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Navy Supply Corps Foundation

Board of Directors Meeting

San Diego, CA

November 11, 2017

In Attendance:

Chairman

RADM Linda Bird, SC, USN (ret.)

Vice Chairman CAPT Kurt Libby, SC, USN (ret.)

Treasurer

CAPT Bruce Maxon, SC, USN (ret.)

Chief Staff Officer CDR Jack Evans, SC, USN (ret.)

Secretary LCDR Scott Long, SC, USN

Directors

RADM Patty Wolfe, SC, USN (ret.)

CAPT Dan Pionk, SC, USN (ret.)

CAPT Charles Parker, SC, USN

CAPT Pete Eltringham, SC, USN (ret.)

CAPT Ken Epps, SC, USN

CAPT John Kizer, SC, USN (ret.)

CAPT Len Sapera, SC, USN (ret.)

CAPT Tiffany Schad, SC, USN (ret.)

CAPT William Fenick, USN (ret.)

CAPT Danny King, SC, USN

CDR Spencer Mosely, SC, USN

CDR Warren Sherman, SC, USN

Chapter Presidents

CAPT William McCarthy, SC, USN

CAPT Milton Troy, SC, USN

CAPT Rick McCarthy, SC, USN

CAPT J.D. Cassani, SC, USN

CAPT Rob Carroll, SC, USN

CDR Rob Allen, SC, USN

CDR Donna Johnson, SC, USN

CDR Bill Benham, SC, USN

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CDR Stuart Day, SC, USN

CDR Andrew Oswald, SC, USN

CDR Josh Hill, SC, USN

CDR Troy Carr, SC, USN

CDR Bob Dolan, SC, USN (ret.)

LCDR J. Eric Piskura, SC, USN

LCDR Cindy Suarez, SC, USN

LCDR Jon Schumann, SC, USN

LT Dennis Pelina, SC, USN

LT Jesse Kiengsiri, SC, USN

Ad Hoc Directors / Other Participants

RADM Mike Lyden, SC, USN (ret.)

CDR Trev Sterling, SC, USN (ret.)

CDR Kurt Williams, SC, USN

LCDR Karlie Blake, SC, USN

Ms. Liz Van Wye

Ms. Gracie Dziewiatkowski

Ms. Amy Emerson

Directors Not in Attendance CAPT Bud J. Schiff, SC, USN (ret.)

CDR Keith Applegate, SC, USN

CDR William Boucek, SC, USN (ret.)

CDR Dennis Collins, SC, USN

Mr. Michael McCleary

Mr. Victor Trione

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Board Minutes

RADM Bird convened the Board meeting promptly at 0738. The Board of Directors held an

executive session, the contents of which are covered in the Memorandum to the Board dated 11

November 2017.

At 0805, the Board of Directors transitioned to the main conference room. RADM Bird

welcomed everyone present and asked those in attendance to please introduce themselves.

RADM Bird’s opening comments included:

- Introduction of new/re-elected Board members, to include the 2018 Executive

Committee:

o Executive Committee:

Chair – RADM Linda Bird

Vice Chair – RADM Mike Lyden

Secretary – LCDR Karlie Blake

Treasurer – Captain Charles Parker

o New/Re-elected Board members:

CDR Bill Boucek

CAPT Bill Fenick

Mr. Mike McCleary

CDR Trev Sterling

CAPT Luis Trevino

CDR Kurt Williams

- SITREPS: She asked the group if they are helpful and plugged Chapter representatives to

better engage CDR Jack Evans as it relates to input.

- Presented the Revenue vs. Expenses slide. The ratio of Revenue to Expenses is currently

just under 30%, well in line with the target of 35-40%. This is an important ratio/metric

for non-profits, and while the ratio is in a good place now, the need exists to continually

monitor. RADM Bird confirmed her intent to present this slide annually.

- Discussed recent online “phishing” attempts. The Foundation and individual Chapters

are reporting an uptick in online attempts to disrupt/manipulate Foundation fundraising

efforts. The Board took the action to investigate further and determine a mitigation

strategy as the Foundation’s online footprint grows.

