Lilly Endowment Community Scholarship Program

LILLY ENDOWMENT COMMUNITY SCHOLARSHIP PROGRAM

Guidelines for the Year 2021 Scholarships

The primary purposes of the Lilly Endowment Community Scholarship Program are 1) to help raise the level of educational attainment in Indiana; 2) to increase awareness of the beneficial roles Indiana community foundations can play in their communities; and 3) to encourage and support the efforts of current and past Lilly Endowment Community Scholars to engage with each other and with Indiana business, governmental, educational, nonprofit and civic leaders to improve the quality of life in Indiana generally and in local communities throughout the state.

Since the Lilly Endowment Community Scholarship Program was first offered in 1998, Lilly Endowment has remained steadfast in its belief that education at all levels is indispensable to the personal, civic and economic well-being of Indiana’s residents and communities.

Accordingly, Lilly Endowment will provide funding to Independent Colleges of Indiana (ICI) to enable eligible community foundations in Indiana to participate with ICI in another round of the scholarship program. For 2021, each foundation will be eligible to nominate at least one recipient and two alternates for a full-tuition scholarship for an Indiana high school graduate for each county served by the foundation. Each scholarship must be used to pursue a baccalaureate degree at any accredited public or private nonprofit Indiana college or university. The Endowment hopes that this program will continue to encourage many of Indiana’s most talented students to attend one of Indiana’s higher education institutions and after graduation consider pursuing occupations in Indiana.

Lilly Endowment has sought to make this program as manageable and fair as possible. The Endowment expects that as the program enters into its twenty-fourth year, questions will continue to arise. The Endowment reserves the exclusive right to resolve such questions.

Details of the program follow: Key Elements

1. The program will provide scholarships for otherwise unreimbursed full tuition, required fees, and a special allocation of up to $900 per year for required books and required equipment for four years of undergraduate study on a full-time basis leading to a baccalaureate degree at any Indiana public or private nonprofit college or university accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools. *

2. Scholarship recipients are to be known as Lilly Endowment Community Scholars.

3. The program is open to all Indiana residents: • who graduate from an accredited Indiana high school by 2021 and receive their diploma no later than June 30, 2021 (a high school is considered accredited for purposes of the program if it is accredited by the State Board of Education or by a national or regional accreditation agency that is recognized by the State Board of Education); and • who intend to pursue a full-time baccalaureate course of study at an accredited public or private nonprofit college or university in Indiana.

4. Independent Colleges of Indiana (ICI) will receive and invest grant funds, approve nomination criteria and procedures, make final scholarship selections, make the appropriate scholarship payments to the selected colleges and universities, distribute administrative grants to community foundations and book and equipment allocations to scholars, and provide administrative services for the Lilly Endowment Community Scholarship Program.

* See provision on page 6 regarding effect of other scholarships. Qualifying Foundations

All Indiana community foundations that are public charities according to sections 501(c)(3) and 509(a) of the Internal Revenue Code and have participated in past rounds of the program are eligible to apply to participate with ICI in this program.

Number of Scholarships

• The number of scholarship nominees that may be submitted by a participating community foundation will be based on the population of each county served by the foundation as follows:

Number of Required Number of Population Scholarship Nominees Alternates 1 - 50,000 1 2 50,001 - 150,000 2 2 150,001 - 250,000 3 3 250,001 - 350,000 4 3 350,001 - 450,000 5 3 450,001 - 550,000 6 4 550,001 - 650,000 7 4 650,001 - 750,000 8 4 750,001 or more 9 4

• Although a community foundation may submit the number of scholarship nominees indicated by this table, ICI shall have no obligation to award a specific number of scholarships to students from any county or to award a particular total number of scholarships throughout the state of Indiana.

