dollars for scholars chapter guidebook

8/7/2019 Dollars for Scholars Chapter Guidebook

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Dollars for Scholars Chapter Guidebook Table of Contents

AWARDS Giving Awards ........................................................................................................................ 5-1What Schools Do With Your Scholarship Dollars .................................................................. 5-6Establishing an Awards Policy ............................................................................................... 5-7

SAMPLE Chapter Awards Policy ........................................................................................... 5-8SAMPLE Chapter Awards List ............................................................................................... 5-9Additional Scholarships Available ........................................................................................ 5-10Additional Planning and Tracking Tools............................................................................... 5-10Scoring the Application ........................................................................................................ 5-11Evaluating Merit-Based Awards........................................................................................... 5-11Rank in Class Chart ............................................................................................................. 5-16Table 1 Conversion of GPA to Points ............................................................................... 5-18Table 2 Conversion of Test Scores................................................................................... 5-20Evaluating Need-Based Awards .......................................................................................... 5-21Calculating Financial Need .................................................................................................. 5-23SAMPLE Points Worksheet ................................................................................................. 5-28SAMPLE Financial Awards Summary Sheet ....................................................................... 5-29

OTHER COMMITTEES Other Committee Assignments .............................................................................................. 6-1Proven Academic Support Projects from Around the United States ..................................... 6-3

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Dollars for Scholars Chapter Guidebook Introduction

Scholarship award criteria are determined by the local chapter and also the wishes of the donor.Flexibility is built into the process to meet local needs. Student awards can be restricted or unrestricted. Awards can be established for specific fields of study, for those attending technicalprograms, or for those attending 4-year degree institutions. They can also be made to recent highschool graduates, adult learners, or continuing awards for each year of study. Names/endowedscholarships can be designated to meet donor wishes within IRS guidelines.

2. Develop a process for smooth and permanent operations. Dollars for Scholars chapters are responsible for determining the structure and operations to best

meet the chapters mission and goals. Dollars for Scholars provides the suggested chapter structure, meeting agenda, bylaws, and other operational procedures.

Dollars for Scholars chapters offer a coordinated scholarship system for any interestedcommunity/organization.

3. Distribute awards on a fair, non-discriminatory basis. Dollars for Scholars offers chapters a time-tested methodology for scholarship application and

selection, enabling chapters to qualify as a scholarship provider under tax law.

Dollars for Scholars chapters are provided with suggested application criteria including sectionsfor academic performance, extra-curricular activities, volunteer and community service, workexperience, applicant appraisal, student goals, unusual circumstances, and financial need.Chapters may make adjustments to meet local needs.

4. Provide academic support for students. Academic support can include a variety of efforts to encourage students to pursue postsecondary

education. Not all chapters participate in offering academic support. Local communities may finda gap in student support that the local Dollars for Scholars chapter is able to fill. Examples include

ACT/SAT Prep courses, mentoring programs, career days, Saving For College planning sessions(for those with younger students), etc.

5. Promote recognition and awareness of the Dollars for Scholars program.

Dollars for Scholars chapters spread the word about their mission and their growth. Chapters understand that recognition of student recipients, donors, and volunteers is basic togathering public recognition for its work. Sample recognition programs/ideas are available tochapters through the Scholarship America offices.

Chapters explore multiple avenues of public relations including newspapers, newsletters, alumnimailings, and an annual summary/report of progress.

Part of a National Network

Dollars for Scholars chapters are active nationwide in 40 states and the District of Columbia. Chapters areassisted in their formation and growth through Scholarship America and the Dollars for Scholars program.Each chapter is part of a network that is wide and varied.

Dollars for Scholars is based on a ripe idea democracy in action. It gives dignity to people because itunites a community to help its own. It infects our youngpeople with a spirit of hope and develops futureleaders.

- Dr. Irving Fradkin Founder of Scholarship America/Dollars for Scholars

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Benefits of Affiliation

1. Affiliation with Scholarship America provides access to a growing national network of communityscholarship foundations. As an affiliate, your chapter will receive: Use of Scholarship Americas tax rulings, which includes automatic 501(c)(3) tax-exempt;170(b)(1)(A)(vi) public supported; and 509(a) not private foundation status as defined in the Internal

Revenue Service Code. A suggested operational structure (Bylaws) The right to use Scholarship Americas registered trade name Dollars for Scholars in the promotion

of your scholarship foundation. A copy of the Chapter Guidebook, a comprehensive guide for Dollars for Scholars chapters this

information is also available on the Chapter Portal (http://chapterportal.saportal.org). Dollars for Scholars Treasurers Journal including income and expense sheets and a suggested

format for use by chapters to track financial transactions Resources and tools from the Scholarship America/Dollars for Scholars offices related to all aspects

of chapter operations and scholarship issues. Access to Scholarship America/Dollars for Scholars professional staff to assist with individual chapter

needs assistance and advice provided via e-mail and toll-free numbers. Opportunities to participate in volunteer training workshops (where possible). Scholarship America/Dollars for Scholars incentive programs (where possible). Access to the Collegiate Partners program and Community Volunteer Service Awards (CVSA) Access to other Scholarship America programs including ScholarShop , ParentShop , and

ScholarShops Options for Kids, an online version of ScholarShop Jr. Online newsletters and publications

2. Affiliation with Scholarship America provides opportunities for additional scholarships and financial aidbenefits: Collegiate Partners are colleges, universities, and other accredited postsecondary institutions that

support the mission of Scholarship America and the local Dollars for Scholars chapters. When astudent with a Dollars for Scholars award attends a Collegiate Partner institution, the school agrees tofirst use the award to fill any unmet need remaining after the students initial financial aid package hasbeen calculated. After the unmet student need has been eliminated, up to $2,500 of any remainingDollars for Scholars scholarship will be used to reduce the self-help portion of a students financial aidpackage. (Dollars for Scholars prefers that loans be reduced before work-study). See the CollegiatePartner Directory for further details on this program.

Matching Partners are Collegiate Partners that make further commitments to undergraduate studentswho have unmet need by agreeing to match scholarship awards coming to their campuses fromDollars for Scholars chapters. These matching funds do not replace previously awarded institutionalgrants. (See the Collegiate Partner Directory to determine schools participation in the MatchingPartner program.)

Scholarship America offers a nation-wide competition for scholarships though the CommunityVolunteer Service Awards program (CVSA). This program is open to local chapter students who excelin volunteer experiences benefiting the greater community.

Scholarship America sponsors special scholarships offered by corporations and businesses availableto students from Dollars for Scholars communities. These awards vary from year to year and arepublicized annually for all chapters.



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Why Sponsor Scholarships through Dollars for Scholars?

A Dollars for Scholars chapter can serve as an umbrella organization to better coordinate localscholarships.

Benefit to Sponsoring Organizations Greater Visibility

Sponsoring scholarships under the Dollars for Scholars umbrella ensures greater visibility for thesponsoring organizationDollars for Scholars is helping to promote the sponsors scholarship;

Avoid Duplication of Efforts Existing sponsors no longer have to do all the work of designing, printing, distributing, collecting,

and evaluating the applications forms;The Dollars for Scholars chapter has a well designed application form and plan for promotinglocal scholarship opportunities.Capitalizing on Dollars for Scholars is a way for the sponsor to get all the credit, withouthaving to do all the work.

Existing sponsors no longer have to worry about selecting the same candidates;By building a coalition among local scholarship providers, under the umbrella of Dollars for Scholars, they can avoid the awkwardness associated with one student receiving 10 differentscholarships.This also ensures a more equitable distribution of local scholarships.

Can join with other sponsors to provide the community with a single awards program.More people will attend such an event, which will provide the participating sponsors with anadditional opportunity to receive recognition for providing the scholarship.

Improved Public Relations The sponsor can avoid the political minefield associated with making independent selections:

Many organizations are often criticized for the choices they make.This often grows out of their lack of a well-defined methodology for evaluating and selectingof the finalists.In many cases, organizations are accused of basing their selections (or rejections) on thequalities and contributions of a parent (e.g. active member of the organization).

