Minutes of Kansas College Wrestling Fund
Foundation Committee Board Member Meeting
Sunday June 12, 2011 Noon
Martenelli's Italian Restaurant 158 South Santa Fe Ave. Salina, KS 67401-2810
1 CALL TO ORDER-
Sean McCarthy, Board Chairman called the Kansas College Wrestling Fund Foundation Committee Board Member Meeting to order at the above time, date and location.
2 ROLL CALL –
In lieu of a roll call, Sean McCarthy passed a sign in sheet. Members in attendance were Sean McCarthy, Will Cokeley, Bill Peterman, Wayne Petterson, Joe Renfro, Ryan Smith, Steve Woody, and Vince Nowak. Committee member Travis Keal was not in attendance. Brad Haynes Associate Athletic Director of Fort Hays State University Athletic Department was also in attendance. Will Cokeley prior to the meeting had asked Committee Chairman Sean McCarthy if he could invite Brad Haynes as a special guest. Brad Haynes provided added value to the meeting with the perspective of a college sports department administrator.
3 INTRODUCTION OF COMMITTEE MEMBERS-Committee Members-
There was not a formal introduction of committee members although several members did give a brief introduction of themselves. Sean McCarthy said that he was going to request everyone to do a short bio that he intended to include on the eventual website for the Kansas College Wrestling Fund.
Here is a listing of the committee members and their affiliation to Kansas wrestling:
Sean McCarthy STA Kids Club Director and Head Coach
Will Cokeley USAWKS-Corporate Board Director as Club Representative
Bill Peterman Wrestling Supporter
Wayne Petterson Head Coach of Neosho Community College
Joe Renfro Head Coach of Labette Community College
Ryan Smith Head Coach of Newman University
Steve Woody USAWKS-Corporate Board Director as District IV Director
Travis Keal KWCA President
Vince Nowak Wrestling Supporter
4 RECAP OF KANSAS COLLEGE WRESTLING FUND HISTORY-
Sean McCarthy gave a brief history of the progress that has been made so far with the fund.
Earlier this year on March 12, 2011 it was announced that the University of Nebraska-Omaha was going to drop its wrestling program along with its football program. The UNO wrestling team was notified of this decision shortly after winning its third straight NCAA Division II national wrestling team title. The news of this announcement rattled the entire national wrestling community. The Kansas wrestling community also became very upset as many of the past and present outstanding wrestlers of UNO were former Kansas high school wrestlers. A discussion immediately ensued of this situation on the USAW-KS website forum. Several participants in these forum discussions decided this would be a good time for the Kansas wrestling community to show our support for our Kansas colleges and universities with college wrestling programs by starting a Kansas College Wrestling Fund.
A few days later on March 16, 2011, Mike Juby Chairman of the USAW-Kansas Corporate Board of Directors was approached by a small group (Sean McCarthy, Randy Hinderliter, Ned Price and Vince Nowak) that had formed in the Northeast Kansas area about the possibility of the USAW-Kansas organization becoming the Administrator/Custodian of a Kansas College Wrestling Fund. Mike Juby replied that subject to the Corporate Board approval that USAW-Kansas could provide administrative support which would include management of the investments, making distributions and reporting results. Mike Juby also said that USAW-KS would be able to provide their 501(c)(3) exemption for the purposes of accepting contributions. Mike Juby asked the group to draft a set of fund parameters that would detail how the fund would work and to include an initial marketing plan to be presented to the May 14,2011 USAW-KS Corporate Board Meeting for approval consideration.
Sean, Randy, Ned and Vince met three times prior to the May 14th meeting. Head Coach Jimmy May of Baker University attended one of these meetings as did Baker Assistant Head Coach George Roath, III. Jeff Butler attended two of these planning meetings. The initial Fund Parameters, Marketing Plan and a Sample Distribution were prepared and sent by e-mail to Mike Juby on May 3, 2011. Sean McCarthy and Vince Nowak attended the USAW-KS Corporate Board meeting as invited guests. Randy Hinderliter, a USAW-KS Corporate Board member also attended. The USAW-KS Corporate Board approved the establishment of the Kansas College Wrestling Fund at this May 14, 2011 meeting. Mike Juby agreed as State Chairman that he would name the first members of the Kansas College Wrestling Fund Foundation Committee and its first Chairman. Mike sent an e-mail on 5/23/11 announcing the nine committee
members and naming Sean McCarthy the first committee Chairman. Sean McCarthy on 5/25/11 gave committee members notice of our first meeting on June 12, 2011 in Salina.
