Your Donation Makes a Difference

How to Establish a Scholarship

The National Strength and Conditioning Association Foundation (NSCA Foundation) is an incorporated 501(c)3 non-profit organization established to solicit, receive and administer private support for members of the National Strength and Conditioning Association.

There are many ways for donors to support the NSCA Foundation, but one of the most common is through the establishment of a scholarship to financially assist members of the National Strength and Conditioning Association. Scholarship endowments are excellent means of memorializing a person or persons, an event, or a cause.

All contributions are fully tax-deductible and will be deposited in a permanent named fund. Additional donations may be added to the endowed scholarship by the donor who established the endowed scholarship fund or other donors at any time.

When a donor establishes an endowed scholarship, the donor may specify how the funds are to be used. NSCA Foundation staff is happy to work with donors to develop plans for scholarships and are available to meet with individuals or groups to review the process and develop guidelines.

If a donor or an organization does not wish to establish an endowment but would like to make a one-time scholarship donation, there are options available for supporting scholarships consistent with the donor’s interests.

Supporting Scholarships:

There are three options for supporting Scholarships:

One-time donations: One-time donations can be made as a restricted gift to current Scholarship programs.

Named Scholarship Opportunities: Minimum 5-year commitment with $2K paid annually to established named scholarship. Once the funds have been expended, the scholarship will cease.

Named Endowed Scholarship Opportunities: Endowed scholarships can be established with a single donation of $25,000. The fund will pay an annual distribution that will be used as the scholarship award. This donation will ensure long term sustainment of the scholarship. Endowments create a legacy for donors and their families.

The Differences between Scholarships and Endowed Scholarships:

While scholarship funds are expended annually and must be replenished through new gifts, endowed scholarships receive interest annually and the corpus of the gift is never touched (thereby ensuring scholarships are available into perpetuity). Scholarships are funded from investment income.

The Basics:

NSCA Foundation Scholarship Committee & Panel will:

• Select suitable recipients from a pool of candidates for your scholarship according to set criteria
• ·Due to IRS regulations and state match guidelines, donors or donor organizations are not permitted to select scholarship recipients

ENDOWMENT PHILOSOPHY AND INVESTMENT

The NSCA Foundation is a private, non-profit corporation that was founded in 2007 with the aim of supporting the advancement of strength and conditioning practical applications, the NSCA Foundation is a non-profit organization committed to providing funding to NSCA members taking part in educational and research endeavors.

The NSCA Foundation is a 501(c)3 organization, and, as such, gifts to the NSCA Foundation are tax-deductible as a charitable contribution.

Gifts to the NSCA Foundation through a scholarship fund acknowledge the work of NSCA members and help them attain their goals of higher education and financial stability. Scholarship and endowment funds make a direct impact on the lives of NSCA members. The establishment of an endowed fund not only guarantees perpetual funding to NSCA members, it also ensures long-term growth and stability for the NSCA Foundation.

Endowment Philosophy:

Endowments are established with the intent that the corpus of the fund be held in perpetuity and that investment income earned by the fund be used to support the program designated.

Investment Policy:

The NSCA Foundation Board of Directors in support of the NSCA Foundation Investment Committee and Investment Manager is charged with the responsibility of investing the assets of the Foundation as a prudent investor would, given the distribution requirements, purposes, and circumstances of the Foundation.

This standard requires the exercise of reasonable care, skill, and caution, and is to be applied to investments not in isolation but in the context of the Foundation portfolio as a whole, and as part of an overall investment strategy that incorporates risk and return objectives reasonably suitable to the Foundation.

The investment goal is to provide long-term stability and continuity to the management of the Foundation’s endowments. Foundation funds are invested to produce maximum total return consistent with prudent risk limits.

Endowment Spending:

Earnings from the investment are annually distributed. Recognizing the need for sustainable income to support the beneficiaries of endowments, spending will not exceed 5% of the average three-year balance of the December 31 market value of the portfolio.

Distributions from endowment funds are managed by the Foundation and limited to the purposes and amounts indicated by the donor and within the bounds of the Foundation’s policies.

Accounting:

Two accounts are established for scholarship endowments:

The Fund Corpus or Principal Account

The balance in this account represents the accumulated amount of gifts to the fund. Since the purpose of this account is for the original donation(s) to be held in perpetuity, no disbursements nor other transfers shall be charged to this account. Additional donations are designated to this account by default. Endowed accounts are allowed to grow at least one calendar year before the first award is made. During this one-year period, the donor may fund the scholarship award with a separate gift. At no time will the endowed principal be used to make scholarship awards.

 The Endowment Distribution Account

Scholarship expenditures are charged to this account consistent with the purpose of the endowment fund procedures. The NSCA Foundation will distribute the investment revenues earned by the endowment fund to this account (see Endowment Spending above). The unexpended balance in this account will be carried over from fiscal year to fiscal year.

Endowment accounts are audited annually as part of the annual audit of the Foundation performed by an external certified public accounting firm.

Establishing an Endowment:

A minimum gift of $25,000 is required to establish a permanently endowed fund.

A named endowment requires a signed endowment agreement that is prepared and submitted prior to establishing an endowment fund. Additional donations may be added to the endowment by the donor who established the endowment fund or other donors at any time. Donors may also add to the endowment fund by deferred charitable gifts or estate planning. There are other options for donors who want to contribute to programs or scholarships without creating an endowment. A Foundation representative can provide information on additional ways to give.

In addition to naming the endowment fund, the donor may choose awarding guidelines for how any distributed funds will be used. A Foundation staff member will assist donors to create IRS compliant guidelines that clearly articulate the donor’s gift intent and ensure consistent and successful distribution of available funds. The donor may amend endowment fund criteria by requesting any changes in writing.

The NSCA Foundation has a fiduciary responsibility to ensure donor wishes are strictly observed and gifts are used only for the purpose stated by the donor. Gifts received for the benefit of the NSCA Foundation must be spent according to the donor’s intent. The Foundation will monitor the administration of gifts to verify donor gift intent is implemented.

Appropriate records related to the endowment funds and accounts shall be maintained by the Foundation. At the end of each fiscal year, the Foundation will send an annual statement for all Scholarships and endowed funds. The annual statement will include the current financial status of the endowment fund along with notification of any scholarship recipients.

Endowment funds are critical to support advancing the profession, and they also provide sustainable scholarship and program support for the future.

For more information on establishing an endowment, please email us at foundation@nsca.com 

Thank you for considering The NSCA Foundation for your charitable giving.