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The University of Wisconsin could receive nearly $1 million for need-based scholarships within the next several years as a result of the combined efforts of the University of Wisconsin Credit Union and the UW Foundation.

UWCU announced Wednesday it would donate $215,000 to the university and would also match additional member donations up to $215,000 through the end of December 2008. The UW Foundation agreed to then double the amount UWCU raises.

“Say if I were to make a $100 gift, [UWCU] would match it with another $100. That $200 combined, [the UW Foundation] would match,” said Chris DuPre, managing editor for the UW Foundation. “So your $100 gift will become a $400 gift.”

The fundraising efforts are part of the “Great People, Great Place” Initiative and could ultimately contribute as much as $40 million for need-based aid to the university within the next several years.

“This is raising the issue of need-based aid to a whole other level,” said Susan Fischer, UW director of financial aid. “I want to be able to say to all the low-income kids, especially those from Wisconsin, who are currently not even considering Madison because it’s too pricey, that if they’re smart enough and they work hard enough they can come here.”

Fischer added increasing need-based aid would enhance economic diversity on campus, which is vital to creating a favorable learning environment.

“It is important the school serve a wide constituency,” Fischer said. “It’s important to the students here that they are exposed to other economic statuses.”

According to Lisa Girdharry, director of marketing and communication for UWCU, the credit union decided to donate the money because it believes there is “a great opportunity to reduce the financial need as a barrier for students who have the talent and credentials to attend” the university.

The money that is raised will go into an endowment fund and payouts will be given based on the interest earnings from the endowment, DuPre said.

UW Chancellor Biddy Martin, who has said need-based financial aid is one of her priorities, announced the new fund Wednesday.

“I really welcome that understanding and commitment (by Martin),” Fischer said. “The need-based aid hasn’t been very glamorous. Everybody here is pretty smart. If we can all agree it’s hard to get in here, then let’s give money to the meritorious student who needs it. That’s what I hope people to do.”

Girdharry added the recent financial crisis on Wall Street has had no impact on UWCU’s pledge to donate.

“We are very financially strong and secure,” Girdharry said. “We are very well capitalized. We have not participated in subprime lending. We have a lot of prudent lending practices.”

UWCU will also donate money to the six other UW System campuses it serves, including UW-Green Bay and UW-Milwaukee.