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How the AIGA Honolulu Chapter Endowment was Created
It
all started with an audit
I’m not a graphic designer. However, I am an advocate for the
print and graphic design professions here in Hawaii. As such, I volunteer
for
AIGA in any way that I can through my wife Stacey.
When I worked for
the Legislative Auditor’s Office, I was part of
the team conducting the audit of the University of Hawaii Foundation.
As part of the background research, I had to learn as much as I could
about
their investment, operations, and donations. I was also assigned
to look into their endowments and compare it with endowments throughout
the nation
by contacting the presidents of Foundations in Colorado, Alaska,
UCLA,
Texas A&M, etc. Hmmmm… I wonder if an endowment is something
AIGA Honolulu would be interested in.
What is an endowment?
*Breathe in* Basically, an endowment is a permanent fund bestowed
upon a university, museum, or foundation, to be used for a specific
purpose.
Endowments are made up in two parts, the principal, and the accrued
interest. The principal balance is managed and invested by a foundation
which targets
a specific annual interest to be made (ie. 4-6% interest annually).
Most endowments are considered restricted, that is, the principal
balance cannot be expended. The annual interest made on the endowment’s
principal balance is used to fund a specific purpose, such as scholarships.
For instance,
if you were to create a $30,000 student scholarship endowment at
the University of Hawaii Foundation, the Foundation would invest
that money, and the annual
interest made on the investment (let’s say 5%) would provide
$1,500 in potential scholarship funds (minus the Foundation’s
administrative fees.) Technically, these scholarships can continue
to pay out scholarships
forever. Endowments are not limited to student tuition scholarships.
They can be used to pay for books, maintenance, faculty parties,
or whatever the contributor chooses. *Breathe out*
I educated Stacey
about endowments, which sparked her interest
in the matter. During the March 6, 2004 AIGA Board retreat Stacey
spoke
briefly
about
endowments. The Board tasked Stacey to look into endowments further.
Personally,
I wasn’t optimistic either. Endowments require money…a
lot of money….to get off the ground. Basic endowments
start at $30,000, and advanced endowments run into the millions.
Where
in the
world would
we get such money?
The Native Hawaiian Chamber of Commerce
On April 23, 2004, Stacey and
I were invited by Kaulana Park, President of the Native Hawaiian Chamber
of Commerce, to
attend their annual ‘O ‘o
Awards, which pays honor to outstanding Hawaiian community
leaders. During that function, I ran into Kalei Stern, Scholarship
Officer for the Hawaii
Community Foundation. (Kaulana, Kalei, and I all worked at
OHA in the past. We’re all old friends) After chit-chatting
with Kalei about the usual stuff (family and friends) I queried her
about scholarships, scholarship
funding, and endowments. Coincidentally, she mentioned one
particular scholarship
endowment that was underwater (ie. Below historical value.)
and financed a program which no longer existed. Considering the fact
that the scholarship
no longer had a viable purpose and was on the edge of being
dissolved, this could be a perfect opportunity for AIGA Honolulu
to re-activate
this endowment and move its management under the local AIGA
chapter.
The name of this underwater scholarship endowment was the
Jane Suganuma Memorial Scholarship Fund.
An endowment. One
step closer to reality.
I drafted a proposal explaining what AIGA is,
along with a request for AIGA to assume control and administer the
Jane Suganuma Memorial
Scholarship
Fund. On June 10, 2004, Stacey met with the Hawaii Community
Foundation, and presented the proposal to take over the
fund, and commit $10,000
of AIGA monies to bring the endowment above water (ie.
Above historical value)
and to allow immediate payouts of scholarships to graphic
design
students.
After hearing Stacey’s presentation, HCF
staff thought the proposal was a good idea, and stood
a good chance
of being approved by the HCF
Board of Directors. (The HCF Board of Directors must
approve all amendments and
transference of endowments.)
Once initial commitment
was obtained by HCF staff, Stacey presented the idea to the
AIGA Board on July 8, 2004.
The administration
of, and $10,000
contribution to, the scholarship fund was passed by a
unanimous vote.
On July 12, 2004, an ad hoc committee
of AIGA convened to discuss the criteria and selection of scholarship
recipients.
On September 11, 2004, the Hawaii Community
Foundation Board of Directors voted to approve the transference
of the Jane
Suganuma Memorial Scholarship
Fund to AIGA.
Thus begins a new chapter for AIGA
Honolulu, in its first long-term commitment to education. The establishment
of the American
Institute of Graphic Arts
(AIGA) Honolulu Chapter Endowment in Memory of
Jane Suganuma.
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William Kamana‘olana Mills is Special Assistant
at the Department of Hawaiian Home Lands. Go Back to the Endowment Page
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