Dollars for Scholars has a proven methodology That allows for the objective evaluation of applicants;That assigns points for various students qualities and does not reference student names untilthe scoring process has been completed; andThat helps sponsoring organizations avoid criticism for the choices that are made, whileensuring that they receive the recognition they deserve for sponsoring the award.

As mentioned earlier, this coordinated approach to scholarship giving will ensure a moreequitable distribution of local awards to a larger number of local students. This, in turn, will beviewed more favorably by the community.

Larger Applicant Pool Many students are turned off by application forms that may provide for one or two scholarships.

Many students elect not to complete the application because they feel that they do not standa chance to win.

If students are given the opportunity to apply for a broad range of scholarships by completing asingle application form, they are more likely to apply.

By sponsoring a scholarship through Dollars for Scholars, more students will be encouraged toapply for the sponsors scholarship.

Gain Financial Leverage for their Recipients Some postsecondary schools continue to treat outside student scholarships as a way to subsidize

the institution, rather than to benefit the student.



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In these cases, when an institution becomes aware that a student has received an outside award,they remove a comparable amount of gift aid from that students financial aid package.In these cases, the scholarship sponsor is actually subsidizing the school. The quality of thestudents financial aid package has not been improved by the scholarship.

The Dollars for Scholars organization has created a partnership with many postsecondary institutionsacross the nation. This partnership is called the Collegiate Partners Program.

Collegiate Partners agree NOT to reduce institutional aid to students receiving sponsored awardsthrough a Dollars for Scholars chapter. These agreements ensure that the student remains thetrue beneficiary of the local scholarship.By agreeing to use the Dollars for Scholars application form and allowing the chapters AwardsCommittee to make the selections, scholarship sponsors help to ensure that the student willbenefit from their scholarship.A growing number of Collegiate Partners go a step further by agreeing to match the sponsoredaward if given through a Dollars for Scholars chapter.In the worst case to best case scenario:

A student receiving a $500 award from an organization not associated with Dollars for Scholars might lose a comparable amount of gift aid from the college. In this case, thesponsor has not helped the student at all (other than the value of the recognition received).If the same student were to receive the same award through a Dollars for Scholars chapter,and the college was a Matching Partner, the same student would see up to a $1,000improvement in their financial aid package.

Benefits to Students A single application for local scholarships is more attractive.

Students are more likely to complete an application form that allows them to compete for a broadrange of local scholarshipsthey feel that the chances of receiving an award are much more likely.

A single application deadline is easier to remember and more attractive.

Benefit to School Guidance Counselors Dont have to keep multiple files for local scholarship application forms.

Dont have to contact every local scholarship sponsor every year to request new application forms, or determine if changes in eligibility requirements or application deadlines.

Dont have to spend an inordinate amount of time meeting with multiple scholarship selectioncommittees, trying to see that all awards dont go to the same student.

Benefits to the Community A single, coordinated, and recognizable plan for local scholarship giving

Will encourage more people to consider giving scholarships

Will result in more scholarship opportunities for local students

Will improve public commitment to continuing education of local students

Will help to improve the educational climate of the community



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Responsibilities of Affiliation:

Complete all required affiliation forms (including Bylaws) Correctly use the Dollars for Scholars trademark Annually complete the chapter Financial Report, Recipient List, Roster of Chapter Officials, andsubmit Recertification Fee Provide a Fidelity Bond for the chapter treasurer ($10,000 minimum), within one year of affiliation and

keep it current thereafter Share information about chapter activities with other chapters and Scholarship America staff by

periodically sending project reports, news clippings, or other items of interest that would beappreciated by other chapters

Notify Scholarship America of any changes made to the Bylaws (submit newly approved Bylaws witha copy of the minutes from the meeting where the changes were approved)

What is Scholarship America?

Scholarship America is a national, nonprofit, student scholarship organization. Scholarship America wasfounded in 1958 by Dr. Irving A. Fradkin in Fall River, Massachusetts, and incorporated as a nationalorganization in 1961. Scholarship America operates three programs: Dollars for Scholars , ScholarshipManagement Services , and ScholarShop .

Scholarship America is the only national organization dedicating its charitable purpose solely to the creationand support of community scholarship foundations (Dollars for Scholars chapters). Scholarship America alsodesigns and manages scholarship programs for hundreds of corporations, foundations, associations, andindividuals, through the Scholarship Management Services division, and uses the funds generated from theseservices to support Scholarship Americas charitable purpose, Dollars for Scholars. A third program,ScholarShop, provides support to students and families K-12 as they prepare for postsecondary education.

One Citizens Dream

In 1957, Dr. Irving A. Fradkin, an optometrist in Fall River, Massachusetts, had a dream at first only a localdream. The son of immigrants, Dr. Fradkin valued education as the most important freedom in America. Yethe realized that higher education was beyond the financial reach of most families in his textile manufacturingcommunity. Dr. Fradkin called together friends and area citizens, challenging them to join in a voluntary effortto change the situation. The Citizens Scholarship Foundation of Fall River was formed in 1958, by asking for contributions of $1 or more from community members. The new organization was able to award 24scholarships to local young people in its first year.

Surrounding communities soon learned of Dr. Fradkins success. They called on him for assistance inorganizing similar community scholarship foundations in their areas. By 1962, 12 cities and towns in southernNew England had adopted his self-help philosophy. In that same year, the local foundation leaders in thesecommunities came together to form Citizens Scholarship Foundation of America (CSFA), now Scholarship

America. Dr. Fradkins one-man effort became a national movement.

Dr. Fradkins dream continued to grow. CSFA began to spread across the country, with each communitychapter raising local money for local students. Average, above-average, and at-risk students received awardsto help fund their education at universities, colleges, and vocational-technical schools. Students benefitedfrom the recognition and support they received from their communities, and community members shared inthe pride and excitement of contributing to their young peoples future success.



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The Dream Attracts the Nation

As CSFA grew, it attracted considerable national attention. Readers Digest, Saturday Review of Literature,Better Homes and Gardens , and similar publications told Dr. Fradkins story nationwide. Several foundations

took an active interest in developing state-based CSFA projects The Spaulding-Potter Charitable Trust inNew Hampshire, The Lilly Endowment in Indiana, The Kettering Foundation in Ohio, and the Bush Foundationin Minnesota. In addition, postsecondary institutions began joining CSFA as Collegiate Partners in acommitment to expand private-sector student aid. Gradually, many chapters expanded their commitmentbeyond scholarship awards to provide academic support services that assist and motivate students toimprove their academic performance and prepare for higher education.

In 1993, Brandon Press published the inspiring story of CSFAs origins and development over the years in thebook - Dollars for Scholars: The Autobiography of Dr. Irving A. Fradkin . A reprint was published in the fall of 2002.

Dollars for Scholars Today

The number of local Dollars for Scholars chapters has increased rapidly. Chapters in cities, suburbs, and ruralareas across the nation award scholarships and provide academic support to deserving students. Scholarship America provides staff at a national/regional/state level to assist with local chapter creation, development, andongoing support.

On January 1, 2003, the nations biggest scholarship foundation shortened its name to Scholarship America.Its mission remained the same to mobilize America through scholarships and educational support to make postsecondary education possible for all students .

Because federal and state student aid is not keeping pace with rising education costs, the need for localprivate sector financial assistance is greater than ever. With that in mind, Scholarship America is committed toestablishing quality chapters across the United States. The realization of that vision will be a major stepforward to the fulfillment of Dr. Fradkins expanded dream that every American is able to exercise their freedom of education and attain their educational dreams.



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Dollars for Scholars Chapter Guidebook Organizing a Dollars for Scholars Chapter

How Successful Chapters Make It Happen 1. They carefully recruit and develop a board of directors representing a cross-section of the community.

2. They set goals for fundraising, awards, publicity, and academic support committees.

3. They share their enthusiasm and commitment with individuals, organizations, and businesses in thecommunity.

4. They regularly rotate board members, officers, and committee chairs to avoid burnout.

5. They hold regular board meetings of reasonable length and they start and end on time.

6. They understand and support the mission of Scholarship America/Dollars for Scholars - to mobilize America through scholarships and educational support to make postsecondary education possible for all students .