• The population figures for each county are based on: Population Estimates for Indiana Counties, 2010-2019 as of July 1, 2019. Source: STATS Indiana. http://www.stats.indiana.edu/population/PopTotals/2019_cntyest.asp

Community Foundation Application Procedures

• Each community foundation interested in participating in the program must complete and send to ICI a program participation packet that includes: • Program Participation Form; • Applicant Summary Form; • Scholarship Nomination Criteria and Procedures Summary Form, which clearly states the community foundation’s 2021 scholarship nomination criteria, scoring rubric and procedures; and • Community foundation’s proposed student scholarship application.

These items must be submitted to ICI at the address below no later than Friday, June 19, 2020. Failure to submit these documents to ICI by this deadline may compromise the community foundation’s eligibility to participate in the scholarship program for the 2021 cohort.

A Program Participation Form is included with these guidelines and also is available from ICI by visiting www.icindiana.org/our-programs/lecsp/lecsp-resources or at the following address:

Independent Colleges of Indiana Attn: Scholarship Director Lilly Endowment Community Scholarship Program 30 South Meridian Street, Suite 800 Indianapolis, IN 46204 (317) 236-6090

• Each community foundation’s scholarship nomination procedures shall require that whenever a community foundation’s potential scholarship nominee(s) includes a family member (including spouse, brothers and sisters by whole or half blood, ancestors, children, grandchildren and great-grandchildren) of any of the community foundation’s directors, officers, staff and nominating committee members, each such director, officer, staff member and nominating committee member shall recuse themself from the entire scholarship nomination process for that pool, including withdrawing from (i.e., leaving the room and not being present during) all meetings, discussions, debates and votes regarding nominations. The community foundation shall keep detailed minutes or other corporate records such as the Family Relationship Disclosure and Recusal Form documenting all recusals, including those for scholarship applicants who were not nominated. The community foundation shall certify compliance with such recusal requirements on the Nomination Report, due with the Nomination Forms, to ICI no later than Friday, November 6, 2020. The community foundation shall attach the Family Relationship Disclosure and Recusal Form to any Nomination Form as applicable. Electronic versions of these and other forms are available by clicking www.icindiana.org/our-programs/lecsp/lecsp-resources.. Failure to submit the required nomination documents to ICI by this deadline may compromise the community foundation’s eligibility to participate in the scholarship program for the 2021 cohort.

• A county fund affiliated with an eligible community foundation located in another county may participate in this program. The community foundation with which the county fund is affiliated shall submit the Program Participation Form on behalf of the appropriate county fund.

• Community foundations that serve more than one county may apply for each county served.

• Community foundations serving a county served by more than one community foundation must participate collaboratively in this scholarship program for that county. Only one Program Participation Form will be accepted for a county. The form may be submitted jointly or by one of the foundations, but it must have attached a plan describing how the foundations will take part in the scholarship program for the county.

• ICI will review the Program Participation Form, scholarship nomination criteria and procedures, including the Applicant Summary Form, and proposed student scholarship application to ensure they are consistent with applicable law and the overall goals of the scholarship program. Upon their approval, ICI will award each foundation a grant to support scholarship program administrative costs.

• For 2021, the program administration grant amounts to be awarded to participating foundations will be the same as 2020 – $6,500 per scholarship nominee. These grant amounts are as follows:

Scholarship Nominees Grant Amount

1 $ 6,500 2 $13,000 3 $19,500 4 $26,000 5 $32,500 6 $39,000 7 $45,500 8 $52,000 9 $58,500

Community foundations are encouraged to use any funds remaining after administrative costs are covered to promote the scholarship program and the value of higher education in their communities. Examples of such promotions may include, but are not limited to, gatherings, advertisements, publications and/or speaking engagements. Foundations also are encouraged to share successful promotional ideas with other foundations.

• All questions regarding the Lilly Endowment Community Scholarship Program should be addressed to the program’s scholarship director at ICI.

