SIGMA DELTA CHI FOUNDATION TIME: 9:00A.M. APRIL 21, 2013 INDIANAPOLIS
1. Call to Order – Leger
2. Roll Call – Kirtley a. Leger b. Gratz c. Dubin d. Kirtley e. Aeikens f. Albarado g. Brown h. Carlson i. Cross j. Cuillier
k. Eckert l. Ensslin m. Evensen n. Geimann o. Gillman p. Jones q. Ketter r. Leeds s. Lehrman t. Levins
u. Limor v. Maynard w. McCloskey x. McKerral y. Neuts z. Porter aa. Pulliam bb. Ralston cc. Smith
3. Report of the SDX Foundation President – Leger
4. Approval of Board Meeting Minutes – Leger a. Sept. 21, 2012 [page 2] b. Dec. 19, 2012 – Executive Committee [page 5]
5. Review and Adoption of SDX Foundation Budget for Fiscal Year Ending July 31, 2014 –
Skeel, Koenig [page 6]
7. Report of the Treasurer – Dubin
8. Grants Committee Report and Recommendations – McKerral [page 19]
9. Foundation Staff Report – Vachon
10. SPJ Staff Report – Skeel [page 20]
11. Discussion items a. Update on project’s committee – Gillman b. Board members’ terms set to expire – Leger [page 23] c. Excellence in Journalism update – Vachon
d. History Book Update - Vachon
12. Old/New Business a. Gift Acceptance policy – Skeel [page 24]
13. Adjourn
Board of Directors Meeting
Indianapolis
Founded in 1961, the Sigma Delta Chi Foundation is dedicated to ensuring that those who carry on the tradition of a free press are prepared for the challenge. Its goal is to support
the educational programs of the Society of Professional Journalists and to serve the professional needs of
journalists and students pursuing careers in journalism.
MINUTES MEETING OF THE BOARD OF DIRECTORS
SIGMA DELTA CHI FOUNDATION SEPTEMBER 21, 2012
MARRIOTT HARBOR BEACH RESORT FT. LAUDERDALE, FLORIDA
MEETING CALLED TO ORDER With President Steve Geimann presiding, the meeting of the board of directors of the Sigma Delta Chi Foundation was called to order at 9:10 a.m. Friday, Sept. 21 at the Marriott Harbor Beach Resort in Ft. Lauderdale. ROLL CALL In addition to Geimann, the following board members were present: Vice President Robert Leger; Secretary Irwin Gratz; Treasurer Howard Dubin; Directors Dave Aeikens, Sonny Albarado, Fred Brown, David Carlson, Al Cross, Dave Cuillier, John Ensslin, Jay Evensen, Todd Gillman, Bill Ketter, Al Leeds, Sally Lehrman, Hagit Limor, Gordon “Mac” McKerral, Sue Porter, Neil Ralston, Kevin Smith and Kelsey Volkmann. Staff members present included Executive Director Joe Skeel and Associate Executive Director Chris Vachon. SDX FOUNDATION PRESIDENT’S REPORT SDX Foundation President Geimann reports the endowment remained in excess of $10 million. The Foundation provided $327,666 in grants to SPJ as well as grants to the Student Press Law Center and the Reporters Committee for Freedom of the Press. Jean Otto’s estate donated $25,000 to the Foundation. Geimann also reports that Sandra Shea, from the Philadelphia Daily News, is receiving the Pulliam Editorial Fellowship. She will create a collaborative, multimedia program of pictures, videos and stories through her research of poverty and the toll it takes on Americans. Finally, the Pulliam First Amendment Award goes to Carol Marbin Miller of the Miami Herald, for three decades of reporting on the Florida social services system. MINUTES Upon proper motion and second by Carlson and Limor, respectively, the board approved the meeting minutes from April 29, 2012 and July 18, 2012. SPJ PRESIDENT’S REPORT Ensslin shared an update from SPJ’s board of directors’ meeting, which took place the previous day.
x The board supports the expense necessary to implement a monthly dues billing process.
x An institutional membership program has been created. The goal is to get SPJ’s culture into newsrooms around the country.
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TREASURER’S REPORT Dubin indicated that some new language is going to be drafted for the investment policy via the finance committee in order to be more flexible with the current interest rate environment. FOUNDATION STAFF REPORT Vachon shared that Fiscal Year 2012 produced contributions totaling $45,175 from 273 gifts, averaging $165.50 per gift. This was a 30 percent increase from the previous fiscal year. SPJ STAFF REPORT Skeel shared that bookkeeper Rhonda Harris is leaving the staff after four years. He will be working to fill the position. The membership database upgrade is complete and after convention it will be launched. As far as the SPJ budget goes, revenue projections exceeded actual income, as did expenses. This was mainly a result of two SDX Awards Banquets in one fiscal year and the database upgrade. At the close of FY2012 SPJ had about $355,000 in unrestricted cash. PROJECTS COMMITTEE Committee chair Todd Gillman reported that he has done some preliminary work on a few ideas that have been floated by him. He is looking for something that has broad reach and that is an ongoing project. BOARD MEMBER ELECTIONS The following slate of board members are being offered to the board:
x Todd Gillman x Irwin Gratz x Alex Jones x Bill Ketter x Al Leeds x Robert Leger x Hagit Limor
OFFICER ELECTIONS The following slate of officers are being offered for the board’s review:
x President - Robert Leger x Vice President - Irwin Gratz x Secretary - Jane Kirtley x Treasurer - Howard Dubin
Upon proper motion and second by Albarado and Limor, respectively, the board elected the slate of board members and officers.
