HomeMy WebLinkAboutBack-Up DocumentsPROPOSAL
To: The City of Miami
From: The Miami Foundation
Date: June 27, 2022
Re: Venture Miami Scholarship Fund
The enclosed document outlines the proposed partnership between The Miami Foundation and the City of
Miami to create the Venture Miami Scholarship Fund.
About The Miami Foundation
The Miami Foundation builds the philanthropic, civic, and leadership backbone for Greater Miami. Since 1967,
the Foundation has invested $485 million to strengthen our community with partnerships and contributions
from more than 1000 fundholders and 35,000 donors. The Miami Foundation, which currently manages over
$450 million in assets, mobilizes donors, nonprofits, leaders, and locals to set a bold vision for our community's
future and to invest in a stronger, more equitable, more resilient Greater Miami.
Background and Relevant Experience
The Miami Foundation has a robust scholarship fund portfolio that works to help students gain access to higher
education. Increasing young people's educational attainment is a critical factor for Greater Miami's growth and
thanks to generous donors, we have helped thousands of students develop and contribute their passions and
talents to our community.
The portfolio currently consists of 12 unique scholarship funds that provide awards to students based on
criteria set by the donor. The Foundation has a full-time, dedicated team that manages the scholarship portfolio
and a world -class online platform to accept applications and perform review. In 2021, the Foundation received
almost 1,500 scholarship applications and awarded 637 scholarships totaling $1.2 million.
The largest scholarship fund is our College Assistance Program (CAP) which provides scholarships to Miami -
Dade County Public High School graduates who have exhausted all avenues of financial assistance (federal,
state, and institutional), but still have significant unmet needs to attend the college of their choice. Learn about
all of our scholarship funds on our website
Venture Miami Scholarship Fund Approach
The City of Miami has a deep interest in supporting residents who have an interest in technology related
careers to attend degree and other programs that can further those interests. The Miami Foundation
proposes to partner with the City to design, launch, and manage the Venture Miami Scholarship Fund, a
robust scholarship program that would invest in City of Miami residents that have been accepted and plan to
enroll in a technology course or degree program at a local university partner.
The Foundation will work closely with the City and local university partners to design the program and finalize
award criteria.
Timeline
The Foundation proposes that the scholarship opportunity be open to applications year-round and reviewed
on a quarterly basis. See a proposed schedule below.
Application Window
Review Window
Notification and Payment
Jan 1 — Mar 31
Apr 1
—Apr 30
May 1
— May 31
Apr 1 —Jun 30
Jul 1
— July 31
Aug1 —
Aug31
July 1- Sept 30
Oct 1
— Oct 31
Nov 1 —
Nov 30
Oct 1 — Dec 31
Jan 1
— Jan 31
Feb 1 —
Feb 28
Minimum Balance and Fees
The minimum fund balance for a scholarship fund is $100,000.00. The Foundation charges a fee on deposit
based on the assets deposited into the fund. The fee schedule is below. This fee includes:
• Dedicated and experienced team at the Foundation to support the program
• Scholarship program design and management
• Applicant support via phone, email, and text
• Application review and payment processing (check or ACH)
• Use of our Submittable online technology platform
• Partnering with participating local universities to promote the opportunity
We are not assessing any fees related to the marketing and promotion of this scholarship opportunity. The
City of Miami and the University partners have robust channels to reach potential applicants and ensure they
know about this offering. In addition, The Miami Foundation will gladly promote the opportunity through our
website, social media channels, and newsletters.
Asset Size
Standard Fee (assessed on deposit)
Reduced Fee (assessed on deposit)
Up to $1 M
4.00%
3.50%
$1 M - $5M
3.50%
3.25%
$5M - $10M
3.25%
3.00%
$10 - $20M
3.00%
2.50%
$20 M+
2.00%
1.75%
Additionally, the Foundation charges a volume -based fee based on the number of applications submitted. This
fee accounts for the increased costs related to staffing up to support high -volume scenarios. This fee will be
assessed at the end of the calendar year as part of Q4 fees.
