Scholarship Endowments

1
Scholarship Endowments Chapter Endowment Funds

• Joe Palazzolo
• New Jersey Province Archon
• Updated February 6, 2007

2
What is an Endowment?

• An endowment fund is a self-perpetuating
  investment account
• Distributions are made not from the principle
  account balance, but from the interest earned on
  that balance each year
• Sigma Pis current annual rate of return on
  endowment funds is 10

3
Why the Educational Foundation?

• None of our alumni volunteers have the time or
  expertise to manage this type of investment
  account on our own
• Nor do we have the time to set-up a 501(c)3
  nonprofit organization to make the donations
  tax-deductible
• An endowment grows on itself each year

4
Why the Educational Foundation?

• We choose the Sigma Pi Educational Foundation for
  a variety of reasons
• Donations are tax-deductible
• Flexible terms
• Our money will help the Educational Foundation
  leverage better interest rates for their entire
  investment portfolio
• Personal relationships with the Trustees
• Trust

5
A Little More Detail

• Funds must have 10,000 in order to start
  awarding scholarships
• Can only contractually award 4.5 points of the
  10 annual return
• 10,000 x 10 1,000 return
• 4.5 points of the return above is 450

6
The Long-Term Goal

• When the fund builds to 25,000, it can flip to a
  Chapter Endowment Fund
• A CEF provides the same benefits and uses as a
  Scholarship Fund, but it also allows for money to
  be spent on housing, travel, and academic expenses

7
(No Transcript)
8
The First and Next Steps

• First, you must make sure that your alumni
  volunteers and undergraduates have a basic
  understanding
• You need to raise MONEY!!!
• Undergraduates may choose to contribute a set
  amount per brother per semester towards the fund
• Example A chapter may budget 5 per active in
  their dues each semester to be put into the fund
• You can also organize fundraising campaigns
• Parents
• Local Businesses
• Alumni

9
Simple Numbers Alumni

• 10,000 / 250 alumni 40 per alumnus
• Many alumni (especially younger alums) feel like
  if they cant make a major contribution, they
  shouldnt make any contribution at all
• Please do NOT think this way!
• A 5, 10, or 20 donation goes a long way

10
Donate!

• If you have the means to donate 1,000 or more,
  then please do so
• If you can only donate 5, then please donate it
• If you can give 5 at Homecoming and 5 at the
  Christmas Party and 5 on Alumni Day those
  contributions build up!

11
More Information on Donating

• ALL checks must be made payable toSigma Pi
  Educational Foundation
• The Memo on your check should readNJ
  Province Scholarship
• Once you put NJ Province Scholarship in the
  memo, you can send your check to the Ed Fund
• Sigma Pi Educational FoundationP.O. Box
  1897Brentwood, TN 37024

12
Thank You

• Each brother who donates to the fund will be
  listed as an annual donor in our alumni
  newsletter and receive a special thank you on
  our website
• Those who donate via credit card, debit card, or
  check will receive the tax break, a thank you
  from the Ed Fund, and be listed as one of Sigma
  Pi Fraternity, Internationals annual donors

13
Questions, Comments,or Concerns?