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GIFT ACCEPTANCE POLICY Skeel presented a gift acceptance policy. The Foundation’s independent audit firm recommended that such a policy be adopted. However, there is no requirement to have one. The board reviewed the lengthy draft from Skeel and came to the conclusion that they don’t need such an involved policy. Upon proper motion and second by Brown and Carlson, respectively, the staff is instructed to prepare a draft of the policy that will only include the list of types of gifts accepted from page 29 of the currently proposed policy and to present it to the Foundation’s governance committee. STEVE GEIMANN As Steve Geimann steps down as president of the Foundation board, he was recognized and praised for his many years of service and dedication. He was presented with a gift of wines from the board. Upon proper motion and second by Cross and Brown, respectively, the board voted to recognize Steve Geimann for his great work as the SDX Foundation president. ADJOURNMENT Upon proper motion and second by Carlson and Ralston, respectively, the board voted to adjourn the meeting at 10:50 a.m.
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SIGMA DELTA CHI FOUNDATION DECEMBER 19, 2012
INDIANAPOLIS, INDIANA MEETING CALLED TO ORDER With Vice President Irwin Gratz presiding, the meeting of the Executive Committee of the Sigma Delta Chi Foundation was called to order at 1:03 p.m. on Wednesday, December 19, via conference call. ROLL CALL In addition to Gratz, the following were present: Treasurer Howard Dubin; Past President Steve Geimann; Directors Sue Porter, Mac McKerral and Todd Gillman; Executive Director Joe Skeel; Associate Executive Director Chris Vachon; Controller Jake Koenig; Bookkeeper Sarah Beck and accounting firm Greenwalt Sponsel representatives Amanda Meko and Jennifer McVey. REVIEW OF AUDITED FINANCIAL STATEMENTS Three documents were included as part of the audit report: a letter to the board of directors of the Sigma Delta Chi Foundation; a letter to the Executive Committee of the Foundation; and the Foundation’s Audited Financial Statements for the fiscal year ended July 31, 2012. McVey reported that the auditors had no disagreements with management during the audit and issued a clean opinion on the financial statements. McVey reviewed the Foundation’s statements of financial position and the balance sheet. The auditors stated there were no material weaknesses or misstatements identified. Regarding fundraising efficiency, in 2011, for every dollar spent, $1.34 was raised. In 2012, for every dollar spent, $3.34 was raised. There is a correction needed on page 14, the spending policy is 4.5%, not 5%, per the SDX Foundation board. Upon a proper motion and second by Dubin and Geimann, respectively, the Executive Committee approved the audited financial statements. MEETING ADJOURNED The meeting adjourned at 1:17 p.m.
5
MEMORANDUM
DATE: March 8, 2013 FROM: Joe Skeel, Executive Director SUBJ: Proposed SDX Foundation Budget for Fiscal Year 2014 FOR: SDX Foundation Finance Committee Included with this cover memorandum is the staff’s proposed budget for the SDX Foundation for the fiscal year ending July 31, 2014. GENERAL OUTLOOK After a few years of analyzing and fine-tuning, we finally have the Foundation accounts and budget process streamlined. As a result, there are very few variances from last year’s approved budget compared to the proposed FY2014 I have addressed those variances below. The bottom line: After fulfilling its budget obligations for its own programs and services, the Foundation will have about $335,000 available to give in the form of grants. This is down about $4,300 from the prior year. It’s important to note: Under normal circumstances, we would actually have a bit more money available than last year. However, we removed a value of $250,000 from the available 4.5-percent calculation. This amount, set aside by the board last year, was excess money that had built up in the Pulliam Editorial Fund. Todd Gillman and the projects committee are deciding how to use these funds. The end goal for this committee is to review the revenue and expenses, ensuring all questions have been answered (and any subsequent changes have been made). The committee will then recommend that the full board adopt the budget. Once the committee has come to an agreement on a budget recommendation, the amount of available funds will be shared with the Awards and Grants Committee. It will then evaluate grant requests and recommend to the board which projects to fund. Below are the highlights of how this budget came about and the end result. BUDGET PROCESS Chris Vachon prepared the preliminary budget for our fundraising efforts. Jake Koenig and I then crunched the numbers that determined the remaining revenue and expenses. Several meetings were held over the course of several weeks to identify any gaps. REVENUE HIGHLIGHTS The Foundation has four main revenue streams: Up to 4.5 percent of the four-quarter investment average; donor contributions; interest and dividends that come in the form of cash; and rent payments.
