Youngest Billionaire

The Million Dollar Question: How Do I Certify Outside Scholarships? Vanessa Fuchs, Associate Director of Membership Services Binh Nguyen, Assistant Director of Membership Services

NCAA Regional Rules Compliance Seminar

Agenda • Outside Awards and Scholarships. • Period of Award. • Adopted Legislation. • Questions.

Trivia Timeout!

What is the richest city in the United States?

Trivia Timeout! San Jose, California (Median Household Income: $71,765, Median Home Price: $625,000).

Outside Awards And Scholarships

NCAA Division I Bylaw 15.2.6 – Financial Aid from Outside Sources • Certifying Aid With No Relationship to Athletics Ability:  A student-athlete may receive financial aid awarded solely on the basis of having no relationship to athletics ability.  The institution cannot certify having no relationship if the scholarship application permits the applicant to include athletics participation and achievements (unless the exception is met).

[Bylaws 15.2.6.2; 15.2.6.2.1; 15.2.6.2.1.1]

Bylaw 15.2.6 – Financial Aid from Outside Sources • Certifying Athletics Participation is Not a Major Criterion: 

When the award is based on the recipient's past performance and overall record, as measured by the established criteria of which athletics participation is not the major criterion;

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Disbursement may be through the awarding agency for the recipient's educational expenses, provided the aid is awarded prior to the recipient's initial enrollment, and the awarding agency provides written notification of the award to the institution. Subsequent to enrollment, disbursement of the aid shall be through the institution for the recipient's educational expenses while attending the institution; and

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The recipient's choice of institutions shall not be restricted by the donor.

[Bylaw 15.2.6.3]

Bylaw 15.2.6 – Financial Aid from Outside Sources • Certifying Athletics Participation as a Major Criterion:  An award based on the recipient's past performance and overall record as measured by established criteria of which athletics participation may be a major criterion;  Disbursement may be through the awarding agency for the recipient's educational expenses, provided the aid is awarded prior to the recipient's initial enrollment, and the awarding agency provides written notification of the award to the institution. Subsequent to enrollment, disbursement of the aid shall be through the institution for the recipient's educational expenses while attending the institution;  The recipient's choice of institutions shall not be restricted by the donor;

[Bylaw 15.2.6.4]

Bylaw 15.2.6 – Financial Aid from Outside Sources • Certifying Athletics Participation as a Major Criterion (cont.):  The awarding individual or organization and the donor of the aid shall not be representatives of the athletics interests or an athletics booster group of a member institution;  The value of the award alone or in combination with other athletically related financial aid shall not exceed the value of a full grant-in-aid or the value of the award in combination with nonathletically related financial aid shall not exceed the value of the student-athlete's cost of attendance;  The award may be provided to the recipient on only one occasion;  If the recipient is recruited, the recipient is considered a counter, and the amount is applied to the maximum awards limitations for the sport in question; and  The award is not received from an outside sports team or organization that conducts a competitive sports program by a member of that team.

[Bylaw 15.2.6.4]

Financial Aid from Outside Sources: Case Study No. 1 Award/ Scholarship Above and Beyond Leadership Scholarship

Recipients Five high school seniors annually (one music, one dance, one theater/drama, one athletics and one literature)

Criterion

Application

Recipients must High school demonstrate an academic record; Honors, excellent high school academic achievements, and record, leadership awards related to leadership activity; in one of five specific activities Total community and go above and service hours and beyond for their organizations served; Three community. references

Financial Aid from Outside Sources: Case Study No. 2 Award/ Scholarship Brains, Brawn and Brussels Sprouts Scholarship

Recipients One male and one female high school senior student-athlete annually

Criterion

Application

Recipient must demonstrate excellence in academic and athletic achievement throughout their high school career.

High school academic record; Honors, achievements, and awards related to academics and athletics; Written essay related to maintaining a healthy lifestyle

Trivia Timeout!

According to Forbes, who is the youngest billionaire in the United States?

Trivia Timeout! Sergey Brin (Age 33, $14.1 Billion)

Financial Aid from Outside Sources: Best Practices

Financial Aid from Outside Sources: Best Practices • Suggested processes and procedures:  The compliance, bursar’s and financial aid offices are typically involved.  Should have written policies and procedures outlining the process and expectations (Supplement No. 1). • Identify student-athletes who have received an outside award (Supplement Nos. 2-a, 2-b and 2-c). • Identify specific roles of the financial aid and athletics offices. • Identify how information will be communicated to donors, parents and student-athletes. • Identify process for accepting/declining outside awards.