Scholarship Recipient Nomination and Selection

• An overriding goal of the Lilly Endowment Community Scholarship Program is to meet the scholarship needs of students in the state of Indiana as identified and articulated within local communities. In furtherance of this goal, each participating community foundation will develop scholarship nomination criteria and procedures, including a student scholarship application. In addition, each community foundation will nominate at least one scholarship recipient from each county it serves.

• In a manner consistent with the purposes of the program, ICI will have the authority to award scholarships to any nominee identified through this process, if the nominee, the nomination criteria and procedures, and the student scholarship application are consistent with applicable law and the overall goals of the Lilly Endowment Community Scholarship Program, including but not limited to the recusal requirements set forth in the Application Procedures section of these guidelines.

• Each community foundation shall submit at least the number of alternates required on page two of these Guidelines; in no event may a community foundation submit more than four alternates. Please see page two of these Guidelines for the number of alternates required to be submitted. Such alternates may be considered by ICI in the event a scholarship recipient is unable or chooses not to enroll in an Indiana college or a nominee is not approved by ICI.

• Community foundations should rank the alternates by order of preference. If ICI determines not to approve a nominee for a scholarship, it may then select from the alternates.

• The opportunity for an alternate to be considered for the scholarship will end as soon as the scholarship recipient(s) from the alternate’s county begin(s) baccalaureate study.

• If ICI determines not to approve every nominee for a scholarship, it shall administer the program to achieve wide geographic diversity, with the intent to spread the scholarship dollars among qualified nominees throughout the state.

• In all cases, the scholarship recipient must have graduated by the end of June 2021 from an accredited Indiana high school. A high school is considered accredited for purposes of the program if it is accredited by the State Board of Education or by a national or regional accreditation agency that is recognized by the State Board of Education.

• The scholarship recipient must intend to pursue a baccalaureate degree on a full-time basis at any Indiana public or private nonprofit college or university (to be referred to as “college”) accredited by the Higher Learning Commission of the North Central Association of Colleges and Schools.

• The scholarship recipient must be completely free to choose which Indiana college he/she would like to attend to pursue a baccalaureate degree.

• The student scholarship application and nomination criteria and procedures shall be developed by each community foundation and submitted to ICI. The criteria may vary from foundation to foundation.

• The procedures may, but are not required to, include a nomination committee, an interview and/or a writing sample.

• The nomination criteria may, but are not required to, include academic performance, demonstrated leadership skills, community service, character and/or financial need.

• A student’s eligibility for other scholarship assistance (such as participation in Indiana’s Twenty-First Century Scholars Program) shall not be a basis for excluding the student from eligibility, nomination or selection for a scholarship under the Lilly Endowment Community Scholarship Program.

• When recipients receive additional tuition-specific scholarships, those additional scholarships will be reviewed. The amount awarded under the Lilly Endowment Community Scholarship Program may be adjusted to avoid having a scholar’s total award package exceed their Cost of Attendance (according to the Higher Education Act, Sec. 472). The following resource may provide helpful information in determining Cost of Attendance for these purposes: https://ifap.ed.gov/sites/default/files/attachments/2019- 10/1920FSAHbkVol3Ch2.pdf

• Community foundations are encouraged from time to time to reflect on the goals of this program and review their scholarship nomination criteria and procedures in light of those goals and the need and demand for scholarship support in their communities.

• While each foundation must determine its own plan for promotion, nomination criteria, and nomination procedures, Lilly Endowment requires that the following statements be agreed to by an applicant and/or recipient and included on the student scholarship application, as well as in a scholarship acceptance letter to be signed by each selected scholar:

• “If I receive this scholarship, it is my intent to pursue four years of undergraduate study on a full-time basis leading to a baccalaureate degree at an Indiana college.”

• “I understand that the total maximum amount of my scholarship is calculated on the basis of my chosen college’s tuition and required fees beginning with the 2021-22 school year.”

