How is a scholarship program for my company possible?
TGEF has several different types of scholarships available to offer to your employees. The foundation is classified by the IRS as a 501(c)3 public charity. Awarding a scholarship through the foundation allows you a tax donation and is a tax free benefit to the student.
Why is it a good idea?
A scholarship program promotes good public relations within your company. It shows that you are taking an active interest in your employees and their children's education. This encourages loyalty and improves employee morale. You can maximize the publicity in your firm's newsletter or other information vehicle.
What are the different types of scholarships?
Piggybacking: If you want to guarantee someone from your company wins a scholarship you may do so by "piggybacking" on the association's already established foundation.
Piggybacking allows you to provide your own scholarship award to the children of your full-time employees and/or your part-time employees who are full-time students. Only those applicants associated with your company can win your scholarships. Plus, your applicants are also eligible to win other awards offered through the foundation by completing only one application. An example: If you piggyback two scholarships, you are guaranteeing that at least two of your applicants win scholarships. If other applicants qualify and win one of the other foundation awards, then you can have multiple winners.
Sponsored Scholarships: Sponsoring a scholarship is an excellent way for associate members and wholesalers to thank their customers and to gain exposure. As a scholarship sponsor, you are able to provide scholarships in the name of your company to your customers. An example: You can designate that recipients of your scholarship be children of TGCSA retail members or children of part-time employees of TGCSA's retail/wholesale members.
Endowment Scholarships: Endowed scholarships are funded through the interest income generated from assets posted with the foundation perpetually funded scholarship trust. The Foundation Investment Committee manages these funds and accounts for the income by posting earnings (currently 4.5%) to the endowment fund.
How is this "My Company's" Scholarship?
♦ You name the scholarship award.
♦ You determine the number of awards.
♦ You determine the amount of awards.
♦ You set the criteria for the awards.
When naming an award, some companies us their company's name, others choose to memorialize a company founder and others name an award after a person who made a large contribution to the fund. Both the winners and the colleges are informed of the name of the scholarship and the source of the funds. As long as your company has at least one applicant, you will be able to award a scholarship.
What will it cost me?
The foundation will bill you for the total amount of your "Piggyback" or "Sponsored" awards. There is no fee.
For endowment scholarships, a fee for administration and professional selection of winner(s), currently $95, is charged per endowed scholarship award. The number and amount of the awards can be adjusted in line with annual earnings. Foundation policy forbids scholarship awards and administrative fees to exceed annual investment income.
What is the application process?
Scholarship posters are mailed in December to all TGCSA members with information to be disseminated to your employees. You would encourage your employees to apply, because someone from your company is sure to win the scholarship you have created. Applications are received through February and the scholarships are awarded at our annual convention.
To obtain additional information, contact Jennifer Kemp, jkemp@tngrocer.org, or call 615-889-0136.