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The only amount of this group that is largely unknown for budgeting purposes is contributions – which we project to be $41,250. Because the other (larger) amounts are fairly stable, the Foundation budget is a safe process. Below is an explanation for each of the revenue variances when compared to the prior year.
x Contributions/Grants: We don’t plan to produce an annual report, newsletters or student appeal. Therefore, we are lowering our revenue projections. Although we may be “losing” a small amount of donations, we are saving significantly on our expenses.
x Interest and Dividends: This is a simple reflection of the market.
x Rolling Average: As I shared above, $250,000 was removed from the calculation, based on the board’s decision a year ago.
x Lease Management: Rent escalates a bit each year. EXPENSE HIGHLIGHTS In addition to typical operational costs (employee, utilities, insurance, legal, etc.), the Foundation funds a few of its own programs: First Amendment Award, Editorial Fellowship, High School Essay Contest, Internships, etc. After subtracting these expenses from the available revenue, the remaining surplus (or at least a large portion of it) is given away in the form of grants. Below are a few of the significant variances when compared to the prior year.
x Salaries: This is the result of a projected 4-percent pay increase.
x Capital Improvements: The major building projects are now behind us, therefore we aren’t budgeting any major expense.
x Fundraising Expense: As I mentioned above, we don’t plan to produce an annual report, newsletters or student appeal. We expect this to lower expenses by almost $15,000. Although we are projecting $6,500 less in revenue, the end result is an $8,500 gain.
GIVING POTENTIAL This budget sets the Foundation’s expenses at about $397,000 ($17,500 less than last year), leaving up to $335,462.61 available to award in the form of grants. The Foundation awarded about $330,000 last year. For discussion purposes, and to help this committee set its spending threshold for FY2014, SPJ plans to continue its main programs from a year ago – seeking SDX Foundation funding in the neighborhood of $315,000. This is nearly identical to the prior year. Grant requests outside of SPJ’s core training portfolio total almost $200,000. All told, the Foundation Grants and Awards Committee will consider requests totaling $515,000.
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Composite View
Proposed Budget Approved Budget Sigma Delta Chi Foundation Sigma Delta Chi Foundation FY 2014 FY 2013
Revenue Revenue
Expenses Expenses
Total Expenses 397,414.14$ Total Expenses 414,359.68$
Net Change in Assets 335,462.61$ Net Change in Assets 339,779.68$
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VARIANCE REPORT Below is an explanation of some of the significant revenue and expense variations between the proposed FY 2014 budget and the approved FY 2013 budget. As you can see, there aren’t very many. After three years of analyzing and fine tuning, we finally have it nailed down.
REVENUE
CONTRIBUTIONS/GRANTS We don’t plan to produce an annual report, newsletters or student appeal. Therefore, we are lowering our revenue projections. Although we may be “losing” a small amount of donations, we are saving significantly on our expenses. INTEREST AND DIVIDENDS This is a simple reflection of the market. ROLLING AVERAGE We removed $250,000 from the available funds calculation. This money is what the board set aside a year ago for Todd’s projects committee. LEASE MANAGEMENT Rent escalates a bit each year.
EXPENSES SALARIES AND PAYROLL TAXES This is the result of a projected 4-percent pay increase. CAPITAL IMPROVEMENTS The major building projects are now behind us. FUNDRAISING EXPENSE As I mentioned above, we don’t plan to produce an annual report, newsletters or student appeal.
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Proposed Budget New England Freedom Pulliam Professional Quill Pulliam Total Sigma Delta Chi Foundation Archibald Beverly Keys Dallas Pro Chapter Terry Harper Pro Chapter of Information Fellowship Taishoff Development Endowment General FY 2014 Scholarship Fund Scholarship Fund Scholarship Fund Scholarship Fund Scholarship Fund Fund Fund Fund Fund Fund Fund Revenue
Contributions/Grants -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 41,250.00$ 41,250.00$ Interest and Dividends -$ -$ -$ -$ -$ 14,558.12$ 88,500.67$ 2,169.91$ -$ 11,055.18$ 114,841.26$ 231,125.14$ Advertising Revenue -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Merchandise Sales -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4.5% of Rolling Average 4,136.55$ -$ 729.03$ 4,519.04$ 262.50$ -$ 99,554.16$ -$ 30,846.67$ -$ 293,160.66$ 433,208.61$ Quill Subscriptions -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Awards Revenue -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Registration Fees -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Royalties/Membership Benefits/Supplementary -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Lease Management -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 27,293.00$ 27,293.00$ Total Revenue 4,136.55$ -$ 729.03$ 4,519.04$ 262.50$ 14,558.12$ 188,054.83$ 2,169.91$ 30,846.67$ 11,055.18$ 476,544.92$ 732,876.75$
