The Perpetual Fellowship Fund

History of the Perpetual Fellowship Fund

Alpha Lambda Delta has used the Perpetual Fellowship Fund to support scholarships since 1940. The fellowship program is an especially distinctive well-established feature of the Society. It will continue as long as ALD continues to exist. The Perpetual Fellowship Fund (PFF) was established through gifts from friends of Alpha Lambda Delta, current and former Board of Directors members, funds from surplus operating expenses, and chapter local fees. It will continue to grow through future gifts from private individuals, corporations, foundations, associations, and others. Monies in the Perpetual Fellowship Fund are invested to allow for the principal to remain intact in perpetuity, while a portion of the PFF is used to support annual fellowships and scholarships.

Donations can be accepted online or by sending a check to: Alpha Lambda Delta, 6800 Pittsford Palmyra Rd. Ste 340, Fairport, NY 14450.

Investment of the Perpetual Fellowship Fund

Initial PFF investments were in war bonds. In the early 80’s due to the leadership of President Helen Clarke, ALD began a mutual fund portfolio which was managed by John Fish of A. G. Edwards. When Mr. Fish retired, Mr. Frank Key began advising ALD. Mr. Frank Key met with the Society once every three years and was available for consultation by telephone. In the spring of 2008, the Executive Committee solicited and reviewed investment proposals from three different investment firms and selected Kathy Hammock of Stonewall Asset Management Inc. Professional management of the Perpetual Fellowship Fund continues today with PNC Asset Management Group.

Meeting annually in June, the Board of Directors reviews and approves the operating and fellowship budgets, makes decisions regarding any operating surplus, and reviews the goals, objectives and performance of the PFF.

Alpha Lambda Delta recognizes the benefit of establishing a more stable source of funding for the fellowship fund. In order to accomplish this objective, the Board adopted the “Total Return Concept” for investments, utilizing 5% of the three-year rolling average value of the PFF.

Definition of the Perpetual Fellowship Fund

The Perpetual Fellowship Fund is a quasi-endowment as defined by the National Association of College and University Business Officers (NACUBO): “A quasi-endowment fund is a fund established by the governing board to function like an endowment fund but which may be totally expended at any time at the discretion of the governing board.” The funds are invested in the same manner as a true endowment and have the same payout provisions.

Scholarships and Fellowships

Scholarships and fellowships offer donors the opportunity to make possible a university education for deserving Alpha Lambda Delta members. ALD members who are awarded ALD scholarships and fellowships are selected by committees established by the ALD Board of Directors.

Alpha Lambda Delta currently offers three programs of financial support for student members:

Graduate Fellowships – 28 fellowships ranging from $2000 to $7000, totally $76,000.
Trow Scholarships – 50 undergraduate scholarships ranging from $1000 to $6000, totally $105,000.
Stemler Study Abroad Scholarships – 20 undergraduate scholarships ranging from $1000 to $2000, totally $30,000.

Gifts to the Perpetual Fellowship Fund and Gift Naming Opportunities

Major gifts may be established by a one-time gift, a series of gifts, a pledge paid over a period of five years, wills, trusts, gifts of appreciated assets or by a combination of these. Gifts can be added to the PFF at any time. In certain instances, a specific amount of the gift must be received prior to the actual names of the scholarship or fellowship. According to our IRS 501(c)(3) status, donors can deduct contributions made to ALD. We are also qualified to receive tax deductible bequests, legacies, devises, transfers, and gifts under IRS Sections 2055, 2106, and 2522. All gifts to Alpha Lambda Delta shall be deemed unrestricted.

For gift-related naming opportunities, a scholarship or fellowship offers donors a premier opportunity to substantially benefit an ALD member. Because naming represents an important event in the history of the society, it requires an extraordinary gift. The gift should generate a distribution that provides sufficient support to the Perpetual Fellowship Fund.

Alpha Lambda Delta National will provide opportunities for donors to designate the name of a scholarship or fellowship or other item in honor of the donor or another person. In order for Alpha Lambda Delta to properly administer funds, each gift must be accompanied by a gift agreement that has been approved by representatives of the donor or the ALD Executive Director.

All naming actions shall be by action of the ALD Board of Directors upon recommendation of the Executive Director. Email eileen@nationalald.org to discuss funding requirements for future named fellowships and scholarships.

Service Recognition Naming Opportunities

The ALD Board of Directors has established procedures for naming certain items covered by this policy for reasons other than private giving. This occurs when some individual merits recognition due to their service or other contributions. The ALD Executive Council handles requests of this type and makes recommendations to the Board of Directors.

Administration

The ALD Executive Director shall be responsible for administering expenditures related to supported fellowships and scholarships in accordance with Board of Directors policies and procedures to assure that administration is consistent with the ALD policies and IRS regulations.

General

Named scholarships and fellowships shall bear only the name of individuals or entities that exemplify the attributes of integrity, character, and leadership consistent with the highest values of Alpha Lambda Delta. If at any time following the approval of a naming, circumstances change substantially so that the continued use of that name may compromise the public trust, the Executive Director will consult with the National President and with the ALD Board of Directors regarding future action. The Board of Directors reserves the right to remove any name that would not reflect positively on the Society or would conflict with the purpose or mission of Alpha Lambda Delta.