Legacy Gift Naturally Taken Up by Descendant
Released 3/5/12
More than $6.5 Million Dollars Invested in Maine’s Future
March 5, 2012, Augusta, ME – March 6th is the 98th anniversary of the late philanthropist Harold Alfond’s birth and an appropriate time to celebrate the fact that the Alfond Scholarship Foundation has awarded over 13,000 grants of $500 each (totaling more than $6.5 million) since 2008 program inception to Maine babies in order to start college investing accounts.
The grant concept was given birth to by Mr. Alfond as a way to encourage every Maine baby’s family to start investing in the future of that child and in Maine’s future, as well. Such was Mr. Alfond’s dream, and one of the newest “Alfond babies” to enroll in the program is actually an Alfond baby – Mr. Alfond’s great-grandson, Jacoby. Jacoby is the son of Justin Alfond and his wife, Rachael.
“Growing up as Harold Alfond’s grandson, I was taught early and often about the importance of saving for college and investing in the future. So when my wife and I welcomed our new baby into the world recently, it was only natural that we’d open a NextGen College Investing Plan® account and obtain the $500 Harold Alfond College Challenge Grant,” says proud father Justin Alfond.
Each month, nearly half of the more than 400 eligible Maine babies who sign up for the grant do so online – a new method of enrollment that started in March 2011.
Recently, Gretchen Schaefer blogged her thinking about the grant on Bangorbaby.com: “I was THRILLED to learn that you can now enroll online. [The Alfond Grant program is] not a scam, it’s the vision of one of Maine’s most generous philanthropists, Harold Alfond — take the money. He wanted you to.”
“Mr. Alfond believed that all Maine children deserved the opportunity to pursue higher education. He knew that Maine needs an educated work force to have a viable economy, and, with this legacy gift, you begin to see the seeds are forming roots,” said Elizabeth Vanderweide, program manager for the Harold Alfond College Challenge. “With nearly 40 percent of all eligible babies enrolling, we still have many more children to reach. Some people still believe the $500 grant is too good to be true, while others are concerned because they don’t feel comfortable with investments. We encourage those people who hesitate to reach out to FAME, their financial advisor or the 500ForBaby.org Web site because this program is true – $500 for every eligible Maine baby – and we can help.”
The $500 Alfond Grant is available to all Maine resident babies when a NextGen account is opened by their first birthday. There are no income limits and no contributions are required to receive the $500 grant. Administered by the Finance Authority of Maine (FAME), funds in the NextGen account may be used to pay for qualified higher education expenses at any accredited post-secondary school, including four-year and two-year public and private colleges, certificate programs, trade schools, and even graduate schools.1
Parents of Maine babies (or others) may apply for the grant by visiting http://www.500forbaby.org or calling FAME 1-800-282-3734 and completing an application prior to the child’s first birthday. To assist with opening accounts, the Alfond Scholarship Foundation also hosts “Casting Calls” around the state. At a Casting Call, a free professional photograph of the baby is provided along with assistance in completing the NextGen application. Spring Casting Calls are currently scheduled for March 31, 2012 10am – 2pm, at Rangeley Hall at Eastern Maine Community College (EMCC) Bangor and April 7, 2012 10am – 2pm at Woodbury Hall at University of Southern Maine (USM) Portland.
About the Alfond Scholarship Foundation
The Alfond Scholarship Foundation is a nonprofit corporation established specifically to sponsor and support the Harold Alfond College Challenge. This foundation is a partnership of organizations and individuals who truly embrace Mr. Alfond’s philosophy, and includes representatives from Educate Maine, FAME, the University of Maine System, the Maine Community College System, the Maine Community Foundation, the Mitchell Institute, and at-large members that include representatives from MaineGeneral Health and the Maine Hospital Association. To learn more about the Harold Alfond College Challenge, please visit www.500forbaby.org.
About the Finance Authority of Maine (FAME)
FAME is a quasi-independent state agency that provides innovative financial solutions to help Maine people and businesses pursue educational and business opportunities. Established in 1983, FAME is committed to innovative, flexible financial solutions that address the needs of Maine individuals and companies in a changing economic landscape. FAME administers the Harold Alfond College Challenge and the NextGen College Investing Plan.® To learn more about FAME, please visit www.famemaine.com
1 To be eligible for the favorable tax treatment afforded to any earnings portion of withdrawals from Section 529 accounts, such withdrawals must be used for “qualified higher education expenses,” as defined in the Internal Revenue Code. Any earnings withdrawn that are not used for such expenses are subject to federal income tax and may be subject to a 10% additional federal tax as well as state and local taxes.
Please remember there’s always the potential of losing money when you invest in securities.
The Alfond Grant is awarded to a NextGen account. NextGen is a Section 529 plan administered by the Finance Authority of Maine (FAME). Before you invest in NextGen, request a NextGen Program Description and Participation Agreement (Program Description) from your Maine bank or financial advisor, or call FAME at 1-800-228-3734, and read it carefully. The Program Description contains more complete information, including investment objectives, charges, expenses and risks of investing in NextGen, which you should carefully consider before investing. You also should consider whether your home state or your designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s Section 529 plan. Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, Member SIPC, is the program manager and underwriter of NextGen.