7. They work in partnership with regional/national offices.

8. They raise funds each year by targeting students and community members. Events can be low-maintenance and require minimal effort, or at times they can be more involved to capture a specialaudience.

9. They communicate progress, opportunities, and successes with other community groups.

10. They plan for the future by setting aside funds for a chapter endowment.

11. They actively publicize work and success stories.

12. They share ideas with other chapters to learn from each other and to minimize the work involved.

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Board Meetings

What to Do at the First Board Meeting *This list pertains to new Dollars for Scholars chapters.

1. Elect board members and officers: President, Vice President, Treasurer, and Secretary. Review terms ofoffice for members and officers.2. Discuss additional candidates for the board, if needed, and make plans to recruit them. Be sure to

include student representatives.3. Select committee chairs and members from the board or community: Publicity & Recognition, Awards,

Fundraising, Academic Support, Bylaws, Nominating4. Set overall goals for the first year. Begin setting up a one-year calendar. (See sample on page 1-14)

Include committee meetings, board meetings, and the annual meeting. Refer to regional/nationaldeadlines and holidays/school/community events for guidelines.

What to Do at Subsequent Board Meetings Make a list of non-board members needed to help with activities and make plans to ask for their support. Set fundraising objectives and establish a goal for the number of scholarship awards you will give. The

Fundraising Committee will brainstorm fundraising projects and strategies. Establish Awards Policy regarding selection and distribution of scholarships. Consider opportunities to provide academic support. Select financial institution and type of account(s) for chapter funds. Open a post office box in your chapters name. Participate in planning session led by regional director if applicable.

REASONS THAT MOTIVATE DOLLARS FOR S CHOLARS VOLUNTEERS

Have fun Develop policy Gain visibility Use their skills Learn new skills Pursue adventure Influence others Meet a challenge Work with friends Build self-esteem Exercise leadership Speak before the public Develop new relationships Help meet community needs Join in a tradition of service Help create a better community

Know they have helped and gain satisfaction Be a positive role model to inspire young people Provide scholarships and academic support for students

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Chapter Bylaws

BYLAWS

ARTICLE I - NAME

The name of this organization is , a Dollars forScholars Chapter affiliated with Scholarship America .

ARTICLE II - PLACE OF BUSINESS

The Chapters initial place of business shall be at

in the

community of, ,

.City State Zip Code

ARTICLE III - PURPOSE

The purpose of the Chapter shall be to expand access to higher education for resident students of

the following community(ies)

in the state of by promoting the Dollars for Scholars program,developing an operational structure, raising funds for student aid distribution, and distributingawards on a fair and nondiscriminatory basis. The Chapter shall operate in a manner consistentwith the policies and procedures of Scholarship America.

ARTICLE IV - POWERS

The Chapter is empowered to raise and receive money and other property by gift, device,subscription, dues, and other legal means and to expand and contribute the funds so raised and doall things necessary or desirable to carry out the purpose set forth in Article III of these Bylaws. TheChapter shall have no capital stock and shall be operated solely for charitable purposes. No officeror director shall be entitled to receive compensation from the student aid fund for services to the

Chapter. Annual recertification and year-end reporting to Scholarship America is required for theChapter Agreement and Charter to remain in effect.

ARTICLE V - MEMBERS

Any person, firm, corporation, or organization subscribing to the purpose of these Bylaws andmaking an annual contribution of voluntary participation or funds for the benefit of the Chapter shallbecome a member of this Chapter

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ARTICLE VI - BOARD OF DIRECTORS AND OFFICERS

Number and Title . The officers of the Chapter, elected from among a Board of Directors, shallconsist of a President, a Treasurer, a Secretary, one or more Vice Presidents, and such other

officers as the Board of Directors may choose to elect.Board of Directors . At the meeting at which the Bylaws are adopted by majority vote of thosepresent, the number of Directors for the ensuing year shall be fixed, and the number so fixed shallbe elected Directors of the Chapter. Insofar as practical, one-third of the Directors so elected shallserve for a term of one year, one-third for a term of two years, and one-third for a term of threeyears, the terms of the Directors being determined by lot or some other equitable procedure.

At each Annual Meeting thereafter, the Chapter Directors may fix the number of Directors, shallelect one-third of the number so fixed to serve a term of three years, and may elect additionalDirectors for shorter terms to fill vacancies, it being the intent of this Bylaw that insofar aspracticable the term of office of one-third of the number of Directors fixed at each Annual Meetingshall expire at the next succeeding Annual Meeting. The Board of Directors shall make, implement,and supervise the policies of the Chapter, shall elect all officers, and may fill vacancies in the Boardof Directors which occur between Annual Meetings.

President . The President (and at times of his/her absence or inability the Vice President) shall bethe chief executive officer of the chapter, shall preside at all meetings of the members of the Boardof Directors and the Executive Committee, and shall implement Chapter policy as established bythe Board of Directors.

Treasurer . The Treasurer shall be the custodian of all Chapter funds. At Chapter expense he/sheshall be bonded each year. He/she shall deposit all receipts in a bank or banks designated by theBoard of Directors and shall disburse Chapter funds only by checks or other orders for the paymentof money. The Treasurer shall make and submit to Dollars for Scholars such reports as Dollars forScholars may prescribe relative to Chapter finances.

Secretary . The Secretary shall record and keep minutes of the meetings and shall prepare andtransmit to Dollars for Scholars such reports as may be required by Dollars for Scholars pursuant tothese Bylaws and to annual Chapter recertification.

Other Officers . The Vice Presidents and such other officers as the Board of Directors may fromtime to time elect shall have such powers and perform such duties as the Board of Directors may

etermine.d

ARTICLE VII - STANDING COMMITTEES

By vote of the Board of Directors, the following committees may be established:

Executive Committee . Between meetings of the Board of Directors, the conduct of Chapteroperations may be directed by an Executive Committee composed of the officers of the Chapter,the Chairperson of the Committees specified in this Article, and such Directors of the Chapter asthe President may appoint from time to time subject to the approval of the Board of Directors.

Fund-Raising Committee . Fund-Raising Committee chaired by a Chapter Director and comprisedof other members of the Chapter, who need not be Directors, whose function it shall be to enlist andrecruit membership for the Chapter and to raise funds by the solicitation of gifts and by othermeans. It shall make and transmit to the Secretary for the records of this Chapter and thereby toDollars for Scholars such reports as Dollars for Scholars may prescribe relative to Chapter fund-raising activities.

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Publicity and Recognition Committee . Publicity and Recognition Committee, chaired by aChapter Director and comprised of other members, who need not be Directors, whose function itshall be to publicize the purposes and accomplishments of the Chapter in the Chapter Area.

Nominating Committee . Nominating Committee, chaired by a Chapter Director and comprised ofother members, who need not be Directors, whose function it shall be to prepare and present to theBoard of Directors at least ten days in advance of each Annual Meeting of Directors a slate ofDirectors and officers to be proposed for election at such meeting. This slate as presented oramended by the Directors, shall be voted on at the Annual Meeting of the Board of Directors.

Awards Committee . Awards Committee, chaired by a Chapter Director, which shall be comprisedof not fewer than three members, who need not be Directors. No person shall attend or take part inany meeting of the Awards Committee at which applications for student aid are to be discussed solong as there is pending before the Committee an application for student aid from any relation ofsuch person or spouse. In making awards, the Awards Committee shall apply such rules andstandards not inconsistent with the purpose of this Chapter as are prescribed in these Bylaws andCharter between this Chapter and Scholarship America and, subject to such rules and the approvalof the Board of Directors, it shall implement and oversee all policy relative to awards, and shallmake and transmit to the Secretary for the information of this Chapter and thereby to Dollars forScholars such reports as Dollars for Scholars may prescribe relative to awards procedures.

Academic Support Committee . Academic Support Committee, chaired by a Chapter Director andcomprised of other members, who need not be Directors, whose function it shall be to initiate andextend academic support to students in the community as prescribed in Dollars for ScholarsChapter Guidebook . In developing academic support activities, the Academic Support Committeeshall be subject to these Bylaws and the approval of the Board of Directors, and shall transmit tothe Secretary for the information of the Chapter and thereby to Dollars for Scholars such reports asDollars for Scholars may prescribe relative to academic support procedures.