Expenses
-$ Total Expenses 4,136.55$ -$ 729.03$ 4,519.04$ 262.50$ 500.00$ 83,700.00$ 2,169.91$ 21,000.00$ 11,055.18$ 269,341.93$ 397,414.14$
Net Change in Assets -$ -$ -$ -$ -$ 14,058.12$ 104,354.83$ -$ 9,846.67$ -$ 207,202.99$ 335,462.61$
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Proposed Budget - Direct Rev/Exp. New England Freedom Pulliam Professional Quill Pulliam Total Sigma Delta Chi Foundation Archibald Beverly Keys Dallas Pro Chapter Terry Harper Pro Chapter of Information Fellowship Taishoff Development Endowment General FY 2014 Fund Scholarship Fund Scholarship Fund Scholarship Fund Scholarship Fund Fund Fund Fund Fund Fund Fund Revenue
Contributions/Grants -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 41,250$ 41,250.00$ Interest and Dividends -$ -$ -$ -$ -$ 14,558.12$ 88,500.67$ 2,169.91$ -$ 11,055.18$ 114,841.26$ 231,125.14$ Advertising Revenue -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Merchandise Sales -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4.5% of Rolling Average 4,136.55$ -$ 729.03$ 4,519.04$ 262.50$ -$ 99,554.16$ -$ 30,846.67$ 293,160.66$ 433,208.61$ Quill Subscriptions -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Awards Revenue -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Registration Fees -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Royalties/Membership Benefits/Supplementary -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Lease Management -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 27,293.00$ 27,293.00$ Total Revenue 4,136.55$ -$ 729.03$ 4,519.04$ 262.50$ 14,558.12$ 188,054.83$ 2,169.91$ 30,846.67$ 11,055.18$ 476,544.92$ 732,876.75$
Expenses
Total Expenses 4,136.55$ -$ 729.03$ 4,519.04$ 262.50$ 500.00$ 83,700.00$ 2,169.91$ 21,000.00$ 11,055.18$ 214,148.05$ 342,220.26$
Net Change in Assets -$ -$ -$ -$ -$ 14,058.12$ 104,354.83$ -$ 9,846.67$ -$ 262,396.87$ 390,656.49$
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Average Balance for the Prior Rolling 4 Quarters as of 1/31/13 4/30/2012 7/31/2012 10/31/2012 1/31/2013
NCB - General Funds $29,223.22 $46,981.37 $43,514.81 $50,862.71 NCB - New England Pro Chapter $1,200.00 $5,000.00 $5,150.00 $5,250.00
Total NCB $30,423.22 $51,981.37 $48,664.81 $56,112.71 JK Extrapolation
Pulliam Gen - Charles Schwab $6,668,991.00 $6,308,598.30 $6,538,415.79 $6,781,791.49 $229,817.49 $229,817.49
Professional Development - Charles Schwab $722,655.50 $664,249.70 $688,447.82 $709,677.23 $24,198.12 $24,198.12
Archibald Scholarship - Charles Schwab $92,950.07 $89,299.22 $92,552.32 $98,671.73 $3,253.10 $3,253.10
FOI - Charles Schwab $453,065.49 $440,732.91 $456,788.48 $488,447.63 $16,055.57 $16,055.57
Taishoff Fund - Charles Schwab $67,139.18 $65,925.06 $68,326.66 $70,891.48 $2,401.60 $2,401.60
Speakers Bureau $6,586.94 $6,165.93 $6,390.55 $6,881.09 $224.62 $224.62
Dallas Pro Chapter $28,481.88 $27,966.83 $28,985.64 $31,210.60 $1,018.81 $1,018.81
T. Harper Scholarship $99,073.87 $97,282.24 $100,826.16 $104,510.31 $3,543.92 $3,543.92
$280,513.23 $280,513.23 Total Charles Schwab General Commingled $8,138,943.93 $7,700,220.19 $7,980,733.42 $8,292,081.56 1.88% $280,513.23 $280,513.23
Pulliam Editorial - Charles Schwab $2,632,653.19 $2,424,125.80 $2,528,965.13 $2,617,517.50
Quill Endowment - Charles Schwab $297,196.95 $307,211.89 $310,995.10 $318,390.01
Total Cash and FMV of Charles Schwab $11,099,217.29 $10,483,539.25 $10,869,358.46 $11,284,101.78
Per Balance Sheet $11,099,217.29 $10,483,539.25 $10,869,358.46 $11,284,101.78
Check $0.00 $0.00 $0.00 $0.00
Dividends Paid Pulliam General - Subject to Total Dividends
Cash Dividends Paid $18,195.39 $25,863.96 $0.00 $70,575.12 $114,634.47 Reinvested Dividends $19,128.49 $27,190.32 $0.00 $74,194.36 $120,513.17 Total Dividends $37,323.88 $53,054.28 $0.00 $144,769.48 $235,147.64 48.75%
Average 4.50% Prior Qtrs of rolling avg.
Pulliam General $6,698,214.22 $6,355,579.67 $6,581,930.60 $6,832,654.20 $6,617,094.67 $297,769.26 -$4,608.60 $293,160.66 Professional Development $722,655.50 $664,249.70 $688,447.82 $709,677.23 $696,257.56 $31,331.59 -$484.92 $30,846.67 Archibald $92,950.07 $89,299.22 $92,552.32 $98,671.73 $93,368.34 $4,201.58 -$65.03 $4,136.55
Summarized Total $7,513,819.79 $7,109,128.59 $7,362,930.74 $7,641,003.16 $7,406,720.57 $333,302.43 -$5,158.55 $328,143.87
Less Total Cash Dividends Per Above -$18,195.39 -$44,059.35 -$44,059.35 -$114,634.47 -$114,634.47 -$5,158.55
Quarterly Amount Subject to 4.5% Balance $7,495,624.40 $7,065,069.24 $7,318,871.39 $7,526,368.69 $7,292,086.10 $328,143.87 $433,208.61
