The Perpetual Fellowship Fund
History of the Perpetual Fellowship Fund
Alpha Lambda Delta has used the Perpetual Fellowship Fund to support fellowships 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 National Council members, funds from surplus operating expenses, and 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.
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, the National Council 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 National Council 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. who uses the Ibbotson Asset Allocation Methodology (which is also used by TIAA-CREF) to make portfolio management decisions. Professional management of the Perpetual Fellowship Fund should be continued.
Meeting annually in June, the National Council reviews and approves the operating and fellowship budgets, makes decisions regarding any operating surplus, and reviews the goals, objectives and performance of the PFF.
The 2010-2015 ALD Long Range Planning Document states that the Society should continue to accumulate monies in the perpetual fellowship fund in order to fund at least 23 graduate fellowships, 35 undergraduate scholarships, and 15 Stemler Study Abroad scholarships and add to the value and/or number of existing awards as financial resources permit.
The National Council recognizes the benefit of establishing a more stable source of funding for the fellowship fund. In order to accomplish this objective, the Council wishes to adopt the “Total Return Concept” for investments. The Council wishes to utilize 5% of the three-year rolling average of value of the PFF to support the fellowships and scholarships. This policy will go into effect after the fund generates $47,500 in FY2004. After this income is generated, all further investment income will be reinvested in the PFF portfolio.
At the June, 2003 National Council meeting, the Council passed a motion to adopt a “total return” concept for funding future fellowships and scholarships which would entail using a 5% of the three-year rolling average of value of the PFF to support the fellowships and scholarships.
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.
The Maude Etheridge Loan Fund has a restricted definition by the donor to be used as a revolving loan fund.
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 National Council. Winners are awarded appropriate named awards. For example, a $3000 fellowship winner from Auburn would be awarded the Dean Katherine Cater fellowship.
Alpha Lambda Delta currently offers three programs of financial support for student members:
Fellowship Fund – 23 fellowships ranging from $3000 to $7500
• The Alice Crocker Lloyd Fellowship - $3,000
• The Adele Hagner Stamp Fellowship - $3,000
• The Maria Leonard Fellowship - $7,500
• The Kathryn Sisson Phillips Fellowship - $3,000
• The Christine Yerges Conaway Fellowship - $3,000
• The May Augusta Brunson Fellowship - $3,000
• The Fiftieth Anniversary Miriam A. Shelden Fellowship - $3,000
• The Gladys Pennington Houser Fellowship - $3,000
• The Katherine Cooper Cater Fellowship - $3,000
• The Margaret Louise Cuninggim Fellowship - $3,000
• The Maude Lee Etheredge Fellowship - $3,000
• The Gladys Colette Bell Fellowship - $3,000
• The Mary Jane Stevenson Fellowship - $6,000
• The Sixtieth Anniversary Warner O. Moore, Jr. Fellowship - $3,000
• The Sixty-Fifth Anniversary M. Louise McBee Fellowship - $5,000
• The Betty Jo Hudson Fellowship - $5,000
• The Dorothy Anderson Fellowship - $5,000
• The Helen Clarke Fellowship - $3,000
• The Margaret C. Berry Fellowship - $5,000
• The Barbara P. Quilling Fellowship - $5,000
• The Martha G. Wade Fellowship - $5,000
• The Patricia A. Graham Fellowship - $5,000
• The Harry Hale Fellowship - $3,000
Trow Scholarship Fund – 36 undergraduate scholarships – The Jo Anne J. Trow Scholarships are awarded to outstanding sophomores, to be used during their junior year. The Jo Anne J. Trow Award was started in 1988 to honor a past National President of Alpha Lambda Delta. Former Vice President for Student Services at Oregon State University, Jo Anne J. Trow served Alpha Lambda Delta as District VIII Advisor from 1974 to 1979, Secretary from 1979 to 1983, President-elect from 1984-1985, and as National President from 1985 to 1988. During her term as President, the National Council was restructured to provide a more streamlined operation. Originally, this award was established to give collegiate chapters of the Society an annual opportunity to reward an outstanding sophomore member of Alpha Lambda Delta with a stipend of $150. Today thirty-five awards are presented annually:
- Five awards of $6,000
- Five awards of $3,000
- Five awards of $2,000
- Twenty awards of $1,000
Stemler Study Abroad Scholarships – 20 scholarships to support study abroad opportunities for ALD members - At their annual meeting in June 2008, the National Council of Alpha Lambda Delta passed a resolution honoring retiring National President Dr. James G. Stemler by establishing ten new study abroad scholarships in his name. The number of scholarships has now been increased to fifteen. The James G. Stemler Study Abroad Scholarships will take the form of fifteen $1,000 awards to offset the expense of studies abroad for eligible members of Alpha Lambda Delta National Honor Society for First-Year Students.
The first male president of the Society, Dr. Stemler served the National Council of ALD for more than 14 years; he held the office of Vice President for Chapter Relations and Expansion, and completed his sixth year as National President in 2009. In addition to his dedicated service on the Council, Dr. Stemler has been an active chapter advisor for the chapter at the University of Portland – and has been a very vocal proponent and promoter of studies abroad.
The Council recognizes that the world is becoming less a collection of independent peoples and more a global community of world citizens – and there is an immediate need for American students to experience life beyond the United States, and studies abroad are one of the ways in which our colleges and universities are accomplishing that goal. With this in mind, Alpha Lambda Delta is committed to helping its membership develop a more global view of the world.
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.
The Council should solicit contributions to the fellowship fund from current chapters, Council members, former Council members, advisors, fellowship and scholarship recipients, and friends of ALD.
Celebration of ALD's 85th Anniversary in 2009 provided the opportunity for increased visibility and fundraising activity. The Society will continue activities designed to increase visibility and add to the Fellowship Fund, which funds the Graduate Fellowships, the Trow Undergraduate Scholarships and the James G. Stemler Study Abroad Scholarships.
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 significant support to the Perpetual Fellowship Fund.
Alpha Lambda Delta National Council members 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 National Council upon recommendation of the Executive Director.
Funding Requirements for Future Named Fellowships and Scholarships
Named $3000 Graduate Fellowship - $60,000
Named $5000 Graduate Fellowship - $100,000
Named $6000 undergraduate scholarship - $300,000
Named $3000 undergraduate scholarship - $150,000
Named $2000 undergraduate scholarship - $100,000
Named $1000 undergraduate scholarship - $20,000
Fellowships are a form of educational assistance typically reserved for graduate students. Specific criteria for eligibility may be established by the ALD National Council.
Scholarships aid talented undergraduate ALD members. Specific criteria for eligibility may be established by the ALD National Council.
Service Recognition Naming Opportunities
The ALD National Council 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 her/her service or other contributions. The ALD Executive Council handles requests of this type and make recommendations to the National Council.
The ALD Executive Director shall be responsible for administering expenditures related to supported fellowships and scholarships in accordance with National Council policies and procedures to assure that administration is consistent with the ALD policies and IRS regulations.
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 National Council regarding future action. The National Council 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.