President as Ex-Officio Committee Member . The President shall serve as a member ex-officioon all Committees.

ARTICLE VIII - TERM OF OFFICE

The term of office of the officers and committee members of the Chapter shall be three years and atthe pleasure of the Board of Directors, expire at the next succeeding Annual Meeting of the Boardof Directors or when their respective successors are elected and qualify. The members andChairpersons of all Committees, except the Executive Committee, shall be appointed by thePresident subject to the approval of the Board of Directors.

ARTICLE IX - MEETINGS

Annual Meeting of the Board of Directors . One meeting each year of the Directors shall bedesignated the Annual Meeting of the Board of Directors and shall be held on a date at such timeand place as shall be fixed by the President. Notice of the time, place, and date of this meeting ofDirectors shall be published in a newspaper of general circulation in the Chapter Area or posted ata public place in the Chapter Area at least seven days prior to the meeting. The Annual Meeting ofthe Board of Directors shall be open to all members and residents of the Chapter Area, but onlypersons who are duly elected Directors shall be entitled to be heard or to vote on any matterbrought before the meeting. The Board members may, however, exercise discretion in permittingor inviting meeting guests to address the Directors.

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Other Meetings of Directors . Regular meetings of the Board of Directors will be held as follows:. Special meetings of

the Board of Directors may be held from time to time upon call of the President or upon writtenapplication to the Secretary of not less than one-third in number of the Directors then in office. The

Secretary shall make public announcement of the meetings in accordance with procedures set forthabove. The Secretary shall mail written notice of all meetings of the Board of Directors to eachDirector at least seven days prior to the meeting unless the time, place, and date of such meetinghas been previously fixed by vote of the Board of Directors, or unless waiver of notice of themeeting is signed by every Director and filed with the Secretary.

Meeting of the Executive Committee . Meetings of the Executive Committee may be called by thePresident at any time. Notice of the date, time, and place of Executive Committee meetings shallbe furnished to each Executive Committee member by the Secretary by mail, telephone,messenger, or other reasonable means at least seventy-two hours in advance of the meetingunless the time, date, and place of the meeting has been previously fixed by vote of the ExecutiveCommittee, or unless waiver of notice of the meeting has been signed by every Executive

Committee member and filed with the Secretary.

Quorum . One-third of the Directors then in office shall constitute a quorum in the case of ameeting of the Board of Directors; and a majority of those present at a meeting, and entitled to vote,shall decide any matter properly brought before the meeting.

ARTICLE X - FISCAL YEAR

The fiscal year of the Chapter shall be the twelve-month period ending December 31 of each year.Annual financial reports shall be based on this twelve-month period. Chapter officials may chooseto operate chapter activities and elect officers on the basis of a school calendar.

ARTICLE XI - CHAPTER DISSOLUTIONIn the event of dissolution, the Chapter shall distribute all unrestricted funds in accordance with theChapter Agreement and restricted funds (endowments) in accordance with all written endowmentagreements, subject to the restriction that the distribution must be exclusively for charitable,educational, or scientific purpose which would permit the Chapter to qualify as an exemptorganization under Section 501(c)(3) of the Internal Revenue Code of 1954 (or the correspondingprovisions of any future United States Internal Revenue Law).

ARTICLE XII - AMENDMENTS

These Bylaws may be amended by vote of the Directors at any annual, scheduled, or specialmeeting called for the purpose of acting upon a proposed amendment, provided that no suchamendment shall become effective until it has been approved in writing by Scholarship Americanational headquarters.

ARTICLE XIII - EFFECTIVE DATE OF THESE BYLAWS

These Bylaws shall become effective upon their adoption at a meeting as provided in Article VI.Once adopted in this present form, these Bylaws become the governing documents of

and are placed on file in the Chapter Area and at ScholarshipAmerica national headquarters in accordance with the Chapter Agreement entered into between theChapter and Scholarship America. If the Bylaws are adopted with amendments, such amendmentsmust be brought to the attention of Scholarship America in accordance with Article XII, above.

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The undersigned President, Vice President, Treasurer, Secretary, and a majority of the Board ofDirectors respectively of hereby certifythat the foregoing Bylaws were duly adopted at a meeting duly called and held on theday of , 20 .

PLEASE PRINT YOUR NAME YOUR SIGNATURE

President

Vice President

Treasurer

Secretary

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

Director

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Questions and Answers:

Fact Sheet for Prospective Dollars for Scholars Board Members*

What is the mission and vision of the organization? Share your mission statement. Be concise. (Example: To encourage postsecondary education for allstudents through strong Dollars for Scholars scholarship support.)

What does the board do?Provide leadership to raise and distribute scholarships to local students.

How long will I serve on the board?Terms are three years in length. You may serve more than one term if you wish (or list term limits if yourchapter has a policy on limits).

Why are you asking me?Describe the specific talent/strength that they would bring to the group. (Example: Your knowledge ofinvestments would help us grow our endowment.)

How much time do I need to volunteer each month? Year? How long and often are themeetings and when/where are they held?Describe the number of meetings and events held annually. Be specific about what is expected.

How much money will I be required to donate?Board members are not REQUIRED to donate, but certainly gifts are encouraged. If your chapter hasestablished expectations, be clear and honest. It is easier to solicit gifts if you can say that your whole boardhas given a gift.

Why should I commit my valuable time to this organization?Share statistics about the growth of your chapter and its goals for the future. Dollars for Scholars is aninvestment in the future of youth. If you are a new chapter, state your goals and invite them to invest theirtime with you to reach these goals.

What will my responsibilities be?You may wish to refer to the job descriptions for specific committees and officers. Clearly state theexpectations and identify minimum requirements.

Is there protection from any legality that might arise?Explain the bonding and liability coverage provided by your chapter (details provided in this ChapterGuidebook, pg. 1-19).

When will I have to make the commitment?Provide enough time for them to consider the invitation and consider leaving the door open for a future date ifthe individual is unable to commit now.

* These are typical questions asked by prospective board members. Be ready to provide answers when you approach a new member.

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Community Cross-Section Worksheet

Category Examples Current Members Prospective Members

Business andManagement grocery store, factory, insuranceagency

Self-Employed Business independent owners, farmers,home-based businesses

Non-Profit OrganizationFundraising Professional

other community foundations orcharities

Financetax accountant, banker,investments, CPA, financialplanner, insurance, stockbroker

Education teachers, coaches, staffmembers at all levels

Media/PR or Marketingradio, TV, newspaper, PR/ marketing/graphics, computerweb designer

Retired CommunityMember

senior citizen club representative,retired teacher, leader inestablishing named scholarships

Government Employee highway department, health orsocial services, police, etc.

Health and LegalProfession

lawyer, legal assistant, judge,nurse, doctor, mortician,pharmacist, funeral director, etc.

School Board Member /Administrator

principal, superintendent, schoolboard member

Postsecondary Educationcollege or technical schoolinstructor, staff person,administrator

Parents elementary, middle school, highschool

Other CommunityOrganizations

Rotary, Lions, Kiwanis, JCs,Chamber of Commerce, industryrepresentatives

Religious Community clergy member, youth director

Students freshman, sophomore, junior,senior

Be sure to consider a broad range of ages, racial and ethnic backgrounds, as well as rural/urban andmale/female, to provide a good mix of board members.

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Chapter Structure

OTHER COMMITTEES

Academic SupportNominatingAlumniFinance/InvestmentBylaws/Policy

ChairpersonMembers

FUNDRAISING COMMITTEE

ChairpersonMembers

AWARDS COMMITTEE

ChairpersonMembers

P UBLICITY COMMITTEE

ChairpersonMembers

EXECUTIVE COMMITTEE President, Vice President, Treasurer, Secretary

DOLLARS FOR S CHOLARS BOARD OF DIRECTORS 9-15 members representing a cross-section of the community, including students

COMMUNITY P ARTICIPATION AND S UPPORT

Establishing Committees and Goals Each of the three main committees requires a chair/co-chair and 3-4 volunteers who may or may not be boardmembers. Asking people to help with publicity or help organize one fundraiser is much less stressful thanasking people to take on all the responsibilities of a board member.