Rolling Avg. $328,143.87 Cash Dividends $114,634.47 Total $442,778.34
Quill Endowment $297,196.95 $307,211.89 $310,995.10 $318,390.01 $308,448.49 $11,055.18 Interest Only is to be used for Quill FOI $453,065.49 $440,732.91 $456,788.48 $488,447.63 $459,758.63 $14,558.12 Interest Only is to be used For FOI Taishoff $67,139.18 $65,925.06 $68,326.66 $70,891.48 $68,070.60 $2,169.91 Interest Only is to be used For Programing for broadcasters; speaker travel Speakers Bureau $6,586.94 $6,165.93 $6,390.55 $6,881.09 $6,506.13 $206.79 Harnisch Family Repurpose Gift
Dallas Pro Chapter Scholarship Fund $28,481.88 $27,966.83 $28,985.64 $31,210.60 $29,161.24 $729.03 2.5% as per CSF Agreement Terry Harper Scholarship Fund $99,073.87 $97,282.24 $100,826.16 $104,510.31 $100,423.14 $4,519.04 New England Pro Chapter $1,200.00 $5,000.00 $5,150.00 $5,250.00 $5,250.00 $262.50 5% Per CSF Agreement
Pulliam Fellowship $2,632,653.19 $2,424,125.80 $2,528,965.13 $2,617,517.50 $2,300,815.41 $103,536.69 -$88,500.67 -$3,982.53
$2,212,314.74 $99,554.16 $99,554.16 $88,500.67
Total Assets Per Balance Sheet $11,099,217.29 $10,483,539.25 $10,869,358.46 $11,284,101.78 $564,517.09 2.50% $55,307.87
$0.00 $0.00 $0.00 $0.00
Master
Total Expenses 55,193.88$ 342,095.77$
FY 2014
Board Expenses Fund Account Item Quantity Per Unit Cost Total Pulliam General Board-Related Expense Flowers/Tokens $500.00 Pulliam General Board-Related Expense Spring Board Reception 0 $0.00 $0.00 Pulliam General Board-Related Expense Spring Board Refreshments 24 $50.00 $1,200.00 Pulliam General Board-Related Expense Fall Board Refreshements 24 $50.00 $1,200.00 Pulliam General Board-Related Expense Board Books (annual) 0 $6.50 $0.00 Pulliam General Board-Related Expense Board Packets 0 $5.00 $0.00
$2,900.00
Employee Travel Fund Account Item Quantity Per Unit Cost Total Pulliam General Employee Travel Convention Hotel 6 $175.00 $1,050.00 Pulliam General Employee Travel Convention Airfare 1 $300.00 $300.00 Pulliam General Employee Travel Convention Meals $300.00 Pulliam General Employee Travel SDX Awards Banquet Hotel 0 $160.00 $0.00 Pulliam General Employee Travel SDX Awards Banquet Airfare 0 $300.00 $0.00 Pulliam General Employee Travel SDX Awards Banquest Meal 0 $70.00 $0.00
$1,650.00
Staff Development Fund Account Item Quantity Per Unit Cost Total Pulliam General Dues and Subscriptions AFP Membership $0.00 Pulliam General Employee Education/Training Conference Participation $4,000.00 Pulliam General Dues and Subscriptions Chronicle of Philanthropy $0.00 Pulliam General Dues and Subscriptions Indy Chamber of Commerce $325.00 Pulliam General Dues and Subscriptions ASAE/ISAE $500.00
$4,825.00
Audit/Accounting Fees Projected
Fund Account Item Quantity Per Unit Cost Total Pulliam General Audit/Accounting Fees Audit $10,400.00 Pulliam General Audit/Accounting Fees 990 Filing $2,000.00
$12,400.00
Merchant Fees/Credit Card Processing $500.00
Office Supplies Fund Account Item Quantity Per Unit Cost Total Pulliam General Office Supplies $500.00
Software Issues Fund Account Item Quantity Per Unit Cost Total Pulliam General Software Maintence/Upgrades iMIS Fund Raising Module License $1,000.00 Pulliam General Vocus 50% $0.00
Pulliam General Computer Services/Consulting/ Maintenance iMIS Support $2,500.00
$3,500.00
SDX Foundation Fund Raising Budget: FY2014
Revenue Fund Account Item Description No. Contacts No. Responses Average Gift Total Pulliam General Contributions Fall Handwritten Appeal 800 80 $90 $7,200
Pulliam General Contributions End of Year Appeal 250 25 $150 $3,750 Pulliam General Contributions Tax Statement Mailing 300 6 $50 $300 Pulliam General Contributions Spring Handwritten Appeal 800 80 $100 $8,000 Pulliam General Contributions Join/Renewal 8,000 200 $50 $10,000
Pulliam General Contributions Leadership Giving 44 40 $150 $6,000
Pulliam General Contributions Random Giving 40 $125 $5,000 Pulliam General Contributions EIJ Registration Form 20 $50 $1,000
Total Revenue 491 $41,250
Expenses Fall Handwritten Card Fund Account Item Description Quantity Per Unit Cost Total Cost Pulliam General Fund Raising Notecards 800 $250.00 Pulliam General Fund Raising Carrier Envelope 800 $250.00 Pulliam General Fund Raising Return Device 800 $100.00 Pulliam General Fund Raising Postage 800 $0.92 $736.00 Pulliam General Fund Raising Vendor Fees 800 $1.80 $1,440.00
$2,776.00 Tax Statement Fund Account Item Description Quantity Per Unit Cost Total Cost Pulliam General Fund Raising Letterhead 300 $0.06 $18.00 Pulliam General Fund Raising Carrier Envelopes 300 $0.11 $33.00 Pulliam General Fund Raising Reply Envelopes 300 $0.06 $18.00 Pulliam General Fund Raising Postage 300 $0.46 $138.00
$207.00 End of Year Appeal Fund Account Item Description Quantity Per Unit Cost Total Cost Pulliam General Fund Raising Letterhead 250 $0.06 $15.00 Pulliam General Fund Raising Carrier Envelope 250 $0.11 $27.50 Pulliam General Fund Raising Reply Envelope 250 $0.06 $15.00 Pulliam General Fund Raising Postage 250 $0.46 $115.00
