BACKGROUND

At a joint meeting of the Endowment’s Board of Directors and the Izaak Walton League’s Executive Board in July 2016, a number of areas were discussed that could lead to enhanced cooperation between the League and the Endowment. Suggestions were also presented that could improve the Endowment’s ability to be responsive to the needs of the League’s chapters and divisions.

One specific suggestion was that the Endowment be able to provide a grant for a project opportunity that arises outside of the normal application/approval time line  – that is, an important opportunity that would be lost if it were necessary to wait for the formal meeting of the Endowment at the Izaak Walton League’s annual national convention, as required by the Endowment’s current Bylaws. This suggestion met with general approval and the proposed change seeks to address this opportunity.

RATIONALE

Whether this procedure will be used in the future and whether it would have been used in the past is unknown. What is certain, however, is that the current Bylaws are severely limiting in any grant authorization flexibility. When we look at the potential up-side or down-side discussion, we find that there really is no down side associated with the move, as long as there are adequate checks and balances in the system to ensure there will not be any abuse. We believe that the way in which those checks and balances are addressed provides that assurance.

CHECKS AND BALANCES

To ensure grant decisions are not made on an arbitrary basis, several controls are included in proposed Bylaws Section 5.5.2. A maximum grant of 10 percent of available funds is specified. These available funds are calculated, in accordance with the Endowment’s Disbursement Policy, on the basis of a three-year moving average. Since the available funds are an average of three years, the approximate amount available can be calculated with a high degree of certainty. Any funds actually granted would be charged against the following year’s grants. Most importantly, any positive decision regarding the grant must be made with the unanimous approval of the Endowment Board of Directors. If any one Director feels that the grant would be inappropriate, the grant would be disallowed.

EXISTING SECTION

5.5. Any action taken by the Directors in writing, or electronically, shall have like force and effect as though the same were taken personally by the Directors at a duly constituted meeting thereof. At the discretion of the President, the Endowment will have the option of voting on routine matters electronically. Voting on Officers and decisions regarding grant applications can only be done at the annual meeting of the Endowment. The exception to be allowed concerning grant applications could occur in the event that a decision to fund is tabled until additional information is received from the applicant. Once that information is subsequently received and distributed, the President may poll the Endowment Directors electronically.

MODIFIED SECTION

5.5 Any action taken by the Directors in writing, or electronically, shall have like force and effect as though the same were taken personally by the Directors at a duly constituted meeting thereof. At the discretion of the President, the Endowment will have the option of voting on routine matters electronically. Voting on Officers and decisions regarding grant applications shall only occur at the annual meeting of the Endowment with the exception of two specific situations as noted in the following sub-sections:

5.5.1 An exception concerning grant applications may occur in the event that a decision to fund is tabled until additional information is received from the applicant. Once that information is subsequently received and distributed, the President may poll the Endowment Directors electronically.

5.5.2 An exception concerning grant applications could occur in the event that a time-dependent, quick-response funding opportunity arises that is entirely consistent with the goals and objectives of the League. In order to be considered, it must be demonstrated that there is or was no opportunity to submit the grant request for consideration at the annual meeting of the Endowment and that the opportunity to participate in the event would be lost if funds were not made available. Any funds approved for such a quick-response grant shall be taken from revenues available and not from investment portfolio principal. In no case shall any grant exceed 10 percent of the funds estimated to be available for the following year’s disbursement. Further, the quick-response funds shall be charged against the following year’s funds available. The decision whether or not to fund the request shall be done electronically, and a unanimous vote of all Directors shall be required.