KEMCAANA Scholarship Endowment Fund Guidelines

1. KEMCAANA has established a KEMC Scholarship Fund which would have 2 categories:

A) Need Based Scholarship

B) Talent Scholarship

2. The student must pass each exam to remain eligible for the scholarship.

3. KEMCAANA has appointed a standing committee to oversee the whole program. The members of the committee should be between five and seven consisting of interested individuals. The term of membership would be staggered so that there is a continuity to oversee the operation in an orderly fashion. Elected treasurer of KEMCAANA will be a permanent member.

4. A merit scholarship holder (a student who is receiving a government scholarship) would be eligible for the KEMCAANA scholarship.

5.Any physician can establish a permanent scholarship after donating $10,000.00 The scholarship would be started once the $10,000.00 are with KEMCAANA for one year. The $10,000.00 donation could be accumulated up to a period of five years. You may name the scholarship by donating $10,000.00, however, you can contribute any amount to the scholarship fund.

6. A contribution by Dr. Faiqa Qureshi in the amount of $20,000.00 to start the Aftab Qureshi memorial scholarship is a leading example for this. The money would be overseen by the treasurer and invested in funds and adhered to the guidelines so that there is a regular stream of income and hopefully there will be some appreciation over the years so that the scholarship could be maintained perpetually. The investment would be directed by the KEMCAANA investment committee. We request all members of KEMCAANA alumni to contribute to the scholarship fund as their favorite charity. Anybody can donate to this charity over their lifetime or friends and relative can donate after a person passes away in his or her memory. Of course, all donations to the scholarship fund are tax deductible.

7. We may accept donations from physicians from other schools who can then name a student in their college to receive the scholarship. Other medical schools that have smaller alumni do not have the manpower in the United States to have a program like this at this point.

8. The money is distributed for the scholarship from the income and appreciation; however, the principal will not be touched so that the funds can be available for a long period of time in order to continue the scholarship on a perpetual basis.

9. In years with below average return on investment, KEMCAANA can loan the money for scholarships on a short term basis to keep the scholarship going; however, it would be promptly paid once the scholarship fund has a couple of good years.

10. The committee recommends that the most suitable source of donation for this scholarship is to name the fund as a beneficiary for the pension plan after death in which case you not only avoid income tax but also the probate (inheritance taxes). We feel that it is not pleasant to talk about death; however, it is a fact of life. Your donations are going to a worthy cause and sadaqa-I-jaira.

11. During one's lifetime a donation of appreciated stocks and mutual funds is a tax-wise strategy.

In summary;

1 - Any amount of donation is welcome. You can start a named scholarship by donating $10,000.00.

2 - The money is deposited to KEMCAANA Scholarship account and overseen by KEMCAANA treasurer.

3 - Funds are invested under the direction of investment committee appointed by KEMCAANA Executive Council. Scholarship will be given from income without touching the principal.

4 - By donating appreciated stocks and mutual funds you can save not only income tax but also capital gains taxes (DOUBLE TAX BREAK) since all contributions to KEMCAANA are tax deductible.

5 - You may also name KEMCAANA Scholarship Endowment Fund as beneficiary of your retirement plan, which is very efficient estate planning tool. It is important note, one may loose up to 80% of retirement assets to combined estate tax and federal and state income taxes, without proper beneficiary designation.