It can be very helpful to invite others to serve on a committee so they become acquainted with your chapterswork. This may also be a helpful strategy for obtaining future board members.

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SAMPLEJob Descriptions

You may assign tasks to other positions. This is a guide for your consideration.

TITLE OF J OB : PresidentP URPOSE : Provide leadership to the Dollars for Scholars chapterRESPONSIBILITIES : 1. Prepare agenda for and conduct chapter meetings.2. Develop annual Calendar of Events and committee assignments in conjunction with Board of Directors.3. Arrange for orientation for new board members.4. Lead evaluation of chapter work on annual basis.5. Prepare Presidents Report for Annual Meeting.6. Keep current on all work of the chapter.7. Attend Dollars for Scholars workshops / training when offered and encourage others to attend.8. Ensure that all annual reports are submitted to Scholarship America on time.

TITLE OF J OB : Vice PresidentP URPOSE : Provide assistance to the Dollars for Scholars Chapter PresidentRESPONSIBILITIES : 1. Assist the chapter president in planning and implementing chapter activities.2. Lead meetings in the absence of the president.

The following can be adopted by a chapter, but are not formal responsibilities of the Vice President:1. Collect clippings and other sample items for historical files.2. Work with committee chairs to maintain a file for each chapter activity/event with reports on numbers,

process, assignments, and outcomes. These files are passed on to new committee chairs with supportfrom Vice President.

3. Organize any needed training on topics of interest to the local board (i.e. investment policies, financial aidprocess, etc.)

TITLE OF J OB : TreasurerP URPOSE : Keep financial records for the Dollars for Scholars chapter.RESPONSIBILITIES : 1. Receive and deposit all monies received by the chapter.2. Disburse money as directed by the Board of Directors.3. Keep accurate bookkeeping records including expenses and receipts.4. Provide statement of finances to chapter as requested. Give complete financial report at Annual Meeting.

5. Complete financial reports required by Scholarship America and submit on time.6. Make award payments to recipients as designated checks to be made payable to college in whichhe/she is enrolled with students name in the memo area or in a letter that accompanies check.

7. Report on investment of permanent funds in cooperation with Investment Committee.8. Investigate chapter needs for insurance/bonding coverage.

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SAMPLETITLE OF J OB : SecretaryP URPOSE : Maintain Dollars for Scholars chapter recordsRESPONSIBILITIES :

1. Notify all members of the Board of Directors meetings.2. Keep accurate minutes of meetings, recording members present and absent.3. Duplicate and distribute minutes (mail or e-mail) of preceding meetings prior to each subsequent meeting.4. Conduct all chapter correspondence including thank you letters to donors.5. Take care of all documents belonging to the chapter (newspaper clippings, programs, etc. as a history of

chapter work and determine who will keep historical records some assign this to others in the chapter).

TITLE OF J OB : Chairperson for Publicity and Recognition CommitteeP URPOSE : Oversee and arrange for all chapter publicityRESPONSIBILITIES :

1. Initiate contact with local news media newspaper, TV, radio, and other relevant media (school/alumni-related newsletters and papers).2. Work cooperatively with Fundraising and Awards Chairpersons.3. Work with committees to provide appropriate recognition for volunteers, donors, and recipients.4. Maintain records of all publicity for future reference.

TITLE OF J OB : Chairperson for Fundraising CommitteeP URPOSE : Oversee the organization and planning of all chapter fundraisingRESPONSIBILITIES : 1. Recruit chairs/committee members for each activity and set overall goals.

2. Assist event chairs with planning and implementation.3. Work with Chairperson of Publicity to promote fundraising events.4. Prepare a fundraising event report and file for future reference.

TITLE OF J OB : Chairperson for Awards CommitteeP URPOSE : Oversee the committee that selects award recipients and distributes

chapter awardsRESPONSIBILITIES : 1. Annually review the awards program including application design, distribution, processing, selection,

award announcements, and distribution process.

2. Set awards cycle calendar and arrange all required committee meetings to accommodate the schedule.3. Prepare and distribute letters, acknowledgement forms, and all other correspondence for recipients.4. Prepare and disseminate appropriate recipient recognition materials (awards ceremony, graduation, other

options as determined by the committee).5. Work with Treasurer to ensure efficient distribution of awards.6. Work with President to complete the Recipient List due annually to Scholarship America, including the

statistical section of the report.

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SAMPLEDollars for Scholars Board Member Expectation Statement

(Note: Many chapters ask board members to review and sign an expectation statement. This provides clarity

as to roles/expectations for everyone. This sample may be adapted to meet your needs.)

General Expectations: 1. Support the mission, purposes, goals, policies, and programs of [Chapter Name] Dollars for Scholars

while knowing its strengths and needs.2. Suggest possible nominees to the board who can make significant contributions to the work of the board

and the progress of the organization.3. Serve actively on committees as requested by the committee chair.4. Attend activities and events sponsored by the [Chapter Name] Dollars for Scholars whenever possible.

Meetings: 1. Prepare for and participate in board and committee meetings, including appropriate organizational

activities.

2. Ask timely and substantive questions at board and committee meetings consistent with personalconscience and convictions, while supporting the majority decision on issues decided by the board.3. Maintain confidentiality of the boards executive sessions, and speak for the board of the organization

only when authorized to do so.4. Suggest agenda items periodically for board and committee meetings to ensure that significant policy-

related matters are addressed.

Avoiding Conflicts: 1. Serve the organization as a whole rather than any special interest group or constituency.2. Avoid even the appearance of a conflict of interest that might embarrass the board of the [Chapter Name]

Dollars for Scholars, and disclose any possible conflicts to the board in a timely fashion.3. Never accept (or offer) favors or gifts from (or to) anyone who does business with the organization.

Fiduciary Responsibility: 1. Exercise prudence with the board in the control and transfer of funds.2. Faithfully read and understand the chapters financial statements, gift policy, investment policy, and

otherwise help the board fulfill its fiduciary responsibility.

Fundraising: 1. Make an annual gift to [Chapter Name] Dollars for Scholars according to personal means, with the

realization of the leadership role the board must play in fund development and achieving the chaptersmission.

2. Assist the organization by implementing fundraising strategies through personal influence with others.3. Participate actively in all [Chapter Name] Dollars for Scholars fundraising special events, programs, and

activities whenever possible.

(signature) (date)

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Annual Calendar of Events SAMPLE

SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY

Board Meeting

Back-to-Schoolevent for students

Board Meeting

Put ad inyearbook

Roster of ChapterOfficials andAward RecipientList due

Board Meeting

Prepare forcommunityfundraiser

Board Meeting

Conductcommunityfundraiser event

Month off noboard meeting

Board Meeting

Publicizephonathon

Information nightfor students

ConductUpdates at

communitymeetings (Lions,Senior Citizens,etc.) to publicizeprogress andencourage moresupport

MARCH APRIL MAY JUNE JULY AUGUST

Board Meeting

FinancialReports, FidelityBond, andRecertificationFee due March 1

Phonathon

Prepare anddistribute awardsapplications

Board Meeting

Processapplications

Volunteerrecognition event

Board Meeting

Awards program

News story onrecipients

Send thank younotes to donors

Month off no

meeting

Place thank youad in paper

Board Meeting

Plan SeptemberBack-to-Schoolstudent event

Annual Board

meeting

Review processwith ChapterChecklist

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Meeting Agenda SAMPLE

Meeting Agenda

Thought for the day: Patience is nothing more and nothing less than constructive waiting.

Call to Order

Secretarys Report

CorrespondenceTreasurers Report

Committee Reports

Fundraising- Auction- Phonathon- Golf Social- Dollars for Scholars Day- Denim Days

Awards- Application- Distribution

Publicity

Other

Old Business Plaque Updating Awards Night Review

Prior Year Audit

New Business Golden Tassel Award Board Member Term Review

Next meeting: July 16

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Chapter Checklist

NOTE: The fiscal year for Dollars for Scholars chapter financial reports (needed for IRS Form 990 and 990-Nfiling) runs from January 1 to December 31, to make reporting easy. Chapter operations often run

more closely with the academic year. The Chapter Checklist provides a means to evaluate progressagainst chapter goals and make changes for the next year. Chapters are encouraged to reflect ontheir progress at lease once each year. This checklist will guide your discussion.

