RESPONSE TO LETTER FROM MR. JOHN A. MCCONE REGARDING EDUCATIONAL AID FUND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A001200020002-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 15, 2016
• Document Release Date: January 16, 2004
• Sequence Number: 2
• Publication Date: July 18, 1977
• Content Type: MF

Approved For Release 2004/02/19 . CIA-RQP8QM00, 65A0012000201? ,3,5f
DD fJ Rc'gt tr;~.
18Jt7L1977
`-EMORANNDUM1 1-FOR: Director of Contra]. Intell igence
VIA Deputy Director for Administration
FROM F. IV. M. Janney
Director of Personnel.
SUBJECT Response to Letter from Mr. John A. McCone
Regarding Eciucat:i.onal Aid Fund
REFERENCE Employee Bulletin -No. 574, cltci I. 1--larch 77,
Titl.ed:~. Educational Aid Fund
1. Action Requested: That you sign the attached Letter
to Mr. John _. I~1cGone i.n -reesponse to his request for the cur-
rent policy with regard to the Educational Aid Fund (JlAP) .
2. Baclkground: The flAF is a voluntary assac i.at:i on which
was formed1.T1 October 1963 to provide financial ass_ s:'I- 1,11 CO to
dependent children of current, retired and deceased Agency
employees, who are attending or about to attend institutions
of higher learning. All such assistance is awarded. on a com-
petitive basis in the, form of interest-free loans and grants.
Since its inception EAF has awarded 40 scholarship grants and
loans totaling $295,000. An. Employee Bulletin (copy attached)
was issued in March 1977 summarizing the operation and history
of the program.
The Fund receives the preponderant part of its con-
tr=ibutions in the form of small donations made during the
general solic::ita.tion, of the CIA employees concurrently with the
annual Combined IEedcr:aI Campaign. The first appeal for con--
tr:ibut:ions made to Agency employees during the 1964
Campa:i.gn.. Outs:; ide cant: e ihut:i.ons were requested In subsequent
On 16 November 1970, Mr. McConc agreed to give. $50,000
to EAF over a period of ten years and to undertake a funcl-
rais_ing campaign in New York in February 1971 among, aiumnI and
others interested in intelligence activities. The latter
included business friends and associates of Mr. McCono who were
affiliated with some of the largest corporations in the United
States. The highlight of the campaign was a dinner hosted by
Mr. McCone at. the Links Club i.n Mew. York on 10 Fehr iary 1.971.
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Since his conuni.tment: in November 1970 to support the
Fund, Mr. McCone has contr:i.butcd $5,000 each year in 1.971,
1972, 1973 and 1.974. When he last offered to give anotlzcr-
fund-raising dinner, considerable attention has be ng placed on
the Agency and possible connections With large corporations.
!S: ?1cCone laa`. :idvi sod i h
to Involve out._;1de help at that. time in older' to avoid any%
possible misinterpretation.
3. Staff' Position: During the academic year 1976--77 FAF
awards total.:ing $ 8, 000 were made to 39 of 130 applicant-S. The
principal source of funds, our annual solicitation of emp:l.ayees,
resulted in approximately $33,000 in contributions during our
last fund drive. Additional revenue was received from the
interest and dividends on assets of the Fund. While F A1- is
adequately funded at present, there is not a surplus of finan-
cial resources and cducat:ional costs continue to rise. Inctiv:i (1-
ual contributions from those with close Agency ties should
continue to be encouraged.
In the foreseeable future it would not appear desirable
or necessary for EsAF ta engage in public fund--raising activities 4. Recommendation: That you sign the attached letter to
Mr. John A. Mc-C ne w h inv:i.tes his continued per .on.II support
of EAF while indicating that- we do not believe any further fund.-
-raising activities will be necessary.
/S/ F. 6V. rvi .Jauiney
F. W. M. Janney
Distribution:
0 - Addressee
1 - A/DDCI
X - ER
2 - DD/A
1 - D/Pers
1. - C/BS1)
1 - BSD/PAB
OP/BSD
jp (15 July 77)
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!-.~.i
1 March 1977
1.. The Lducational Aid Fund (EA17) a voluntary
Provides assistance to dependents of CIA employees attending institu-
tion s of higher learra_ing, was est b"l.a.sia.:,1 ire 0ctohe c 11)63. Director
approved the Scholarship Program in May .196-4r.
