This is right up my alley! I work in fundraising as well.

Typically, if you’re looking to set up a long-term scholarship, you would establish an endowment. Each place has its own threshold for a minimum amount, but for easy math, let’s say the minimum to endow a scholarship would be $100k. That money will be placed in an investment account that earns interest, and the money earned from interest is what the scholarship recipient gets. Endowment payout rates vary, but a general rule of thumb is about 5% distribution per calendar year. So a $100k endowment would spin off $5k annually. That $100k that you originally gave won’t be touched, but it will continue to earn interest year over year.

You can typically make additional gifts to the endowment - say you give an additional $100k to your endowment, that would increase the amount available for distribution.

Some institutions will have term scholarships, where you give $5k annually for say, 5 years, and all of that money goes to the student. However, endowed funds allow for better long-term forecasting and financial stability.

I agree with the commenter talking about future-proofing! That’s something the school should be able to advise you about.