• “To assist with the processing of my scholarship payments each semester or quarter and to avoid late fees as required, I will forward to the ______community foundation immediately upon receipt all invoices for tuition and any eligible fees that may be covered by my scholarship, as required.”

• “I understand that the special allocation provided to me is to be used to pay required books and required equipment for my courses of instruction. I will personally keep receipts and other documentation to verify that the special allocation was used only for this intended purpose and will provide those receipts and documents to Independent

Colleges of Indiana upon request. I will return to Independent Colleges of Indiana any amount of the special allocation remaining at the end of each school year.”

• “I agree to notify Independent Colleges of Indiana of any scholarship awards I may receive for tuition or required fees from a source other than the Lilly Endowment Community Scholarship.”

• “I will keep the ______community foundation apprised annually by June 1st of my enrollment and academic status during college by completing and returning any surveys or forms as may be provided.”

• “Upon graduation, I will keep the ______community foundation apprised annually by June 1st of my education and/or employment status for at least ten years after graduation by completing and returning an alumni survey or other forms as may be provided by the community foundation.”

• Each foundation must notify ICI no later than November 6, 2020, of its scholarship nominee(s) and alternates by completing and sending to ICI by U.S. Postal Service, UPS or Federal Express three paper copies of the application packet, which includes the scholarship application, cover sheet for the application, summary score sheet for the nomination process and the Lilly Endowment Community Scholarship Program Nomination and Alternate forms to:

Independent Colleges of Indiana Attn: Scholarship Director Lilly Endowment Community Scholarship Program 30 South Meridian Street, Suite 800 Indianapolis, IN 46204

• The community foundation shall submit the Nomination Report due with the Nomination Forms and the Applicant Summary Form to ICI no later than November 6, 2020. The community foundation shall attach the Family Relationship Disclosure and Recusal Form to any Nomination Form as applicable.

• ICI will notify by email, followed by hard-copy confirmation, all community foundations of whether their nominees are approved no later than December 7, 2020. Community foundations may immediately thereafter announce the names of the approved scholarship recipients for each county served.

• Each scholarship recipient must sign and return to ICI a scholarship acceptance letter no later than February 26, 2021.

Scholarship Administration

• Each community foundation is expected to follow the appropriate United States Treasury Regulations and Internal Revenue Service (IRS) rulings regarding scholarships and to ensure that its nomination procedures and criteria are established and implemented in accordance with the law.

• ICI will be responsible for the distribution and collection of scholarship acceptance letters from all scholarship recipients.

• ICI will make all scholarship awards and will administer all financial aspects of the scholarships.

• ICI will pay the covered tuition and required fees each year to the colleges chosen by the scholarship recipients by the payment dates required by the colleges.

• ICI will pay the special allocation for required books and required equipment to the scholarship recipients before the beginning of each school year during the scholarship period. The recipients must agree to refund to ICI any of the allocation each year not used for required books and required equipment.

• If the program is renewed for a new cohort of scholarship recipients, the next allocation of scholarship funds may be adjusted to reflect excess funds ICI has accumulated due to changes in a scholarship recipient’s educational situation prior to graduation.

• The program each year is subject to approval of Lilly Endowment’s board of directors based on current priorities and available resources. Accordingly, although the Endowment hopes to continue it in the future, its continuation should not be expected or relied upon. The Endowment has made no commitment to fund scholarships beyond those for the selected recipients in 2021.

• Each foundation is expected to assist ICI with the ongoing administrative aspects of the program by (among other things):

• providing to ICI for approval the Program Participation Form, along with the proposed scholarship nomination criteria and procedures, including the Applicant Summary Form; • providing to ICI for approval a proposed student scholarship application; • providing to ICI all press releases and social media posts before dissemination; • maintaining regular contact with each scholarship recipient nominated by the community foundation while the recipient is in college;

• collecting and forwarding as required to ICI immediately upon receipt all invoices for tuition and any eligible fees that may be covered by each scholarship in order to avoid late fees; • reporting on the academic progress (including academic standing, credit hours completed, academic major) of each scholarship recipient to ICI each year; • assisting ICI with an annual follow-up with each scholarship recipient for at least ten years after graduation; and • reporting on the progress (including job title, firm/organization, employment location, postgraduate work) of each scholarship recipient to ICI each year for at least ten years after graduation.