- Looking for a Volunteer Committee Chair … please contact CDR Jack Evans if

interested.

- Proposed 5 May 2018 for the next Board of Directors meeting, to be held in Atlanta, GA.

Secretary’s Report (LCDR Long): The minutes from our last meeting were reviewed and

unanimously accepted by the Board.

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Strategic Plan Overview (CAPT Kurt Libby): CAPT Libby detailed recent steps taken to

reshape the Foundation’s strategic plan. In an effort to confirm/validate the Foundation’s

mission and vision, the community was asked to provide feedback on various topics via

electronic survey. 1300+ responses were received from across the community: active duty,

retirees, spouses, chapter presidents, etc.

Survey results indicated the community is most interested in the following:

- Taking Care of Others (scholarships, FAST)

- Taking Care of Ourselves (career guidance, transition assistance)

- Maintain and Promote the Supply Corps (heritage, recognition efforts, fundraising)

The Board is still looking to grow the Volunteer and Development Committees. Captain Epps

plugged those present to help identify future Volunteer Committee members.

Captain Libby reiterated the Board will always have a three-year Strategic Plan (rolling effort).

Need to conduct an in-depth review approximately every five years.

Treasurer’s Report (CAPT Bruce Maxon): After reviewing the roles and responsibilities of

the Foundation Treasurer, CAPT Maxon deep-dived the financial health of the Foundation to

include financial operations, budget planning and execution, corpus status, investment

performance, and fiscal policies. Key take-aways include:

- Reviewed Investment Portfolio over the last 11 years (~$6M today)

- Discussed Sources and Uses of Investment Funds over the last 11 years (Deposits,

Scholarships, and Other)

** See slides for specific $$ breakdown.

He then turned the floor over to Captain Pionk, chair Investment Advisory Committee (IAC).

He reviewed the Investment Portfolio’s performance over the last year (13.56% return vs.

benchmark return of 14.38%).

- Actions taken by the IAC since the Spring 2017 Board meeting:

o Monthly Conference Calls

o Rebalanced portfolio in accordance with Asset Target Allocation Model

o Portfolio Bond Review and Assessment

o Deep-dived Investment Policy Statement (IPS)

- IPS review comprised of five levels-of-effort:

o Historical Perspective (Internal RoR, Deposits and Withdrawals, and Budget)

o Asset Target Allocation

o Benchmark Component

o Active versus Passive Fund Management

o Review of Overall Investment Policy Statement

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- IPS Review Recommendations:

o Keep existing Asset Target Allocation

o Keep existing Benchmark Component

Will conduct Alternate Benchmark Component Study:

Recommended Notional Alternate Benchmark Component …

outbrief at Spring 2018 Board of Directors Meeting

o Action Item (Captain Pionk): Update/Revise IPS to consider both Active and

Passive Funds … with no recommendation on target weightings

Motion passed unanimously.

o Other recommendations:

Action Item (CDR Williams): Consider/Investigate a maximum rate (of

X%) of budget draw from the corpus based on 10-year average of net

Deposits and Withdrawals

Motion proposed and passed unanimously by the Board.

Consideration for Treasurer and By Laws to inform IAC on Budget

expectations relative to the Foundation’s Portfolio

Captain Maxon reviewed 2017 Budget (year-to-date).

Captain Maxon then transitioned to reporting findings of 2017 Internal Audit (conducted by

CAPT Dan Foster). The internal audit received an overall grade of satisfactory. Areas for

improvement include:

- Update and simplify policies (inconsistencies in Financial Operations Policy Statement

(FOPS))

- Document key procedures

- Create an organized cycle for oversight and review

Captain Parker reviewed the Foundation’s Business Continuity Plan. There are currently six

critical business processes:

1) Financial and Legal

2) Chapter and Scholarship Operations

3) Information Management

4) Communications

5) Investment Advisory Committee

6) Seasonal Operations

The review concluded the highest impact risks incident to NSCF operations, and associated

mitigation treatment, in approximate descending order are below:

1) Data

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2) Staff

3) Fraud

4) Accommodation

5) Contractor

Communications Committee (Captain Moseley): He reviewed the Communications Triad –

Public Affairs, Mailings, and Corporate Comms.

