MARCH 31

UNRESTRICTED FUNDS:

CURRENT ASSETS:

Cash

Short Term Investments Accounts Receivable·

Inventories Prepaid Expenses Unexpired Insurance Total Current Assets CURRENT LIABILITIES:

Accounts Payable Accruals

Amount Due Reserve Df;:ferred Income

Total Current Liabilities Working Capital

OTHER ASSETS:

Deposits Advances

Total--Unrestricted Funds RESERVED FUNDS:

Funded

Building Expansion

Kiwanis International Bldg.

Total--All Funds (Net Assets)

12.Zi

¹⁹⁷³

$ ^113,638 $ 206,947 200,000 300,000 227,279 140,160 206,509 188,531

20,447 45,577

7,217 9 608

775,090 890,823

83,106 67,246

60,911 72,873

175,610

22,310 8.,303

166,327 324,032 608,763 566,791

50,565 46,435

23, 765_ 16,713

74,330 63,148

683,093 629,939 310,814 301,392 141,902 125,023

!.

... 1

~1~1352810 21~0562355

REPORT OF BOARD. COMMITTEE ON. FINANCE

TO THE MEETING OF THE INTERNATIONAL BOARD OF TRUSTEES April 27-May 1, 1974

Date of Committee Meeting: April 27, 1974 Place of Committee Meeting: General Office

Present: Members - Ted R.· Osborn, Stanley E. Schneider Chairman - Maurice Gladman

Staff Members - Thomas W. Fitzgerald, R.P. Merridew, L.A. Hapgood Others - William M. Eagles, M. D., Roy W ^o Davis

Attached is a copy of the Summary.Statement of Income and Expenses for the period ended March 31, 1974, and the 1973 comparison figures.

This statement represents the first half of the 1973-74 administrative year --- income for the first six months amounted to $1,621,148, which reflects an improvement of approximately $57,000 during the last twelve months. The interest income

reflects a significant improvement in the last twelve months, and while a few thousand dollars of this favorable comparison was created because of bookkeeping procedures, we are still running ahead of last year by almost 300%. The reason for this is because we have had more cash to invest this year because of the two·

previous years' operational results which created an excess of income over expenses, and we are investing our cash in certificates of deposit which are cur- rently paying 10\% interest.

Convention registration fees show an improvement of approximately $20,000 this year. This improvement was realized because of the increased rate for men's registration. You will recall that the Denver Convention registration fee for men was increased from $25 to $35. The convention dues comparison 'reflects an adjustment in allocation rather than an improvement. · Last year we were allocat- ing a lesser amount of general dues to the convention operation.

On the other side of the ledger, the expenses at March 31, 1974 total $1,377,455, or an increase of almost $160,000 in the last twelve months. A review of the departments would indicate that there are several areas where we will have a considerable amount of increased expenses for this year. Some of the increase in expenses can be attributed to the timing of expenditures~ The major portion of the total expense figure is due to changes in operation or increased costs.

However, when building the budget we anticipated this increase in expenditures.

The final figure on the Summary Statement of Income and Expenses of $243,693 represents net income for the first half of this year.

It should be noted that in order to fulfill prior commitments, the International Extension area will reflect a deficit at the end of this administrative year.

The Board revoked thirty-two club charters at the February 1974 meeting. Among the clubs listed, the following club had accounts rece~vable balances:

KIWANIS CLUB OF:

Phenix City, Alabama

Daly City-Colma, California North Orange County, California Vallee Du Richelieu, Beloeil, Quebec Hamel, Illinois

Murfreesboro Road, Nashville, Tennessee Westside Paducah, Kentucky

Salem, Missouri

Bourne, Massachusetts Needham, Massachusetts South Boston, Massachusetts Mountainside, New Jersey Madeira-Indian Hill, Ohio

McChord AFB, Tacoma, Washington Castle Rock, Colorado

Green Mountain, Colorado Gillette, Wyoming

Hanna, Wyoming Channelview, Texas Dalhart, Texas

Greenville, Sunrise, Texas Jenks, Oklahoma

Canmore, Alberta Total

Recommendation #1:

AMOUNT

$ 37.50 20.80 26.25 395.70 44.00 66.20 37.50 26. 25 408.04 18.75 234.75 15.50 12.00 136.20 28.00 76. 75 121.50 224. 7 5 100.00 180.00 56.00 100.00 63.00

$2,429.44

The committee recommends th.at the write-off of the accounts receivable totaling $2,429.44 for the clubs listed in the body of this report be made.

I move that recommendation 1 be adopted.

