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Board discusses legal steps to repurpose small scholarship/loan fund established by Ella Kepner
Summary
Administrators told the board they are pursuing a legal route to shift the Ella Kepner gift from a loan-only fund into scholarship funding managed by the district foundation, subject to attorney-general approval.
District staff briefed the board on the Ella Kepner fund, a small legacy account established by a former teacher that historically made small loans to students. Staff said the fund has grown from approximately $1,500 at the time of the gift to about $15,000 today and that, because the original terms require loans (often $200 maximum), few students use it.
District officials said the board and administration would prefer to move the funds to the Dixon USD 170 Foundation so the money could be used as outright scholarships rather than loans, but that doing so requires a legal process involving the Illinois attorney general’s office to relinquish the original loan parameters. Staff reported they have begun the steps to determine whether there are heirs and to seek the necessary legal approvals. The district said the foundation has expressed interest in receiving the funds if the attorney general and legal process allow a transfer that removes the loan condition.
Board members discussed publicity and whether students and families were aware of the loan program. Administrators said guidance counselors maintain scholarship lists on the website and that the loan was rarely used (one recent use around 2018; historically a small handful of loans). Several board members proposed asking the foundation to structure the award as an endowment that pays only interest, so the principal could remain intact and provide a small annual scholarship amount consistent with the donor’s long-term intent.
No formal vote was taken. Administrators said they will update the board as the attorney-general process proceeds and if the foundation confirms how it would administer the funds.