Financial Aid from Outside Sources: Best Practices • Suggested processes and procedures (cont.):  Send forms directly to an outside agency for completion rather than through the student-athlete and specify a deadline for response.  For complex and/or new awards, call the donors to discuss details of the award (rather than solely relying on the processing form).  Notify the student-athlete and their family, the athletics department and the donor when an award must be declined and provide a clear explanation. (Supplement No. 3)

Financial Aid from Outside Sources: Best Practices • Helpful questions to ask the donor (Supplement Nos. 5 and 6):  What are the criteria for selecting the recipients for the scholarship?  Was the scholarship based on the recipient’s past performance and overall record using criteria which included athletics participation as a major criterion?  Was the scholarship based on the recipient’s past performance and overall record using criteria in which athletics participation is NOT a major criterion?  Was the scholarship made on the basis of the recipients past performance and overall record in which there is no relationship to athletics ability?  Is the scholarship an established and continuing scholarship program?

Financial Aid from Outside Sources: Best Practices • Helpful questions to ask the donor (Cont.):  Is the scholarship for a single academic year or can it be renewed?  Are there enrollment restrictions and/or the designation of a specific educational institution or conference?  As a donor of this scholarship, are you or your organization representative of any [insert institution] athletic interest or athletic booster group?  Is the award offered by a sports team or organization that conducts a competitive sports program?  Have the funds been disbursed and to whom were the funds disbursed?

Financial Aid from Outside Sources: Best Practices • Communication and notification:  Notify prospective student-athletes, student-athletes, parents and the awarding agencies that outside awards must be disbursed through the financial aid office (e.g., mail, e-mail, phone call). (Supplements Nos. 2-a, 2-b and 4)  Notifications should be received by prospective studentathletes, student-athletes and parents as early as possible, preferably prior to the start of the academic year (e.g., during the recruitment/signing process, summer mailings).  Provide periodic reminders to awarding agencies regarding NCAA requirements.

Financial Aid from Outside Sources: Best Practices • Communication and notification: Communicate and share ideas with other institutions. Notify the NCAA staff when new scholarships/ grants/ awards are being established (e.g., federal or state awards) that could have a significant impact on the calculation of student-athlete aid.

Trivia Timeout!

If you were to stack one million $1 bills, how much would the pile weigh?

Trivia Timeout!

One Ton.

Period of Award

Bylaw 15.3.3.1 – Period of Institutional Financial Aid Award  If a student's athletics ability is considered in any degree in awarding financial aid, such aid shall neither be awarded for a period in excess of one academic year nor for a period less than one academic year. Exceptions: • Midyear Enrollment • Final Semester/Quarter • One-Time Exception

Bylaw 15.3.3.2 – Regular Academic Year vs. Summer Term  An institution may award financial aid to a student-athlete for an academic year or, pursuant to the exceptions set forth in Bylaw 15.3.3.1.1.  Such financial aid shall be awarded (as set forth in the written statement per Bylaw 15.3.2.3) in equal amounts for each term of the academic year.

Period of Award: Interpretations

November 12, 2006, official interpretation, Item No. 10: 

In situations where a student-athlete will be enrolled in less than a full-time program of studies and, thus, eligible for competition pursuant to the final semester/quarter exception during the second semester or third quarter of an academic year, the institution is not required to award the studentathlete's athletically related financial aid in equal amounts for each term of the academic year.

Period of Award: Case Study  Mark Shepherd, a men’s soccer studentathlete, graduated early after the fall term 2006. He was awarded a .80 equivalency for the entire academic year.  Is the institution permitted to award the remainder of Shepherd’s athletics aid to another member of the men’s soccer team for the spring term 2007?

Period of Award: Case Study  Yes, if an exception is met.  One-Time Exception: The remainder of Shepherd’s athletics aid may be awarded to a team member who has not received institutional athletics aid prior to the spring term 2007.

Period of Award: Case Study  Is the institution permitted to award the remainder of Shepherd’s athletics aid to other soccer team members who are counters?  Yes, if the institution can demonstrate that the increases in athletics aid are not related to athletics.

Trivia Timeout!

According to Forbes, five of the top ten richest Americans are from which company?

Trivia Timeout!

Adopted Legislation

Adopted Legislation  NCAA Proposal No. 2005-171.  Proposal No. 2006-59.  Proposal No. 2006-69.  Proposal No. 2006-70.  Proposal No. 2006-72.  Proposal No. 2006-124.  Baseball Academic Enhancement Package.

Proposal No. 2005-171 Division I Bylaw 14.5.5.4: Eligibility for Institutional Athletically Related Financial Aid  Four-year transfer student-athlete may receive athletically related financial aid during first year at certifying institution only if the student-athlete would have been academically eligible to compete during the next regular academic term had he or she remained at the previous institution.  NOTE: Certifying institution must verify student-athlete was satisfying percentage-of-degree requirements at previous institution.   

 Effective Date: August 1, 2007.

Proposal No. 2006-59 COMPLIANCE WITH OTHER NCAA AND CONFERENCE LEGISLATION

Proposal No. 2006-59 Noncontroversial legislation.  Currently, if a student-athlete competes while ineligible due to a violation of a conference rule or receives financial aid contrary to a conference rule, the institution must seek reinstatement even though no violation of NCAA legislation has occurred.  These violations are now treated as institutional violations that do not impact the student-athlete’s eligibility.