The committee reviewed a rough draft of the Proposed Budget for 1974-75 compiled by the Staff. We will forward a complete budget to each member of the Board in the next few weeks. After you review the Proposed Budget for 1974-75., we will appreciate it if you will share with us any questions you may have pertaining to it. You will recall that the Budget will be fonnalized between now and the Board Meeting in Denver. At that time we will ask you to approve the Budget as we submit it to you in June 1974.

The committee ·reviewed the Key Club and Circle K Quarterly Statements of Cash Receipts and Disbursements for the period ended March 31, 1974 and 1973. The bank balance indicated for Key Club International at March 31, 1974 was $74,000 and also $75,000 in short term investments (Treasury Bills). The Circle K International bank balance at March 31, 1974 was $29,000 and also $25,000 in short tenn investments (Treasury Bills). Both organizations will be needing the current cash as well as the short term investments to reimburse Kiwanis Inter~

national for payments of their expenditures for the balance of this administrative year

The contingent expense reports for the Secretary and the Associate Secretary were reviewed, found in order and approved.

The committee reviewed some of the promotional materials for the proposed Inter- national dues increase. It was agreed that the Finance Committee Chairman will include as part of his report to the Convention pertinent materials to help the passage of the amendment.

I move this report be received.

Respectfully submitted, TED. R. OSBORN

STANLEY E. SCHNEIDER MAURICE GLADMAN, Chairman

-SUMMARY STATEMENT OF INCOME AND EXPENSES PERIOD ENDED MARCH 31₂ 1974 & 1973 INCOME:

Dues-General

Dues-International Extension Charter Fees

Interest

Liability Insurance (Net) Processing Fees

Magazine Subscriptions' Magazine Advertising

Gross Profit on Sale of Supplies Convention Regist~ation Fees Convention Dues

Mailers Total Income EXPENSES:

Board, Council & Comm. Administration Executive

Office Management Public Relations

International Extension Field Service

Records & Data Processing

Program Development & Club Service Circle K

Key Clubs

Bureau of Accounts Publications

Magazine Supplies Convention Total Expenses

EXCESS OF INCOME OVER EXPENSES

1974

$ ^628,305 66,642 11,300 19,564 12,960 69,320 267,372 98,389 226,961 194, 740 22,036 32559 126212148

150,271 72,916 85,391 27,730 78,419 128,131 4,5,241 69,091 23,014 37,632 3,206 49,032 364,396 190,550 52,435 1.,3772455

~ 2432693

1973

$ 637,%6 66,051 11,300 3,695 12,332 64,307 265,303 99,153 223,185 175,103 1,981 3 713 1'25642069

138,190 75,891 69,923 26,029 59,360 104,315 47,655 65,305 20, 44.5 22,058 ( 7,002)

28,995 345,281 169,213 ,53,072 1,218,730

$

^3452339

Before

---

~Q;.&.fl)2. OF

TRUSTEES

OF KIWANIS _INT.EfiliATIONAL

Chicago, Illinois April 27, 1974

4:40 P.M.

PRESENT:

President: William M. Eagles, M.D.

President-Elect: Roy W. Davis Immediate Past President: Lorin J. Badskey Vice-Presidents: Charles M. Roberts

Stanley E. Schneider

Treasurer: Ted R. Osborn

Trustees: James C. Brooks

Paul Chandler Jack P. Delf Merald T. Enstad Maurice Gladman T. Ben Hagler

Stephen H. Hart, Jr.

Ralph C. Keyes H. Lee Powell, Jr.

Mark A. Smith,

Jr.

Hilmar L. Solberg Ernest Sturch, Jr.

Secretary: R. P. Merridew

Associate Secretary L. A. Hapgood Counsel for Kiwanis Inter-

. national: David H. Brill

Counsel for Kiwanis Club

Great Neck, New York: Donald R. Siegel

DR. EAGLES: I introduced myself to Mrs. Bromley, informed her of the action of the International Board, and I told her we would recess as soon as this hearing is over and would like to have the opportunity to

meet her as a full Board.

At this time I would like to introduce to you a member

the Great Neck club, Don Siegel. Don, i t

s a real pleasure to have you with us today.

Around the table, Don, are the officers and members of the Board along with our Counsel Mr.

Dave Brtll.

MR. SIEGEL: I would like to distribute this.

I apologize for the quality of the reproduction.

DR. EAGLES: Don, we have called thi's hearing and appreciate very much your attendance here to pre- sent the feelings of the Kiwanis Club of Great Neck.

