Manhattan Beach Education Foundation
Continuation of Regular Meeting of the Board of Directors
December 9, 2003 at 7:30 p.m.
Mira Costa High School, Room 113

Present:

Directors (13/21): Geoff Bremer, Webster Burns, Wendy Carson, Randy Dotemoto, Jim Furlan, Carolyn Leserman, John Oshiro, Carol Rowe, Julian Ryder, Kim Siehl, Jeff Thaler, Ida VanderPoorte, Gary Wayland

MBUSD Trustee Representative: None

MBUSD Representatives: None

MBEF Staff: Debbie Bowen

Guests: Ellen Rosenberg, Margo Thole

Presiding: Carolyn Leserman, President

Recording: Webster Burns, Executive Vice President

Handouts: Agenda, Minutes, Financial Report, Proposed Directed Fundraising Policy and Resolution

President’s Notes:
Ms. Leserman reported that we still need a typesetter for six weeks of ads we plan to run in The Beach Reporter. Mr. Julian Ryder volunteered.

Ms. Leserman reported that there had been a recent Executive Board meeting and that the address and phone number for the Foundation would change with the move to the new District office building on December 19-20. The new address will be:

Manhattan Beach Education Foundation
PO Box 1110
Manhattan Beach, CA 90267.

The new phone number will be:

(310) 303-3342.

Ms. Wendy Carson suggested that the Foundation explore the possibility of listing the new number in the telephone directory and with directory assistance.

Ms. Leserman announced that on Thursday, December 11, she would conduct a walk-through of the Foundation’s office in the new District office building. She invited anyone interested and available to join her.

Ms. Leserman also announced that Ms. Anne McLaughlin and Ms. Wendy Carson volunteered to prepare School Notes, the Foundation’s newsletter. They hope to have the next addition ready for distribution in January, before the end of the Foundation’s Annual Campaign.

Finally, Ms. Leserman reported on the District Advisory Council Meeting earlier in the day. She said that Dr. Gross and Mr. McMahon from the school district reviewed the financial situation faced by the district, much as they had at the last Foundation meeting. They were very complimentary of the Foundation and described the relationship between the Foundation and District as a partnership.

Minutes:
The minutes of the November 4, 2003 meeting were unanimously approved on motion by Ms. Carson, seconded by Mr. Randy Dotemoto.

Financial Report:
Ms. Ida VanderPoorte presented financial statements and a grants report for the five months ended November 30, 2003. She pointed out that the Foundation raised more money than at the same time last year, but that this was the result of the Vital Funds Program, the Oktoberfest (a new event) and higher interest income. Individual donations were down because the Annual Campaign started later this year.

On the balance sheet, she pointed out that most of the Foundation’s money was in the Foundation’s investment account at Solomon/Smith Barney. A substantial cash balance was at Wells Fargo Bank to cover anticipated bills from the school district. Grants payments were down because we are asking the school district for details on the Vital Funds grants before payment.

Mr. Jim Furlan asked if there were investment guidelines, and Ms. VanderPoorte and Mr. Geoff Bremer briefly discussed the existing oversight committee and its history and the Foundation’s investment guidelines. They also said that the oversight committee would be considering whether it should recommend to the Board that the Foundation move a small portion of the Foundation’s assets into an equity account.

Ms. VanderPoorte noted that the Foundation had amended its bylaws last year to allow a temporary suspension of contributions to the Foundation’s endowment account. The consensus of the Board was that the Foundation should re-institute the 20% contribution to the endowment account.

Business Education Partnership Report:
Ms. Leserman delivered the Business Education Partnership Report in the absence of Ms. Sherry Kramer, who could not attend tonight’s meeting because of a previous engagement. She reported the following contributions and events:

First Coastal Bank made a $5,000 donation to the Foundation.

Power Karate made a $1,000 donation to the Foundation.

Hawthorne Savings made a $5,000 donation toward the Wine Auction. The bank will move from purchasing a corporate table to becoming a sponsor of the event.

The Manhattan Country Club will hold a Monte Carlo Night in December, with a percent of the proceeds going to the Foundation. Flyers and reservation cards were distributed.

The LA Food Show will donate 15% of its gross proceeds on Monday nights in January to the Foundation.

A recent soccer tournament for the benefit of the Foundation raised $18,000. The check will be presented to the Foundation at its January meeting.

Wells Fargo Bank has agreed to become a sponsor of the Wine Auction at a donation level of $10,000.