5 FUND PARAMETERS DISCUSSION-
Sean McCarthy named Will Cokeley Vice Chairman and Bill Peterman as Secretary of the KCWF Foundation Committee. Sean asked Vince Nowak to assist Bill Peterman in the preparation of the minutes of the meeting.
Will Cokeley read over the original Fund Parameters that were presented to the USAW-Kansas Corporate Board for their May 14th meeting. A significant amount of time was spent discussing individual items in the Fund Parameters and several additions and deletions were voted on and approved.
It was decided and voted on to drop from the original Fund Parameters Articles 2.2.2 which stated:
2.2.2…To seek Kansas wrestling community members to be lifetime donors to the Fund.
The original Article 2.2.4 was as follows:
2.2.4…To foster the growth of new Kansas collegiate wrestling programs including universities with potential NCAA Division I programs.
This article generated a discussion of whether the KCWF should be addressing potential NCAA Division I programs. Will Cokeley felt it should not since he does not believe that it will ever happen and we should not address it in the Fund objectives. Vince Nowak said that over the last few months during this process that he has heard from several Kansas wrestling community members who believe the pursuit of a NCAA D-I wrestling program should be the primary focus of this fund. Will said it would be deceitful to make them think it was going to ever happen and the focus should be on the Kansas schools with current programs. The committee agreed and voted to drop Article 2.2.4.
The original Article 2.2.5 was read:
2.2.5…To provide annual financial support to the Kansas colleges and universities with NCAA, NAIA or NJCAA wrestling programs for tuition, books, and room & board expenses for their wrestling team student athletes.
It was pointed out that the community colleges and Fort Hays State would have difficulty receiving funds this way. Several committee members were also concerned that an institution could decide to alter its own funding of the wrestling program by reducing it by the amount of the donation of the Kansas College Wrestling Fund. It was suggested that donations to an endowment fund could solve this problem for these schools. Several committee members wanted endowment funds to be returned to the Kansas College Wrestling Fund if the institution ever dropped its wrestling program. It was decided to change the original Article 2.2.5 to the following (Note that the number has been changed to 2.2.3 due to the deletions of 2.2.2 and 2.2.4 from the original document:
2.2.3…To provide annual financial support to the Kansas colleges and universities with NCAA, NAIA or NJCAA wrestling programs for current tuition, books, and room & board expenses for their wrestling team student athletes or for the institution’s wrestling endowment fund per stipulations in the Memo of Understanding between the Kansas College Wrestling Fund and the individual institution accepting funding from the Kansas College Wrestling Fund (See 3.5.1 Memo of Understanding and Stipulations for Distributions).
Vince Nowak has added the following Article 3.5.1 to the Revised Fund Parameters:
3.5.1 MEMO OF UNDERSTANDING AND STIPULATIONS FOR DISTRIBUTIONS… To be eligible for distributions a recipient institution must sign a Memo of Understanding with the Kansas College Wrestling Fund in which the institution will agree to either use the funds for current tuition, books, and room & board expenses for their wrestling team student athletes or for the institution’s wrestling endowment fund. If the institution decides to use the distribution for current tuition, books, and room & board expenses for their wrestling team student athletes, it must agree in the Memo of Understanding that it will not reduce its current or future wrestling budget funding due to the distribution that it will receive from the Kansas College Wrestling fund. If the institution chooses to receive its distribution as a contribution to its endowment fund and it ever decides to drop their wrestling program then it must agree in the Memo of Understanding to return to the Kansas College Wrestling Fund the entire amount of funding that it has received from the Kansas College Wrestling Fund.
Will Cokeley proceeded reading Article III of the original Fund Parameters. The next article to receive a considerable amount of discussion was Article 3.3 Investments which reads as follows:
3.3 INVESTMENTS… The Fund Administrator shall invest the Kansas College Wrestling Fund Account assets in a fiduciary manner to maximize fund returns but at a prudent level of risk that allows the Kansas College Wrestling Fund to meet its short and long term obligations/objectives.
