I. CALL TO ORDER

The third quarter meeting of the Dalmatian Club of America Foundation Board of Directors was called to order at 9:45 AM CDT on Saturday, July 19, 2008, at the Reliant Center, Houston, TX, by President James Smith. DCAF Directors present in addition to President Smith were Mr. Ken Berg, Mr. John Cramer, Dr. J. Charles Garvin, Mrs. Meg Ispas-Hennessey, Dr. Mary-Lynn Jensen, Dr. Irv Krukenkamp, Mr. Robert Lawson, Mrs. Diana Skibinski, and Mrs. Sheila Wymore. Mrs. Sharon Boyd joined the meeting in progress.

II. MINUTES OF THE PREVIOUS MEETING

Minutes of the April 26, 2008 DCAF Meeting in Ft. Mitchell, Kentucky were previously distributed by e-mail. There being no additions or corrections, Mr. Cramer made a motion to approve the minutes as distributed. Seconded by Mr. Lawson, the motion was approved.

III. REPORTS OF THE OFFICERS

A. President - Mr. James Smith.

Mr. Smith indicated that a summary report from Christine Gogan will be presented by Treasurer Mr. Lawson. He also thanked all those whose contributions of time, talent and funds helped put the Gala event over the top financially.

In addition, President Smith briefly reported on his invitation to attend the June meeting of the Chicagoland Dalmatian Club last month (June). His purpose was to be available to answer questions from the club members, address their concerns about the Foundation and its direction, and assure them that the board members are worthy stewards of the Foundation’s assets. Three other board members were in attendance at the Chicagoland meeting: Mrs. Norma Baley, Mrs. Meg Ispas-Hennessey, and Mrs. Diana Skibinski. His overall impression was that the Chicagoland club was happy with his answers to their questions.

B. Vice President - Meg Hennessey.

No report.

C. Secretary's Report - Sheila Wymore.

Mrs. Wymore reported that her workload has lightened considerably since Mr. Lawson is now sending out acknowledgement letters. She volunteered to use that available time to assemble the Standing Rules book.

D. Treasurer's Report - Rob Lawson

Mr. Lawson submitted a written report to the Board with a Balance Sheet from January 1, 2008 to July 14, 2008 showing Assets/Liabilities of $334,323.56. The Income/Expense detail for the period January 1 through July 14, 2008 showed an excess of $25,496.90 income over expense.

Mr. Lawson, on behalf of his co-chair Mrs. Baley and himself, then presented a detailed report on the income and expense from the Gala event. The bottom line was $26,019.49 net income. Mr. Lawson thanked everyone who supported the event, from the generosity of those funding the initial expenses to those who bought tickets and who purchased auction items. The committee co-chairs feel that for our first effort, the event was a success and a learning process that will lead to other successful events.

Mr. Lawson reported that all specific earmarked donations are now recorded on a spreadsheet to give us a running total. The same was done for memorials. Some past transactions are still being verified. Once complete, the lifetime contribution list will be available for the treasurer to verify with members their lifetime contribution balance, to rectify any errors and to then carry forward.

The treasurer addressed the small donor level administration complications and the amount of duplicated work they sometimes require. He will be working out a system to address the excessive amount of labor these sometimes require.

Dr. Jensen made a motion to accept the reports of the officers. Seconded by Mrs. Skibinski, the motion passed.

IV. DEVELOPMENT COMMITTEE REPORT - Julia Soukup

Ms. Soukup reported, or furnished committee chair reports on the following:

1. DCAF Christmas Cards - Julia Soukup

   A donation page has been announced via DCA Members List and ShowDals. Shirley May has begun shipping the cards as the donations come in. Julia received two original card artworks from Pam Fisher. Shirley May had them matted and framed. They are very nice and bigger (with the double matting and large frames) than the ones sold at the National. We are going to auction this off on-line in the near future, maybe a bit closer to Christmas so everyone has the season spirit.

   41 sets of cards were sold at the National Specialty totaling income of $1025.00. The six framed original artworks brought in an additional $390.00. Total income at the National was $1415.00. Since the National we have sold an additional 26 sets for a total of $675.00. Total income so far for this project is $2090. Sales should pick up more as Fall commences. It will also help facilitate outside sales to have PayPal set up for DCAF and a button and code added to the web page.

2. On-Line Auction Report - Cinda Haff

   Ms. Haff reported for this reporting period there is little to report that has changed. We are presently preparing for our next online auction and excited about the items being made available. But other that nothing new to report. Things have been pretty quiet on the DCAF auction front.

3. DCAF on eBay - Cindy Bowman

   No action required. Mr. Smith reported that the Treasurer will cooperate with Ms. Bowman to furnish whatever documents are necessary to proceed with this project.

4. DCAF Gala Pre-Top 20 Party – Norma Baley/Rob Lawson.

   Having already addressed the success of Gala 2008, Mr. Lawson, on behalf of Mrs. Baley and himself, was asked to report on the potential for a Gala 2009. He stated that the first event gave the committee the idea of what areas needed to be coordinated better with other events, and he expected those could be handled. He has been receiving comments and suggestions from people, and the committee is taking those under consideration. Dr. Krukenkamp made a motion that the Foundation proceed with plans for a Gala 2009 Event patterned similarly to the 2008 event. Seconded by Mr. Lawson.