$172.50 Spring Handwritte appeal Fund Account Item Description Quantity Per Unit Cost Total Cost Pulliam General Fund Raising Note Cards 800 $250.00 Pulliam General Fund Raising Carrier Envelope 800 $0.00 $250.00 Pulliam General Fund Raising Postage 800 $0.92 $736.00 Pulliam General Fund Raising Reply Envelopes 800 $100.00 Pulliam General Fund Raising Vendor Fees 800 $1.80 $1,440.00
$2,776.00 Thank You letters Fund Account Item Description Quantity Per Unit Cost Total Cost Pulliam General Fund Raising Letterhead 300 $0.06 $18.00 Pulliam General Fund Raising Carrier Envelope 300 $0.11 $33.00 Pulliam General Fund Raising Thank You Letter-Postage 300 $0.46 $138.00
$189.00 Grant Seeking Fund Account Item Description Quantity Per Unit Cost Total Cost Pulliam General Fundraising Airfare 2 $400.00 $800.00 Pulliam General Fundraising Hotel 2 $150.00 $300.00 Pulliam General Fundraising Rental Car 2 $50.00 $100.00 Pulliam General Fundraising Meals 2 $100.00 $200.00
$1,400.00
FY 2014
Post Grad Communication Intern Fund Account Amount Pro Development Intern Salaries/Taxes $21,000.00 (Intern Salary) Pro Development Outside Services $0.00 (Adviser Stipend)
TOTAL $21,000.00
Pulliam Editorial Fellowship Fund Account Amount Pulliam Editorial Awards $75,000.00 Fellowship Pulliam Editorial Awards $100.00 Editorial Fellowship Plaque Pulliam Editorial Awards $4,000.00 AOJ Luncheon sponsorship (formerly NCEW) Pulliam Editorial Outside Services $1,500.00 Judges stipends (3 @ $500 each) Pulliam Editorial Printing $0.00 Pulliam Editorial Postage/Shipping $100.00 Pulliam Editorial Telephone $0.00 Judges Conference Call Pulliam Editorial Participant Travel $1,000.00 Fellow NCEW event participation ($350 flight/$500 hotel/$150 misc.) Pulliam Editorial Employee Travel $1,000.00 Staff Rep NCEW event participation ($350 flight/$500 hotel/$150 misc.) Pulliam Editorial Board Related Expense $1,000.00 Board Rep NCEW event participation ($350 flight/$500 hotel/$150 misc.)
TOTAL $83,700.00
Pulliam Kilgore Interns Fund Account Amount Pulliam General Intern Salaries/Taxes $9,000 (2 interns: 10 weeks at $400 per week plus taxes) Pulliam General TOTAL $9,000
Pulliam First Amendment Award Fund Account Amount Pulliam General Awards $10,000.00 award Pulliam General Outside Services $750.00 plaque Pulliam General Telephone $0.00 Judges Conference Call Pulliam General Postage/Shipping $100.00 Judging Packets Shipping Pulliam General Participant Travel $1,050.00 Recepient event participation ($400 flight/$500 hotel/$150 misc.)
TOTAL $11,900.00
High School Essay Contest Fund Account Amount Pulliam General Awards $1,850.00 $1,000, $500, $350 scholarships Pulliam General Postage/Shipping $100.00
TOTAL $1,950.00
TOTAL $4,136.55
TOTAL $2,169.91
SDX Programs Budget 2014 SDX Programs
R.D.G. Lewis First Amendment Award Fund Account Amount FOI Awards $500.00
TOTAL $500.00
Harper Memorial Scholarship Fund Account Amount Harper Memorial Awards 4,519.04$
TOTAL $4,519.04
Beverly Keys Scholarship Fund Fund Account Amount Beverly Keys Awards -$
TOTAL $0.00
Dallas Pro Chapter Scholarship Fund Fund Account Amount Dallas Pro Awards 729.03$
TOTAL $729.03
New England Pro Chapter Fund Account Amount New England Awards 262.50$
TOTAL $262.50
Income 4.50% Rolling Average $433,208.61
Contributions $41,250.00
Interest and Dividends $231,125.14 Pulliam Editorial Fellow 79,100.00$ Quill 11,055.18$
Total Revenue $732,876.75 Taishoff 2,169.91$ Beverly Keys Scholarship -$
Expenses Grants/Awards $110,185.66 Dallas Pro Scholarship 729.03$ Terry Harper Scholarship 4,519.04$
Allocable (shared expenses with SPJ) Expenses $55,193.88 Ethics Book -$ New England Pro Scholarship 262.50$
Salaries, Benefits of SDX staff and shared SPJ Staff $157,502.55 First Amendment Award 10,000.00$ High School Essay 1,850.00$
Intern Salaries $34,136.55 RDG Lewis First Amend 500.00$
Fundraising Related Expenses $7,520.50 110,185.66$ Other Direct Expense Detail
Other Direct Expenses $32,875.00 Accounting Fees 12,400.00$
Total Expenditures $397,414.14 Board Related 2,900.00$ Employee Travel/Education 6,475.00$
Net Surplus $335,462.61 Software Maintance 3,500.00$
$335,462.61 Property Tax -$ Capital Improvements -$ Other $7,600.00
32,875.00$
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MEMORANDUM
DATE: April 10, 2013 FROM: Mac McKerral, Grants and Awards Committee Chairman SUBJ: Grant recommendations, Fall 2013-Spring 2014 FOR: Sigma Delta Chi Foundation Board Colleagues: The SDX Foundation Grants Committee makes the following recommendations for the upcoming fiscal year. Please note that foundation guidelines allowed for $335,462.61 in grants for the cycle. Grant requests totaled $516,643, a difference of ($181,130.39). The supported requests exceed the maximum allowed by ($40.39).
