As you know, Uncle Al funded the trust with $600,000 in 2003. Now, 20 years later, at the end of 2023, the Trust was valued at $765,000, and we have distributed about $874,000 in awards. A link is provided below to a chart showing the total trust awards and trust expenses.
Trust Awards & Expenses – 2003-2023
The Trustee’s oversee the Trust fund and make decisions on awards levels. The determination of award amounts is based on a number of factors, including current economic conditions, total trust value, the number of students requesting funds, and the longevity of the trust . As such, award levels for any given year will vary.
At the end of each year, the Trustees review the prior year’s performance, the current state of the fund, and the expected economic conditions for the new year. We then set a target amount for the total amount of funds to be distributed during the coming year. Then, based on the number of students expected to request funds for that year, the Trustee’s decide on the maximum award for individuals for that year. While the award limit is for the year, for students starting their 1st year in the fall semester, they would be entitled to only half of the award limit.
Over the years, we have had to make some difficult decisions, based on the ups and downs of the financial markets, to ensure that the Trust assets are there for future generations, as this type of Trust will exist for about 100 years! Some of the key events that have affected award limits are discussed on the Trust Historical Performance page. Trust Historical Performance
Fairness in Individual Awards
Prior to 2008, there was no limit on the amount that we reimbursed students. During that period the fund’s assets were growing at a substantial rate, and we had fewer individuals requesting funds. As a result, we reimbursed all individuals fully from 2003 to 2007.
In subsequent years, changing market conditions and increased student requests, resulted in us having to impose yearly individual award limits. Over the years, award limits have ranged from as much as $14,000 per year to as little as $6,000 per year. These limits have continued since that time, thus some students who have attended college after 2008 have incurred significant out-of-pocket costs.
At that time, we recognized that there was a level of unfairness to some students. If a student happened to be in college during periods where the trust value was growing, the awards would be higher than for another student in college during periods where the trust value was decreasing.
To address these potential inequities, in 2010 we initiated a policy to provide special awards to individuals who may have received less assistance. At the end of each year, we evaluate whether we have sufficient assets to grant additional awards. We then decide on a total distribution amount for these special awards for that year.
To do this, we track the total out-of-pocket costs (total costs minus awards) for each student. At the end of 2023, we had nine students whose total costs exceeded what we were able to awards, some of which have paid substantially more than what we have awarded. Most of these individuals attended expensive schools, with tuitions far exceeding what the Trust can provide.
As an example, if we determined that $18,000 was available for special awards, and we had nine students in this category, then we would send each student a check for $2,000 as a special award for that year. During those years where we have made special awards, the awards have been between $1,000 and $4,000.
As Trustees, we have no specific obligation to pay everyone’s costs fully. When the trust was opened, we knew that someday we would have a student enrolled in an expensive private college, law school or medical school, and that the Trust could not pay these fees fully. Nevertheless, we do not want to discourage students from attending expensive colleges and try to contribute a reasonable amount so long as the fund has the resources, and we keep in mind the long-term health of the Trust.