Number of Annual Applications
Standard Fee
Reduced Fes
1-100 applications
$0
$0
101-250 applications
$25,000.00
$20,000.00
251-500 applications
$40,000.00
$35,000.00
501-700 applications
$55,000.00
$50,000.00
701-1000 applications
$70,000.00
$65,000.00
1000-1500 applications
$85,000.00
$80,000.00
1500+ applications
$100,000.00
$90,000.00
The City of Miami and The Miami Foundation will meet annually to review the Scholarship Fund to ensure the
following:
• The Fund is moving forward according to plan
• The designated procedures are working well
• The fee is appropriate to cover the full cost of supporting the program
Contact
Lindsey Linzer, Managing Director of Community Investments
LLinzer@miamifoundation.org 1 305-357-2079
July 28, 2022
Brief -Venture Miami Scholarship Program
Goal
If you are a recent high school graduate residing in a City of Miami household, qualify under this program as a
person of need, and are accepted to the University of Miami, Florida International University, Florida Memorial
University, or Miami -Dade College, you can pursue a bachelor's degree in a defined STEM or high wage/demand
occupation with FREE tuition.
Why
COST
Per the Department of Education, only 12% of the university population are earning a Master's degree
but they account for 26% of all student debt. Bachelor's students with federal loans owe an average of
$32,000 upon graduation. Master's students owe $65,000.
■ no return on investment.
• While Federal dependent undergraduate loans are capped at $31,000, graduate loans are capped at
$138,500. Accordingly, some universities are incentivized to offer more graduate programs as they are
more profitable
• Per the Foundation for Research on Equal Opportunity, which recently measured the ROI of nearly
14,000 graduate programs, found:
o 40% of master's degrees had no return at all on lifetime earnings — none.
■ This includes 62% of MBAs —the most popular of all master's degrees —which provided
Earning Power:
• Per the US. Bureau of Labor Statistics ("BLS") Occupational Handbook:
o Employment in computer and information technology occupations is projected to grow 13% from
2020 to 2030, faster than the average for all occupations. These occupations are projected to add
about 667,600 new jobs.
o The median annual wage for computer and information technology occupations was $97,430 in
May 2021, which was higher than the median annual wage for all occupations of $45,760.
SUMMARY: the focus shouldn't be on more education, but rather the RIGHT education, and setting up
those in financial need to begin life without the burden of debt.
Market Size
• US Census (2021)
o Population:439,890
o Persons < 18 years: 17.2%, or 75,661
o Est. Persons 18 years: 4,203 (75,661/18)
• Florida Department of Education
o High School Graduate Rate in Miami -Dade County: 89.6%
o Est. Persons 18 years who are High School Graduates: 3,766
o Est. Total Market Size of persons within 4 years of graduation: 15,064 (3,766 x 4)
• Currently enrolled full-time students with Miami Zip Codes - MDC, FMU, FIU, UM
o 2021-2022 Academic Year: 7,027
■ -46.65% of Miamians within 4 years of high school graduation are enrolled (7,027/15,064)
• Currently enrolled full-time students with Miami Zip Codes AND in financial need
o True Market Size: 414 (216 + 198)
■ Pell Recipients with tuition gaps: 216
• FI U (76), UM (63), FM U (77)
■ MDC students who didn't qualify for a Pell Grant, but <80% of AMI: 198
• MDC is the exception to the standardized Pell Grant threshold because the
amounts awarded (max of $6,895) often exceed the cost of tuition and fees at M DC
which for the 2021-2022 academic year were $3,897.
Program
• Eligible Costs: Tuition & Fees only
• Duplication of Efforts (last dollars): A recipient can only receive funds not covered by another scholarship
awarded (ex. FL STEM Bogo), FAFSA, or Florida Prepaid.
• Initial Eligibility:
o Must be a City of Miami resident for 3-consecutive years at time application is received by the
Miami Foundation.
o Applicant must be a U.S. Citizen or Permanent Resident
o Applicant must provide official high school transcript
o Eligibility Window
■ For the 2022-2023 academic year, applicant must be a high school senior or graduate
within last 4 years from the time application is received by the Miami Foundation.
