Page 3 - 2024 August Report

PERPETUAL STEWARDSHIP
Robert A. Krause
Ted Johnson was mindful that the source of his financial success was through his career with United Parcel Service. In recognition of this, he stipulated that a set percentage of our endowment would be allocated annually to fund educational scholarships for dependents of UPS employees in Florida. The original funding formula, conceived in 1991, has become outdated. As a result of significant growth in the Foundation’s corpus, the UPS scholarship allocation has grown to over $1.4 million a year. That amount currently exceeds the demand in this program for scholarships.
Given the high opportunity costs associated with the outdated funding formula, the JSF Board directed staff to approach UPS. Over the course of the last two years, we had multiple meetings with UPS and the program’s administrator, Scholarship America. Those discussions centered on two potential remedies—to better market the program to UPS employees to increase applications and potentially modify the funding model.
The marketing efforts resulted in very modest increases in qualified applications. The funding modification discussions resulted in a recognition of the issue, but each UPS representative we met with was clear that they did not have the authority to sign off on a modification.
In the spring of 2024, we tried a different strategy. After multiple meetings with Nat Nason, our legal counsel, we drafted a formal proposal and attached supporting documents to provide the entire history of the scholarship program. We sent it to Norman Brothers, UPS Executive Vice President & Chief Legal and Compliance Officer. Appropriately enough, we sent it via UPS Overnight Delivery.
On August 2, 2024, we received UPS’s response. On behalf of UPS, Brothers agreed to modify the funding language as proposed. JSF’s annual funding for the UPS scholarship program would allow funding for all qualified scholarship applications each year with the total awards not exceeding the original funding calculation.
Following the receipt of the signed consent document, we sent a letter of thanks to UPS, promising to update them after our September board meeting. Approval from the Board will allow JSF to provide an additional $515,000 in grants to other grantees in 2024, while continuing to provide support to UPS dependents from Florida who demonstrate financial need— honoring our founder’s wishes while better supporting the needs of today.
This outcome exemplifies JSF at its best: an active Board with an eye for grant efficiency. A staff dedicated to the efficient execution of the directives of the Board. Thoughtful adaptation and persistent commitment are a testament to the power of perpetual stewardship.
Education / A Powerful force for change
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