2. The fund, governed by a Board of Trustees consisting" of senior
Agency officials, was granted tax e emption under Section 501- (c) (3) of
the Inte=l. hevenuc Code. It receives most of its contributions in the
form of small don atioais made concurrently with the annual. C,:;> .,:red
1'ecleral Caanpa:i ;n.
3. -The first appeal to Agency earrp.toyees for contrib[ Lions was
made during the 1964- cal paign. Major contributions have been. received
from John. A. McCone and the family of F- -ih (;. Wisn. ?r. In addition,
Coll t""L'ibutions are occasionally -received. from outsiele sources,
4. For years, in addition to the general scholastic twid, there
was a separate fna_cl used For. st:ucly at the Massachusetts Institute of
Technology (MIT) . The donor who. es tab 1. i.shcd. this fund stipulated that
dependents of efaaployees in ~:Iae Operations Directorate were to be given
preference, although children of employees in other directorates were
also eligible. Initially, members of the Board of Trustees of the. EM:
constituted the = ubcoi-imittee responsible for administering the MIT
funds. Later, the Office of 'technical Service assumed -responsibility
for administerin ; the MIT Program. the 1,lI'r scholarship prof ram was
cliscontinued in 1975.
5. PAP currently has four special awards :
C. Wisner
IT ~i 2 j '1 Il. .~.R,; IJ r... _t ~-f .l-C... ..~['' }?[ l.c .. .. i. `'?ll:'. :~."l
1963, there have been twelve awarcls totaling $13,~ 50.
b. Designated exclusively for a
student who demonstrates unusually high personal motivation through
self-help. Established i ra 1971, there have been seven awards
totaling $8,200.
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c. John A. fcCone Award -- Granted to an appl:icrlnt whose
firrartcial i:ecd is t~ze~iaain criterion. Since c. tab1_ i si r, .nt :in 1971-,
there have beers six az?rct.rds totaling $7,400.
r
d . L awr :i1ce K. VrhiLe hr:.t.Cll. - I);:_;:a g ,1.i'...i
who has deuaons t rated uriusual leacl^rship dual--1 JLes . I;stabl.ishF cl i.n
1972, there have been four awards totaling; $5,200.
6. Qualified dependent children of current, retired. and deceased
Agency employees are eligible for D%F assist:ance. All :firannc-i.al aid is
awarded on a competitive basis in the form of interest-free to ms and
grants. '11e primary factors in. determining eligib.1-l:i.ty for scholarship
aid are the applicant's scholastic record, motivation, and financial
need. Selection is based on the applicant's acLder!a_i.c --Lcb-1.ci'ean.-:nt as
indicated by secondary school :r. ecords and college board scc,f: es, reco-ia-
mendation from high school faculty, an essay written by the student and
a financial statement from the parerit.s. Applicants are expected to
contribute to their educational expenses through part--t:ime work during
the school year and during t:h.e summer or by qualifying For other scholar-
Ships. . More than one member of: the same family m; y rece ive an a,-ard,
r
Students who. are granted awards may apply for the same awards in
succeeding years.
7. In order not to influence the selection process, the n.amnes of
candidates and their parents - r.c removed from applications, applications, reviewed by
tl:. LAP Selection Cmamittce. 'kite co,nnittee submits its rccauomiend at ions
to the Board of Trustees for each case. Although the committee will
? r. ecomend a grant vilien unusual, financial. problems exist, l.o :ra s have been,
the usual form of EM as~si.stance.
8. Since 1970 nine individuals 1-have been awarded more than $3,000
each in loans and grants.- Two of -the individuals have each received
four loans totaling $3,150 and two other individuals have each received
three loans totaling $3,300 zand $3,200, respectively. One individual
has been awarded three grants ($3,500) and one loan ($1,500) for a total
of $5,000. During the twelve years that LAP has been in operation, 448
scholarship grants and loans totaling $295,000 have been macia.
9. Since educational costs have risen an estimated 5 to 9 percent
in academic: year 1976-77, awards made in 1976 were increased proportionately.
For I.t.c: curr(: tt
2
L'he 130 app ticants, L`~l.r'y.1.11', in atrt"Carlt i:rom $300 to
Attaclanent
DISIRIBTIFION: ALL EMPLOYEES (1-6) -
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ATTSTI\ --TERNAL USE ONLY
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Approved For Release 2004/02/19 : CIA-RDP80M00165AO01200020002-8