Last Updated: 3/9/18
2017-18 Board of Directors
Meeting Minutes, February 21, 2018
Members Present: Steve Hutchinson, Mark Gissiner, Jantzen Lloyd, Jim McQuiston, Paul Riess, and Ted Stevens.
Guest Present: Tony Reyneke.
The meeting was called to order at 4:15 PM, by Steve Hutchinson, President.
1. Consideration of the Minutes of the January 10, 2018 Foundation Board Meeting: Moved by Jim, seconded by Jantzen, and carried to approve the Minutes of the 1/10/18 meeting.
2. Welcome New Board Member Paul Riess: Paul was welcomed to the Board by Steve and the other Board members present.
3. Treasurer’s Report: Jim distributed a handout with pertinent information about the Foundation’s finances. Once distributed, Jim and Tony reported on items in the handout, as follows:
a. General Checking Account Balance and Checks Written since Last Meeting: As of 2/21/18, the Foundation’s general checking account has a balance of $45,111.68. Jim reported that two checks had been written since the January Board meeting, one to Head Start (from the proceeds of the 2017 Wine & Salmon Festival) for $2,671, and the other to Susie Hanner reimbursing her for expenses associated with Women in Rotary event ($63.07).
b. Emergency Fund Bank Account: Jim reported that the balance in this account is $342.90. He also shared that a check was written from this account in January at the direction of the Club’s Emergency Committee to pay the cell phone bill of a struggling family. In the discussion of this matter, it was agreed that it is a goal of the Foundation Board to move this account and the responsibility for its administration to the Club as soon as possible.
c. WSF Bank Account: Per Barb Tull, the Treasurer of this year’s WSF, the balance in this account stands at $20,198.11. It was noted that Barb has the ability to make both deposits and withdrawals from this account. From the perspective of accountability, it was noted that allowing a single person to control any account is not advisable. Following discussion of this latter issue, the Board, by consensus, decided to leave the situation as it is at present, with the understanding that Jim will ask Barb to submit to him, in his capacity as the Foundation Treasurer, a monthly financial statement for the Festival. He will also review this account’s bank statement each month.
d. 990 Filing: Jim and Tony reported that the 990 report is in draft form. They are giving it a final review. The delays are due to the fact that the authorities require the more expansive 990 report (rather that the 990 EZ) because the Foundation is holding funds for other entities, specifically, $25,000 for StoveTeam and $4,400 for the Club’s WCS Committee in anticipation of a Rotary Global Grant. Tony reported that if these “agency funds” were not being held by the Foundation, it could meet its 990 reporting obligations with the short form 990 EZ. During the discussion of this report, it was determined that “agency funds” cannot be invested long term and that tax deductibility for donors is not an issue. As a result, the Board, by consensus, decided to request that the Club take over custodial responsibility for these funds. Steve agreed to carry this recommendation to the Club Board of Directors.
e. The Foundation’s Restricted Assets: A spreadsheet showing information on the restricted assets of the Foundation was distributed and discussed. The accounts on this sheet were divided among “Temporarily Restricted,” “Permanently Restricted,” and “Agency Accounts.” Within the Temporarily Restricted group, the following accounts were listed, along with current balances as of January 31, 2018: Youth Exchange Trip – $175; Member Dues Support – $350; WCS Work Week Trip Subsidy – $1,330; Singer Memorial Fund – $5,442; and Unrestricted – $46,099.13. The “McCabe Parking Lot” Community Services Endowment, with a balance of $105,554.69, was the only listing in the Permanently Restricted column. The two listings in the Agency Accounts columns were those identified in #3.d immediately above. Board members thanked Tony and Jim for their work in organizing the financial affairs of the Foundation and preparing its 990 submission.
4. Second Consideration of Transfer of Endowment Earnings to the Club for Community Services: In addition to interest and dividends, the endowment received earnings during the 2016-17 fiscal year in the form of capital gains distributions. The total of all sources of earnings were $4,755. Given the Foundation’s recently adopted policy of retaining 10% of earnings for corpus growth, the revised amount that is available for transfer to the Club for community services projects is $4,280. It was moved by Steve, seconded by Jantzen, and carried to transfer $4,280 of endowment earnings to the Club this Rotary Year for local community services projects. Following the adoption of this motion, Ted asked Jim to check to see if any endowment earnings have already been transferred this year. If they have, he asked Jim to make sure that the correct amount is forwarded to the Club.
5. Review of Draft Donor Acknowledgment Letter: Since there appeared to be agreement on language for two different versions of a donor acknowledgment letter, Steve asked that final agreement be handled by the Board through electronic communications.
6. Discussion of Using the Oregon Community Foundation to Manager Some or All of the Foundation’s Investment Accounts, including the Endowment Fund: Tony introduced the idea of giving responsibility for the management of the Foundation’s investment accounts to the Oregon Community Foundation. He reported that he has extensive and very positive experience with OCF. Board members expressed interest in learning more about this option. To this end, Tony was asked to invite an OCF representative to the next meeting of the Southtowne Rotary Foundation Board, which is scheduled for March 14, 2018. He agreed to do so.
7. Review and Discussion of Policies and Procedures for Operating an Emergency Loan Fund Program that Complies with IRS Rules: Mark presented an eight page document that he wrote after researching the IRS’ requirements for a non-profit foundation to operate an emergency loan program. After extensive discussion, it was determined that the mechanics for operating a program of this type that complies with IRS rules were too burdensome and bureaucratic for the Foundation and, by extension, for the Club to undertake. As a result, it was moved by Mark, seconded by Jantzen and carried that the Foundation not operate an emergency loan program or give out emergency loans. The upshot of this decision is that the Foundation should transfer the emergency loan program, including remaining restricted funds and the portfolio of current loans, to the Club for its administration. As part of the discussion, it was also agreed that it would be desirable for the Club to annually request a grant from the Foundation for the funds it needs to operate its range of local community, international and emergency services programs. Mark agreed to draft a procedure and form(s) to implement this idea, with the understanding that it will be reviewed and discussed by the Board prior to its adoption.
8. Review of Draft Procedures for a “Donation Voucher” for Sergeant at Arms Program: Given the length of the meeting, Steve stated that this matter would be carried over to the next Board meeting agenda.
9. Date of March Foundation Board Meeting: Steve announced that the next meeting of the Board will be held on March 14, 2018, 4:15 PM, at the Vets Club. The meeting was adjourned at 5:25 PM.
Respectively submitted, Ted Stevens, Secretary