The Role of ICI

• ICI is the grantee responsible for overall administration and proper use of the grant funds.

• ICI will receive and answer questions from the community foundations.

• Upon the approval of each community foundation’s Program Participation Form, proposed student scholarship application and nomination criteria and procedures, ICI will award to each foundation a grant to support scholarship program administrative costs. Any funds remaining after administrative costs are covered may be used to promote the scholarship program and the value of higher education in its community. For 2021, the grant amounts to be awarded to participating foundations will be based on the number of scholarship nominees from each foundation, as shown in the table included earlier in these guidelines.

• ICI will make final scholarship selections by December 7, 2020, and notify by email, followed by a hard copy confirmation, all community foundations of whether their nominees are approved. Community foundations may immediately thereafter announce the names of the approved scholarship recipients for each county served.

• ICI will distribute scholarship acceptance letters to all scholarship recipients no later than December 18, 2020.

• To provide guidance to ICI on the selection of Lilly Endowment Community Scholars, ICI has created a special committee composed of 13 members as follows:

• Three individuals representing independent, private higher education to be appointed by the chair of ICI, and one ICI member college president also to be appointed by the chair of ICI to serve as chair of the special committee;

• Three individuals representing public higher education to be appointed by the presidents of the three public universities (one each) with the greatest total numbers of Lilly Endowment Community Scholars enrolled in the current year;

• Four individuals representing Indiana’s community foundations to be appointed by the Indiana Philanthropy Alliance’s community foundation committee; and

• Two individuals who are past recipients of the Lilly Endowment Community Scholarship and who have received their baccalaureate degrees from any accredited public or private nonprofit Indiana college or university to be appointed by the ICI board of directors and/or the chair of its board.

• By May 10, 2021, ICI will determine the amounts for tuition and required fees and payment dates for the 2021-22 school year, for each college chosen by the scholarship recipients.

• ICI will notify Lilly Endowment by May 10, 2021, of the total amount of scholarship funds needed for all scholarship recipients to pursue baccalaureate degrees at their chosen colleges.

• ICI will make the appropriate payments directly to the selected Indiana colleges and universities at the required times each year for the scholarships and required fees. It also will pay to each scholarship recipient, prior to the start of each school year, the special allocation of $900 for required books and equipment, but only if the recipient has complied with all scholarship program reporting and other requirements from any previous school year under the program.

• During the scholarship period, ICI will, from time to time at its discretion, make supplemental payments required by changes in the educational situation of the scholarship recipient(s) in the 2021 or prior cohorts -- for example, the transfer of a scholarship recipient from a lower-tuition college to a higher-tuition college -- or by larger-than-anticipated increases in tuition and required fees experienced by such recipient(s). Such payments will be made directly to the college(s) or scholarship recipient(s), as appropriate.

• ICI will keep Lilly Endowment apprised of any additional funds it will need to make such supplemental payments.

• If any scholarship recipient requires additional time to complete a baccalaureate degree beyond the 2024-25 school year, any difference between the scholarship funds originally provided and those needed for the scholarship recipient to complete a baccalaureate degree may not be covered by the Endowment or ICI.

• ICI will report annually to Lilly Endowment on the progress of the scholarship recipients and the general administrative and financial aspects of the program.

Timeline Summary

June 15, 2020 Community foundation program participation packets, including Program Participation Forms, Applicant Summary Forms, scholarship nomination criteria and procedures, and student scholarship applications due to ICI. Upon receipt, ICI will review the applications and scholarship nomination criteria and procedures to ensure they are consistent with applicable law and the overall goals of the scholarship program.