1. Board Functions / Operations Do we have a clear Mission/Purpose Statement?

The mission of [Chapter Name] Dollars for Scholars is to:- Promote all types of postsecondary education attendance at school of choice- Provide opportunity for local philanthropy to benefit local student scholarships

Do we have a cross-section of the community represented on our board? Are we clear about officer job descriptions, committee duties, and board meeting schedules? Do we take the time to provide new member orientation? Does the board conduct an annual review using the Chapter Checklist process?

2. Fundraising Do we have Chapter Endowment/Awards Goals? Do we have an investment policy regarding chapter assets? What donor populations do we target (community/student/alumni)? Can it be expanded? What

additional audiences do we want to reach? Have we set a goal for the growth rate of chapter assets? Have we reached the goal? Should the

goal be changed? How many fundraisers are undertaken annually? Which are most successful in terms of profit

versus time involvement? Do we have a balance of low-maintenance/high-publicity efforts tooffset the high-maintenance/high-cost events?

3. Awards Do we have a clear overall message to send to the community and our students? Do we present and publicize chapter awards effectively? De we recognize donors effectively? Is our process to determine awards recipients fair and efficient? Do we thank our community publicly and often?

4. Publicity and Recognition Do we have a publicity plan? Do we have regular publicity that keeps our chapter in the public

eye? Do we evaluate the success of our public relations work? Do we publicly recognize our student volunteers? Our student recipients? Do we recognize donors publicly? Do we recognize board members publicly? Do our volunteers

and supporters feel valued and appreciated? How do we know? Do we collaborate and cooperate with other community groups? Is Dollars for Scholars a household name within our community?

5. Annual Reporting Did we complete and turn in all of our required annual reports? (Recipient List 10/1; Roster of

Chapter Officials updated within the past year; Financial Report 3/1; Recertification Fee 3/1;Fidelity Bond kept current)

Do we have a system in place to ensure that our reporting is done in full and on time? Are we using the annual reports to help us evaluate our progress, celebrate our

accomplishments, and make improvements?

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Chapter Status Guidelines

AFFILIATED S TATUS Chartered Dollars for Scholars Chapters:

A chapter receives Affiliated Status as a Dollars for Scholars chapter when the following items have beencompleted, submitted, and approved by the national Dollars for Scholars office:

1. Chapter Agreement2. Application for Charter3. Affiliation fee4. Executed Bylaws (with at least 5 signatures)

Licensed / Affiliate Dollars for Scholars Chapters:Organizations that affiliate or obtain license agreements already have their own 501(c)(3) charitable tax-exemptstatus and are required to complete and submit the following items for approval by the national Dollars forScholars office to receive Affiliated Status :

1. License Agreement2. Application for Charter3. Affiliation fee4. Copy of IRS letter granting 501(c)(3) status5. Copy of IRS letter granting Employer Identification Number (EIN)6. Executed Bylaws for review by Scholarship America

ACTIVE S TATUS Dollars for Scholars chapters (both Chartered Dollars for Scholars chapters and Licensed / Affiliate chapters)retain Active Status provided they submit all of the following documents when due:

1. Chapter Recipient List for the current school year (due 6/30)2. Updated Roster of Chapter Officials listing officers and board members (updated yearly)3. Chapter Financial Report for prior year ending December 31 (due 3/1)4. Recertification fee (due 3/1)5. Copy of Certificate of Insurance (kept current) proof of $10,000 Fidelity Bond insurance for

chapter treasurer. (Fidelity Bond must be in place by the end of the first 90 days of operation)

DEFAULT S TATUS Dollars for Scholars chapters that do not submit all requirements when due will be notified by mail that theircertification as a chapter in Active Status is in Default and will remain under review until May 31 of that year.

S USPENDED S TATUS Dollars for Scholars chapters will be Suspended if the Scholarship America/Dollars for Scholars office has notreceived the documents required to retain Active Status by May 31. This suspension will last until all paperworkand fees are submitted or three months from May 31 whichever occurs first.

The following privileges will be revoked until Active Status is achieved:

1. Participation in the following programs: Collegiate Partner Program Community Volunteer Service Award/Student of the Year Corporate scholarship programs under the auspices of Scholarship America Volunteer of the Year Chapter of the Year Purchase of logo promo items

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DISAFFILIATION P ROCESS

A Chartered Chapter that fails to comply within the three-month Suspended Status timeframe will be disaffiliated

and deleted from Scholarship Americas Group Exemption Roster with the IRS and will no longer be eligible forany affiliation benefits, including:

1. Umbrella 501(c)(3) nonprofit status from the IRS (required for tax-deductibility of contributions)2. Scholarship America secured federal Employer Identification Number3. State government agency registration/licensing requirement inclusion (where applicable)4. Collegiate Partner and Matching Partner programs5. Workshops, seminars, training assistance, and consultation from Dollars for Scholars staff in

regional and national offices6. Use of Dollars for Scholars and Scholarship America logos, name, and trademarks7. Use of all other Dollars for Scholars and Scholarship America copyrighted materials and services

A Licensed/Affiliate Chapter that fails to comply within the three-month Suspended Status timeframe will bedisaffiliated and deleted from Scholarship America chapter listing and will no longer be eligible for any benefitsincluding:

1. Collegiate Partner and Matching Partner programs2. Workshops, seminars, training assistance, and consultation from Dollars for Scholars staff in

regional and national offices3. Use of Dollars for Scholars and Scholarship America logos, name, and trademarks4. Use of all other Dollars for Scholars and Scholarship America copyrighted materials and services

Questions about these Guidelines can be directed to the appropriate regional director or the National Office at 800/248-8080 or [email protected].

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Tips: Chapters have 90 days following affiliation with Scholarship America to secure fidelity bond

insurance. Fidelity Bond policy must be kept current. Typically, volunteers who are serving on board of directors of a Dollars for Scholars chapter know and

trust each other. The idea that a person who is a friend and neighbor might lose or misuse thechapters funds is unthinkable; however, such things can and do happen in nonprofit organizations. Afidelity bond assures the community that they can trust the credibility of the Dollars for Scholarschapter.

Endowments are legally exempt from lawsuits, but the funds must be declared as endowments inchapter records and must be supported by appropriate written endowment agreements. Dollars forScholars recommends that endowment gifts made by individuals, businesses, or organizations havea signed agreement in place (sample forms pg. 2-10 to 2-12). Any chapter dollars raised and placedat the direction of the board of directors into an endowment are not covered by this ruling, andtherefore would be subject to loss as the result of a lawsuit.

Director & Officers Insurance All volunteer and chapter assets are protected from a lawsuit if the chapter is not proved to be negligent (nointentional harm). A chapter may want to consider having additional liability coverage. This coverage is alsoavailable at a reasonable rate through the companies that are provided by Dollars for Scholars. Applicationsare available on the Chapter Portal.

Liability Insurance If a chapter is hosting an event or activity that may lend itself to accidents, the chapter could be found liableand may want to seek additional coverage beforehand. For example, a Bike-A-Thon could lead to an injuryand your chapter may be found liable due to negligence. If you conduct several events of this nature, you maybe wise to invest in a liability policy to cover those activities throughout the year. If you only do this type ofactivity once a year, it might be best to inquire about a one-day policy to cover the event. If your chapterevents do not present a risk of negligence, a policy may not be necessary. Your chapter will need to discussthe subject and determine its risk exposure and a need for coverage.

Checklist to Assess Financial Activities in Nonprofit Organizations

Description The following checklist was adapted from a resource developed by staff and volunteers of the United Way of Minneapolis Area. This list is for internal chapter use and is used to identify the chapters administrativestrengths and weaknesses. This checklist can assist your chapter to gain a better understanding of themanagement needs and/or make improvements to current management operations.