Will Cokeley was uncomfortable with the wording of Article 3.3 Investments. Will felt that the fund’s investments should be completely risk averse and all funds should be invested in a money market. Vince Nowak pointed out that money markets are paying a very low rate of return. Will Cokeley pointed out that there were significant market value losses in common stock investments during 2008 and many stock investments lost 50% or more of their investment value that year. Bill Peterman suggested that type of risk could be lessened by a balanced portfolio of a third in stocks, a third in bonds and a third in safe fixed income investments like money markets or CDs. This is an example of diversification in a portfolio that would traditionally yield a higher return than a money market at a generally accepted low level of risk. Vince Nowak also pointed out that Mike Juby had informed him that he preferred for the committee to not include a specific Investment Policy Statement in the Fund Parameters. Will Cokeley expressed again his opinion that all investments in this fund should be in safe vehicles that have no possibility of loss on the principal amount of investment. Will Cokeley said if common stock was donated unrestricted to the fund that he felt it should be sold immediately when Vince Nowak asked him that question. Vince Nowak made the point that better fixed rate returns could be realized in FDIC insured CDs, Federal Agency or high rated Corporate Bonds with slightly longer maturities than in money markets. No change in this article was voted on but Will Cokeley said he planned to discuss it with Mike Juby.
Article 3.4 Expenses was changed to require two signatures on all checks written from the fund. It now reads:
3.4 EXPENSES… The Fund Administrator will pay fund operating and administrative expenses that have been approved by the Kansas College Wrestling Fund Foundation Committee (Articles 4.1 & 4.4.2) from the Kansas College Wrestling Fund Account. Every check for all expenses and distributions must have two signatures, one from the USAW-Kansas Corporate Board of Directors Chairman and one from the Kansas College Wrestling Fund Foundation Committee Chairman or Vice-Chairman.
The next item to generate change was Article 3.5 Distributions. It was decided by the committee that the Fund would not make Special Distributions on loans. The committee voted to change 3.5 by dropping the reference in the first sentence to special distributions. The new Article 3.5 reads:
3.5 DISTRIBUTIONS… The Fund Administrator will make annual distributions from the Kansas College Wrestling Fund Account to the Kansas colleges and universities for their wrestling programs as detailed in Articles V. These payments are payable as soon as possible after the end of the fiscal year but no later than 120 days after the end of the fiscal year.
Article 4.2 was changed to read:
4.2 MEMBERS OF COMMITTEE…There will be a minimum of nine committee members on the Kansas College Wrestling Fund Foundation Committee recommended by the State Chairman of the USAW-Kansas and approved by the USAW-KS Corporate Board of Directors. A minimum of two of the Foundation Committee members will be current members of the USAW-KS Corporate Board of Directors, two at large Kansas wrestling community members, one representative from the Kansas Wrestling Coaches Association, two representatives from Kansas Community Colleges with wrestling programs, and two representatives from four year Kansas colleges or universities with wrestling programs. The initial committee can be set up on an interim basis per the appointment of the State Chairman of the USAW-KS Corporate Board of Directors subject to approval of the Corporate Board of Directors.
Sean McCarthy asked for a slight change in Article 4.5.2 to allow for notification by mail or e-mail. It now reads:
4.5.2…The Chairman of the Foundation Committee will preside over meetings and will give members notice of thirty days prior to meetings by mail or e-mail.
Article 4.6 Quorum and Voting was also slightly changed to require the committee members to use the Reply to All function when voting electronically and for the Secretary to keep records of such votes. It now reads:
4.6 QUORUM AND VOTING…A quorum of the Kansas College Wrestling Foundation Committee shall be the majority of its members but no less than five members including the Kansas College Wrestling Foundation Committee Chairman. All voting matters shall be decided by the majority vote of the committee members at the meeting. Each committee member shall be entitled to one vote except the Chairman. The Chairman of the Foundation Committee votes only in the event of a tie. The vote of the Chairman of the Foundation Committee will decide tie committee votes. The Kansas College Wrestling Foundation Committee Chairman can choose to conduct voting and business by e-mail provided at least 75% of the committee members have voted. The members shall use the e-mail Reply to All response when using electronic voting. The Secretary will keep copies of all electronic voting replies and results.
