Annually, the KAOEF awards scholarships to participants based on an established Endowment and Spending Policy along with an approved application and grading process. Recipients are selected by the KAOEF’s Scholarship Committee based on applications received. Last year, the KAOEF awarded over $95,000 in scholarships to various applicants.
KAOEF Scholarship Recipients
Scholarship Endowment Accounts may be created through a variety of methods.
With an initial minimum gift of $1,000 or more, friends of KA, undergraduate or alumni members of a chapter may request that the KAOEF establish a scholarship account with the KAOEF. The $1,000 initial gift may be a single gift or the total of a number of gifts provided at one time. A percentage of each gift donated into the account will be paid to the KAOEF for administrative expenses such as:
Document preparation fees
Draft of Scholarship Endowment Agreement and associated fees
Annual accounting and auditing fees
Account distribution process and associated fees
The following chart shows the breakdown of percentages based on endowment level of the scholarship account:
From the date of the initial gift(s), the account has five (5) years to reach the Board-approved minimum endowment level of $25,000. When that level has been sustained for a full fiscal year (July 1 – June 30), distributions will be made from the return on the principle of the account. Should the minimum endowment level not be reached within five (5) years, or if no contributions are received for a period of five (5) years, the funds will revert to the KAOEF’s unrestricted funds to be disbursed at the discretion of the Board of Trustees.
In keeping with the KAOEF’s mission and obligations as a 501 (c)(3) charitable organization, distributions made from each account must satisfy the Internal Revenue Service Code and may be used only for educational purposes. When endowed ($25,000), the return generated by the account will be used to benefit the local chapter and/or active members by providing distributions for purposes in accordance with IRS regulations. Subject to change, distributions may be used for:
Academic Expenses (books, study aids, etc.)
Accounts are managed according to the provisions of the Foundation’s “Endowment & Spending Policy.” Once the Fund has reached the minimum $25,000 endowment level, annual distributions (within a fiscal year) are expected to be based upon five percent (5%) of the account balance over a three-year moving average of the account, rounded to the next lower $25 increment.
If distribution from a chapter endowment is in the form of academic scholarships, recipients will be selected annually by the Scholarship Committee of the Foundation based upon applications received.
*Additional information regarding loans to chapter housing corporations provided upon request.