Managing Our Members' Trust

Since the founding of this organization in 1947, the standards of hard work and perseverance emphasized in Horatio Alger’s 19th century novels exemplify and advance the principles of our American and International Members. Those values have inspired generations to achieve the American dream despite adversities and hardships. Through their keen interest and support, Members generously invest their time, talent, treasure, and trust in our goals to help America’s most deserving youth.

Association staff members, in partnership and under the direction of the Executive Committee and Board of Directors, coordinate activities and services for Members, and implement Horatio Alger educational programs. We take that charge very seriously. We are fully aware that our Members have high expectations for themselves and for the programs in which they invest their good names and philanthropic interests.

As the “best of the best” in their professions, and as leaders in demand for their expertise, it is especially admirable that our Members choose to do more than simply write a check in support of Horatio Alger scholarships and educational programs. Their contributions extend to giving their time to our Scholars, their talents to the policy directions of the Association, and their trust in the future by investing in the lives of at-risk youth. Since 1984, more than $63 million in scholarships have been generously awarded to more than 15,000 young people. That is a significant amount to entrust to the work of this organization, and managing that deep commitment on the part of our Members is our most important responsibility.

Trust is earned over a period of time. It is built upon positive experiences and confidence that the proper vision has been set, and the right course has been charted to achieve our goals. The Board of Directors is committed to ensuring that the ideals and aspirations of the Association are worthy of engaging the busy lives and varied interests of our Members in order to earn their lifetime support and trust.

We manage our Members’ trust by making certain that our programs and services are effective and efficient. For example, 90 percent of our resources are devoted to direct services and programs. A non-profit “watchdog” group called Charity Navigator has given the Horatio Alger Association its coveted “Four Star Award” for sound fiscal management. Measures of our effectiveness are indicated in the graduation rate of our Scholars, which far exceeds national averages. Our research shows that 70% of our Scholars complete their degrees contrasted to 26% with similar incomes nationally. Although studies indicate that only 10% of charitable giving is directed to meeting the needs of the poor in America, our Members have intentionally elected to support young people who have faced adversity, and come from families with incomes of $50,000 or less.

Despite this profile, Horatio Alger Scholars have solid academic records, perform community service, and demonstrate potential for successful lives. If students do not complete their college degrees due to extraordinary economic, health, or family hardships, our Members have created a “reinstatement fund,” which gives Scholars a “second chance” to return to school when they are ready. With an annual budget approaching $20 million, the Association administers scholarships exceeding $12 million in 2008, and provides educational programs and services for Members and Scholars. This requires the active engagement of a wide range of talented people:

• Members and Life Partners

  First and foremost, our Members and Life Partners provide countless hours of volunteer time through the committees of the Board of Directors, including the Executive, Scholarship, Awards, Investment, and Nominating Committees. These women and men are committed to leading the Association wisely and effectively. The Board of Directors also charts the future vision of the Association through long-range planning. They have established an endowment fund that will ensure the perpetuity of the Association’s mission with a $100 million goal, which has been 90 percent secured. A significant number of our Members is actively engaged with our National Scholars through participation in the annual National Scholars Conference in Washington, D.C. Members also share their expertise and insights at Alumni Summits and with State Scholars at Association conferences.

• Association Headquarters Staff

  The Association’s headquarters team in Alexandria, Virginia, manages services for Members and educational programs for Scholars. The staff works one-on-one with hundreds of scholarship recipients and provides guidance and resources to maximize their college financial aid. Scholars can also call upon the services of a 24-hour crisis hotline for immediate assistance and longer-term referrals. Staff members administer national scholarship programs at the graduate and undergraduate levels, and for returning veterans from Iraq and Afghanistan. State Scholarship Programs are administered in all 50 states and the District of Columbia. The staff plans programs including the National Scholars Conference and alumni summits, and writes publications used by Members, Scholars, and 16,000 school districts across the nation. The Association’s major research publication, State of Our Nation’s Youth, is a respected source for better understanding the opinions of youth on a range of educational, political, career, and societal issues.

• Volunteers

  Complementing the staff is a large group of highly committed volunteers who bring expertise from their leadership roles in secondary and higher education, as well as alumni volunteers who have completed their education and are engaged in careers. These volunteers serve as field directors in every state, assist with scholarship selection, work at the annual National Scholars Conference and Awards week, and serve on advisory committees to ensure that the Association’s programs are cutting edge and meeting the needs of today’s students. More than 140 universities participate in the Association’s Collegiate Partners and Campus Crest programs to provide additional scholarship assistance or free housing to National and State Scholars.

• Professional Consultants

  The Association engages established consulting firms including American College Testing, KPMG, Towers Perrin, Qorvis Communications, and Peter Hart & Associates to offer their national expertise and to advise on future trends. With their assistance the Association is assured of using the most up-to-date business practices in executing its programs and policies and envisioning effective long-range planning.

The Members, Life Partners, staff members, volunteers, and consultants share a commitment to the mission and vision of the Horatio Alger Association. Managing the trust of this highly select group of leaders—men and women who have turned their adversities into successful lives and now share a commitment to future generations—is a responsibility and opportunity to enrich the legacy of our founders. We welcome being held to high standards of accountability. We are committed to managing our Members’ trust in order to reach new levels of achievement each year. Thank you for your deep and abiding commitment to the Horatio Alger Association.