gratitude Gathering and/or completed “thank you” portfolio Development places a hold on spring term registration

#2 - Efficiency Advantages Administratively easier to swap endowed funds for unfunded grants – can use merit scholarships More accurate & timely recipient list to Development One GL transfer of all interest income at end of fiscal year All revenue supports the financial aid budget Disadvantages Risk that students will not appreciate value and are unwilling to write a thank you note Not individually listing the scholarship on the award letter

Communication With Students Gratitude Gathering Invitation Financial Aid Award Letter

Donor Relations Financial Aid provides an annual, detailed report of recipients for each named scholarship to the Development Office Development prepares a portfolio annually for the donor with updates on market value and recipients, including photos and the personal thank you notes written at the Gratitude Gathering

Q&A