We are familiar with the minutes of the meeting of your club in which you stated that:

"RESOLVED, that as used in the bylaws of Kiwanis Club of Great Neck, Inc. of the words

'man' and 'men,' (a) shall be construed to mean

both males and females in accordance with the

interpretation of both State and Federal Courts

in similar organizations and., ( b) shall mean

both males and females as

it

now accepted in current, common usage of these words in our community and elsewhere.

"IT IS FURTHER RESOLVED, that those women who have been inducted as members of the Great Neck Club are members in good standing and this group will not suspend or revoke their membership.

"IT IS FURTHER RESOLVED, that

since

the

above resolutions set forth the wishes and interpretation of the constitution and bylaws by the membership, there is no requirement to seek formal amendment of our constit~ion and bylaws from

the New York District of Kiwanis International and Kiwanis International."

This was referred to this

Board

^by the Board of the New York District of Kiwanis Interna- tional.

I would like to re-emphas~ze that in ArticlellI, Section

7

of our Bylaws i t states --

Do you have that? It is on Page 12.

Article III, Section

7.

"Upon completion of a Kiwanis club under the direction of the ac- credited representative as provided in Section

5

of this article, there shall be issued to said

club a charter of Kiwanis International signed

the President and the Secretary under seal of the organization, provided that said club shall have complied with the following conditions:

a. Adopted the standard club bylaws, modified only as approved

the Board of Trustees."

I thought that maybe this preamble might be helpful, and the floor is now yours.

MR. SIEGEL: ^Thank you, President Bill, and I thank you and Ralph, Reg, and the other people who have been so kind to me, because I came a l i t t l e bit early.

I feel a l i t t l e bit like the man who came to dinner I also feel a l i t t l e b~t like Daniel in the lions•

den, so please bear with me.

I believe in the club, the Great Neck Kiwanis Club believes in the tlub, as I am sure all do in the organization of Kiwanis International the New York District and the club locals.

As a lawyer I have re~d the Constitution

and I understand your interpretation. As a representa-

tive of the club, however, I have been asked to point

out certain things to the members of the Board of

Trustees~ for the purpose of perhaps changing the

interpretation that was made some fifty-nine years ago

,

r

I

use the word rrclub" to mean

Kiwanis International.

Putting on

my

lawyerrs hat, I would like to point out and to have the record show that Interna-·

tional

has sent by letter of April 17 a notice,

signed by Robert Kavanaugh, that the new member processing fees

pertaining

to the five women who

w

re in-

ducted into the Great Neck club and the magazine sub- scriptione have been returned since they are no longer registered in Kiwanis International and that the

Data ~rocessing Department has been instructed to re- move the five females from the club roster.

Since that action has been taken by Inter- national, I think perhaps

my

appearance here might be moot in that there are no women in the Great Neck

Kiwanis Club

since Kiwanis International has indicated

they

have removed them. So now I am here after the horses

have left the barn.

Your records

now

reflect there are no female members in the Great Neck club;

and

i f

there are no members there, then this hearing

is an

academic hearing.

In some of the correspondence in the l i t t l e pamphlet I handed out there is a notation about the meeting -- I am not going to refer to i t specifically

there was a No Vote to proposed legislation to allow women into Kiwanis~ I have not found in the Constitu- tion and Bylaws anything other than the fact that a

two-thirds

vote is required Again, from a legal

point of view,

I

would think a matter brought up before the delegates of the convention to be voted on would be voted on in the form of a written vote and,if not,a polling to record the voice vote. It is the opinion of some of our members who have spoken to people at the convention that there was a loud

minority out-shouting a quite responsible majority.

So without a formal vote's being taken, I really don't know what the true feeling is of the delegates and the entire membership of Kiwanis.

I think that would cover my legal points.

Before going further, I have borrowed

somebody's dictionary, and referring to the resolution President Bill has read to you as to the interpreta-

tton of the word "man" or "men,-"

in this Ameri.can College Dictionary, the most authoritative desk dictionary ever published, i t says that

man

"(1) is an individual (genus Homo, family Hominidae, class

Mammalia) at the highest level of animal development,

mainly

characterized by his

exceptional

mentality.

(2) The human creature or being as representing the

' ^' -

species or as distinguished from other beings, animals, or things; the human race; mankind. (3) A human

being; person."

In the Random House dictionary,

which

is,

I guess, the second most authoritative dictionary, they define man as "(2) Any human being regardless of sex or age; a member of the human race; a person.u

For what

i t

is worth, our

interpretation follows these two volumes, and Couneel I am sure will take notice that they are recognized works of what- ever they are.

Kiwanis, as I understand i t , is a service

organization. It started in

1915,

and its purposes were stated to be services to youth, community, and

nation --

research was directed out of thie

l i t t l e

pamphlet

(indicating).