 Effective Date: Immediate. [Bylaws 15.01.5, 15.01.5.1, 15.3.1.1, 15.3.2.1]

Proposal No. 2006-69 ELIGIBILITY -- FOUR-YEAR COLLEGE TRANSFERS -ELIGIBILITY FOR INSTITUTIONAL ATHLETICALLY RELATED FINANCIAL AID -- 4-2-4 COLLEGE TRANSFER

Proposal No. 2006-69  Removes loophole based on the adoption of Proposal No. 2005-171.  Requires a 4-2-4 transfer to complete at least one regular academic term of enrollment at the twoyear institution in order to be eligible for athletics aid at the certifying institution.

 Effective Date: August 1, 2007. [Bylaws 14.5.5.4 and 14.5.6.5]

Proposal No. 2006-70 ELIGIBILITY OF STUDENTATHLETES FOR INSTITUTIONAL FINANCIAL AID -- NCAA DEGREE-COMPLETION AWARD

Proposal No. 2006-70 

The NCAA Division I Degree-Completion Award Program was established in 1989. At that time, approximately 67 percent of the applicants were funded. Currently, approximately 44 percent of applicants are funded.

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Based on academic incentives that are now in place to encourage institutions to help student-athletes achieve the goal of completing an undergraduate degree, it is anticipated that NCAA Division I institutions will encourage more student-athletes to apply for and use the degree-completion award to finish their degrees.

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Consequently, it is expected that application numbers will increase, resulting in an even smaller percentage of applicants being funded.

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The value of each award will be reduced to include only tuition and fees effective with the 2007-08 funding cycle (June 2007).

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The proposal allows institutions to supplement degree-completion awards with funding for the other costs of a grant-in-aid (i.e., room and board and books). A student-athlete may receive unearned athletics aid under this proposal regardless of whether he or she has previously received five years of aid or is outside the six-year period since initial full-time enrollment.

 Effective Date: August 1, 2007.

[Bylaw 15.01.5]

Proposal No.2006-72 MIDYEAR GRADUATE REPLACEMENT -- WOMEN'S GYMNASTICS AND WOMEN'S TENNIS

Proposal No.2006-72  In women’s tennis and women’s gymnastics, the aid of a counter who graduates at midyear with eligibility remaining and does not return to may be provided to another student-athlete without having the second student-athlete count for the remainder of the academic year.  Currently, a women's tennis or women's gymnastics team could be at a competitive disadvantage in a situation in which a studentathlete graduates midyear and does not return to the institution.  Provides some consistency among women's head-count sports with regard to midyear placements.

 Effective Date: August 1, 2007. [Bylaw 15.5.2.4]

Proposal No. 2006-124 STUDENT-ATHLETE OPPORTUNITY FUND -ATHLETIC DEVELOPMENT OPPORTUNITIES

Proposal No. 2006-124  Student-Athlete Opportunity Fund (SAOF) is intended to provide direct benefits to student-athletes or their families as determined by conference offices.  Guiding principle: the fund should be used to assist student-athletes in meeting financial needs that arise in conjunction with participation in intercollegiate athletics, enrollment in an academic curriculum or that recognize academic achievement.  Accordingly, athletics development opportunities not directly related to representing the institution in intercollegiate athletics should not be covered by the SAOF.  Effective Date: Immediate.

[Bylaw 15.01.6.2]

Baseball Academic Enhancement Package  NCAA Division I Board of Directors adopted four proposals as emergency legislation based on the recommendations of the Baseball Enhancement

Working Group. 1. 2. 3. 4.

Fall Term Certification. Transfer Year in Residence. Financial Aid. Additional Penalties.

Baseball Academic Enhancement Package (continued) Financial Aid Proposal.  Current financial aid model amended to include a minimum equivalency value of 33 percent per baseball student-athlete and a maximum limit of 27 counters. The 33 percent minimum may be satisfied only with athletics financial aid.  Limit of 35 total baseball student-athletes on institution’s roster, regardless of their source of financial aid (if any).

Baseball Academic Enhancement Package (continued) Effective Date: Two-year implementation process to begin August 1, 2008. •

For the 2008-09 academic year, institutions will be required to: * Provide all student-athletes initially enrolling in a four-year institution freshmen, two-year transfers) a minimum equivalency of 33 percent in athletics aid; * Limit the total number of student-athletes receiving athletics aid (squad size) to 30; and * Limit the total number of student-athletes on their team (roster size) to 35.

•

Beginning with the 2009-10 academic year, * The 33 percent athletics aid criteria will remain in effect for first-time enrollees; * Squad sizes must be reduced to 27; and * Roster sizes will remain limited to 35.

Trivia Timeout!

After the United States, which country has the most billionaires?

Trivia Timeout! Germany -- 48 Billionaires (United States has 129)

Summary

 Outside Awards and Scholarships.  Period of Award.  Adopted Legislation.

Questions?

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