Scholarship Q & A
As a result of significant diminishing investment returns in the current economic climate, U of G will be suspending most of its endowed scholarships and bursaries for the time being. Many other Canadian and North American universities have already taken similar measures.
- Why is this necessary?
- Diminishing returns have significantly affected our ability to generate income from the endowment fund. If we do not suspend most scholarships for now, our ability to protect the long-term availability of endowments is at risk.
- For example, if the University receives a $100,000 donation for a scholarship, the investment income earned is what funds annual scholarship disbursements; the capital remains intact. If there is no investment funding and spending continues, the capital is in danger of encroachment.
- Does this affect all U of G scholarships and bursaries?
- No. Only 17 per cent of U of G's scholarships and bursaries are supported by endowments, so the vast majority of our student assistance — 83 per cent — is not affected by this decision.
- Will the President’s and Chancellor’s scholarships be suspended?
- No. These are institutional scholarships and will continue to be offered.
- If a student received a multi-year endowed scholarship, does this mean that they’ll no long received financial support?
- The change only applies to new scholarship applications. Every effort will be made to honour multi-year endowed scholarship commitments.
- Does this affect the tuition scholarship program for U of G staff and/or their families?
- No, this is a completely different program.
- Are all of the endowed scholarships in financial trouble?
- So far, about two-thirds or our 900-plus endowed scholarships are “under water,” which means that there is no investment funding left and the capital is in danger of encroachment.
- Has the University told its donors about this decision?
- Yes. We’ve been keeping in touch with our donors, letting them know about the status of the funds we are holding and keeping them abreast of the situation. Donors will be offered the option of making up the lost funds via annual gifts in order for their scholarships to continue to pay out.
- How much has the University's endowment fund suffered in recent months?
- Since May 2008, U of G has seen a decrease in the market values of its endowments by about -25 per cent. That amounts to a loss of about $39 million when compared to where the funds stood at the end of fiscal 2007-2008.
- How will this affect the University's budget?
- U of G’s operating budget does not receive a lot of support from endowments. But we may need to make up some of the endowment losses from the operating budget.
- Are endowed chairs affected by this decision?
- No. Endowed chairs are held by tenured faculty, so funding for these positions will have to be made up from department’s operating budgets.