Award Finances

All Society award activity should be budgeted and self-sustaining, except for the Society sponsored Awards and those activities conducted on a volunteer basis for the benefit and on behalf of the Society. Financial arrangements for awards are subject to the approval and periodic review of the Awards Policy Committee and the Finance Committee. All awards for which nominations are processed through ASEE Headquarters shall be assessed an Award Administration Fee as approved by the Finance Committee.

5.1 ENDOWED AWARDS
An endowed award is one which is funded in perpetuity by the earnings of a restricted Society investment with the corpus of the investment being untouchable for purposes other than providing income for the purposes of the award. When planning an endowed award it is important to be aware of the following Society Policies:

• No capital sum shall be accepted by the Society without the stipulation that jurisdiction over the review of the nominees, the selection of the recipient, design and specification of mementos of recognition, and all rights of administration, financial management and ownership be surrendered to the Society.
• The contribution of a corpus of $40,000 or 20 times the annual direct and the Award Administration fee expenses shall be the minimum amount required to establish an endowed award.
• The purpose of the corpus of the endowment is to generate sufficient income to sustain the award; it shall not be used to offset or recover any expenses.
• In establishing an endowed award, it is understood that 10 to 15% of the income will be returned to the endowment on an annual basis.
• It is a stipulation of the Society that, in establishing an endowed award, the income will not be used for staff time, fringe benefits, or overhead. Society awards established in perpetuity are subject to adjustments in the award amounts or frequency depending on the realized return on the investment. In any year when adequate funds are not available from income, the award can be held in abeyance by the Finance Committee on recommendation of the Awards Policy Committee or the Executive Director. 

5.2 SPONSORED AWARDS
A sponsored award is one which is funded on an annual or multi-year basis. They can be externally sponsored through outside grants and contributions or sponsored with funds earned by a Society unit. The basic parameters of Sponsored Awards are as follows:

Externally Sponsored Awards

Society Unit Sponsored Awards
The requirements for a Society Unit Award which is externally sponsored are as follows:

• An honorarium of at least $250 (preferably $500)
• A travel expense grant of up to $250
• A suitable memento of recognition

Any unexpended balance in an award account shall be carried forward into the next fiscal year or placed in the endowed account, as recommended by the Award Policy Committee and the Finance Committee.

5.3 ADMINISTRATIVE EXPENSES
Board of Directors' policy prescribes that all awards be self-supporting, except the Society sponsored awards. The costs associated with any and all awards, except salaries, benefits and overhead, are to be covered by the income from the endowment, external sponsors, or the Society unit sponsors. ASEE Headquarters provides a number of services in support of the various awards and the overall awards program.

5.4 SPONSOR FINANCING AND BILLING
The Society maintains permanent, restricted awards funds (e.g. trusts, endowments, etc.). The investment of such restricted funds is authorized by the Investment Policy Committee and the Finance Committee and managed by the Executive Director. As funds are collected by an ASEE unit, monies should be accumulated by using the Headquarters Banking and Accounting Services System (BASS) until sufficient funds are available for external investment such that the award can be operated on the interest earned.

ASEE Headquarters is responsible for invoicing the sponsors of National Awards for the direct costs and an award administration fee incurred. Society units chairs are responsible for invoicing the sponsors of externally sponsored Society unit awards. Billing should take place allowing reasonable and sufficient time for funds to arrive prior to the end of the fiscal year.

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