What happens when a university educates students who become the owners of a multi-million dollar company? Well, while some find themselves being attached to scandal Truman State University is finding itself enriched.
Class of 1983 alumni Scott Zajac, along with fellow alumni Ryan Brennan of Advantage Capital, have donated $40,000 to the school for the benefit of students to receive stipends so that their costs can be defrayed.
How The Funding Works
Many may look at the gift of $40,000 and think that it will not go very far. After all, if 40 deserving students qualified, it would do little more than cover some of the year’s gas money.
However, that is not how a program like this works. The money is put together to create earnings, as well as attract like-minded benefactors. If the $40,000 principal amount was to gain 5% in 2017, then $2,000 would be created for the program. If four other graduates gave similar amounts then the account would have a principal amount of $200,000.
Has Something Like This Worked Before?
This is a very common program, and hopefully going to be more so within the school. For those who wonder how common it is, we can go back at least 228 years!
In 1789 Benjamin Franklin left in his will the amount of 2,000 lbs of sterling silver to accumulate interest until 1989 at which point the money would be distributed to the cities of Philadelphia and Boston. When the account was disbursed in 1992 more than $2,000,000 was bequeathed.