At this point the discussion moved on to Article 5.1 Distribution Allocation Shares. This generated a great deal of discussion. The original article called for two shares for the four year colleges and one share for the community colleges. The community college committee members asked why it was set up this way. Will Cokeley said we should consider allocating the shares in a way where we could get the biggest impact on a gift, pointing out that a donation could have a bigger percentage impact at Fort Hays State where the total annual
expense is around $11,500 in comparison to a private school that would be closer to $30,000 and we should consider directing more money to where it can make the biggest percentage impact. Vince Nowak stated he did not believe that the percentage impact idea should matter and that the private four year schools should receive the same as Fort Hays State University. Vince Nowak pointed out that the original fund parameters were set up at the 2 shares for a four year and 1 share for a community college to pattern the USAW-KS current allocation. Vince Nowak also said that he had compiled a study that showed it was a less expensive to attend a community college in Kansas about $7,500 a year versus $11,500 at Fort Hays State, and approximately $28, 000 at the private four year universities with wrestling programs. Steve Woody pointed out that this was a statewide effort that would need to appeal to many diverse groups and that he believe it should be an equal share distribution. Bill Peterman made a motion to make the initial distribution equal to all schools for this first year to be revisited at a later date. It was seconded and approved by vote. The article now reads:
5.1 DISTRIBUTION ALLOCATION SHARES…All Kansas colleges and universities with NCAA, NAIA or NJCAA wrestling programs that will compete in the wrestling season following the end of the USAW Kansas fiscal year will be eligible to receive a distribution from the Kansas College Wrestling Fund subject to their agreement to the terms of the Memo of Understanding (3.5.1). Two year colleges (NJCAA wrestling programs) and four year colleges or universities (NCAA and NAIA wrestling programs) will receive equal distribution allocation shares.
It was voted on to drop Article 5.3 on making annual distributions to NCWA Club teams at Kansas colleges and universities.
As stated in the above discussion on Article 3.5 Distributions it was decided and voted on that the Fund would not make Special Distributions or Loans so the Original 5.4 on Special Distributions or Loans was dropped from the Revised Fund Parameters.
It was decided that the original distribution period should be August 31, 2012. The original Article 5.5 was changed to 5.3 to reflect the deletions of original Articles 5.3 and 5.4. The revised 5.3 now reads:
5.3 INITIAL PERIOD DISTRBUTIONS PAYABLE…The initial period for the determination of distributions from the Kansas College wrestling Fund will be from the beginning date that the USAW-KS Corporate Board of Directors authorizes the Kansas College Wrestling Fund to August 31, 2012. At the end of any fiscal year there must be an accrued ending Kansas College Wrestling Fund Balance of at least $5,000 for the Articles 5.2 and 5.3 distributions payable to be calculated and paid.
This completed the discussion of the Fund Parameters.
6 MARKETING PLAN DISCUSSION
The next item for discussion was the Initial Marketing Plan prepared for the May 14,2011 USAW-KS Corporate Board Meeting. Several ideas were discussed including a website, brochure, plaques or other rewards for donors and groups to concentrate on in our fundraising efforts.
It was decided to change Item #2 as to the amount of the annual fund raising target. The fundraising target amount by August 31, 2012 was changed from $200,000 to $50,000.
Item #4.3 was slightly changed to read:
4.3. Motivate Kansas wrestling community residents to advocate for the Kansas College Wrestling Fund.
In Section 6: Develop a Marketing Action plan, an addition was made to Action 6 and it now reads:
Action 6: Solicit Corporate Donors in state and out of state. This would include fund raising corporate promotions at companies such as: Casey’s General Stores, Pizza Hut, QuikTrip, grocery stores, restaurants, etc.
Action 11 was altered to take into account the possibility of plaques or other awards for the different level of donors. It now reads:
Action 11: Setup individual and corporate donor annual gifting levels:
Platinum Level-$5,000 and above
Gold Level-$2,000 to $5,000
Silver Level-$500-$1,999
Bronze Level-$1-$499
Consideration will be given to plaques or other various forms of reward recognition for donors at the various levels of gifting.
Action 15 on the original Marketing Plan called for the consideration of a professional fundraiser. It was decided to drop this from consideration at this time.
Action 16 on the original marketing plan which called for asking for a budget of $5,000 for KCWF marketing was dropped.
The original Action 17 became action 15.
The following were new Action items that derived from the discussion.
Action 16: Work with Kansas colleges and universities with wrestling programs to establish an annual Kansas Kids Benefit Tournament for the Kansas College Wrestling Fund. The tournament location would alternate annually between the Kansas colleges and universities which would provide the facilities free of charge.
Action 17: Utilize media such as newspapers, radio and TV to promote the Kansas College Wrestling Fund when these opportunities become available.
7 ADJOURNMENT
Sean McCarthy called for the meeting to adjourn at 3:30 PM.
