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Scholarship and Bursary Building Incentive Program
2005
PROGRAM GUIDELINES
Funded by:
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The Province of Manitoba
Ministry of Advanced Education and Training
The Scholarship and Bursary Building Incentive Program has been created by the Province of Manitoba, Ministry of Advanced Education and Training, to encourage local communities to create long term educational endowments.
It is intended to support northern and rural students who face extra costs related to their post secondary education and accordingly, each eligible endowment must include the following criteria as set out in section 1.03 of the Agreement:
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"the recipient must be facing the added financial burden or relocating their residence to a different community in order to pursue their academic studies".
Definitions:
A scholarship fund is a permanent endowment established with a gift(s) of capital which is donated to a Manitoba community foundation and which generates annual investment income to be granted as an academic award for scholastic achievement.
A bursary fund is a permanent endowment established with a gift(s) of capital which is donated to a Manitoba community foundation and which generates annual investment income to be granted as financial support to students needing assistance to pursue post secondary educational opportunities.
Scholarship and bursary fund agreements are agreements between Manitoba community foundations and local donors setting out the criteria for their gifts including but not limited to the process for naming recipients and the high school or community to which the award applies.
Eligibility Criteria:
To be eligible for this program:
- a Manitoba community foundation must be a full member of CFC (Community Foundations of Canada) in good standing. That is to say, the membership dues are paid, the required Board resolution
is passed and the requested statistics for the previous year have been provided;
- The Winnipeg Foundation, as program administrator, is excluded from participation in this program;
- appropriate documentation is filed with The Winnipeg Foundation in support of capital contributions; and
- only new dollars raised for endowments are eligible for a matching provincial contribution.
- A Newly Created Named Endowment Fund
Working with an individual, family, high school, business association or community group, a community foundation may establish a new scholarship or bursary endowment fund. Any contributed capital including a contribution from the designated amount from Manitoba and subsequent capital gains will be owned by the community foundation. An agreement will be negotiated setting out the terms of the new endowment and a copy will be provided to the Foundation. The minimum capital contribution threshold for a donor under this option will be $5,000.00.
- A Community Education Fund
A community foundation may establish one general educational endowment fund for the purpose of generating annual income to be distributed as scholarships or bursaries to local high school graduates who are pursuing a post secondary education. Any contributed capital including a contribution from the designated amount from Manitoba and subsequent capital gains will be owned by the community foundation. The community foundation Board of Directors will adopt a formal resolution setting out the terms for this endowment and a copy of the Minutes will be provided to The Winnipeg Foundation. The minimum capital contribution threshold for a donor under this option will be $2000.
- Transferring an Existing Scholarship or Bursary Endowment Fund
Under this option, a community foundation would accept ownership of an existing endowment fund and then authorize transfer of the fund to the Program. In accepting the existing endowment fund in order to transfer it to the Program, the community foundation must add the criteria set out at section 1.03 of the Agreement. The contributed capital including a contribution from the designated amount from Manitoba and subsequent capital gains will be owned by the community foundation. The endowment fund may retain the existing name. An agreement will be reached confirming the terms of the endowment fund and a copy of the agreement will be provided to the Foundation. The minimum capital contribution threshold for a donor under this option will be $5000.
- Augmenting an Existing Endowment Fund
Under this option, a bursary or scholarship endowment fund already owned by a community foundation will be filed with the Foundation complete with existing terms of reference and name. To make the endowment fund eligible for the Program, the community foundation must add the criteria set out at section 1.03 of the Agreement. All new gifts will be eligible under this option.
This program will be administered by The Winnipeg Foundation which shall maintain a complete file of all related activity and information for audit purposes.
This program is expected to operate for five years as follows:
| Community Foundation Submissions by: | Provincial Contributions by: | |
| Year I | July 1, 2005 to January 31, 2006 | March 31, 2006 |
| Year II | February 1, 2006 to January 31, 2007 | March 31, 2007 |
| Year III | February 1, 2007 to January 31, 2008 | March 31, 2008 |
| Year IV | February 1, 2008 to January 31, 2009 | March 31, 2009 |
| Year V | February 1, 2009 to January 31, 2010 | March 31, 2010 |
The Winnipeg Foundation shall provide an annual report to the Province confirming the number of participating community foundations, the number of funds, the contributed capital and market value of each fund, the amount of scholarships and bursaries paid from each fund, and any other general information related to the administration of this program.
The Winnipeg Foundation shall annually provide information to participating Manitoba community foundations with respect to each scholarship or bursary fund established under this program in accordance with its normal fund reporting procedures. Interim fund reports will also be available upon request.
By February 15th following each year of the program, The Winnipeg Foundation shall report to the Province and each participating community foundation as to the total contributions made during that year. The Winnipeg Foundation will also provide a calculation which shares the $100,000 provincial funding amongst the various funds on a pro rata basis provided that in no case shall the provincial contribution be greater than the local contribution.
The Winnipeg Foundation will arrange a meeting once each year (which may be held in conjunction with other normal meetings of Manitoba community foundations) at which time there will be opportunity to raise questions or seek clarification with respect to the administration of this program.
A Shorter Year One
For clarity, it bears repetition that in year one of this program, the timeframe for submissions shall be up to January 31, 2006. This shortened period of time allows the program to fall in line with the provincial year end of March 31st.
Investment of Funds
During the program period, funds will be managed by The Winnipeg Foundation on behalf of the participating Manitoba community foundations each of which shall continue to own their assets. At the end of the program period, funds will be turned over to participating community foundations at current market value.
All contributed capital will be invested into the Consolidated Trust Fund of The Winnipeg Foundation during the program period in accordance with its standard policies and investment guidelines. Funds available for granting as scholarship or bursary payments shall be in accordance with the spending policies of The Winnipeg Foundation as approved by its Board of Directors. All endowments at The Winnipeg Foundation pay an annual administrative recovery charge of 0.5% of market value (as at October 1st) to cover the cost of investment management, custodial and other related services.
Sample Calculation of Pro Rata Shares
In Year I, a total of eight eligible Manitoba community foundations participate in the program (some with multiple funds) as follows:
| Community Foundation/Fund | New Assets Raised | % of Total Raised | Provincial Contribution |
| CF#1-Fund#1 | $5,000 | 2.5% | $2,500 |
| CF#1-Fund#2 | $7,500 | 3.75% | $3,750 |
| CF#1-Fund#3 | $10,000 | 5% | $5,000 |
| CF#2-Fund#1 | $12,500 | 6.25% | $6,250 |
| CF#3-Fund#1 | $15,000 | 7.5% | $7,500 |
| CF#3-Fund#2 | $17,500 | 8.75% | $8,750 |
| CF#4-Fund#1 | $20,000 | 10% | $10,000 |
| CF#5-Fund#1 | $22,500 | 11.25% | $11,250 |
| CF#6-Fund#1 | $25,000 | 12.5% | $12,500 |
| CF#7-Fund#1 | $30,000 | 15% | $15,000 |
| CF#8-Fund#1 | $35,000 | 17.5% | $17,500 |
| $200,000 | 100% | $100,000 | |
These guidelines are intended to assist in the understanding of this program but for greater clarity, a copy of the agreement between the Province of Manitoba and The Winnipeg Foundation is available to any Manitoba Community Foundation upon request.
Any questions with respect to this program should be directed to , CEO, The Winnipeg Foundation or to , Donor Services Administrator, The Winnipeg Foundation. Our phone number is 204-944-9474.
July 15, 2005