■ For the 2023-2024 academic year, applicant must be a high school senior or graduate
within last 3 years from the time application is received by the Miami Foundation.
■ For the 2024-2025 academic year, applicant must be a high school senior or graduate
within last 2 years from the time application is received by the Miami Foundation.
■ For the 2025-2026 academic year, and beyond, applicant must be a high school senior or
graduate within last 1 year from the time application is received by the Miami Foundation.
o Must apply and be accepted by the respective university
o Must qualify for a Pell Grant via the Florida Student Aid FAFSA guidelines OR have a household
income less than 80% of the AMI for the City of Miami if attending Miami Dade College.
■ Miami Dade College is the exception to the standardized Pell grant threshold because the
amounts awarded (maximum of $6,895) often exceed the cost of tuition and fees which
for the 2021-2022 academic year were $3,897.
o Must provide proof of meeting with designated scholarship coordinator prior to, or in conjunction
with submitting an application to the Miami Foundation.
o Applicant must be pursuing one of the following bachelor's degrees:
■ UM
STEM
o
Aerospace Engineering
o
Biomedical Engineering
o
Computer Engineering
o
Computer Science
o
Engineering Science
o
Environmental Engineering
o
Geological Sciences
o
Marine Affairs
o
Marine Biology and Ecology
o
Marine Science
o
Mathematics
o Meteorology
o Microbiology
o Mechanical Engineering
o Neuroscience
o Oceanography
o Physics
• High Demand
o Nursing
• STEM
o
Business Analytics
o
Biomedical Engineering
o
Biological Sciences
o
Civil Engineering
o
Computer Engineering
o
Computer Science
o
Electrical Engineering
o
Environmental Engineering
o
Information Technology
o
Internet of Things
o
Management Information Systems
o
Mathematics
o
Mechanical Engineering
o
Nursing
o
Physics
o
Statistics
• High Demand
o
Nursing
• STEM
o
AI/Machine Learning
o
Biopharmaceutical Sciences
o
Biotechnology
o
Cybersecurity
o
Data Analytics
o
Electrical and Computer Engineering Technology
o
Information Systems Technology
• High Demand
o
Nursing
■ STEM
o Cybersecurity
o Computer Science
o Information Systems
• High Demand
o Healthcare
• Ongoing Eligibility
o Must continue to reside in the City of Miami OR on campus.
o Must provide proof of meeting with designated scholarship coordinator each semester prior to
funds being disbursed.
o Minimum Maintained GPA: 2.5
o Complete 12 or more credits per semester
o Recipient may not receive funds for more than a 6-year period
• Fundraising: Goal is to have civic, educational, and nonprofit partners kick start the program for the first
2 years, allowing for private philanthropy to take over in Y3 and beyond in perpetuity.
o Y1 & Y2
■ Venture Miami: $500K in Y1
■ Educational Partners Match
• MDC: up to $500K in Y1 & Y2
• FMU: up to $500K in Y1 & Y2
• FIU: up to $250K in Y1 & Y2
• UM: up to $200K in Y1 & Y2
Backup: Facts & Figures
• Tuition for in State Residents
o University of Miami
■ Credit Hour: $1,851.33
■ Per Year: $55,540
■ 4-years: $222,160
o Florida Memorial University
■ Credit Hour: $419.20
■ Per Year: $12,576
■ 4-years: $50,304
o Florida International University
■ Credit Hour: $205.77
■ Per Year: $6,167
■ 4-years: $24,692
o Miami -Dade College
■ Credit Hour: $129.89
■ Per Year: $3,897
■ 4-years: $15,587
• Graduation Rates
o UM: 82% graduate within 6 years
o FIU: 68% graduate within 6 years (per university staff)
o MDC: 56% graduate within 6 years (per university staff)
o FMU: 36% graduate within 6 years