Operating procedures for the AEASA endowment
(based on AAEA endowment fund procedures)
The general purpose of the endowment fund is to enhance the ability of agricultural economists to serve society. Funds collected by the AEASA endowment fund are used to: (a) improve the quality of work done by agricultural economists through education and human capital development; (b) expand the range of clientele who will benefit from the work of agricultural economists and provide them with useful economics information; and (c) otherwise enhance the abilities and visibility of the profession and its members.
Solicitation of Funds.
Funds are to be solicited from individuals, firms, institutions, and foundations interested in advancing the work of agricultural economists. The Management Committee, through the Vice President shall arrange various fundraising activities. The Vice President will maintain close liaison with the AEASA Business Office, which will assist with fund raising. General solicitation for funds from AEASA members shall be made from time to time and special appeals will be made to other categories of potential givers, including business firms, foundations, and various organizations and individuals. The AEASA membership dues notice will provide space to invite members to contribute. Gift classifications are as follow:
R99 or less
R100 to R499
R500 to R999
R1,000 to R4,999
R5,000 to R9,999
R10,000 to R19,999
R20,000 or more
Funds may be given to AEASA for allocation to AEASA purposes without restriction as to use, or funds may be designated for particular uses within AEASA purposes and activities. Unless givers have reasons for doing otherwise, they are encouraged to make unrestricted gifts. The Management Committee has the authority to remove a restriction from a gift if the gift is not used for the particular designated purpose within 5years from the date of the gift, provided that a good faith effort has been made to use the gift for the purpose designated.Gifts may be of several types, depending on how the donor intends the funds to be used.
These funds will be invested and the income used to support AEASA projects. The appreciation clubs are examples of gifts made to the endowment fund. Gifts of R10,000 or more can be identified by naming them for a particular person or persons, organizations or a specific use that is in accord with AEASA objectives.
Gifts of any amount can be made to designate projects administered by the AEASA. These funds are used to advance special activities of the agricultural economics profession and its purposes. Use of gifts in this category follows the wishes of the donor, but all expenditures must be made in accordance with written guidelines approved by the AEASA Management Committee. Generally, gifts for designated projects are received and administered on an ongoing basis.
Gifts not specified for the endowment fund activities or a designated project will be used, as the Management Committee deems best. These gifts plus any accrued income may be used to support current AEASA activities. Otherwise, they will be invested in the general endowment fund and the income used to support AEASA projects.
Operating details for appreciation clubs are as follows:
The purpose of a club is to recognize professional contributions of a particular individual or group.
Funds may be designated for the support of any activity consistent with the objectives of AEASA. Otherwise, income from the donations will be used for projects approved by the Management Committee of AEASA.
The club is to bear the name of the individual or group being honoured.
A minimum of R10,000 contributed or pledged is required to charter an appreciation club. Clubs not achieving R10,000 over a 5-year period are no longer listed as active. If, however, a total of R1,000 in donations is received in the sixth year, the club will be reactivated. For a reactivated club, if the R10,000 required for charter is not attained by the end of the sixth year, the funds in the club will be allocated to AEASA current activities and projects and the club will be removed from AEASA records.
An appreciation club is chartered in perpetuity when R20,000 has been contributed or pledged within 4years of charter. If a fund does not achieve R20,000 over a period not to exceed 4years from the date of charter, all the contributions to the fund may be expended on current AEASA programs. Alternatively the funds in such clubs may be depleted in a special project recommended by the charter committee.
Donations and bequests by family and friends in any amount will be received any time following formation of a club.
The individuals contributing the initial principal (R10,000) for a club charter will be designated as charter members.
After the charter is granted, additional supporters will be invited to become club members by making a pledge or contribution.
When a club achieves charter status a plaque extolling the virtues of the honoree(s), or family or department, as seems appropriate.
A periodic report on contributions received will be published in the AEASA Newsletter and in the Annual Presidential report.
Unless otherwise specified in the charter of a club, only the income from the principal will be allocated to support AEASA activities.
Other Recognition Awards
The Leopard Award is an example of another type of award. A minimum contribution of R500 is required for these awards. All funds collected through awards programs are added to the endowment fund.
The purpose of these awards is to recognize professional contributions of a particular individual.
Award recipients will be presented a handsome certificate honouring the contributions of the recipient.
In addition to cash contributions, givers may transfer assets or make bequests to AEASA. Methods of giving assets or making bequests must be in accord with legal requirements and tax codes. A pledge arrangement for giving over a period of time is also possible. Under such an arrangement, a giver can specify, according to his/her convenience and desires, the timing and other aspects relating to the transfer of his/her gift or gifts. AEASA has the right to refuse a gift.
Special recognition will be given to the various categories of givers. Givers, whose cumulative gifts are in the cumulative donor classification or higher will have their names published annually in the AEASA Annual Report. Annual gifts in the donor classification and above will also be published in the AEASA Newsletter.
Management of Funds.
Except for current cash flow needs, AEASA funds will be invested in income-producing assets of such maturates as seem appropriate to enhance returns and meet liquidity needs. The Management Committee will investigate investment alternatives, make recommendations and oversee fund management.
The Secretary of AEASA will oversee the ongoing administrative aspects of fund management. He or she will handle the required administrative functions in accordance with the By-Laws of AEASA and the Operating Procedures of the Endowment Fund.
The Vice President is responsible for recommending to the Management Committee guidelines and procedures for use of AEASA funds.
Disbursement of Funds. Funds will be disbursed for selected activities that are in accord with the overall purpose of AEASA. The Vice President with a Program Advisory Committee initiates calls for proposals, receives them, and then makes recommendations to AEASA for funding.
A call for proposals shall be announced to all AEASA members in the AEASA Newsletter. The announcement will indicate possible types of projects, including funding limits and due dates. No schedule will preclude the consideration of unique proposals at any time during the year.
Funds needed for administrative expenses will be requested initially from AEASA. Travel expenses will be authorized in amounts that are consistent with Management Committee policies.
Records and Management.
The AEASA Business Office will maintain separate financial accounts for the AEASA Endowment fund.
Reporting. The Management Committee will report annually to the AEASA membership. The written report will include a complete financial accounting of funds received and disbursed, funds on hand, activities completed, in process and planned, and any other matters deemed to be relevant.
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