An endowed scholarship is a scholarship fund built from a larger donation that is invested so it can keep paying awards over time. The school usually uses only the investment earnings, while the original gift stays intact, which makes the scholarship more sustainable than a one-time award.

Quick Scoop

  • How it works: A donor gives money to a college, university, or foundation, and that money is invested.
  • How students benefit: Each year, the school uses part of the earnings to fund one or more scholarships.
  • Why it matters: It can support students for many years, sometimes in perpetuity, depending on the institution’s rules.
  • Common criteria: Donors may set preferences such as financial need, academic merit, major, community service, or hometown.

In plain English

Think of it like a tree planted once and harvested many times. The original gift is the tree, and the scholarship money comes from the fruit it produces each year.

Endowed vs. regular

Type| Funding style| How long it lasts
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Endowed scholarship| Invested principal, awards paid from earnings| Long-term or perpetual 14
Regular scholarship| Money funded again each year| Usually ends when annual funding stops 3

Bottom line

An endowed scholarship is a long-term funding source for student aid, designed to keep helping new recipients year after year without needing a fresh donation every time.

If you want, I can also explain how to create one , who can apply , or how it differs from an endowment fund.