June 15-June 27, 2020 ICI will notify each community foundation during this time if their packet has been approved. Following notification of approval, community foundations may announce the availability of the scholarship. Upon their approval, ICI will award to each foundation a grant to support scholarship program administrative costs. Any funds remaining after administrative costs are covered may be used to promote the scholarship program and the value of higher education in its community. For 2021, the grant amounts to be awarded to participating foundations will be $6,500 per Lilly Endowment Community Scholarship nominee submitted by the participating foundation, as shown in the table included earlier in these guidelines.

November 6, 2020 Each foundation must notify ICI of its scholarship nominee(s) and alternates by completing and sending three copies of the application packet (which includes the scholarship application, cover sheet for the application, and summary score sheet for the application process) and the Lilly Endowment Community Scholarship Program Nomination and Alternate forms, including the completed Applicant Summary Form, the Nomination Report and the Family Relationship Disclosure and Recusal Form (as applicable), to:

Independent Colleges of Indiana Attn: Scholarship Director Lilly Endowment Community Scholarship Program 30 South Meridian Street, Suite 800 Indianapolis, IN 46204

December 7, 2020 ICI will notify all community foundations by mail of whether their nominees are approved. Community foundations may immediately thereafter announce the names of the approved scholarship recipients for each county served.

December 18, 2020 ICI will distribute scholarship acceptance letters to all scholarship recipients.

February 26, 2021 Signed scholarship acceptance letters to be returned to ICI by scholarship recipients.

April 30, 2021 Each foundation must notify ICI of each scholarship recipient’s college choice.

May 10, 2021 ICI will notify the Endowment of the total amount of scholarship funds needed for all scholarship recipients to pursue baccalaureate degrees on a full-time basis at their chosen colleges.

July 16, 2021 Scheduled Lilly Endowment payment of the total amount of scholarship funds to ICI by July 16, 2021, for four full years, beginning in 2021-22, including tuition, required fees, and a special allocation for required books and required equipment.

Ongoing through ten years following graduation Each foundation will, among other activities set forth in these guidelines:

• maintain contact with each scholarship recipient nominated by the community foundation while the recipient is in college;

• report on the progress of each scholarship recipient to ICI each year; and

• assist ICI with the annual follow-up with each scholarship recipient for at least ten years after graduation.

About Lilly Endowment Inc.

Lilly Endowment Inc. is an Indianapolis-based, private philanthropic foundation, created in 1937 by J.K. Lilly Sr. and his sons, Eli and J.K. Jr. -- through gifts of stock in their pharmaceutical business, Eli Lilly and Company.

These gifts remain the financial bedrock of the Endowment. However, Lilly Endowment is a separate entity from the company, with a distinct governing board, staff and location.

In keeping with the wishes of its three founders, Lilly Endowment exists to support the causes of education, religion and community development. Special emphasis is afforded projects that benefit youth and the leadership education and financial self-sufficiency of the nonprofit, charitable sector.

One of the foremost philanthropic priorities of the Endowment’s founders was to help the people of their city and state build a better life. Although the Endowment also supports efforts of national significance and an occasional international project, it remains primarily committed to its hometown, Indianapolis, and home state, Indiana.

About Independent Colleges of Indiana

Independent Colleges of Indiana is the collective voice for excellence and choice in higher education for all students. As a non-profit association, ICI represents Indiana’s 30 private, nonprofit, regionally-accredited colleges and universities.

What We Do:

• Public Policy Advocacy, especially in the cause of state and federally-funded financial aid; • Public Information and Research about the performance and contributions of the independent college sector in Indiana; • Corporate and Foundation Fundraising, with all funds raised by ICI disbursed to member colleges; • Development of Collaborative Services, such as group purchasing and shared services among our campuses; and • Administration of the Lilly Endowment Community Scholarship Program, along with other scholarships and grants.