Western Division Financial Procedures to Facilitate Grants Funding and Increase the Grants Endowment (Word Document - 23kb)

2003 Annual Report
Committee Chair - Bill Bradshaw

The Grants Funding and Investment Committee was charged at the 2002 annual business meeting in Phoenix by then President Eric Knudsen with oversight of three sub-committees established to address Committee direction. The three ad hoc sub-committees, their missions, and activities in 2003 are:

• Investments –This sub-committee is chaired by Henry Booke (Oregon) and is responsible for making investment recommendations to the Western Division Excom, and for quarterly (minimum) review of the Grants Fund investments. Other members are Monica Hiner (Humboldt, Western Division Secretary-Treasurer), Roy Whaley (Colorado-Wyoming), and Pete Bisson (NPIC), and Bill Bradshaw (Colorado-Wyoming).

Investment decisions continue to be made by the process approved by the Western Division Excom on January 29, 2002. The Division's portfolio contains $50,800 in individual stocks ($29,200; Amgen, General Electric, Pfizer, Rite-Aid), funds ($21,300; Royce Total Return, Berger Mid-Cap), and cash ($300). Investments have been made to minimize loss during this period of poor stock market performance, but to position for growth when market conditions improve. The Western Division portfolio has lost 7.93% of it's value since January 1, 2002, while the Standard and Poors 500 index has lost 20% in the same period.

• Grants Criteria – This sub-committee has essentially fulfilled its responsibility for developing grants evaluation criteria and funding priorities. Criteria and a process for awarding grants was approved by the Excom at the 2002 annual meeting in Spokane and has since been posted on the Western Division website. This sub-committee may no longer be needed.
• Fund Raising – Chaired by Bill Bradshaw, this sub-committee is focused on developing fund raising strategies and will assume the lead for raising Grants Fund contributions beyond the $50,000 approved for investment at the 2001 annual business meeting in Phoenix. Work on this committee was intentionally limited in scope pending establishment of an investment account and grants criteria but it is anticipated that activity will increase over the next year. Initial efforts include soliciting Wyoming Game and Fish Commissioners elk tags for sale to the highest bidder, an unsuccessful attempt to secure a Wyoming Governors big game license, funding solicitations to 3 individuals potentially amenable to supporting the Western Division, and initial inquiries to 3 Northwest corporations for funding support. Various letters of inquiry and a summary sheet describing the types of projects supported by the grants program.

The Grants Funding and Investment Committee was charged with formalizing and perpetuating its mission by seeking incorporation as a Standing Committee of the Western Division. A proposed bylaws change was approved at the 2002 annual Western Division meeting in Spokane, and also approved by the AFS Governing Board in Baltimore. The following language should be incorporated into “SECTION IX. Division Standing Committees”, of the Western Division bylaws:

J. A Grants Funding and Investment Committee responsible for making investment recommendations to the Western Division Excom, quarterly (minimum) review of the Grants Fund investments, and implementing the funding motion approved at the 2001 business meeting. The committee consists of a Chair appointed by the President and at least 4 Division members. Periodic review of the Division's grants funding criteria and fund-raising activities may be coordinated under the Grants Funding and Investment Committee through ad hoc committees appointed by the Division President.

Recommendations:

1) Disband the ad-hoc Grants Criteria sub committee.

2) Ensure that Western Division bylaws posted on the website and distributed to new Excom officers incorporate changes approved in 2003 that create a standing Grants Funding and Investment Committee.

3) Ensure that the investment decision process is posted on the Western Division website

After the 2001 annual meeting in Phoenix, where a motion to establish a Western Division grants fund was approved, President Knudsen renamed the previously established ad hoc committee from Grants Funding Committee to Grants Funding and Investment Committee. This was done to better reflect the direction given by the motion passed in Phoenix. The renamed committee, chaired by Bill Bradshaw (Colorado-Wyoming, Past Division President) was charged with oversight of three sub-committees established to address the directives of the motion approved in Phoenix. Briefly, the three sub-committees and activities to date in 2002 are:

• Investments - Chaired by Henry Booke (Oregon), this sub-committee is responsible for making investment recommendations to the Western Division Excom, and for quarterly (minimum) review of the Grants Fund investments. Other members are Monica Hiner (California-Nevada, Western Division Secretary-Treasurer), Roy Whaley (Colorado-Wyoming), Pete Bisson (Washington), and Ed Cheslak (California-Nevada, Past Western Division Secretary-Treasurer).

After discussion at the Excom retreat in Portland, Oregon on December 3-4 and subsequent revision and additional discussion, the Division Excom adopted an investment decision process modeled after the NE Division and AFS Parent Society on January 29, 2002. The result is the Grants Funding and Investment Committee (Investments Subcommittee) now will make investment recommendations on the basis of quarterly review (minimum). These will then be forwarded to the Division President or, if unavailable, President-Elect, who, upon a majority agreement of Division officers (President, President-Elect, Vice-President, Secretary-Treasurer, Past-President), will direct the Secretary-Treasurer to implement the recommendations.

An account with Charles Schwab and Co., Inc. was established, and as of April 12, 2002, approximately $30,000 of the authorized $50,000 had been invested in shares of Amgen, GE, Rite-Aid, and Royce Total Return Fund.

• Grants Criteria - Chaired by Bill Bradshaw, this sub-committee is responsible for developing criteria for evaluating grant proposals and priorities for grants funding. Division officers and Committee chairs, and Chapter representatives at the Division Excom retreat in Portland, Oregon discussed a draft proposal, on December 3-4. Subsequent discussion resulted in a final proposal that was submitted on March 25, 2002 to President Knudsen for consideration and adoption at the 2002 annual meeting in Spokane, Washington. The Excom moved to adopt a calendar year schedule for grants review and will begin reviewing applications at the fall Excom retreat so final decisions can be made by December 31st.
• Fund Raising - Chaired by Ken Hashagen, this sub-committee is focused on developing fund raising strategies and will assume the lead for raising Grants Fund contributions. A letter of introduction was drafted on December 13, 2002 and will be used to establish initial contact with individuals and organizations potentially willing to contribute to the Grants Fund. Work on this committee was intentionally limited in scope pending establishment of an investment account and grants criteria but it is anticipated that activity will increase over the next year.

The Grants Funding and Investment Committee is also charged with formalizing and perpetuating its mission by seeking incorporation as a Standing Committee of the Western Division. A proposed bylaws change was published in the March 2002 Tributary and pending membership approval in Spokane and AFS Governing Board approval in Baltimore, the changes will become effective at the conclusion of the annual AFS business meeting next August. The proposal calls for a bylaws addition "SECTION IX. Division Standing Committees", and reads:

"J. A Grants Funding and Investment Committee responsible for making investment recommendations to the Western Division Excom, quarterly (minimum) review of the Grants Fund investments, and implementing the funding motion approved at the 2001 business meeting. The committee consists of a Chair appointed by the President and at least 4 Division members. Periodic review of the Division's grants funding criteria and fund-raising activities may be coordinated under the Grants Funding and Investment Committee through ad hoc committees appointed by the Division President."

The Long-Term Western Division Grants Funding proposal for consideration at the 2001 WD AFS annual meeting recently held in Phoenix, AZ was passed!!! The proposal's final wording can be viewed here -> Long-Term Western Division Grants Funding Proposal