Requested Recommended
• SPJ Convention Education Program $85,000 $85,000
• SPJ Diversity Leadership Program $7,570 $7,570
• SPJ (Koretzky) Will Work for Food $5,000 $3,000
• SPJ (Koretzky) Unethical Press $350 $350
• SPJ Madison Wells Key Event $2,500 $2,000
• SPJ MOE Awards Support $27,201 $27,201
• SPJ Training Place $187,722 $187,722
• NFOIC $10,000 $7,500
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MEMORANDUM
DATE: April 7, 2013 FROM: Joe Skeel, Executive Director SUBJ: Staff Report FOR: SPJ Board of Directors Because I email each of you weekly, providing an ongoing update of our efforts, this report will focus on big-picture items in the works or on the horizon. AUTODRAFT DUES BILLING SPJ will be purchasing an “add-on” for our database, which delivers the ability to initiate and manage automatic recurring charges. The software developers say implementation will take about 60 days from start to finish. It’s entirely possible the ball will be rolling by the time we meet in Indy. Cost for implementation is about $8,000-$10,000. It’s important to note that this DOES NOT include the cost to tie it to our online join/renewal page on SPJ.org. To complete this phase will be another $4,000-$7,000. In all likelihood, we will hold off on Phase 2 for a short time – certainly until after convention. However, we will put information on the site that autodraft is available. People will simply have to contact HQ to set it up. We will, of course, also include information with dues reminders, invoices and other member communication. CHAPTER HEALTH Tara has been working diligently in order to get a firm handle on our chapters. It has not been a smooth process. Many local chapter leaders don’t return phone calls or e-mails. It’s hard to help when they don’t communicate. In many cases, we have membership dues checks we are attempting to send. With my support, Tara refuses to mail checks until she “speaks with a human.” Furthermore, she has faced challenges in getting chapters to attend the Scripps Leadership program – despite direct e-mails and phone calls to chapter members. For our first Scripps program in Region 5, we had no representatives from Louisville Pro or the Bluegrass Chapter (two of the four pro chapters in the region). As I type this today – two days out from the Region 9 deadline – we have no one signed up from the Colorado Pro or Utah Headliners chapters (again, two of the four pro chapters in the region). We are by no means throwing in the towel. But we have learned this: SPJ’s chapter structure is not healthy. It will take a lot of work to get it up and running like a well-oiled machine.
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SPJ BRANDING I have asked our more creative staffers to take a critical look at our branding: logos, letterhead, avatars, web graphics, etc., etc., etc. The goal is simple: Ensure that SPJ’s image reflects the progressive, industry-leading organization it wants to be. At this point, I don’t envision a complete overhaul. But, we do want to identify outdated and inconsistent pieces and update or eradicate them. CLOUD COMPUTING Desktop computers and servers are my No. 1 enemy. Nothing sucks more of our time than faulty/slow equipment. Therefore, my goal is to eliminate them from 3909 Meridian St. Our four servers (one of which houses our telephone system) are nearing the end of their expected life cycle. This makes them slow. More importantly, however, they will soon die. When this happens, it will cost about $4,000-$6,000 to buy a new one and have our third-party IT company re-install all the necessary safety controls and software. Furthermore, each time one of our work stations goes on the fritz, I try to fix it by running basic maintenance. If that doesn’t work, and it rarely does, we call our IT firm – and pay them. At this point, I have spent fruitless time on the unit. And the person experiencing the trouble needs a temporary place to work. Because of this, we must have an “extra” work station available. By going to the cloud, all of our “stuff” would be hosted by a third-party – software, files, etc., etc. We would have no servers in the building. And instead of work stations, staffers will work on “thin clients.” These look like tiny computers, but are little more than a gateway from 3909 to our host. Staffers could also work off their own devices – from anywhere in the world. All system maintenance would be managed and performed by our host. I still have questions, however: Mainly, security and cost. Cloud-based options charge a monthly fee. It may be more than what it costs to maintain our current structure over the long haul. If so, is that additional cost worth improvement in staff efficiency? Stay tuned. FINANCIAL FUTURE We have spent the past few years working to rebuild our cash reserves. Now, it’s time for SPJ to think about long-term investment strategies. Currently, SPJ’s investments consist of a low- interest, but very safe and liquid, money market. This preserves our capital and allows us to get our hands on the money if need be. Over the next year or two, assuming the finances remain steady, I will be investigating the possibility of SPJ diving into the stock market – just as the SDX Foundation does. In fact, this is where the vast majority of the Foundation’s assets are. It’s more risky than a money market, for a variety of reasons. But, it also yields higher returns.
