AMA News
AMA Foundation To Be Formed
By Sheila Ames
AMA's Resource Development Committee presented its Comprehensive Resource Development/Business Plan during the February 21 Executive Council meeting in Muncie, Indiana. The plan proposes creating a new institution, the Academy of Model Aeronautics Foundation, to pursue funding opportunities in support of AMA's heritage and education programs and to manage programs that would enable future charitable activity.
Background
The Business Plan is the result of three years' work by the Executive Council and the Resource Development Committee. Research compared AMA's fundraising needs with those of similar organizations. The material was compiled by the Resource Development Committee, AMA staff, and fundraising consultant Andrew H. Bro, president of the Prentice Company.
Vision and Purpose
The AMA Foundation's stated vision is to:
- preserve and interpret the story of aeromodeling for new audiences;
- inspire new generations toward AMA's modeling disciplines; and
- encourage generous financial gifts to benefit the future of aeromodeling.
According to Rich Hanson, chairman of the Resource Development and Charter Committees and Vice President of AMA District X, the Foundation's activities should produce substantially more philanthropic support for AMA. Hanson emphasized that most funding will be directed toward education and youth activities.
Need for a Separate Corporation
The Business Plan explains the need for a corporation that is separate from, yet closely related to, AMA because leadership requirements for philanthropic development differ from those for association management. The relationship between AMA and the Foundation is intended to be symbiotic, built on:
- common administration,
- correlated governance, and
- trust.
As Dave Brown, AMA president and member of the Charter and Resource Development Committees, said, "What the Foundation does enhances what AMA does, and vice versa." He added that this structure will better position AMA to focus on members while the Foundation focuses on the broader betterment of model aviation.
Governance and Organization
The Executive Council approved formation of a temporary Charter Committee composed of members from the Resource Development Committee, the Museum Steering Committee, and the Education Committee. The Charter Committee will:
- recruit and guide the Board of Trustees,
- draft the Articles of Incorporation and By-Laws, and
- be replaced by a Board of Trustees once its goals are achieved.
The Board of Trustees' mission will be to raise funds and supervise Foundation activities; the Business Plan notes the Foundation's success will depend heavily on this Board. Hanson identified the primary challenge as assembling a Board with the right qualifications, networking capabilities, and influence to secure donations.
The Foundation and the AMA Executive Council will share the same Chief Executive Officer (CEO). For the interim, Joyce Hager, AMA Executive Director, is acting as CEO and AMA staff liaison. Governance arrangements will include cross-membership between the two boards: one or more key officers of the Executive Council will serve on the Board of Trustees, and one or more Board members will serve on the Executive Council. The AMA president and the Chair of the Board of Trustees will be voting members on each other's boards as specified in the Business Plan.
Fundraising, Assets, and Tax Status
Although AMA lists donor gifts in Model Aviation, it does not currently have a formal fundraising organization separate from the membership-serving association. Historically, targeted appeals to members have raised funds for specific purposes (for example, paying off the mortgage on the Reston, Virginia property and acquiring the Percy Pierce collection), and a significant portion of philanthropic donations has gone to the Museum. The Foundation is intended to capture and grow philanthropic support that members might otherwise direct to other causes.
AMA currently holds 501(c)(3) tax status, which allows donors to deduct contributions. Under Indiana's Nonprofit Corporation Act of 1991, the AMA Foundation would be organized as a Public Benefit Corporation.
Initial assets of the Foundation are expected to be transfers from the Academy and may include:
- heritage- and museum-related funds,
- objects and artifacts,
- archives and library materials, and
- exhibits and related items.
Dave Brown addressed concerns that assets would be moved into a blind trust, explaining that many assets will remain in operating units (for example, insurance) and that the reorganization should yield efficiency gains without a loss of control. The Business Plan notes similar structures have been used successfully by organizations such as Rotary International and the Experimental Aircraft Association (EAA).
Timeline and Next Steps
Hanson would like to see the Foundation begin operations by the end of the year but expects the process to take longer. Steps required before the Foundation can be implemented include revising AMA's bylaws and obtaining approvals from the Executive Council and Leader Members, which could be a lengthy process. The Charter Committee was expected to be assembled by early spring, with its first meeting scheduled for the summer.
Transcribed from original scans by AI. Minor OCR errors may remain.
