NEAFCS MN Affiliate Conference Call -- 10-3-08
Present: Rose Allen, Shirley Anderson-Porisch, Kim Asche, Roselyn Biermaier,
Deb Botzek-Linn, Carol Ann Burtness, Suzanne Driessen, Colleen Gengler,
Becky Hagen-Jokela, Rosi Heins, Kathy Olson, Cindy Petersen
Purpose: To review information/clarify options for using proceeds from the Tri State Committee - NEAFCS Annual Session 2007, St. Paul, MN:
Colleen reviewed options, timeline for developing options, clarifications of endowment terminology and steps taken by the Board to use member input and bylaw information related to budget for direction to develop options. Details would need to be worked through for either option. Matt Mussel, U of M Foundation, will attend MN-Affiliate Annual Meeting in Duluth on 10/22/08 to provide information on quasi-endowment.
Questions raised by caller participants:
1. Is there a penalty if the principal falls below $10,000?
No, not a penalty. Quasi implies long growth vs. a CD. Choice would be only to use interest. Option 2 - unclear if only use CD interest. There is no principal guarantee with quasi. Quasi can be maintained even with loss in principal.
Option 2 may take more time on part of MAEE treasurer. Colleen clarified management of quasi vs. short term options. MEWS (MN Extension Worker's Scholarship Fund through ESP - also set up as a quasi-endowment) needs a statement of use for using funds to expedite payment to end user. A 4-H quasi example was described - return has been positive but there is administrative cost that seems reasonable.
2. Will interest be used to maintain budget?
Will principal be used to maintain budget?
Current budget projections are based on current membership and current expense level which suggest our budget can continue to operate with carryover funds for the next 8-10 years. Funds from interest could be used to support things including that which may have been removed in the past i.e. PILD. For the short term option, the board would need to determine how much principal would be used.
3. Has there been MAEE discussion as to increasing support for PILD?
MAEE has been happy that Dean increased support from $0 to $500.
4. How do we get to a principal of $10,000?
Present funds have been put into a 10 month CD @ 3.25% interest which will bring balance to over $10,000 at maturity.
Board was thanked for putting together informative options for discussion
Colleen said that Dean Durgan and Karen Shirer are supportive of decision that will be made by MN-Affiliate membership.
Cindy reported 23 members so far including 2 new members.
Congratulations were extended to Kathy Olson, NEAFCS Secretary, elected at Galaxy as well as to all award winners.
With no further discussion, conference call ended at 11:10 am.
Minutes prepared by Shirley Anderson-Porisch for Sara Croymans.