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Be thinking: How risk-averse should SPJ be with its reserves? Should we use that money to buy stocks/bonds/funds, which could spin off interest/dividends and increase the value of our investments – and/or provide cash to SPJ’s operations? Or, should we be content with money in the bank, forsaking risky earnings potential for the safety of knowing the money will be there when we need it – regardless of market performance? SDX AWARDS BANQUET / JOURNCAMP / EXECUTIVE COMMITTEE MEETING The annual SDX Awards Banquet will be Friday, June 21 at the National Press Club in Washington, D.C. The following day, SPJ’s executive committee will meet while staff conducts its third JournCamp right down the hall. Mark your calendars. It’s gonna be an SPJPalooza! EIJ BOARD MEETING TIMES Just a reminder, the SPJ board will meet at 9 a.m. on Saturday, Aug. 24 and Tuesday, Aug. 27 in Anaheim. The SDX Foundation Board will meet at 9 a.m. on Sunday, Aug. 25. For a complete EIJ13 schedule, visit http://excellenceinjournalism.org/schedule/
OFFICERS Expires NOTES: President Robert Leger 9/5/2014 2-year term Vice President Irwin Gratz 8/25/2013 1-year term Secretary Jane Kirtley 8/25/2013 1-year term Treasurer Howard Dubin 8/25/2013 1-year term
BOARD MEMBERS Expires Group Notes David Carlson 8/25/2013 B 3-year term Al Cross 8/25/2013 B 3-year term Howard Dubin 8/25/2013 B 3-year term Steve Geimann 8/25/2013 B 3-year term Hoag Levins 8/25/2013 B 3-year term Russel Pulliam 8/25/2013 B 3-year term Dave Aeikens 8/25/2013 B 3-year term Fred Brown 9/5/2014 A 3-year term Jay Evensen 9/5/2014 A 3-year term Jane Kirtley 9/5/2014 A 3-year term Dori Maynard 9/5/2014 A 3-year term Mac McKerral 9/5/2014 A 3-year term Sally Lehrman 9/5/2014 A 3-year term Sue Porter 9/5/2014 A 3-year term Kevin Smith 9/5/2014 A 3-year term Todd Gillman 9/26/2015 C 3-year term Irwin Gratz 9/26/2015 C 3-year term Alex Jones 9/26/2015 C 3-year term Bill Ketter 9/26/2015 C 3-year term Al Leeds 9/26/2015 C 3-year term Robert Leger 9/26/2015 C 3-year term Hagit Limor 9/26/2015 C 1-year term John Ensslin 8/25/2013 SPJ 1-year term Sonny Albarado 8/25/2013 SPJ 1-year term David Cuillier 8/25/2013 SPJ 1-year term Neil Ralston 8/25/2013 SPJ 1-year term Bill McCloskey 8/25/2013 SPJ 1-year term Brian Eckert 8/25/2013 SPJ 1-year term
Bold indicates term expires in 2013 Italics indicates SPJ appointee for one-year term expiring in 2013. Expiration terms are approximate, determined by annual convention.
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GIFTS ACCEPTANCE POLICY
The Board of Directors of the Sigma Delta Chi Foundation (SDX) and its staff solicit current and deferred gifts from individuals, corporations and foundations to secure the future growth and mission of SDX and the Society of Professional Journalists (SPJ). This policy governs the acceptance of gifts by SDX and provides guidance to prospective donors and their advisors when making gifts to the SDX Foundation. SDX reserves the right to deny any gift. TYPES OF GIFTS ACCEPTED 1. Cash. 2. Readily Marketable Securities. Such securities will be accepted and shall be held or sold
in accordance with an investment policy established by SDX. 3. Non-Readily Marketable Securities. Gifts of such securities will be accepted under the
following condition: Gifts of closely held securities will be carried on SDX’s books at a nominal value of $1.00, unless SDX is provided with an appraisal by an independent appraiser acceptable to SDX, establishing its Fair Market Value.
4. Real Property: Gifts of real property will be accepted under the following conditions: (a) All offered gifts of real property over $5,000 are required to have an appraisal by
an independent appraiser acceptable to SDX, establishing its Fair Market Value. The date of the appraisal shall be within 60 days of the date of the gift.
(b) Except in the case of residential property that has been used solely for residential purposes for at least 20 years, all proposed gifts of real property shall be accompanied by an environmental audit.
(c) It is the responsibility of the donor to pay for the appraisal and the environmental audit.
(d) The SDX Foundation shall determine the acceptability of mortgaged property. 5. Personal Property. 6. Planned Gifts: SDX will accept the following types of planned gifts. Donors will be
encouraged to have their planned gift agreements reviewed by their legal and financial advisors.
(a) Charitable Trust. A Charitable Trust shall be subject to the following rules: i. SDX prefers that a donor who creates a charitable trust name an outside
trustee. ii. However, if the donor requests SDX to act as trustee, SDX shall do so
under the following conditions: (i) the initial funding of the trust must have a Fair Market Value of at least $500,000; (ii) except in the case of a Lead trust, SDX must be a vested beneficiary of the trust for at least 75% of the remainder; (iii) the trust shall be responsible for its own expenses; (iv) payments from the trust will be made not less than quarterly, and (v) an annual statement will be provided to beneficiaries in compliance with the rules of the Internal Revenue Service.
(b) Other Types of Acceptable Planned Gifts. Other types of acceptable planned gifts include bequests; remainder interests in property; retirement plan beneficiary designations; and life insurance beneficiary designations.
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