How do I start an endowment?
You can begin an endowment with a gift of $100. Complete the Endowment Agreement form and submit it to ESAMC Staff with your initial contribution.

Can I build an endowment over time?
Yes. Endowments can be built over time through additional contributions with a minimum of $100 for the initial donation.

Can others contribute to an endowment?
Absolutely. Friends, family, chapters, and fellow ESA members can all contribute to help build the fund and increase its impact. The more to talk to others about your endowment, the more it has opportunities to grow.

How much does an endowment need to fund scholarships?
An endowment can be started with as little as $100 and it is fully vested when the principle reaches $5,000. However, the endowment will need to reach $5,500 before a scholarship can be funded.

When will scholarships be awarded?
All endowments with a minimum balance of $5,500 are reviewed each year after December 31 for eligibility to award scholarships.

The first $5,000 is held as a permanently restricted principal. Any funds above that amount are placed in the available balance, which is used to fund scholarships.

To award a scholarship, the endowment must have at least $500 in available funds. This means the total fund balance must reach at least $5,500 before a scholarship can be considered.
Available funds come from:

• Additional contributions beyond the initial $5,000
• Investment earnings (return on investment)

Because investment performance can vary from year to year, continued contributions help ensure the endowment can consistently fund scholarships.

If there is not enough in the available balance to meet the minimum scholarship amount, no award will be made that year. The funds remain in the endowment and continue building for future scholarships.

How much can be awarded each year?
Scholarship amounts are based on:

• A three-year rolling spending rate
• The available balance in the fund
• Overall fund performance

To ensure long-term sustainability, no more than 7% of the total fund value is awarded in a given year.

What happens to the first $5,000?
The first $5,000 is held as a restricted principal. This amount remains in the fund permanently and is not used for scholarships.

What funds are used for scholarships?
Scholarships are funded from:

• Investment earnings
• Any funds above the initial $5,000 (the available balance)

What happens if there are not enough funds to award a scholarship?
If there are not enough available funds in a given year, a scholarship may not be awarded, allowing the fund to continue building for future impact.

Can I create an endowment in honor or memory of someone?
Yes. Endowments may be created as honorariums or memorials to recognize individuals, chapters, or groups who have made a meaningful impact.

Can I choose what my endowment supports?
Yes. You can define scholarship criteria when the endowment is created, such as:

• Field of study
• Geographic location
• Type of student
• Academic requirements

What happens if there are no qualified applicants?
When establishing the endowment, you can indicate preferences such as:

• Selecting a recipient from another scholarship
• Being contacted to adjust criteria
• Allowing the funds to remain and build for a future year

Who manages the endowment?
The ESA Foundation Board of Directors is responsible for managing all endowments and ensuring they are administered responsibly.

Will I receive updates on my endowment?
Yes. An annual statement is provided after December 31 each year, including:

• Total fund balance
• Investment performance
• Spending rate
• Scholarship amounts awarded

Can I update the criteria for my endowment?
Yes. You may request updates to your endowment’s criteria using the designated update form.

Can I update the contact person for an endowment?
Yes. Contact information can be updated at any time using the appropriate form to ensure the right person receives annual updates and communications.

Can I give to an existing endowment?
Yes. Contributions to existing endowments help increase their available balance and expand their scholarship impact.

1. Checks sent to the Turn-Around Fund must be made payable to the ESA Foundation.
2. Checks or donations must be for $25 or more.
3. ESA Foundation Turn-Around Fund checks may only be issued to other IRS designated 501(c)3 charitable organizations. The recipient entity’s 501(c)3 valid determination or exemption letter, and EIN # must accompany the request. [See note below] 
4. ESA Foundation Turn-Around Fund checks not cashed within 120 days of the date of issue will be considered a donation to the ESA Foundation General Fund.
5. The IRS does not allow the following:

• Turn-Around checks issued directly to an individual or reissued to a chapter or state council.
• ESA Disaster Fund 
• State / Regional Love or Care Funds

NOTE: The EIN # for St. Jude Children’s Research Hospital is 62-0646012. A list of 501(c)3 approved organizations will be compiled, updated as needed, and accessible through the ESA Foundation website.

If you are uncertain about your charity / organization, you can check them out on the following website: www.guidestar.org. This site lists almost all IRS authorized 501(c)3 entities.