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Service Grants for the ESA Foundation Scholarship Services
The ESA Foundation will provide its services for a nominal fee for any organization wishing to take advantage of its scholarship program. These fees will be used to support ESA Foundation programs and operations. For the service of processing scholarships or endowments for businesses, foundations, or groups, the ESA Foundation charges 5% of the endowment fund total to administer these funds and process the applications annually. This fee will be assessed for each established "Service Grant" endowment on June 1 of each year. Agreements to establish endowments with the ESA Foundation is irrevocable. The minimum to establish an endowment will be a $16,000 principal, which will support a $1000 scholarship annually if the "total return" on the investments is 6.6%.
In order to establish an endowment/scholarship in the party's name the following guidelines will apply.
- The party will sign an Irrevocable Endowment Agreement with the ESA Foundation. All stipulations of this agreement would be adhered to.
D O W N L O A D YOU NEED THIS Irrevocable Endowment Agreement Form
(for Scholarship Services).
- a. A minimum of $16,000 in principal would have to be established for each endowment (a lower amount may be negotiated with the Board of Directors). This principal can not be used and would currently support a $1000 scholarship each year on the interest earned annually. The "total return" is established by the Auditors annually based upon current earnings of the investments. Each Endowment established by the ESA Foundation must support its scholarship through the interest earned. For example: If the principal is $20,000, assuming the investment makes 6.6%, compounded daily, and assuming no scholarships were paid out until the end of the second year, at the end of each year thereafter the endowment could give away a $1000 scholarships without getting into the corpus. The interest not used would be added to the endowment fund balance. The principal endowment would remain active as long as it lived off of its interest. Should "total return" depreciate the scholarship would be awarded based upon the Foundation's 5.5% spending rate. Scholarships are given in increments of $500.
- b. The amount of the scholarship awarded must be in the endowment fund account May 31 prior to the year it is awarded
- c. The ESA Foundation would continue to handle the established endowment throughout its life span without making additional requests for administrative funds. Should the party wish to establish an additional endowment at a later time another contract would be established with administrative costs and handling.
- a. A minimum of $16,000 in principal would have to be established for each endowment (a lower amount may be negotiated with the Board of Directors). This principal can not be used and would currently support a $1000 scholarship each year on the interest earned annually. The "total return" is established by the Auditors annually based upon current earnings of the investments. Each Endowment established by the ESA Foundation must support its scholarship through the interest earned. For example: If the principal is $20,000, assuming the investment makes 6.6%, compounded daily, and assuming no scholarships were paid out until the end of the second year, at the end of each year thereafter the endowment could give away a $1000 scholarships without getting into the corpus. The interest not used would be added to the endowment fund balance. The principal endowment would remain active as long as it lived off of its interest. Should "total return" depreciate the scholarship would be awarded based upon the Foundation's 5.5% spending rate. Scholarships are given in increments of $500.
- In order to give full publicity advantage to both parties the Foundation requests that the name of the endowment include the ESA Foundation's name. Therefore, it should be entitled to read (name designated) /ESAF Endowment. The Endowment will be listed by the name designated. It will appear in a document indicating it is an ESA Foundation Scholarship. The ESA Foundation gives full control of the endowments special criteria to the control agent establishing the endowment beyond the criteria established by the ESA Foundation. [* This criteria is attached to the application form]
- The ESA Foundation will notify the designated control agent on the status of the endowment annually. This report will include:
- a. The financial status of the scholarship.
- b. The current winner of the scholarship, including the name, address, and picture if available.
- c. Any additional information requested by the designated control agent giving the scholarship.
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WINNERS [only] of scholarships are notified by June 15 of each year. The control agent for this agreement will be notified soon after that date regarding the winner of the scholarship. |
The ESA Foundation Scholarship Program operates under the 501 (C) 3 regulations of the Federal Government. The program is audited annually to insure strict regulations of the criteria established for each scholarship.
Internal Revenue Service Publication 520: A qualified scholarship is any amount you receive as a scholarship or fellowship grant that is used according to the conditions of the grant for:
- Tuition and fees required to enroll in, or to attend, an educational institution, or ...
- Fees, books, supplies, and equipment that are required for the courses of instruction at the educational institution. [Approved February 1998]