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In these difficult economic times, BGSU is working to ensure that all endowed scholarships and programs will be funded for
the 2009-10 academic year. Given the global economic crisis and resulting diminished returns of the endowed accounts, the
BGSU Foundation has created Sustaining Tomorrow's Scholars, which will direct funding to those areas where there are insufficient earnings for next academic year.
 “Many students attending BGSU receive financial assistance. Due to the current economic conditions, some of these students
will not be able to receive scholarship funding for the 2009-10 academic year. Unfortunately, the dramatic decline of financial
markets through the first part of this fiscal year and the bleak economic forecast cause concern about the potential of many
scholarship funds not being available for distribution," according to Marcia Sloan Latta, interim vice president for University
Advancement.
"Despite strong management and fund stewardship from the Foundation, scholarships and awards established in recent years will
lack sufficient earnings. Sustaining Tomorrow’s Scholars is a perfect way for alumni and donors to help currently enrolled students. Each gift to the fund is important and is a great
way to support BGSU,” said Latta.
So how may you help?
Contribute to “Sustaining Tomorrow’s Scholars,” a broad, newly created fund (non-endowed) which will direct funding to those
scholarship funds where we do not have sufficient earnings to award the scholarship and/or the benefactor is deceased.
In order to contribute to this specific fund, please be sure to indicate an amount on the "Sustaining Tomorrow's Scholars"
gift designation on the payment page. Every gift counts, and your contribution will help students directly by funding a scholarship or program in need. To date, BGSU's generous
friends and alumni have contributed $485,871 to Sustaining Tomorrow's Scholars of the $754,000 that is needed.
Below is a list of frequently asked questions and answers about the current financial situation and how we plan to move forward;
we hope you find them helpful. For updates to these questions and additional information as circumstances progress, please
contact us at alumni@bgsu.edu or (888) 839-2586.
Thank you for your consideration of this request and unwavering support, particularly under these harsh economic conditions.
Rest assured that we will persevere as we work to advance our mission and ensure our students may continue their education
at BGSU. It is a promise made that needs to be kept!
Frequently Asked Questions
What is an endowment?
An endowment fund theoretically exists in perpetuity, never spending the original gifts (corpus) but using the income generated
by the fund to support the purpose of the fund forever.
If my account or fund was established many years ago, why is it being impacted so negatively now?
Prior year awards have been funded by prior year investment income. The significant decline of the financial markets this
year has depleted prior year earnings reserves in some funds, and not provided current year income to fund current year awards.
How many students are affected by this crisis?
Assuming a negative return of twenty-five percent (25%) for the Foundation this fiscal year, more than 500 students will be
negatively affected if we do not raise the requisite funds.
Will the Supporting Tomorrow’s Scholars Fund be an endowed fund?
No, we will use every dollar to fund current year scholarship needs.
What is the total amount needed for the “Sustaining Tomorrow’s Scholars” initiative to make the awards to students for next
year?
If the Foundation sustains a negative twenty-five percent (-25%) return with a four percent (4%) spending rate, we will need
to raise approximately $754,000.
Why should I continue to give to an endowment?
An endowment fund lives in perpetuity, providing funding to fulfill the dreams of future generations. From time to time, when
the financial markets implode for a sustained period, funds created just prior to or during that same time frame will not
generate earnings sufficient to make the award. However, over the long term, endowments have provided significant earnings
for Foundations and their individual funds, increasing the value of scholarship awards and other funds over time.
How does the Foundation calculate losses?
The total return of the investment portfolio is the sum of all interest, dividends and realized/unrealized investment gains
and losses. The current declining financial markets have created a situation where with some of our more recently created
funds, the cost of our investments is greater than the current market value, creating significant unrealized investment losses.
What are the Foundation’s long-term plans to avoid this situation in the future?
Foundation management and the Board of Directors are currently finalizing a Strategic Plan. A key component of this plan is
the creation of strategies to increase the Foundation’s high liquidity fund balance (unrestricted funds), as well as the continued
expansion of the Foundation’s “Sustaining Tomorrow’s Scholars” Fund.
What does the Foundation currently fund from its unrestricted assets?
The Foundation’s unrestricted fund provides annual funding for the operating budgets (exclusive of personnel costs) of the
Office of Advancement Services, and Office of Alumni and Development (approximately $1.8 million), as well as a grant to the
Alumni Association totaling $250,000, and campus and community grants budgeted at $75,000. In addition, the Foundation supports
the University through two board-designated funds for the purpose of supporting academic excellence and facility improvements.
These amounts have been in the area of $125,000 annually.
 Please click here to continue making an online gift
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