Post Office Box 357, Williamston, Michigan 48895-0357 Telephone: 517-655-5140
Website: www.wclf.info
Email: contact@wclf.info
MEETING MINUTES
SPECIAL MEETING OF THE BOARD OF DIRECTORS
Wednesday, 31 January 2007
MEETING LOCATION: Wheatfield Township Hall, 985 East Holt Road, Williamston, Michigan
CALL TO ORDER: The meeting was called to order at 7:05 p.m. by President, Susan Graff.
DIRECTORS PRESENT: Jeff Bartrem, John Brazier, Fred Campbell, Tom Clay, Marlene Epley, Susan Graff, Julia O'Conner, Fran Schaffert.
OTHERS PRESENT: Wendell Proudfoot, Leo Sheets.
GUEST PRESENTER: Dennis W. Fliehman, President, Capital Region Community Foundation.
BUSINESS ITEMS:
Motion by Fred, seconded by Jeff, to pay insurance in the amount of $999.80 and to pay this annually hereafter. Motion passed by voice vote.
Jeff explained that he is pursuing tax exempt status on the WCLF property in the City of Williamston.
Motion by Jeff, seconded by Julia, to authorize Wendell to pay taxes on the property as appropriate, on 12 February 2007, pursuant to legal opinion. Motion passed by voice vote.
PRESENTATION BY DENNIS FLIEHMAN: Focus of presentation was what the Community Foundation does and how it might be of assistance in setting up an endowment fund for WCLF. Mr. Fliehman noted that Tom Clay is familiar with the work of the Community Foundation. Tom commented that the Community Foundation is a "top notch organization," and that there are good, caring people serving on the board. Following are the major points of the presentation.
Mr. Fliehman handed out packets of information about the Community Foundation.
The Community Foundation is a 501(c)(3) public charity and qualified by the IRS to take tax deductible gifts.
Page Two
31 January 2007
Meeting Minutes
Is governed by a non-compensated Board of Trustees - 28 people who volunteer their time to serve.
Is independent and not controlled by any other organization.
The purpose/mission is to help build permanent endowment funds for charitable purposes.
Helps donors, organizations, individuals, and businesses establish charitable endowment funds and then invests and manages those endowment funds. The income that is generated from the endowment funds is used to make grants out into the community for the purposes that the donor(s) have established for those particular funds.
Currently hold about 300 funds and assets of over $60 million.
Fred asked what a fund is. Mr. Fliehman explained that a donor turns over $XX to the Community Foundation to establish a fund which becomes an asset of the Community Foundation. The income generated is used as directed by that specific fund.
Every year the Community Foundation gives about $2.5 million in grants to the community.
Different types of funds include:
--Funds established by individuals/families;
--Agency funds - this is the type of fund WCLF would have - established by non-profits to support their own work. The Community Foundation gives the spendable income to the organization to spend as it sees fit. About half of the Community Foundation assets are Agency Funds.
Reasons why agencies use the Community Foundation for endowment funds:
--Relieves the agency of the responsibility of managing an endowment fund;
--Community Foundation undergoes an annual audit by an independent auditor;
--Tax Credit benefits allowed Community Foundations by the State of Michigan;
--Donors often prefer to give to a Community Foundation because hey are assured it will be permanently held for endowment.
Money held in the endowment fund is not readily available so money needed for building expenses needs to be kept in a separate fund.
Endowment focus is often on "planned gifts" as part of estate plans.
The agency should have a plan in place to build the endowment fund - how it will be marketed.
Currently the minimum amount required to establish an endowment fund is $10,000. The annual fee for Agency Funds is 1 percent (1%) annually, which is charged on the balance of the fund at the end of the year. The spending policy is 5 percent (5%) of the rolling 12 quarter average of the fund. The yellow sheet in the packet explains the spending policy.
Community Foundation has an investment advisor.
Community Foundation supplies tax receipts and supplies the agency with a donor report so the agency can thank the donor.
Page Three
31 January 2007
Meeting Minutes
Advertise the endowment fund in newsletters, on the website, and in brochures. Possibly create a brochure specific to the endowment fund that explains the tax credits. The Community Foundation requests the opportunity to review materials before they are distributed to the public.
A representative from the Community Foundation is available to work with donors and help them understand the benefits of contributing to a WCLF endowment fund and how to do it.
Copies of Annual Reports were distributed. Donors are listed in the Annual Report.
Susan asked for information about the grants available from the Community Foundation and what happens to an endowed fund if WCLF dissolves.
--Mr. Fliehman answered that if WCLF dissolves, the Community Foundation would make every effort to place the money in another fund that serves a purpose close to the original purpose of the WCLF endowment fund.
--Mr. Fliehman stated that he encourages WCLF to apply for grants. The deadline is 30 March 2007. Grant application is a new on-line process.
Leo asked how flexible the fund would be if WCLF needed to draw money out when needed to fund repairs on the facility. Mr. Fliehman answered that WCLF would need to take its 5 percent (5%) payment and hold it in a separate savings type account. The yearly payments cannot be accumulated and held by the Community Foundation and paid out on an as-needed basis.
Mr. Fleishman's presentation concluded and, after thanks around the table, he left the meeting.
FOLLOW-UP CONVERSATION: Susan stated that CADL will want to see an endowed fund in place before they will commit to partnering with WCLF/a non-profit. She also stated that she believes that fundraising will always be necessary to maintain the building.
Marlene stated that we will probably need to establish an endowment fund fairly soon because it will be a requirement for grant applications.
General discussion moved to the need for a policy regarding restricted donations. We will need to work with Jan Quiring on this.
Everyone, especially the Building Committee, will need a comprehensive list of everything that CADL will contribute to this building. Susan is compiling this and will supply it at the next Board meeting.
A plan needs to be developed for short-term investment.
Page Four
31 January 2007
Meeting Minutes
Fran stated that she has information about ordering more water. Susan said this will be on the agenda for the next meeting.
ADJOURNMENT: Motion by Fred to adjourn, seconded by Jeff. Motion carried by voice vote. Meeting adjourned at 8:20 p.m.
Respectfully submitted:
Marlene Ann Epley
Approved: 14 February 2007