Permanent Fund Information
Memorial and Non-Memorial Scholarships
Non-Memorial permanent funds can be established in the name of living individuals, graduating classes, clubs, civic organizations, or businesses.
Similarly, Memorial permanent funds can be created to perpetuate someone’s memory by providing an annual scholarship to be awarded to an Ellington student in the name of the deceased. If family or friends wish to establish a scholarship at the time of bereavement, it is not necessary to contact ECSA immediately. At the request of the next of kin, an obituary may include a request that donations be directed to ECSA, and the formal agreement to start the memorial fund, as well as the decision about the type of memorial, can be made at a later time. ECSA will send an acknowledgment of each gift to the family of the person being memorialized.
The Concept of a Permanent Fund (Endowment)
The endowment program works on a simple concept: the original money gift is invested in an interest bearing, dividend producing or capital appreciation form of investment. Each year the proceeds generated by the investment are awarded as a scholarship. The original amount or “principal” remains invested to generate more interest, dividends, or capital appreciation. A fund becomes permanent at $5,000. However, a principal of $5,000 will not earn enough income in a year’s time to create one average award. The earnings will be supplemented by ECSA general funds; however ECSA encourages all sponsors to keep their respective accounts growing.
Establishing a Permanent Fund
To start a permanent fund, contact the ECSA through its web site at www.ecsact.org or by mail at P.O. Box 54, Ellington, CT 06029. Once an agreement has been reached with the ECSA to work toward a permanent fund, and an accumulating fund has been established, contributions to the fund can begin. These donations can also be augmented by fundraising activities of the sponsoring group.
Arrangements may be made with ECSA to start an accumulating fund. To achieve accumulating status, $250 must be accrued within six months following the receipt of an agreement form. Thereafter, a minimum of $250 must be received each year so that all funds become permanent within a ten year period. During the period that the fund is growing to permanent status, it will be listed as an “accumulating fund,” and no awards will be given. Some accumulating funds reach permanency quickly, others take several years, and some require the full ten years.
Continued Fund Growth
A fund grows when additional money is contributed directly to the principal. Any individual or group may donate to any established fund. Some sponsors conduct private money raising activities. In many cases, donors give contributions to the fund as gifts in someone’s name to honor special occasions in their lives. Others simply contribute regularly to the accumulating or growing principal. Often, during ECSA’s annual fund-raising effort, donors direct that their contribution be added to a specific permanent fund.
Click on the scholarship name to see more information about the fund!