Phi Kappa Psi

The Louisiana Chapters Scholarship Fund

What is the Louisiana Chapters Scholarship Fund?

The Louisiana Chapters Scholarship Fund (LACSF) promotes and rewards scholastic achievement, aiding Louisiana Phi Kappa Psi Fraternity chapters in the recruitment of talented young men and encouraging their continued academic success. Through the fund, members and friends of the Fraternity seek to provide meaningful scholarships to all active, full-time, Phi Psi undergraduate and graduate students attending Louisiana universities with an active Phi Kappa Psi Chapter who attained, over the previous academic year, a 3.0 or better GPA on a 4.0 scale. In this way, the LACSF is somewhat unique—its scholarships reward all active Louisiana Phi Psi students who have applied themselves to their studies.

The LACSF is a separate, directed fund within the Endowment Fund of the Phi Kappa Psi Fraternity. Each year, the Trustees of the Endowment Fund will typically make 5 percent of the LACSF available for scholarships. For example, at the end of the fiscal year (May 31^st), if the LACSF has a balance of $40,000, up to $2000 will be made available during the ensuing academic year for scholarships to deserving Phi Psis. Working with other area alumni associations, clubs, and house corporations, the New Orleans Alumni Association (NOAA) solicits applications and recommends recipients to the Endowment Fund Trustees. The Trustees verify recipients’ qualifications to protect the Fund’s tax deductible 501(c)(3) status, then processes checks in the amount designated by the NOAA for presentation to the recipients.

Does the LACSF Support Chapter Housing?

In addition to aiding worthy Phi Psis with their tuition and housing expenses, the LACSF helps Louisiana Phi Psi’s in a second important way. Part of all of the principle of the LACSF can be made available as loans to Louisiana house corporations if certain conditions are met: The loan must be made as an "arm’s length" transaction. That is, it must be a safe, business-based loan with marketplace conditions and it must be a "first position debt." When Louisiana house corporations borrow from the LACSF, the principle and interest payments are deposited back into the LACSF.

What is the Endowment Fund?

The Endowment Fund of the Phi Kappa Psi Fraternity is a not-for-profit, educational endowment that fosters the development of leaders and promotes academic excellence in higher education. The Fund provides over $80,000 in scholarships to students, chapters, and universities each year. Additionally, the Fund underwrites educational programming with over $50,000 each year. These programs include: the Woodrow Wilson Leadership School, the Tutor in Resident Program, the Educational Leadership Consultants Program, Alumni Volunteer Training, The Presidents Leadership Academy, The Leadership Experience, the Undergraduate Interfraternity Institute, and the National Housing Fund.

For further information on these or other programs visit Phi Kappa Psi’s Web site at http://www.phikappapsi.org, or contact the Fraternity headquarters staff in writing at 510 Lockerbie St., Indianapolis, IN 46202-3694, via e-mail at pkp-hq@phikappapsi.com, or via phone at (317) 632-1852.

How Does the LACSF Work?

The LACSF grows through directed gifts from individual alumni, house corporations, parents, or friends, as well as through various fundraising efforts. These gifts and funds are invested by the Endowment Fund to produce reasonable annual income, coupled with capital appreciation, while conservatively maintaining safety. To achieve these objectives, the Fund is managed as a widely diversified, balanced fund.

The Endowment Fund Trustees are committed to maintaining the integrity of the LACSF and the Endowment Fund of which it is a part. The corpus of the Fund is never invaded; only the income generated is used for scholarships. At the end of each fiscal year, the Trustees of the Endowment Fund determine how much money is available for scholarships during the next academic year.

As the LACSF grows, its scholarships strengthen Louisiana Phi Kappa Psi chapters’ ability to attract young men of high caliber and encourage all Louisiana Phi Psi students to commit themselves to high levels of academic excellence. To achieve these ambitious goals, the NOAA encourages each active Louisiana Phi Kappa Psi Chapter to hold annual LACSF fundraisers; and it requests that each LACSF scholarship recipient pledges an annual directed gift after his graduation. Furthermore the Association encourages all other Louisiana alumni who have benefited from their association with the Fraternity to pledge annual directed gifts.

What is a "Directed" Gift?

A directed gift is a gift made to the Endowment Fund accompanied by a request from the donor to earmark the gift for a specific use. It is the policy of the Endowment Fund to honor requests from donors whenever possible; however, the ultimate determination of any gift’s use rests with the Trustees of the Endowment Fund.

Five percent of each directed gift goes to the Endowment Fund’s unrestricted fund for the benefit of all Phi Psis, and 10 percent of the annual earnings on directed gifts are unrestricted. For example if a donor makes a $100 gift to the LACSF, $95 are added to the CSF while $5 goes for unrestricted use.

Are Gifts Tax Deductible?

The Endowment Fund is a 501(c)(3) nonprofit, public educational foundation. As such the Endowment fund is the only charitable arm of Phi Kappa Psi, entitling donors to a full tax deduction within the limits set by the Internal Revenue Code. The Endowment Fund acknowledges each gift for tax purposes.

How Do I Contribute to the LACSF?

It’s easy! All checks should be made payable to The Endowment Fund and should be sent to the Fraternity Headquarters. The memo section on the check must indicate that the gift is for the LACSF. The Endowment Fund provides the Association with periodic status reports. Checks should be mailed to: The Louisiana Chapters Scholarship Fund, c/o Phi Kappa Psi Fraternity, 510 Lockerbie St., Indianapolis, IN 46202-3694.

Your gift to the Louisiana Chapters Scholarship Fund is an investment in the future. It’s an opportunity for you to give back to the Fraternity that gave you so much as an undergraduate. Remember that tomorrow’s industry and community leaders are today’s college students. By supporting the LACSF, you are ensuring the future of the Fraternity, your community and your country.