Resolutions

Resolution
GBR-2003007

Title
USTCAF Special Fund Guidelines (Version 3)

Content
~

+ USTCAF Special Fund Guidelines (Version 3)+

~

0. Aim and purpose

University of Science and Technology Alumni Foundation (USTCAF)
allows and accepts the establishment of special fund in its operation
structure. The special fund is designed to attract donations to
serve special purposes, such as scholarships or fellowships.

The particular award supported by the special fund will be named by the
special fund organizers and must be approved by the AF board. In general,
such awards must also carry USTCAF name.  USTCAF will consult special
fund organizers on the usage of the special fund beyond its original
scope.

This document supersedes AF GB resolution GBR-1998-8-2.

1. Special fund organizers

Each special fund has to be assigned at least one designated organizer
determined by the consensus of donors of the special fund. Special fund
organizers will work out an agreement with USTC Governing Board
(USTCAF GB, or GB) on the usage and management of the special fund
within the frame of USTCAF Special Fund Guidelines stated in this
article.

Special fund organizers have the rights to monitor the operation and
management of the special fund. Special fund organizers reserve the
rights to suggest usage of the special fund beyond its original scope.

It is the responsibility of special fund organizers to collect
donations to sustain the level of the special fund. The balance and
usages of special funds are reported by GB and displayed on the Web.
The report will contain balance, interests, and all relevant financial
information.

2. Management Fee

There is no management fee for any special fund.

The operation costs of AF are distributed to the general fund
and all special funds, including those specified in Section (4),
proportionally according to the balances at the time such costs
occur.

3. Fund management

There is no special management for special funds except the
exemption specified in Section (4).  Special funds are invested
together with the general fund under the GB  resolution on
investment guidelines.

All investment gains and losses are distributed to the general
fund and special funds proportionally according to the balances
at the time.

4. Cash only special funds and independently managed funds

(A) Some special fund may keep all its balance in cash, as
typically such a special fund would be used within one year after
being raised. This would avoid market volatility of short term
investment. The fund will be kept in AF no-interest free
checking account. The fund is not subject to distribution
of gain or loss of AF investment.  The termination of cash
only status requires one year of time since the special fund
manager informs GB.

(B) A special fund may request to have its own investment plan
if its balance is either higher than $20,000 or above 1/10 of
AF total.  Such request needs to be accompanied by a 5-year
investment plan, to be approved by GB, and to be effective after
3 months.  The termination of the special investment status
requires one year of time since the special fund manager
informs GB.

5. Rights of special fund donors

The donors to special funds are considered as AF members based on AF
guidelines and are subject to AF rulings. The donors of special funds have
equal voting rights as donors to the general fund. The donors of special
funds are eligible for AF benefits.

6. Bill of Conflicts

Special funds are part of AF's property. Usage of special fund beyond
its original scope has to be initiated by special fund organizers and
approved by GB.

However, if there is a conflict of interests, organizers of special fund can
protest in various means, including send messages to AF's mailing list.
But the decisions by GB on the operation of any funds which are parts of
AF's property, including special funds, are final. AF bears no legal
obligations to special fund organizers, special fund organizers can not sue
AF on any matter.

7. Exemptions

Any exemption from the guidelines listed in this article concerning a
special fund will have to be approved by 2/3 GB members. The Executive
Committee (including Chair, Vice Chair and Secretary) have the final
veto rights to overturn such exemptions.

Add'l info
The resolution on subfund was passed in 1999.  When I implemented in in
late 2000 and early 2001,  we found a lot of problems with it.  Some
basic problems:

1. Not covering investment loss
2. Not sure about fund raising and operation cost -- much bigger than
that GB thought
3. Some hidden scholarship(I will explain it below)

Original concern is that with each departmental subfund setting up,
nobody would donate to the general fund.  So it was set up orginally
that a subfund must give a percentage to the general fund.  By 1999,
to encourage subfunds,  a new resolution was set up, which waives the
initial overhead -- which is not applied to 875 fund.

See details changes of this revision below:
(0) Aim and purpose

University of Science and Technology Alumni Foundation (USTCAF)
allows and accepts the establishment of special fund in its operation
structure. The special fund is designed to attract donations to
serve special purposes, such as scholarships or fellowships.

The particular award supported by the special fund will be named by the
special fund organizers and must be approved by the AF board. In general,
such awards must also carry USTCAF name.  USTCAF will consult special
fund organizers on the usage of the special fund beyond its original
scope.

** New:        and must be approved by the board. In general,
** New:  such awards must also carry USTCAF name.

Note: This document supersedes AF GB resolution GBR-1998-8-2.

(1) Special fund organizers

Each special fund has to be assigned at least one designated organizer
determined by the consensus of donors of the special fund. Special fund
organizers will work out an agreement with USTC Governing Board
(USTCAF GB, or GB) on the usage and management of the special fund
within the frame of USTCAF Special Fund Guidelines stated in this
article.

Special fund organizers have the rights to monitor the operation and
management of the special fund. Special fund organizers reserve the
rights to suggest usage of the special fund beyond its original scope.

It is the responsibility of special fund organizers to collect
donations to sustain the level of the special fund. The balance and
usages of special funds are reported by GB and displayed on the Web.
The report will contain balance, interests, and all relevant financial
information.

New: ** by GB and displayed on the Web.

(2) Management Fee

There is no management fee for any special fund.

The operation costs of AF are distributed to the general fund
and all special funds, including those specified in Section (4),
proportionally according to the balances at the time such costs
occur.

New: The whole section is new.

(3) Fund management

There is no special management for special funds except the
exemption specified in Section (4).  Special funds are invested
together with the general fund under the GB  resolution on
investment guidelines.

All investment gains and losses are distributed to the general
fund and special funds proportionally according to the balances
at the time.

New: Do not allow special funds to invest differently from the rest
New:   rest fund. 
New:  Distribute loss.

(4) Cash only special funds and independently managed funds

(A) Some special fund may keep all its balance in cash, as
typically such a special fund would be used within one year after
being raised. This would avoid market volatility of short term
investment. The fund will be kept in AF no-interest free
checking account. The fund is not subject to distribution
of gain or loss of AF investment.  The termination of cash
only status requires one year of time since the special fund
manager informs GB.

(B) A special fund may request to have its own investment plan
if its balance is either higher than $20,000 or above 1/10 of
AF total.  Such request needs to be accompanied by a 5-year
investment plan, to be approved by GB, and to be effective after
3 months.  The termination of the special investment status
requires one year of time since the special fund manager
informs GB.

New: this section is new.

Author
ZHANG, Shangyou

Sponsors
Jian Ding

Last Change
2003-04-15