   Discussion followed on some of the aspects that could be improved upon such as the ticket price and method of sales, the publication/presentation of information prior to the event, and the overall ambience of the event. Ideas were put forth as to ways to encourage participation of individuals outside of the organization via awards for contribution levels. Subsequent to discussion, a vote was taken on the motion. Motion passed unanimously.

   President Smith has been approached by parties who would like to provide a quilt for the 2009 Gala auction. Hearing no objection, he will contact the parties and accept their donation on behalf of the Gala and the Foundation. Mr. Cramer made the suggestion that there be an early deadline on auction items so that they may be advertised.

V. GRANTS COMMITTEE REPORT - David Doane

No action required.

VI. FINANCE COMMITTEE REPORT - Rob Lawson

Mr. Lawson reviewed the previously circulated memorandum from financial advisor Christine Gogan, who feels that with the current situation with the market, now is not the time to make strategic financial moves. She suggested that the Foundation open a Vanguard Brokerage Account for DCAF assets and move available cash to this account. The default option will be a money-market account that the Foundation can access daily. Then when the market turns around and an opportunity presents itself, funds could be moved into investments. The funds in the Charles Schwab account are a straight Standard and Poors 500 and are performing poorly. Mr. Cramer made a motion that we authorize the treasurer to move the Charles Schwab funds to a Vanguard Brokerage Account. Seconded by Mrs. Wymore, the motion passed unanimously.

Ms. Gogan proposed an Investment Policy for the Foundation consistent with the mission statement. The key points were:

1. Time Horizon: We expect DCAF’s Time Horizon to be Long-Term, possibly perpetual.

2. Liquidity Needs: DCAF’s needs for cash are determined on an annual basis and are described as both flexile and discretionary.

3. Risk Tolerance: DCAF would like to invest the assets in light of the above in a fashion that balances risk relative to reward. We believe the collective risk tolerance for these assets is average, to possibly above average. We are proposing that all investments carefully balance the possible reward relative to the risk assumed.

4. Return Objective: DCAF will strive to invest the assets of the Foundation in a fashion to maintain or exceed the real value of the assets by investing them to earn the sum of the average spend rate plus inflation. A long-term point estimate of the return goal is 7%.

Dr. Garvin moved that we authorize Christine Gogan, Investment Committee Consultant, to make the appropriate new investments and changes in our current investments consistent with the strategy outlined in her proposal of 7/17/2008, after consultation with and prior approval of the investment committee. Seconded by Mrs. Skibinski, the motion passed.

VII. OTHER COMMITTEE REPORTS

1. Website – Julia Soukup

   Ms. Soukup reported activities since the April board meeting. She renewed the hosting for one year. She then corrected info on the board page, added the March minutes, updated the main meeting menu page, and re-indexed the site for search function. Her projects in process include the addition of a Gala photo gallery.

Mr. Lawson made a motion to approve the reports of the committees. Seconded by Mrs. Wymore, the motion passed.

VIII. OLD BUSINESS

There was no old business considered at the meeting.

X. NEW BUSINESS

1. Possible Board Expansion.
   Mr. Smith addressed the board about his perception that, of the DCA membership, some consider the Foundation board not truly representative of the grass roots Dalmatian fancier but rather an ‘elitist’ group. The structure of the board was briefly reviewed; there are nineteen board members, out of which four are elected (by the Foundation board) to serve as its officers. Nine of the nineteen also serve on the board of the DCA and consistently attend every quarterly meeting of the Foundation. The remaining ten board members attend meetings at their convenience. Dr. Garvin reminded the board that at least nine of the Foundation board members serve at the discretion of the DCA membership, having been elected to their positions as DCA board members, and who then subsequently advanced to members of the Foundation board. To restructure the makeup of the board would require a change in the By-Laws, which are approved in their current form by the IRS. Mr. Lawson reiterated that DCAF is a vehicle, for tax purposes, to attract and raise funds and then to grant those funds out for the causes outlined under our charter. Requests for funding usually come from the Canine Health Foundation, the Morris Animal Foundation, individual veterinary teaching universities, or the DCA itself. He, too, recommended moving slowly in considering any change in the approved structure of the Foundation. No action was taken by the board. Mrs. Boyd then joined the meeting in progress.

2. Heritage Committee Appointments.
   Mr. Smith reviewed the intent and purpose of the Heritage Committee as conceived by former committee chair Ms. Georgiann Rudder. The Heritage Committee exists to encourage and advise members so inclined, on how to bequeath funds to the Foundation both now and at their eventual passing. The committee is to act in an advisory capacity as well as a proactive capacity in searching out, encouraging and educating donors who desired to take advantage of tax benefits provided by this method of giving. Carol O’Brien and Christine Gogan have agreed to serve, Mr. Smith would like to keep Ms. Rudder on the committee for her experience, expertise and advice, and also add Mr. John Bachey. Mrs. Hennessey made a motion that the Heritage Committee be comprised of Carol O’Brien as Chair, with John Bachey, Christine Gogan and Georgiann Rudder as committee members. Seconded by Dr. Krukenkamp, the motion passed unanimously.

XI. ADJOURNMENT

There being no further business the meeting was adjourned at 10:30 AM CDT.

Respectfully Submitted,

Sheila Wymore
DCAF Secretary