Frequently Asked Questions

The Luther College Board of Regents has established an annual spending policy. The spending allowance of five percent is calculated on the endowment’s trailing 20-quarter average market value as of March 31 of each year. This method of calculation provides year-to-year consistency in the value of the spending allowance mitigates any investment market fluctuations.

Scholarships may be funded with cash, gifts of stock, or other appreciated property, or through planned gifts. If funding a scholarship through a planned gift, more than the minimum commitment may be required, and the amount will depend on the donor’s age. Endowment gifts to the Legacy Trust are administered according to the endowment policies established by the Luther College Board of Regents. Additional contributions may be made to a fund at any time, thus augmenting financial assistance for students.

If you wish to establish a named scholarship endowment fund but cannot give the full amount initially, the college will establish the fund on an inactive basis. You may continue to contribute to it, and the earnings on all gifts to the fund will be reinvested fully each year, adding to the fund. No scholarships will be awarded while the fund is inactive. Upon reaching the minimum commitment balance for the appropriate fund type, the fund will become active, and the first awards distributed in the fall of the following academic year. The college respectfully requests that endowed scholarships achieve the minimum commitment level within five years of establishment.

Endowments may be funded with cash, gifts of stock, or other appreciated property, or through planned gifts. If funding an endowment through a planned gift, more than the minimum commitment may be required, and the amount will depend on the donor’s age. Endowment gifts are administered according to the endowment policies established by the Luther College Board of Regents. Additional contributions may be made to a fund at any time. If you wish to establish a named endowment fund but cannot give the full amount initially, the college will establish the fund on an inactive basis. You may continue to contribute to it, and the earnings on all gifts to the fund will be reinvested fully each year, adding to the fund. No amount will be awarded while the fund is inactive. Upon reaching the minimum commitment balance for the appropriate fund type, the fund will become active, with the first awards distributed in the fall of the following year. The college respectfully requests that endowed funds achieve the minimum commitment level within five years of establishment.

For further information on ways to support the Legacy Trust scholarship program, or Luther College in general, please call the Development Office at 800-225-8664 to speak with a development officer.

Earnings from the Luther College endowment are used for many purposes. Scholarships for students, teaching and learning resources, library books and materials, program enrichment, and student/faculty research projects are prime examples. At Luther, as at most colleges, it costs more to educate a student than what a student pays in tuition. The difference between what it costs and the tuition paid is provided by endowment earnings and by sources of current support, such as grants and annual fund gifts.