Page 15 - 2022_NEWS_79-1_JanFeb

Jan/Feb 2022 | Vol. 79 No. 1

From BOARD. p.14
It was determined that the most practicable method of disposing of items not critical to business operations

and no longer appropriate for use but not deemed integral to the Society’s history should be selling via a
company experienced in the sale of such items. As is the practice of such companies, all items will be valued
by the company in collaboration with the Society and sold on a specified date. When that date is determined,
public notice will be given.
5. Approved that the Society will invest the proceeds, held by the Permanent Fund, from the sale of 416 W. 12th
Street, Austin, Texas, and the adjoining lot (the “Headquarters” building) as follows:
• Keep $180,000 in the money market account to cover building lease payments and fixed asset acquisitions
as outlined in the Delta Kappa Gamma Society International Constitution (the “Constitution”) in Section IV
F 3 f (2), (3), (4).

• Invest $800,000 in financial instruments, with $200,000 maturing in years 1, 2, 3, and 4 following invest-
ment. Maturing funds are to be used as needed for building lease payments and fixed asset acquisitions as
specified in Constitution Section IV F 3 f (2), (3), (4).
• Remaining balance of $17,170,000 (principal) to be invested longer term with the following goals:
º targeted 1% return on investment from interest and dividends, with funds to be allocated annually to the
Available Fund as outlined in Constitution Section IV F 3 e, and
º targeted principal growth benchmarked to US annual inflation rate, currently between 4–5%.

• All investments will be made in accordance with the Delta Kappa Gamma Society International Investment
Policy.
Context: The DKG Constitution mandates (Article IV) that funds from the sale of permanent assets remain
in the Permanent Fund and can only be used to purchase items of a permanent nature as defined in the
document. Due to the amount of the deposit from the sale of the building, it would be fiscally irresponsible
not to invest these funds to maximize growth and protect the principal amount of the deposit. The funds will
be invested in accordance with the Society’s Investment Policy as previously approved by the International
Administrative and Executive Boards. That policy can only be amended with the approval of both boards.
6. Adopted the 2020–2021 Audit Report as presented.

Context: Article IV Section G.3.b. (DKG Constitution) states that “The audit report shall be reviewed and
adopted by the Administrative Board.”
7. Approved a partnership with Avis Car Rental with resulting opportunities to be included in lists of membership
benefits.
Context: Upon recommendation of the International Non-Dues Revenue Committee, Avis Car Rental Company
will provide discounts to members through a program DKG can join at no cost to the Society.
8. Approved a one-time gift to the DKG International Educators Foundation (DKGIEF) of $200,000 to fund activities

of the DKG international committees whose activities are now funded under the management of the DKGIEF.
Context: When monies in the Available Fund are determined by the International Finance Committee to be
more than sufficient to maintain required reserves and can be returned to the work of the Society and the
benefit of its members, such action is reviewed and approved by the Administrative Board.
9. Approved by consensus that International President Becky Sadowski write a note on DKG letterhead to the com-
pany and persons who have helped with the process of selling the building and securing temporary office space.
Context: The real estate advisory group that assisted the Society in the sale of the See BOARD. p. 16

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