Research & Education Fund

Overview

The Research and Education Fund of the Suffolk County Women’s Business Enterprise Coalition (SCWBEC) was formed in 1998 as a 501(c)(3). It was formed due to a concern that Sylvia Diaz (Director, S.C. Office of Minority Affairs) and Bob Gaffney (S.C. County Executive) conveyed to the SCWBEC that the monies raised by SCWBEC could be incorporated into the General Fund of Suffolk County and if so, may not be specific to the SCWBEC for its programs. While the County Executive was very generous about funding us, we needed a separate organization to “protect “ the monies raised, as well as, make it a charitable deduction for potential sponsors. It would also make it possible and legal for the SCWBEC to go after grants.

SCWBEC’s sponsors wanted to make donations to the SCWBEC, but these donations would not be tax deductible unless they were made to an organization that was a 501(c)(3). More specifically to grants, Sylvia Diaz and Bonnie Gelback (Chair of the SCWBEC at that time) were working on a grant from Fleet Bank to set up a computer room to provide computer classes to women business owners. Originally the SCWBEC tried to become a 501(c)(3), but was unable to do so because a 501(c)(3) had to be independent of any political organization. In that the SCWBEC operates under the auspicious of the Office of the County Executive, and is further tied to Suffolk County because Suffolk County provided meeting space, assistance with mailings, printing, and clerical help, the County requested a separate 501(c)(3) be established.

The boards of the Research and Education Fund of the Suffolk County Women’s Business Enterprise Coalition and the SCWBEC were intended to be separate by definition of a 501(c)(3) and to prevent any conflicts of interest. The Research and Education Fund of the Suffolk County Women’s Business Enterprise Coalition contracts with the SCWBEC to develop, execute and oversee the programs and activities that meet the goals of its mission. The bylaws of the Research and Education Fund of the Suffolk County Women’s Business Enterprise Coalition were created to be very vague because the organization was not created to have power over the SCWBEC, nor to be an active organization, but to just collect and distribute the funds – not to create programs, oversee programs or dictate how money should be spent, but the Research and Education Fund of the Suffolk County Women’s Business Enterprise Coalition has a fiduciary responsibility to make sure that monies raised and disbursed are done so within any legally defined guidelines and laws. The Board of the Research and Education Fund of the Suffolk County Women’s Business Enterprise Coalition was to be an entity that meets the requirements of a 501(c)(3). The SCWBEC would create the programs based on the mission statement and its bylaws, and the Research and Education Fund would oversee the budget of the SCWBEC. If more input or advice was requested by the SCWBEC, the Research and Education Fund would be available to provide the input.

The Board of the Research and Education Fund requires input from the SCWBEC because the Research and Education Fund is required to file an income tax return every year.  Therefore, it needs to be kept informed as to the anticipated income and disbursements of the SCWBEC.  Meeting of the Research and Education Fund are usually in January and June.

Budget Approval Policy

The purpose of the R&EF is to support SCWBEC in any endeavor they undertake in promoting the advancement of women owned businesses.  The R&EF has a fiduciary responsibility to oversee the funds, receipts and disbursements of the SCWBEC. It is the SCWBEC that will handle the specific programs and usage of funds.

1. The R&EF Board will deny funds for any proposal that hinders the fulfillment of the SCWBEC mission.

2. The R&EF Board will deny funds for any activity that is illegal or outside of the bylaws of either organization.

3. The R&EF Board can deny requests for expenditures in excess of 50 % of current assets that are not accompanied by assurances of return on investment.  Such request must also be accompanied by SCWBEC Board approval of at least 2/3.  SCWBEC can resubmit a failed budget with modification(s) or with additional specifics as requested by the R&EF Board.

4. R&EF meetings are held in January to review financials and in June to review the budget, or as close to those dates as possible.