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With great excitement, ACT Council announces the creation of the American College of Toxicology Endowment and Institutional Fund, with initial funding of $250,000 from ACT’s reserve funds. The concept for an endowment arose during the 2014 strategic review of the College by Council and subsequently became a component of ACT’s long-term financial strategy.
Given the College’s current and projected financial strength, formation of an endowment was viewed as an opportunity to achieve two major objectives for the College. First, it ensures that financial assets are preserved and managed in perpetuity to provide funding for select programs supported by the College. Second, it provides a mechanism by which individuals or organizations can provide gifts to ACT with the assurance that the assets are strictly managed within a legal framework and in accordance with the donor’s intent.
Because ACT is incorporated in the State of Illinois, these assets will be managed in accord with the Illinois Uniform Prudent Management of Institutional Funds Act (UPMIFA). ACT received legal assistance from Brendan Wilson of Caplin & Drysdale to create the ACT Endowment and Institutional Fund Charter, which provides guidance for the management of these assets. Oversight of these funds will be managed through the newly created Endowment Committee, consisting of ACT’s Treasurer, who will serve as Chair, ACT’s President, Past-President, and Vice President, and three voting members elected by the general membership to serve for 3-year terms. Initially, Council will appoint three members until the annual elections provide members to the committee.
The Endowment Committee was designed to be a unique committee separate from the Finance Committee for primarily two reasons. First, whereas the Finance Committee has oversight and fiduciary responsibilities for ACT’s operating and reserve funds, the Endowment Committee provides oversight for institutional and endowed funds that are restricted in their use. By having separate committees, this can mitigate against potential conflicts of interest and provides assurance that endowed and restricted funds are managed as per donor intent and in accordance with the Charter. Second, a major responsibility for the Endowment Committee will be development and fund raising. This responsibility is unique and unrelated to activities of the Finance Committee.
The endowed and institutional assets will be designated as The ACT Awards Fund, which are restricted to support educational awards and scholarships. Funding for the ACT Student Travel Awards, The ACT Student Furst Award, and the ACT North American Graduate Fellowships are expected to be made in part from The ACT Awards Fund, based upon prudent management of the assets. Our long-term objective is to grow the net principal balance through diversified investments while sustainably supporting these programs from investment income (i.e., interest, dividends) without negatively impacting the principal.
Scientific education and scholarship in toxicology are core principles of ACT and this endowment will create a means for supporting these endeavors for future generations. In the near future, Council will commence our first fund raising program for the endowment. Please consider contributing to the legacy of the College by participating as a donor to the ACT Endowment.
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