Minutes 2005-05-05 - WITH Foundation

Minutes of the Board of Directors, The Special Hope Foundation

After receiving proper notice via email on April 18, 2005, a quorum of the Directors named either by the Incorporator or listed in the Articles of Incorporation, constituting the Board of Directors of this Corporation, held their meeting at this time, on the day, and at the place set forth as follows:

TIME:	7:10 p.m.
DATE:	Thursday, May 5, 2005
PLACE:	The O’Hara Home 757 Harvard Avenue, Menlo Park, CA

The following Directors, constituting a quorum of the full Board, were present at the meeting:

Lynne O’Hara, President
John O’Hara, Vice-President
Mary Wilson, Treasurer
Tracie Sloat

Excused:

Ed Hoskins, Secretary
Carrie Jones

Minutes Approved

The first order of business involved the review of the minutes from the previous Board Meeting on February 3, 2005. All reviewed and accepted the minutes.

Review of Existing Business

Updates from Grantees

We have received information from two previous grantees. Family YMCA of Black Hawk County sent a copy of the schedule for the program that we agreed to fund. Also, Hope Foundation sent copies of their annual report. The project that we funded, Asha Kiran, is profiled on page 21.

Accounting Support Search Update

We have received the completed consulting report from Leventhal Kline Management Inc. (LKM). We discussed this report during this portion of the meeting.

The Finance Committee reviewed the report and noted that they raised several areas of concern. The Committee noted that the suggestions pertained primarily to the investments area of the operation. They recommended very specific methods of recording and presenting this information which combine both the investment reports and the accounting records. Currently, the SHF has two separate systems for tracking the information. The accounting is done by SHF staff, and the investments information is processed by our investment advisors Everett Harris.

After further discussion, the Committee concluded that the LKM suggestions were geared primarily toward changing the processes to systems developed by their firm.

There was further discussion about the ongoing relationship between LKM and SHF. Two specific issues mentioned were: 1) LKM are not CPA’s, therefore, in the case of an IRS examination they are unable to represent the SHF, and 2) our impression is that they are most interested in doing more work for SHF, but at this time, we do not need additional work done by an outside firm.

As directed by the Board in the previous meeting, the Finance Committee also had made contact with a CPA firm, Hood & Strong, LLP, that has experience working with non-profit foundations. During the interview, we were oriented with some of the services that this firm offers. This firm appears to be more experienced in foundations than Christensen Drake, the previous firm that prepared the SHF tax returns. In the meeting with Hood & Strong, we also reviewed with them several issues that were listed in the LKM report. They indicated that our current processes are acceptable.

A motion was made to release LKM from any future services for SHF. The motion was passed unanimously.

A second motion was made to engage Hood & Strong, LLP to provide SHF with tax and IRS compliance services on an on-going basis. The motion was unanimously passed.

Report on Educational Workshops

February 23rd Network and Lunch co-sponsored with Disability Funders Network – Lynne O’Hara reported that the program was very successful. There were 30 participants who were very well connected in the philanthropic community. There was much positive feedback and several requests to do the program again next year.

Nonprofit Integrity Act of 2004 workshop co-sponsored by the Community Foundation of Silicon Valley and The Foundation Incubator – Mary Wilson reported that the presentation was very informative and specific to Foundations. Basically the provisions of the Act will not apply to the SHF if the gross revenues stay below $2,000,000. It is the recommendation of the Finance Committee that all efforts are made to stay below the minimum threshold.

Peninsula Community Foundation Financial Statement Review – Tracie Sloat and Lynne O’Hara both reported that the session helped them become more familiar with how to read both SHF and our grantees financial statements.

Request to Board Members for New Contacts

John O’Hara reported that he has made contact with 10 new possible grantee organizations.

Committee Reports

Communications Committee – Ed Hoskins

Ed was not present at the meeting, but Lynne O’Hara reported that he had recently done some work on the SHF computer.

Finance & Investments Committee – Mary Wilson

Mary handed out the current budget to actual analysis (for the nine months ending March 31, 2005). Actual results are 8.3% favorable variance over budgeted amounts.

The primary areas of difference are an increase in the gains that were made on the sale of investments, and a decrease in grant distributions and taxes on earnings. Grants and taxes were lower due to the decreased funding in anticipation of the Nonprofit Integrity Act limitation.

Grant Review

The board was asked if anyone has any personal connection to any of the following organizations: Oak Hill or Stepping Stone Growth Center. No members had any affiliations or contact with them.

Oak Hill

This is a request for funds to purchase equipment to support efforts by an in-house staff person to build their sensory integration therapy services. This type of therapy is innovative and in the beginning stages at this location. One concern was that this is part of a bigger organization, however, the Board has decided to provide seed money to support the start of a new program by a very committed Occupational Therapist. We anticipate that the next step for the organization would be to enhance their program by providing additional education to current staff or hiring a certified Sensory Integration Therapist to facilitate the treatments.

The motion was made to grant $5,000 to Oak Hill this grant cycle. The motion was unanimously passed.

Stepping Stones Growth Center

Stepping Stones is a program that fills a need for youths with developmental disabilities (ages 5 – 19) that is not met by the local school districts. They are specifically requesting funds for a program that has been developed to help students who need after school care so that their parents can hold down jobs. It also provides practical and developmentally appropriate education and training for children with special needs to help them make the transition from childhood to adulthood. Although the Board noted a concern regarding the long-term viability of the program based on the financial information that they have provided. We believe that this is a unique and worthy organization.

The motion was made to grant $5,000 to Stepping Stones Growth Center this grant cycle. The motion was unanimously passed.

New Business

Review and Approval of 2005-2006 Budget

After brief explanation, a motion was made to approve the proposed budget for the 2005-2006 year. The motion was unanimously passed.

Nomination and Election of 1 Board Seat

Without any hesitation, a motion was made to elect Ed Hoskins to another term on the SHF Board. The motion was unanimously passed.

Summer Intern

Lynne O’Hara reported that Ashley Hoskins has agreed to serve as a Summer Intern for SHF. She will start during the last week of May/first week of June. She will be trained to assist Lynne with the grant request review and correspondence duties.

Our next meeting is Tuesday, August 30th.

Adjournment

There being no further business to come before the meeting, upon motion duly made, seconded and unanimously carried, the meeting was adjourned at 8:32 p.m.

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Lynne O’Hara, President