Continuing a level of philanthropy that is unparalleled in American higher education, the Penn State Alumni Association contributed $300,000 to the Trustee Scholarship program in 2003 from its Margin of Excellence fund. In the 2003-04 academic year, the Alumni Association’s gift supported 13 students, providing—through the University match—$30,080 in aid. The recipients are a diverse group—10 are women and nine are first-generation college students.

Nearly 77 percent of Penn State undergraduates received some sort of financial assistance in 2002–03, totaling more than $455 million. Of that total, close to 60 percent—more than $250 million—was in the form of student loans. The result was an average debt of $18,200 per student by graduation. Trustee Scholarships—through fundraising efforts by Penn State’s Office of University Development—are alleviating part of that burden. Once fully funded, the Trustee Scholarship program will provide nearly 40 percent more privately funded aid to undergraduates at Penn State.

What makes this program so special is the matching component that the University has put into place—essentially giving donors twice the bang for their buck. Here’s how it works: The University will make available, from its general funds, 5 percent of the total donor endowment per scholarship annually for spending, in addition to the earnings. For example, on an endowment of $50,000, the University makes $2,500 available immediately to award to a deserving student. On average, the $50,000 gift will generate about 5 percent ($2,500) of spendable interest per year. As such, the total award made available to the student will be about $5,000 per year for that specific scholarship.

The goal of the Trustee Scholarship program is to raise $100 million by June 30, 2007, which will be directed to students with the most need. To date, donors have contributed nearly $10.7 million to the scholarship program. A minimum outright gift of $50,000 payable in cash or securities pledged over five years qualifies for the Trustee Scholarship program.

The scholarship program is one of five major goal areas of the Investing in People initiative of the Office of University Development. The new fundraising focus comes on the heels of the highly successful Grand Destiny campaign. Penn State received more private support during the seven years of the Grand Destiny campaign than it did in the 141 years between its founding in 1855 and 1996. Development’s focus over the next four years will center around fundraising for (1) the Trustee Scholarship program, (2) college excellence—focusing on individual colleges and campuses, (3) faculty support, (4) the Hershey Medical Center, and (5) Intercollegiate Athletics.