History and Governance

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The SOT Endowment Fund aids toxicology and toxicologists through a series of funds that support SOT programs and members. SOT bears the administrative expenses of the Endowment Fund, assuring that every dollar contributed goes directly to support programs.

The SOT Endowment Fund consists of SOT Mission Funds and Named Funds:

  • The SOT Mission Funds are aligned with the long-term strategic objectives of the Society and provide resources to realize the vision established for the Fund “to establish an increase in net worth a set of Endowment Funds that will provide significant, stable, long-term financial support that complements the Society’s revenues from dues and other sources, to aid in achieving the Society’s strategic objectives.”
  • The SOT Named Funds are established by individuals for purposes designated by the founder(s). Many of these funds recognize achievements in specific toxicological disciplines and support students and trainees.
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Founding of the Endowment Fund

In late 2006, SOT membership approved Bylaws Amendments that created the SOT Endowment Fund, and the SOT Council ratified the related Endowment Fund Policy Guidelines. The Bylaws Amendments and Policy Guidelines were developed by the Endowment Implementation Task Force chaired by I. Glenn Sipes. Other members of the Task Force were Norbert Kaminski, James Klaunig, Roger McClellan, James Popp, Rick Schnellmann, and Jacqueline Smith.

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Explore the 2022–2023 SOT Endowment Fund Annual Report

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Endowment Annual Reports

Investment of Endowment Funds and Release of Proceeds for Use

The investment policy for the SOT Endowment Funds is established by the SOT Finance Committee with input from the SOT Endowment Fund Board. The SOT Finance Committee has the ultimate responsibility for managing the investment of all SOT Funds, including the SOT Endowment Funds. The investment strategy has been to secure long-term appreciation of the Endowment Fund Assets while also safeguarding the total value of the assets. This policy is consistent with that used for other SOT Long-Term Assets.

The long-term investment goal for the SOT Endowment Fund is to realize investment returns that exceed the annual rate of inflation by at least four percent. Thus, if four percent or less of a fund’s assets is used each year to support the purposes for which the funds were established, the assets should, over the long term, grow at a rate exceeding the inflation rate. Hence, the SOT Endowment Fund Board has established a policy that no more than four percent of the assets of a Permanently Restricted Net Asset Fund will be released each year for uses consistent with the purpose for which the fund was established.

Creating New Funds

Individuals, Special Interest Groups, Specialty Sections, groups of individuals organized on an ad hoc basis, corporations, or other institutions can create new funds for specific purposes. The purpose of all funds created within the SOT Endowment Fund must be consistent with the long-term interests of SOT. Thus, the purpose and use of any new Funds must be approved by the SOT Endowment Fund Board and ratified by the SOT Council. Donors who are interested in creating new funds are encouraged to discuss their intentions with the Endowment Fund Board Chair or other members of the Endowment Fund Board.

New funds will become one of two financial types: Permanently Restricted Net Asset or Temporarily Restricted Net Asset (more info on the distinction between these funds appears in the subsequent paragraphs). Either type of fund can be created by a contribution from one or several donors who identify the purpose for which they would like to see the proceeds from the fund used. The initial donor(s) may elect to leave the fund open to receive additional contributions from other individuals or elect to restrict the fund to their initial contribution and perhaps their intended subsequent contributions.

Permanently Restricted Net Asset Funds

These funds have donor-imposed restrictions on the use of the funds, which are maintained and used in perpetuity for donor-identified purposes that are consistent with the long-term interests of the Society. The Endowment Fund Board has established $50,000 as a minimum contribution to create a Permanently Restricted Net Asset Fund. If matching funds are available, they are attributed to reaching the required minimum contribution. The minimum level may be contributed by one or more donors. It must be contributed within three years. If the minimum level is not achieved within three years, the fund will become a Temporarily Restricted Net Asset Fund. The SOT Endowment Fund Board has initially approved the annual release of an amount equal to four percent of the fiscal year-end assets of each Permanently Restricted Net Asset Fund to be used in the following fiscal year for the purposes for which each fund was established. It is anticipated that investment income will allow each Fund, over a period of years, to grow at the rate of inflation or better, thus increasing the assets of each Fund and the amount available for use to support the purpose for which the Fund was established.

Temporarily Restricted Net Asset Funds

These funds have donor-imposed purpose and time restrictions on the use of the funds. The Endowment Fund Board has established $10,000 as a minimum contribution(s) to create a Temporarily Restricted Fund. Matching funds may be used to reach that minimum. The minimum level may be contributed by one or more donors. It must be contributed within three years. If the minimum is not achieved, the contributed funds will be released for use consistent with the stated purpose of the donors. The total assets of a Temporarily Restricted Net Asset Fund will typically be expended over a period of 10 years or less.

 

Bylaws Establishing the Endowment Fund

ARTICLE SEVENTH ENDOWMENT

Section 1. The Society of Toxicology shall establish an Endowment Fund with a mission of assisting in advancing the science of toxicology by providing financial support for the Society’s programs. The vision for the Endowment Fund shall be to establish and increase in net worth a set of endowment funds that will provide significant, stable, long-term financial support, that complements the Society’s revenue from dues and other sources, to aid in achieving the Society’s strategic objectives.

