July 4, 2006

Dear Friends and Supporters

We are pleased to announce that the Hungarian Scholarship Fund has been granted tax-exempt status by the IRS and the State of Ohio. As of June 15, 2006, the Fund became a non-profit corporation. From this time, your donations are tax-deductible.

We are grateful for your support of Hungarian students and Hungarian minority students in countries around Hungary (Romania, Serbia, Slovakia, Ukraine, Croatia). In the past six years, our fund helped 33 students with either tuition, housing, transportation, books or other school-related expenses. We have transferred more than $80,000 directly to students.

Over the past years, we have received several hundred letters from students asking for assistance. Before we grant a scholarship, we have a local friend verify the family situation of a potential recipient. We use three criterion: the student must have good grades, must be a good Hungarian and the parents must be poor. Our goal is to help with the first diploma and not abandon a student until graduation as long as he or she exhibits satisfactory required progress. We expect the graduates to remain in their country or return to work there upon graduation.

For the school year of 2006/2007, our Fund is projecting a need of $30,000. In the past six years our support came from three main groups: American friends, Hungarian retirees and my former students. God bless them. Two organizations are also among our regular supporters: the American Hungarian Federation and the Sunshine Lady Foundation.

We hope the tax-exempt status will help our Fund in the future. Please send your donation to the following:

Hungarian Scholarship Fund
7919 E. St. Rt. 55
Casstown, OH 45312 USA

Sincerely,

Dr. Bela Bognar & April