Vineyard Bank may becoming a sponsor of the Wine Auction at a donation level of $10,000.

Ms. Kramer and Ms. Leserman met with National Charities about becoming a beneficiary of their scrap car donation program. Ms. Leserman noted that this seemed a viable opportunity but wished to defer publicizing it until conclusion of the Annual Campaign. Ms. Debbie Bowen noted that we had received a first check in the amount of $222.

Ms. Leserman noted that the Middle School had its winter instrumental concerts last week and that the high school and Middle School choral programs would have their concerts this week.

Fundraising Reports:
a. Annual Appeal: Ms. Kim Siehl reported on the Annual Campaign. A different letter was prepared for potential donors based on their past contributions. The letters suggest a minimum of $150 per family. The committee plans weekly, identical flyers at the elementary schools. The committee will meet to develop a strategy to encourage donations by Middle School and high school parents.

b. Proposed Directed Fundraising Policy:
Mr. John Oshiro presented a proposal for the Foundation to assist other groups raising money for academic programs in the schools by providing administrative support and placing donations to those organizations under the umbrella of the Foundation’s 501(c) tax status. He and Mr. Wayland explained that the Manhattan Beach Athletic Foundation would provide parallel services for non-academic programs. All direct administrative expenses, such as credit card fees, would be charged to the organizations, and indirect and overhead expenses would be covered by a 20% charge to the funds deposited with the Foundation for the organization.

Ms. Siehl asked if this procedure would apply to the Vital Programs Fund if the Foundation was asked to provide administrative services for that or a similar program this academic year. Mr. Oshiro stated that this proposal, and particularly the 20% assessment, was not intended to apply to the Vital Funds Program. He suggested that the Foundation should address its relationship with the Vital Funds Program separately.

Ms. Leserman said that she had been approached by a group intending to set up a foundation to support the Broadcast Studio and media arts at the high school. The group asked if the Foundation would provide administrative services for the group’s initial fundraising pending its obtaining tax-free status. It was agreed that the new policy, if adopted, would apply to this group.

Numerous other questions and points of view were discussed followed by a motion by Mr. Bremer, seconded by Mr. Dotemoto, that the Board adopt the proposed resolution on directed fundraising (see below). The motion passed unanimously.

On a subsequent motion by Mr. Oshiro, seconded by Mr. Thaler, the Board unanimously approved the appointment of the following individuals to the Directed Fundraising Oversight Committee, as called for by the previous resolution:

Mr. Furlan
Ms. VanderPoorte
Ms. McLaughlin
Mr. Mike Dunitz
Mr. Oshiro

Old Business / New Business:
None

Meeting Adjourned to Closed Session: 8:45 PM

Meeting Adjourned: 8:55 PM.

Next Meeting: Tuesday, January 6, 2004, 7:30 PM at Room 113, MCHS

RESOLUTION OF THE BOARD OF DIRECTORS

Whereas, the Foundation desires to facilitate fundraising by other organizations supporting particular programs in the Manhattan Beach School District; therefore:
Resolved:

1) That the Foundation offer to provide certain administrative services, including receiving donations, holding cash balances, paying invoices, etc., to organizations whose primary purpose is to raise money to support academic, academically-related or enrichment programs at any of the Manhattan Beach Unified School District Schools;

2) That all direct expenses associated with these administrative services, such as event expenses, credit card processing fees, event insurance, etc., shall be charged directly to the organization and not the Foundation;

3) That an additional administrative fee of 20% of the net fundraising proceeds (gross proceeds received by the Foundation on behalf of the organization less all chargeable direct expenses) shall be deducted from the amounts deposited with the Foundation by the organization and directed to the general fund of the Foundation;

4) That the Foundation establish a Directed Fundraising Oversight Committee (the “Committee”);

5) That the Committee be composed of not less than three nor more than five members;

6) That the Foundation Treasurer be a member of the Committee;

7) That at least one member of the Committee also be a member of the Foundation’s Grants Committee;

8) That the Committee develop a standard contract and specific requirements and guidelines for organizations wishing to use the Foundation to administer their financial affairs and recommend this contract and these requirements and guidelines to the Board;

9) That once these specific requirements and guidelines are approved by the Board, the President of the Foundation, with the concurrence of the Executive Board, shall have the authority to enter agreements with interested organizations; and

10) That this resolution on the relationship between the Foundation and Directed Fundraising Organizations shall have no effect on the Foundation’s existing Directed Donation Policy for one-time directed donations.