CAPITAL DISTRICT KIWANIS FOUNDATION, INC.
MEETING OF THE BOARD OF DIRECTORS
November 8, 2003

The 154th meeting of the Board of Directors of the Capital District Kiwanis Foundation was held on November 8, 2003 at 10:00 AM at the Holiday Inn and Conference Center, Fredericksburg, Virginia.

The meeting was called to order at 10:00 AM by President Doc Thrush. He welcomed the following guests: PG John Tyner, Gov. Linwood Watson, CMN Chair David
Lurie, Circle K District Administrator Heather Talbert. The Pledge of Allegiance was led by Dave Reichert and the Invocation was given by Dale Larson.

Roll Call indicated that the following members were in attendance:
Bernice Oden Roy A. Sheets, Jr Harry Horning
Walter Rudy Joseph N. Maranto Cornelius Behan
Charlie Bowie George Faustino Robert Cressy
Don Schroeder David Reichert Dale Larson
Thomas Varner Doc Thrush Stanley F. Miller
Linwood Watson John Tyner Charles P. Adams

Minutes of the last meeting, August 15,2003- Neal Behan made a motion to approve the minutes as circulated by e-mail to the Board. Seconded by Don Schroeder. The motion passed.

Treasurer's Report- presented in detail by Stanley Miller. Copies were distributed to the Board and the Treasurer answered all questions concerning the Foundation' s financial well being.. A detailed copy of the Treasurer's report is included in the minutes. Treasurer Miller indicated assets of $517,554.90.

Accounting is done on an accrual basis.Accounts receivable of $2100 from Founder's Society, $1900 from Springfield Club. Accounts payable is at $28,286.36: $27,300 being Pediatric Trauma Hospitals, Gifts for the Governor totaled $886, remainder for Sponsored Youth. Motion by Charles Adams to accept the Treasurer's report. Second by Joe Maranto. Motion passed.

Investment Report- Bob Cressy reported that Stan Miller had been recognized by the Founder's Society for his years of service and he asked us to stand to recognize Stan since he has resigned as Treasurer.

A special report of the Foundation Finance Committee concerning our investment policy and current investments was sent to all members and is made part of the minutes of this meeting. The Committee will meet to review our current policy .

Committee Reports
Life Memberships- a list of 37 new Life Memberships since August 15, 2003 was presented to the Board by Secretary Adams.

Founder's Society- report by Bob Cressy - Hank Brodsky, Roger Diehl and Bob Cressy will put on a program about the Founder's Society for your division. Three sets of display boards available for the presentation The goal is $200,000. Money is given to the Sponsored Youth programs. Membership is a $1000 donation and can be made in installments. The new member receives a ribbon, pin and plaque. Current ly, we are trying to produce plaques for earlier members.

Fund Raiser Cruises- Dave Reichert reported that packets were sent to all club presidents for fund raising through cruises. The Virginia Beach club has taken four cabins for a March cruise. Holland America is now going out of Norfolk on 10 and 11 day cruises.

New Treasurer Committee Report- Bob Cressy stated that the committee had reviewed several candidates for the position that was advertised in the Builder and it recommends Marion Allen to serve as the Foundation Treasurer for 2003-04. Bob introduced Marion to the Board and went over his resume. A motion was made by Dave Reichert to accept the committee recommendation. Second by Charlie Bowie. Motion passed. Marion thanked the Board for the opportunity to serve as the new treasurer.

New Business
President Thrush as requested that Trustees bring back reports on how projects that the Foundation has funded are progressing to date. He reported on the Kiwanis Children's Council of Hampton Roads project that he had brought to the Board for consideration two and a half years ago. There are now corporate sponsors and grants from the State of Virginia.Cox TV and Farm Fresh have selected the KCCHR as their charity.They have a web site at www.kidspriority.org and an office with two employees. The kickoff was three weeks ago at the Hampton Coliseum where they had a 57 inch smart board with the web site and passed out 3,000 brochures. Five newspaper articles have been published and an article in the Parenting magazine. Schools in Hampton, Newport News and Poquoson have sent home flyers and VA Beach is coming on board.

Caring Corner- Dave Reichert has sent letters to the Club Presidents and provided boxes of Raffle tickets to the Foundation Trustees to distribute to the Club Presidents.

Ducky Derby Certificates- David Reichert received not communication from the Board as to ideas as to how the certificates could be redesigned. Therefore, the certificates for this year will be the same as last year.

Budget for 2003-04

Treasurer Miller went over the projections for this administrative year. There were three possible budgets listed: one with no funding for Administrators, one with full funding and one with partial funding. Possible reductions were also listed for each column to create a balanced budget. The question was raised as to whether funding of the Circle K and Key club Administrators is allowed by a 501c3 organization. Discussion of their funding followed and Stan Miller indicated that a 990 IRS agent had stated we would be walking on very thin ice to do so. Discussion of budget columns1, 2 & 3 followed. The question was raised as to whether to use our reserves to fund a
balance budget. Motion was made by Walt Rudy to increase the $1.00 per member income from $12,000 to $20,000 and decrease grants from $5000 to $4000 in order to have a balanced budget in column 1. Second by Don Schroeder. Vote of 16 ayes, 1 nay and 1 abstention. Motion passed. Rudy then moved to notify the Capital District Kiwanis Board that the District Foundation can't fund the Administrator's budgets because, first, it violates IRS rules to maintain a 501c3 and second, the funds are not available at this time. Second by Don Schroeder. Motion passed.

Grants- Charlie Bowie reported that two grant requests had been submitted and one resubmitted after concerns of the committee were addressed. The LaPlata club requested $5000 for a Summer Reading Academy for at-risk children from age 3 to 5. The Marion Club asked for $3528.62 for three children in the Healthy Kids After School program to provide tutoring, snacks, exercise programs, etc after school to address obesity issues.

The East Baltimore Club resubmitted its request for $4800 for the Care-A-Van project. This is a government agency with support of Johns Hopkins Medical Center to assist the members of the Hispanic community in Baltimore City. The Grant committee was concerned that there is a lack of Kiwanis Club or members involvement in each of the projects and that there is currently governmental funding involved with them, as well as a lack of available funds on the Foundation‚s part to fund these grants. Therefore, the committee recommends not funding these three grants at this time. A motion was made by Tom Varner, seconded by Charlie Bowie not to fund the LaPlata grant. Motion passed. Motion made by Tom Varner, seconded by Charlie Bowie to disapprove funding of the Marion grant request. Motion passed Tom Varner moved, second by Charlie Bowie to disapprove the East Baltimore request. Motion passed.

Governor's Visit Gifts- Governor Linwood Watson- Donations to the Outreach program from Division 18 of $200, Division 12 of $125 , Division 24 of $100, Division 15 of $500, Division 10 of $150. Governor Linwood also won the 50/50 at Division 18 of $88 and increased it to $100 which he donated to the Outreach program.

There being no further business to be brought before the Board, the meeting was adjourned by President Thrush.

The next meeting will be on January 30, 2004 at the Clarion Fontainbleu Hotel
and Conference Center in Ocean City, MD
.

Respectfully submitted,
Charles P. Adams
Executive Secretary
Capital District Kiwanis Foundation