Section 2. The management of the Society’s Endowment Fund shall be vested with an Endowment Fund Board. The Board shall be responsible to the Society’s Council and shall work with the Finance Committee and other Society Committees to achieve the mission and vision of the Endowment Fund.

Section 3. The Endowment Fund Board shall provide leadership for the Society’s philanthropy-based long-term fund raising activities. The Board will develop, review, revise and implement policies for fundraising, oversee the investment of endowment funds in cooperation with the Finance Committee, and recommend to the Council the use of these funds to support the Society’s Programs. The Board will develop philanthropy-based fundraising goals, spear head fundraising activities and educate Society members as to the value of philanthropic giving to the Society’s Endowment Fund.

Section 4. The Board shall consist of at most ten individuals. The Society’s Treasurer, upon commencement of the second year of his or her term, shall serve a three-year term as a Board Member. Each year the Immediate Past President of the Society, by virtue of his or her office, shall begin a two-year term as a Board Member. Each year the incoming President of the Society shall appoint two individuals from among the Society’s Past Presidents, past Treasurers, past Council Members, and contributors to the Endowment who have indicated a willingness to serve a three-year term as a Board Member. Individuals may be reappointed as Board Members, but in no case shall they serve more than two consecutive three-year terms. In the event of a vacancy on the Board, including vacancies occurring as a result of a former officer declining appointment to the Board, the current Society President shall appoint an individual from the previously described slate of candidates to fill the unexpired term of office. All appointments by the Society’s President shall be subject to ratification by the Council. The Society’s current Treasurer, during the first year of his or her term, the Treasurer-Elect when that office is filled, the current President and the Executive Director, by virtue of their offices, shall serve ex-officio as nonvoting members of the Board. Each year the incoming President of the Society shall appoint, from amongst those Board Members who have served as Board Members for at least one year, one Board Member to serve as Chair of the Board for a one-year term subject to ratification by the Council. Individuals may be reappointed to serve consecutive terms as Chair.

Section 5. The Board shall authorize the creation of subfunds within the Endowment Fund consistent with the needs of the Society, the instructions of donors and the regulations of the United States Internal Revenue Service and the jurisdiction in which the Society is incorporated. To attract the broadest possible donor support, the Board shall establish multiple kinds of subfunds such as (a) Temporarily Restricted Net Assets Funds whose use will be restricted by donor-imposed time and/or donor-imposed purpose restrictions and (b) Permanently Restricted Net Assets Funds based on donor imposed restrictions as to use, such funds to be maintained and used by the Society in perpetuity for the donor-identified purpose. The Board will periodically review and establish the minimum contribution(s) required to establish a Temporarily Restricted Net Asset Fund. The Board will periodically review and establish the minimum contribution(s) required to establish a Permanently Restricted Net Asset Fund to be maintained and used in perpetuity for the donor-identified purpose. The Board, to assist in the solicitation of funds from multiple donors, may establish separate subfunds to be used for purposes and over time periods identified by the Board; the purpose and time period of such subfunds must be ratified by the Society’s Council. The Board shall provide donors the opportunity to name subfunds for individuals and/or intended purpose of use. All documents related to the solicitation of funds, the maintenance and investment of funds and the use of funds shall receive appropriate review by legal counsel.

Section 6. The Board shall provide input to the Finance Committee for establishing an investment policy for the Endowment Fund that is consistent with securing both long-term appreciation of the assets within the Endowment Fund and safe-guarding the total value of these assets. The Board shall regularly review the investment performance of the Endowment Fund and, taking account of inflation, establish a percentage rate for disbursement of Restricted Net Asset Funds that will ensure that these funds continue in perpetuity.

Section 7. The Board shall annually, as part of preparation of the Society’s budget for the following year, provide the Finance Committee and Council with information on the funds available for expenditure from the various subfunds within the Endowment Fund along with any donor or other instructions as to use of the funds. The Society’s Council shall approve the expenditure of Endowment Fund proceeds consistent with the instructions of the donors and any legal restrictions.

Section 8. The Board shall annually prepare a report on the performance and status of the Endowment Fund. This report shall include the status of all individual subfunds at the beginning and end of each year, the amounts of funds contributed by donors during the year, the return on investment, and the amount and purpose of disbursements from the Endowment Fund and a list of contributors with the exception of any donors who wish to remain anonymous. The Annual Report of the Endowment Fund shall be reviewed with the Finance Committee, presented to the Council as is, presented in summary form to the Society membership at the Annual Meeting of the Society and published on the Society’s website.

Section 9. The Society of Toxicology shall only accept contributions to the Endowment Fund for purposes consistent with the Society’s strategic objectives and the Society’s status as a non-profit entity designated as having 501(c)3 status under the United States Internal Revenue Service Code. The Board shall make recommendations to the Society’s Council on issues concerning acceptance and use of contributions to the Endowment Funds. The final authority for decisions on acceptance and use of Endowment Fund contributions is vested with the Society’s Council.

Section 10. Management of the Endowment Fund will be guided by these Bylaws and written policy guidance that is consistent with the Bylaws. The Board will periodically review the written policy guidance for its adequacy in guiding management decisions and, when necessary, propose modifications to existing policy guidance or propose new guidance. Changes in policy guidance or proposed new policy guidance shall be initiated by the Endowment Fund Board and submitted to Council for ratification.

View Full SOT Constitution and Bylaws