A number of named funds exist currently and these funds have specific purposes. This policy establishes procedures that must be used by individuals, groups of individuals, divisions, or other organizations for the purpose of establishing new programs requiring a funding base.
- A new program must state clearly its intended purpose.
- New programs will normally require a minimum of $25,000 to establish an endowment whose earnings will be used to support the proposed activities according to the formula specified below.
- Normally, 4% of the trailing 5 year average of the value of the fund will be available for expenditure on an annual basis for the designated purpose of the fund. However, in no case will expenditures be allowed to invade the principal of the fund. Exceptions to these rules must be granted by the SICB Finance Committee. For funds with less than a 5 year history, the SICB Finance Committee will determine the amount available.
- Mechanisms for the disbursement of the funds consistent with the stated purpose of the program must be clearly established. If a committee determines how funds are to be disbursed, e.g., determines award recipient(s), what is the composition of the committee, how will the committee be formed, and how often will membership on the committee be changed? An example is the DCPB Bartholomew Award in which the procedures are spelled out in the DCPB Bylaws, Article XIII, B.
- Programs may be discontinued by the SICB Executive Committee provided proper legal issues associated with the disbursement of remaining funds are resolved.
- The SICB Finance Committee will oversee the activities of the program to insure adherence to the stated purpose of the program and adherence to all financial procedures governing income, investment, and disbursement of the associated fund.
- Proposals for new programs must be submitted to the SICB Executive Director, who will forward the proposal to the SICB Finance Committee. The Finance Committee will review the proposal and it may recommend modifications of the proposal to the individual, group of individuals, division or organization making the proposal.
- The SICB Finance Committee will make a recommendation to the SICB Executive Committee for approval or disapproval of the proposal.
- The SICB Executive Committee must approve the proposal.