Match the Promise - Endowed

Bill '81 and Anne '83 (Zsembik) Millhaem

“We feel strongly about the education and opportunities we received at Miami ... Match the Promise got us ready to move. If we were considering making a scholarship commitment anyway, why not maximize the impact on Miami students by taking advantage of a great opportunity?”

- Bill '81 and Anne '83 (Zsembik) Millhaem

 

For a limited time, Miami’s Match the Promise program is providing an expendable university match for newly created scholarship endowments of at least $50,000. These scholarships will bring deserving students to Miami’s Oxford campus and provide them consistent support throughout their college careers.

The match is equivalent to at least 40 percent of the endowment’s total value and is distributed 5 percent at a time over a period of eight years. The program offers several unique features:

  • Your scholarship can be awarded immediately.
    If your initial or complete payment is received by March 31, the university match is applied in the very next academic year (beginning fall semester), allowing your named scholarship to be awarded immediately.

  • Your endowment earnings are reinvested for the first four years. Regardless of when your endowment is paid in full, no distribution will be taken from its principal for the first four years, allowing your endowment to reinvest its earnings and grow in strength.

  • An incentive is offered for paying in full up front. Those who fully fund their endowment immediately are incentivized with a 7.5 percent university match over the fund’s first four years, before it returns to the regular 5 percent rate over the final four years.

 

How it Works

PAID YEAR ONE

A donor establishes an endowed scholarship of $100,000. By paying the full $100,000 at that time, it triggers a 7.5 percent match over the first four years. If the gift is received by March 31, the scholarship is awarded in the fall of the next academic year. It is supported by the expendable university match for the first four years, while the endowment’s earnings are reinvested.

Over the next four years, the match reduces to 5 percent, and the endowment earnings are added to the scholarship award. The match ends after eight years, at which time the scholarship is supported solely by the endowment.

  YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8
Donor Payment $100,000              
Endowment Distribution - - - - $5,000 $5,000 $5,000 $5,000
University Match $7,500 $7,500 $7,500 $7,500 $5,000 $5,000 $5,000 $5,000
TOTAL STUDENT AWARD $7,500 $7,500 $7,500 $7,500 $10,000 $10,000 $10,000 $10,000

 

PAID OVER FOUR YEARS

A donor establishes an endowed scholarship of $100,000. The donor pledges to make payments of $25,000 a year for
four years and makes the initial pledge payment before March 31. The scholarship is awarded in the fall of the next academic year and is supported by Miami’s 5 percent expendable match during the first four years. Over the next four years—once the endowment is fully funded—the 5 percent match combines with the endowment distribution to increase the total award.

After eight years the match expires and the scholarship is supported by the endowment.

  YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8
Donor Payment $25,000 $25,000 $25,000 $25,000        
Endowment Distribution - - - - $5,000 $5,000 $5,000 $5,000
University Match $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000
TOTAL STUDENT AWARD $5,000 $5,000 $5,000 $5,000 $10,000 $10,000 $10,000 $10,000

* * The $5,000 shown is based on a 5 percent distribution. The actual distribution will be based on the Foundation’s Endowment Spending Policy and is subject to market fluctuation. Endowments are subject to all applicable Foundation policies.

 

Match the Promise FAQs

What is an endowment?
An endowment is a gift to Miami university that is invested in perpetuity and produces an annual distribution according to Miami’s endowment spending policy. The earnings are distributed each year in accordance with the donor’s defined wishes.


Who will receive my scholarship?
The Match the Promise program is for recruitment scholarships, which are awarded to incoming Oxford-campus students and remain with those students throughout their college careers. The student(s) can earn renewal of the scholarship for up to four years by remaining in good academic standing and making satisfactory progress toward a degree.


How long do I have to fully fund my endowment?
The endowment can be completed over a maximum of four years. However, donors who fund their endowments within one year will receive an additional 2.5 percent match—7.5 percent total—over the fund’s first four years. The match returns to 5 percent over the final four years.


When will my scholarship receive its match?
A scholarship can begin being awarded the very next academic year (fall semester) if the gift is received by March 31 of that calendar year. The match will be applied for eight years from that point. This allows your scholarship to have an immediate impact on Miami students.


When will my scholarship begin distributing from its earnings?
Regardless of when it is paid in full, the endowment will not distribute from its earnings over the first four years. This allows the fund to grow from reinvested earnings while the university match is used to fund the student scholarship(s). It will begin to make distributions to the scholarship, based on investment performance, in year five.


How much will my scholarship endowment distribute?
The distribution amount is determined annually based on a distribution formula. The amount determined by the formula is generally between 4 and 5 percent of the endowment value. Your fund will receive the fixed Miami match regardless of investment performance.


What happens after eight years?
After eight years, the match is no longer applied to your scholarship. It is anticipated; however, that your endowment will grow over that same period, and the future available distribution will grow with it.


How long do I have to act?
$10 million in matching funds have been set aside for the Match the Promise program, and when those funds are exhausted, the program will no longer be available for new endowments.


How can I learn more?
To learn more please contact Miami University’s Office of Development at 513-529-1230 or MUDevelopment@MiamiOH.edu