The Audit Committee should be concerned with the following: the adequacy of internal control (a system in which the operating or recording function can be broken

down into elements that are performed by different people, each checking the work of others) the accuracy of the records and the reports to the governing body (regional/national Dollars for

Scholars offices) the proper authorization of activities and expenditures the determination of the physical existence of assets a review of the tax-exempt status and identification of any activities that may endanger it ascertaining that all reports are filed properly and in a timely manner a review of both financial and operational needs

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Checklist Responses Chapters can respond in one of three ways to each indicator used.

1. Needs Work An indicator that is marked as Needs Work implies that work has been done towards

achieving this goal. The chapter is aware of the need for this indicator and is working towardsattaining it.

2. Met All indicators marked as Met demonstrate that the chapter has fulfilled an essentialmanagement need. However, the organization should review these indicators in the future to ensurethat their management remains healthy in view of the many internal and external changes whichconstantly occur in all organizations.

3. N/A Indicators marked as N/A can mean several things, including: the indicator is not applicable to the management operations of this organization; the organization is not sure of the need to meet the requirements of this indicator; or the organization has not met, nor is it working on this indicator presently, but may address it in the

future

All chapters should take note: All responses to indicators should be reviewed carefully to see if they couldimprove operations. Indicators checked N/A due to uncertain applicability to the chapter must be furtherreviewed to determine if they should become a part of doing business. Indicators marked N/A becausethey have not been fully met but that apply to the chapter, may require immediate attention. Technicalassistance, consulting, or training may be required to implement these indicators.

The indicators in this checklist should be informative and thought provoking. The checklist can be used toachieve not only a beginning level of good management, but improve existing management to provide theorganization with greater stability, reliability, and success in the nonprofit community.

Disclaimer This checklist is designed to provide accurate and authoritative information regarding the topics covered.Legal requirements and non-legal administrative practice standards reflected herein are capable of changedue to new legislation, regulatory and judicial pronouncements, and updated and evolving guidelines. Allstated legal requirements are in effect as of September 1, 1995. The same are utilized with the understandingthat the provision of this checklist does not constitute the rendering of legal, tax, or other professionalservices.

If the organization requires professional assistance on these or other nonprofit tax, management, oraccounting issues, please contact your own professional advisors.

Note: Audit information provided by Greater Twin Cities United Way web site

*Ratings Each indicator is rated based on its importance to the operation and effectiveness of the chapter. The ratingsare:

E: Indicators with an E are essential or basic requirements to the operations of a Dollars for Scholarschapter. Chapters which do not meet the requirements of these indicators could place their chapterin jeopardy of being Suspended or Deleted.

R: An R rating signifies that these indicators are recommended as standard practice for effectivechapters.

How to Use the Checklist The checklist indicators represent what is needed to have a healthy, well-managed chapter. Since it is a self-assessment tool, chapters should evaluate themselves honestly against each issue and use the response tochange or strengthen its administrative operations.

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Financial AuditRating

* Indicator MetNeedsWork N/A

E 1. The chapter follows accounting practices which conform to accepted standards

E

2. The chapter has systems in place to provide the appropriate information needed by theboard to make sound financial decisions and to fulfill Internal Revenue Servicerequirements. Timely financial statements including the Balance Sheet [or statement of financial

position] and Statement of Revenue and Expenses [or statement of financial activities]which are clearly stated and useful for the board.

Annual operating budget approved by board. Completes annual Financial Report for Scholarship America on time

E 3. The chapter reconciles all cash accounts monthly and has a review process to monitorthat they are receiving appropriate and accurate financial information.

E

4. The chapter has documented a set of internal controls, including the handling of cash anddeposits, approval over spending and disbursements. All expenses are approved by adesignated person (treasurer) or by the full board, if over a certain amount. The chapterhas a policy regarding authorized check signers including the number of signaturesrequired on checks in excess of a specified dollar amount.

E 5. Board members and volunteers who handle cash and investments are bonded to helpassure safeguarding of assets (minimum $10,000 bond).

E6. The chapter submits the Recipient List, Financial Report, Roster of Chapter Officials, and

Recertification Fee within the prescribed deadlines. The chapter files the IRS Form 990 orForm 990-N within the prescribed time line (either on own or through ScholarshipAmerica).

E

7. The chapter has an annual, independent audit of their financial statements, prepared by acertified public accountant or a committee as appointed by the board chair (depending onassets and/or scholarship dollars disbursed).

In addition to an audit, the CPA/committee prepares a management letter containingrecommendations for improvements in the financial operations of the chapter. The Board of Directors, or an appropriate committee, is responsible for soliciting bids,

interviewing auditors, and hiring an auditor for the chapter (if needed). The Board of Directors, or an appropriate committee, reviews and approves the audit

report and management letter and institutes any necessary changes. The audit or a committee-prepared annual report, which includes financial statements,

is made available to service recipients, volunteers, contributors, funders, and otherinterested parties.

Indicator ratings: E = essential; R = recommended; A = additional to strengthen organizational activities

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Operational AuditRating

* Indicator MetNeedsWork N/A

R 1. The chapter monitors unit costs of programs and services. A process for allocation ofscholarship awards, general, and fundraising expenses is in place.

E 2. Endowment and pass-through scholarship agreements are in writing and are reviewedby a board member of the chapter to monitor compliance with all stated conditions.

E3. Chapters that purchase and sell merchandise take periodic inventories to monitor the

inventory against theft, to reconcile general ledger inventory information and to maintainan adequate inventory level.

R 4. The chapter has a written Awards Policy and follows it. Policy is reviewed periodicallyand updated as needed.

R 5. The chapter has a written Investment Policy and follows it. Policy is reviewedperiodically and updated as needed.

R 6. The chapter has established a plan identifying actions to take in the event of a reductionor loss in funding.

R7. The chapter has established, or is actively trying to develop a reserve of funds to cover

at least three months of operating expenses and an endowment fund to provide forscholarships into the future.

E8. The chapter has suitable insurance coverage which is periodically reviewed to ensure

the appropriate levels and types of coverage are in place (Required: Fidelity Bond of atleast $10,000. Optional: Directors & Officers, general liability, one-time event, etc.)

E 9. The chapter uses the current Dollars for Scholars logo properly within the constraints setby Scholarship America (see Chapter Guidebook section on Publicity and PR).

A 10. Training is made available for board members on relevant accounting topics and allappropriate persons are encouraged to participate in various training opportunities.

R 11. The chapter has a clear mission/purpose statement and the board represents a cross-section of the community.

E 12. The chapter has endowment/award goals that are reviewed annually and updated asneeded.

Indicator ratings: E = essential; R = recommended; A = additional to strengthen organizational activities

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Chapter Dissolution

If a chapter no longer wishes to continue affiliation with Scholarship America/Dollars for Scholars or fails tocomply with reporting requirement, the following steps are taken to dissolve the chapter.

(These steps pertain to Chartered/Grassroots chapters.)

Dollars for Scholars Bylaws read as follows:

ARTICLE XI CHAPTER DISSOLUTIONIn the event of dissolution, the Chapter shall distribute all unrestricted funds in accordance with theChapter Agreement and restricted funds (endowment) in accordance with all written endowmentagreements, subject to the restriction that the distribution must be exclusively for charitable, educational,or scientific purposes which would permit the Chapter to qualify as an exempt organization under Section501(c)(3) of the Internal Revenue Code of 1954 (or the corresponding provisions of any future UnitedStates Internal Revenue Law).

The Chapter must:

1. Review all donor agreements for intent/legal obligations and be sure to address restricted gifts as agreed.

2. Vote as to how to handle unrestricted funds. Options include: Divide all funds among existing student recipients/current graduates. Transfer funds to another Dollars for Scholars chapter/scholarship organization with a 501(c)(3)

status (funds may only be used for scholarships, which reflects donor intent). Use funds to establish an endowed fund within another existing 501(c)(3) organization to

provide scholarships to benefit students from current community/ies.

