Jack Fund Guidelines

South Florida Mini-Gators Chapter

of the Little People of America, Inc. (LPA)

Whereas in December 1998 the South Florida Mini-Gators Chapter of the Little People of America, Inc. (hereafter referred to as "the Chapter") became the beneficiary of $40,000 from the estate of John J. Schmidt, Jr.;

Whereas the $40,000 is payable to the Chapter in cash and from monthly payments on a residential mortgage assigned to the chapter on the property owned by Henry Mohr at 616 North 5^th Ave, Lake Worth, FL 33460;

Whereas in December 1998 the Chapter received a check in the amount of $16,376.50 and expects the $23,623.42 balance to be paid in 53 installments of $444.09 per month with a final payment being made in May of 2003;

Whereas under the terms of John J. Schmidt, Jr.'s estate the funds are to be used by the Chapter for charitable or educational purposes in accordance with the tax-exempt purposes of LPA;

Whereas the Chapter established a Medical Transportation Fund for the benefit of chapter members in the 1970s;

Whereas the Chapter has agreed to merge the Medical Transportation Fund with the Jack Fund;

FUND MANAGEMENT

1. The fund will be managed by the Jack Fund Committee, which will be comprised of the Chapter President, Chapter Treasurer, and three at-large chapter members (whose two-year terms will expire the year after the election for Chapter officers).
   
2. The at-large chapter members should be selected with a view to representing diversity in the chapter membership -- parents, Little People, average-sized people, siblings, men, and women -- and to ensure competent management of the funds.                                               
3. The restricted funds should be invested as follows:

05 % in a liquid interest bearing account available for distribution [e.g. $1600 i.e. 5% of $32,000]

10 % in short term (up to 1-year) CD's [e.g. $3,200 i.e. 10% of $32,000]

10 % in long term (more than 1-year) CD's [e.g. $3,200 i.e. 10% of $32,000]

15 % in long term (more than 2-years) CD's [$4,800 i.e. 15% of $32,000]

20 % in municipal bonds [$6,400 i.e. 20% of $32,000]

20 % in stock market capital preservation fund [$6,400 i.e. 20% of $32,000]

15 % in stock market income fund [$4,800 i.e. 15% of $32,000]

05 % in stock market growth and income fund [$1600 i.e. 5% of $32,000]

4. At least sixty percent of the funds should be protected by the FDIC guarantee.
   
5. A distribution for the benefit of an individual chapter member may only be made from the liquid interest bearing account.
   
6. A distribution for the benefit of multiple chapter members -- such as for sponsoring a short stature clinic -- may be made from a short-term CD if (a) the CD term has matured, (b) three-quarters of the chapter members present at a meeting approve of the distribution, and (c) notice of the planned distribution is published in at least two chapter newsletters prior to the meeting.

USE OF FUNDS

1. The funds may only be distributed for charitable or educational.
   
2. Charitable purposes is defined by federal tax law to include: (1) relief of the poor and distressed or of the underprivileged; (2) advancement of education or science; (3) lessening of the burdens of Government; (4) promotion of social welfare, (5) eliminating prejudice and discrimination; and (6) defending human and civil rights secured by law.
   
3. The charitable purposes for which the funds may be distributed include, but are not limited to, the following:
   

• Underwriting a portion of the cost for a family or individual to attend a district or national LPA meeting for the first time

• Paying the annual membership dues for a family or individual unable to meet this expense

• Sponsoring a seminar designed to eliminate prejudice and discrimination

• Sponsoring a medical clinic

• Paying reasonable transportation expenses to an out-of state medical appointment related to the diagnoses or treatment of an individual with dwarfism

• Paying meal and accommodation expenses for an out-of state medical appointment

• Purchasing (in whole or in part) adaptive equipment, such as: pedal extensions, custom seat cushions, computer adaptations

• Purchasing (in whole or in part) personal aids not covered by medical insurance, such as: hearing aids

• Purchasing (in whole or in part) personal items, such as: custom shoes

4. Educational purposes is defined by federal tax law to include: (1) the instruction or training of the individual for the purpose of improving or developing his or her capabilities; and (2) the instruction of the public on subjects useful to the individual and beneficial to the community.
   
5. The educational purposes for which the funds may be distributed include but are not limited to the following:
   

• Scholarships for a summer camp with an educational goal

• College tuition aid scholarships

• College room and board scholarships

• College book and supply scholarships

• Paying for music lessons

APPLICATIONS