Its members are

business and professional men who voluntarily serv~. To join a Kiwanis club, a person needs to be (1 )ma business or profession; (2) someone of good character; (3)

acceptable

the members

of the said

club;

and

(4) a man.

This last requirement is a

1915 way

of thinking® We are in

1974

now.

The Federal and State courts have ruled on issues of discrimination in several cases. Among them, the Moose Lodge case where they have found if there is discrimination against a particular sex it is violative of Federal law. I must say that on the other hand, if you have a private club and you want to keep i t a pri- vate club, you can. However, you cannot be a private club

and

participate in places of public accommoda- tion, such as the Elks case, which is one w~re it was found they must admit the public to Elks because they serve liquor.

The Kiwanis clubs that I am familiar with all meet in places of public accommodation even though they are private clubs. In addition to that, Kiwani~

does and the member clubs do receive certain tax benefits. I think I may be wrong in this, and I

haven't been able to find the document in a particular club, but I think Kiwanis does receive some sort of tax exemption which is allowed

the Federal Govern- ment. If so, then the Federal Government might have

jurisdiction over this situation of male and female.

With regard to our particular club, I would like to furnish you gentlemen with a l i t t l e background.

In October of 1973 -- this was before women -- we had

actually sixteen active members in the club with a pretty rotten attendance ratio. We were probably

r

^{U ~}.1 J. ^{.,,1 i}t ... •

n

0 ^a-

a·

, ¹_.,__

7ot

1o s

^C1'-·• each year, attrition rate. As of now we have a 26-member club.

In the district in

which we are lacated, we run par with practically

everyone -- some a l i t t l e higher, some a l i t t l e lower. We are a small community of villages with other villages immediately around us. They have their own clubs. We have

26

members now. Since October, 1972~ we have increased our membership 62-1/2%. We have not had any attrition of 17%- We have inducted

five women, which is less than 20% of the club member-

ship. We have now a

93%

attendance ratio at meet- ings -- not necessarily because the women are there but because we are an active club now. We are a viable club. We are alive. We do things.

We have had in the last several months a Brotherhood Dinner together with the Rotary and Lions -- very very successful. We packed the room~

sold out. There wasn't another table. We couldn't sell

any

more tickets because there wasn't any more

space ..

Last Sunday we had an antique car show as a benefit activity which has netted in excess of

tl.000.00.

I ~

We are a 26-member club, and we all have private commitments. I myself personally had ~o come late because I had thirteen kids on a Little League team. We made over $1,000.00. This is a

sample of the ad (indicating) that was placed in the local paper advertising this. The New York

Historical Society, whom we paid $250.00

23 cars down, said i t was the most successful 2how put on th~ year. We had over fifty cars. There

was no bickering, no fighting. When you get a bunch of people who are enthusiastic about their hobby, you

can have some bickering as to who puts their car where.

None of this occurred. It ran smoothly.

This was organized and sponsored

the Kiwanis club of Great Neck, but really

Florence Bromley, the lady you might meet later. Florence

did a good job. She had tickets in every bank. She was on the phone. She had posters. We had prizes and

plaques made up, and~ s t i l l made money. The money went to the Great Neck Park District, who will use the money for scholarships and for the underprivileged youth in the community to use the swimming pool, the roller skating rink facility. It was a very

successful thing.

Who are the women we have in Kiwanis? They are:

Florence Bromley -- not related to anybody in the or-

• + •

ganizavion. A real estate broker in Great Neck and has her own office and been there many many years.

She is the Vice-President of the Chamber of Commerce.

She is of excellent moral character, a business man and professional in the community. She likes this kind of work. She is treated like any other person in the club.

person.

She has many employees. She is a responsible She is a person we have admitted as a

member of the Great Neck Kiwanis Club.

Clara Haft is another lady.inducted into the Kiwanis club. She is an officer in the Middle Neck National Bank. She has a perfect attendance record, I think, and I havewry rarely heard her speak.

She listens, she weighs,· she offers an opinion now and then when asked. This is not a lady

ssewing circle or teaparty group.

We have Virginia Nathanson, a lecturer and teacher,

published writer, an extremely articu- late lady, whom we feel is an asset to the club.

Ruth Colan, from whom I got my tickets to come here today, runs a travel agency on the main street

a very successful agency in a community where there is

r

And,finally, Sunya Strick, who is the wife of the President of our club, but not because she is the wife of the president is she a member. She is

an independent licensed real estate broker and insurance company sales person. Her husband is in a similar

line, but they are in separate businesses, and I have occasion to know this because I also represent them as their attorney. They are separate entities.