3. File the Dissolution Form with Scholarship America.

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Dollars for Scholars Chapter Guidebook Handling Chapter Assets

General Guidelines

Handling the money a Dollars for Scholars chapter raises is one of the main responsibilities of the chaptersboard of directors. Many chapters have a finance or investment committee to establish policies and

procedures for all money that comes to the chapter. Most chapters recommend having at least one boardmember from the finance industry serve on a finance committee. Clear guidelines, understood by everyoneon the board of directors, help build chapter credibility and stability. Below are some suggestions that mayhelp keep a chapters financial practices simple and effective.

Operating Funds

All chapters require operating funds for ongoing administrative expenses. Chapters often need cash tounderwrite the initial costs of fundraisers or other programs. A checking account at a local bank is thesimplest and most convenient way to hold cash for general operating expenses.

Budget

Experienced chapters recommend the budget process as an effective planning tool. This includes budgetingfor all aspects of a chapters operation from general administrative costs to specific fundraising events toanticipated annual award goals. Some chapters give event and program chairs a specific budget to workwithin. However a chapter establishes its budget, it is prudent to authorize the treasurer to pay board-approved expenses only.

Earning Interest

Once chapter assets begin to grow, most chapters keep minimal operating funds in a checking account andplace the balance of chapter assets in accessible investments such as money market accounts, Certificatesof Deposit, or mutual funds where they may earn a higher rate of interest. The assets will remain readilyavailable as needed. When a chapter is ready to invest some of its assets, Scholarship America recommendsthat the board agree on a formal investment policy with regard to its assets. More information on establishinga policy on Investment, Distributions, and Fund Management follows.

Investing for a Larger Return

As chapter assets become substantial, the board of directors may want to discuss ways to generate higherearnings on its invested assets. Again, if the board hasnt already done so, it should form an investment orfinance committee. This committee can examine and discuss options and recommend a course of action.Dollars for Scholars chapters use a number of options. One is putting all investment activity in the hands of itsinvestment committee. Another is engaging a local, area, or even national financial management firm to makeall investment decisions while working closely with the chapters investment committee. This usually has costsassociated with it, but some firms may offer special rates for their services. Other chapters turn their fundsover to an area community foundation that will manage the chapters assets, usually for a fee, and issuefunds for awards when requested. However, investing your funds with a community foundation usually meansturning over control of those funds to the foundation the assets now become the property of the communityfoundation and the chapter only receives the interest from the funds to use for scholarship awards.Scholarship America staff is available to discuss these and other options.

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Endowment Program

Dollars for Scholars encourages every chapter to start an endowment program (for more information onEndowments, see pages 2-8 and 2-9). The interest from chapter endowments is then available to generate

scholarships in perpetuity for the communitys students. Endowments attract contributors including thoseconsidering planned gifts, often because they are pleased to see that their gifts will help students for years tocome. Scholarship America staff can help chapters structure an endowment program that is compatible withtheir individual communities, reviewing sample agreements between donors and chapters, as well asproviding comprehensive resources to keep track of endowments.

How Does a Chapter Manage its Money?

Community people and donors in general often ask, How does the chapter manage its money? Boardmembers attempt to explain the different strategies used to raise dollars and often have difficulty making itspolicies clear. The sample chart on page 2-3 provides a visual explanation that can be easily adapted to anychapters needs. The chart also provides an easy tool for members to use when explaining the variety ofmethods available to build scholarships.

Every Dollars for Scholars Chapter Should Have:

1. Investment Policy

2. Gift Acceptance Policy

3. Conflict of Interest Policy

4. Donor Agreements on file (needed to avoid donor conflict or in the event of chapter dissolution)

5. Annual goals established and projected numbers for funds needed. Consider what percent of that goalwill come from pass-through donations, endowment proceeds, and local fundraisers/donations. Each yearchapters should try to build endowment, pass-through, and memorial/honorarium donation numbers toresult in a reduction of local fundraising/activity emphasis.

6. Use the IRS guideline for private charities when determining distribution which is 5% of the annualvalue of the endowment. Dollars for Scholars is a publicly supported charity and has some flexibility here,but 4-6% is suggested.

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Chapter Fund Management SAMPLE

Held Scholarships: For those entering themilitary, requiring support tobetter utilize a financial aidpackage, or needing a delayfor attending school, thechapter will hold funds for

___ years (most allow up tofour years). Award money notclaimed within policyguidelines will be placed backinto the operating fund.

Interest Earnings 5% of the annual

value of theendowment issuggested fordistribution by theIRS (can be alteredby board vote)

also considerretaining apercentage for

growth and inflation

100%

Donations, Memorials &Honorariums [list % operating / permanent]

[%] [%]

Endowed NamedScholarships [l

ist any here]

Smith Family Lions Club

Less:Operating expenses

PermanentFunds

Operating

Funds

Annual ScholarshipAmount Distributed

Fundraisers [list all fundraisers and %

operating / permanent]

Phonathon 50%/50% Football Concessions 75%/25% Bingo 100%

Pass Through / NamedScholarships [list any here] Wakeman Insurance Als Deli

All permanent funds are invested in [list how invested here].

Operating funds are managed between liquid accounts (i.e. savings, checking) to the extent needed to coverexpenses and scholarship awards for the year.

All gifts will be managed according to chapter policy (see following pages for samples).

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Establishing a Chapter Policy on Investments and Distribution

Investment Policy

Dollars for Scholars highly recommends that chapters adopt an investment policy. This policy should clearlystate how donations are handled. Some chapters develop a flow chart to illustrate their investment policy (Seethe sample flow chart on pg. 2-3) It is important to remember that Dollars for Scholars chapters are publiclysupported charities as identified by the Internal Revenue Service and therefore their policies and records areopen to the public they serve.

Chapters that do not have endowments will likely have fairly simple, straightforward investment policies thatexplain what they do with cash donations as they are received (short-term policy) and how they are investedover time (long-term policy). Chapters that are working on building endowments often allocate percentages oftheir fundraisers between an endowment and scholarships. For example, 75% of the proceeds of allfundraisers might go toward scholarships and 25% might go into a chapter endowment.

A growing number of chapters accept named scholarship endowments from donors. The initial gift and any

additions made to it over time, remains invested according to the chapters investment policy and only theincome which the named scholarship fund earns is used for annual named scholarships. All donations madeto a chapters endowment, whether given to a general chapter endowment or to an individually namedscholarship fund, immediately becomes the property of the chapter. Whether the chapter delegates theinvestment responsibilities to a committee of the board, such as an investment committee, or not, the ultimateresponsibility for investing chapter assets belongs to the board of directors.

A sample investment policy follows (pg. 2-5).

Distribution Policy

The Internal Revenue Service has a recommended policy for its 501(c)(3) designated organizations withregard to how they distribute their available assets. The recommendation is that charities distribute, as aminimum, 5% of the annual value of its endowment for its stated charitable purpose. Most chapters withendowments usually make their annual distribution decisions based on the total annual value of endowmentdollars and the total amount of the income earned on the endowment, rather than on the value of each of theindividually named, endowed scholarships.

Dollars for Scholars chapters are not mandated to distribute 5% of the value of their endowments every yearfor scholarships. Nevertheless, it is a good fiduciary policy to set this standard as general chapter policy andto make adjustments annually, depending upon investment performance as well as general chapter financialgrowth. For example, it might be that in the early years of chapter development or during years when theannual return on chapter investments is less than 5%, the annual scholarship distribution amount will be lessthan 5%. With the general recommendation from Dollars for Scholars as standard chapter distribution policy,any deviation from the 5% standard can be clearly explained.

The value of a chapters endowment usually varies from year to year because new money has been added tothe endowment and also because the assets may vary in market value. Therefore, chapters usually discussthe distribution percent each year. It is prudent, however, to be sure that the review process the chapter usesis consistent.

Some donors will want to know how the chapters assets are invested and others will not. By using well-diversified investments, the chapter can demonstrate effectively that it is both a good steward of the moneyentrusted to it and that it operates in a fiscally prudent manner.

June 2011 2-4


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Investment Procedures and Policies SAMPLE

Anytown Dollars for ScholarsEffective [insert date approved by vote

dollars for scholars chapter guidebook

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