1. How to start and manage a successful chapter scholarship

2. What Are Chapter Specific Funds? Financial gifts given through the Foundation and directed specifically to a chapter (as opposed to unrestricted gifts), these gifts serve as: – Method for alumni to give back to their chapter directly – Recruiting tool by giving scholarships to members and potential new members – Recognition (i.e., Naming the fund for an alumnus or undergraduate brother)

3. What Are The Advantages of Having A Fund? Tax deductible gifts – The Education Foundation is a 501(c)(3) Foundation. Ease of use, collections, and disbursement of funds – All chapter specific funds are managed by the Foundation (accounting, bookkeeping, and administration) Funds are invested with a professional manager – Foundation assets (general funds, endowments, restricted funds, and chapter specific funds) are all pooled and invested. Controlled, annual disbursement of funds – The Trustees set the annual amount of investment proceeds available (currently 4.5% of three-year average fund balance).

4. What Is The Purpose of These Funds? Chapter specific funds are typically created for: Scholarship – Rewarding academic and extra-curricular achievement Leadership – Covering costs for educational programs (i.e., SigEp’s leadership development programs) and community leadership programs Housing – Building and maintaining educational space may qualify to be funded by tax-deductible donations (pending legal review) – SigEp Residential Learning Communities (RLC) make the most of this opportunity

5. What Are The Various Types of Funds? Endowment Funds – Principle of this type of fund grows over time – Delivers annual proceeds for awards upon balance reaching $2500+ – Foundation Trustees set annual proceeds (2012 = 4.5%) – Fund is perpetual, delivering proceeds every year – Challenge is that a large balance is needed for significant proceeds Direct Funds – Principle of this fund is available immediately – Benefit is that greater proceeds are available earlier and quicker – Challenge is that without constant fundraising the award amount can shrink or disappear quickly – Direct funds are not invested due to their temporary nature

6. Which Fund Is Recommended? Mixed Approach – Endowments are recommended to ensure the long-term viability of chapter initiatives. – For chapters with immediate needs and a working fundraising program, Direct funds can be useful. – The Foundation typically recommends a 50:50 approach when starting a new fund (50% of gifts to Endowment, 50% to Direct) – There are also periodic needs that could best be handled with a Direct fund. Endowment Goal – The goal is always to achieve 100% Endowment funds.

7. How Do We Establish A Scholarship Fund? Any recognized unit of the Fraternity can start a fund: – Chapter, Alumni Volunteer Corporation (AVC) or any member. – The chapter’s AVC must approve of each fund established Creating a fund is an easy, three-step process: – Step 1: Deciding on a name for the fund  Excellent way to honor an outstanding alumnus or chapter brother  Or the fund may be designated simply by the chapter name – Step 2: Establishing a working agreement  All funds require a working agreement (click here for a template).(click here for a template)  This formal documentation determines the purpose, qualifications and process for the fund. – Step 3: Raising money to establish the fund  Projects of the chapter or an alumni campaign are the two most common fundraising techniques. You are limited only by your creativity.

8. How Do We Award The Scholarship? Selecting Recipients – The “working agreement” includes“working agreement”  General selection criteria, procedure, amount of each award, and timing – The Trustees encourage the chapter and AVC to work together to determine the recipients of a chapter’s scholarship. – Applicants can be evaluated by the Scholarship Awards Committee. Timing of Awards – Generally, selection is made in spring, and the awards are presented in September. – Timing arrangements can be made to meet the wishes of the chapter/donor. Amount of Scholarship – The amount depends upon the balance of the fund (i.e., At the current 4.5%, a $2500 fund will provide a $125 award).

9. We’re Ready! What Do We Need To Do Next? 1.Discuss feasibility of fund with the Alumni Volunteer Corporation 2.Begin filling out the working agreementworking agreement 3.Email completed working agreement to: Brady Wolfe – brady.wolfe@sigep.netbrady.wolfe@sigep.net 4.Upon approval, mail in two signed copies of the working agreement (one will be countersigned and returned) Sigma Phi Epsilon Educational Foundation Brady Wolfe 310 South Boulevard Richmond, VA 23220 5. START FUNDRAISING! (See: “How to Chapter Fundraise” presentation)