Public Affairs (Ms. Liz Van Wye):

- 2017 Accomplishments

o Tri-annual Oakleaf Publication

o Lead Monthly Comm Calls

o Command Brief Updated

o Scholarship Videos

o Annual Appeal letters

- 2018 Goals

o Revise general Foundation brochure

o Review/revise presentation boards

o Development funding written materials

Internet Media (Amy Emerson)

- 2017 Accomplishments

o Heritage Webpage

o Scholarship Hosting Site

o Social Media Expansion

o Transitioning Webpage

o Webpage Improvement

o Chapter Support

- 2018 Goals

o FAST Committee communication expansion

o Transitioning Webpage

o Continue Social Media Presence

Data Operations (Captain Moseley)

- 2017 Accomplishments

o DOB Project for entire Foundation

o Comprehensive ongoing database review

o Targeted data Generation for Chapters

o Member Database operations

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- 2018 Goals

o Database Maintenance / Accuracy

o Database Management Improvement

o Continued Database Operations

Captain Mosely provided the following to the Chapter Presidents in attendance:

What Corp Comms can do for you …

- Find lost members in your area - Conduct surveys / voting / polling - Advertise your events to a wider audience - Feature your chapter activities in the Oakleaf and Website - Monthly Comm Calls

What Corp Comms needs from you …

- Social Media Content

- Transition / Job Openings

- Oakleaf Articles

- Database Updates

- Chapter Information

Scholarship Committee (CAPT Ken Epps): Captain Epps reviewed current Board

membership and shared 2017 wins and misses.

Highlights include:

- High quality of applicants

- Two essay requirement for submission met its intent

- Video “shout outs” and “thank yous”

Misses include:

- Total applicant pool is declining

- Enlisted participation remains limited/minimal

He ended with a review of the 2018 Budget.

- Scholarships - $262,500

- Memorial Scholarships - $22,500

- Board Meeting - $5,000

- Online Web Application Tool - $500

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CDR Warren Sherman is the incoming Scholarship Board Chair and will lead the 2018 selection

process.

Action Item (CDR Sherman): Conduct comprehensive review of Scholarship Program targeting

2019 implementation.

Family Aid and Support Team – FAST (RADM Patricia Wolf): RADM Wolf has point for

this effort while CDR Applegate is deployed. She is quickly learning more about this effort and

how best to support its goals.

- 2017 in Review

o First year of FAST execution

Two cases – an enlisted family lost their home in a fire and an active duty

supply corps officer lost a child

o Continue to learn/grow as case load grows

- 2018 Action Items

o Establish a FAST POC at each Chapter

o Expand knowledge of FAST Program

o Establish training materials

o Implement standard operating and follow-up procedures

o Incorporate FAST procedures into Operations Manual

o Establish Case Follow-up Objectives and Procedures

o Budget Request:

$2000: FAST Assistance Reserve

$2000: FAST Training and knowledge materials

$500: Program Administration

Transition Committee (CDR Bob Dolan): CDR Dolan provided a review of Transition

Committee on-going efforts:

- Business Cards

- Oakleaf Articles

- Online Content – LinkedIn and Facebook

- Professional Certifications

- Develop ‘Transitioning’ Webpage

** Request Foundation members within a year of transitioning, or those having recently

transitioned, reach out to the Transition Committee.

Recognition Committee (CAPT Pete Eltringham): Distinguished Alumni Award nominees

listed below.

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- Douglas M. Moore, Jr.

- Robert E. Riley

Chapter of the Year Award nominees:

- Large Chapter – Hawaii, Washington Area, and San Diego

- Small Chapter – Mechanicsburg and Patuxent River

Volunteer of the Year Award nominees:

- LCDR Craig Dziewiatkowski (Patuxent River Chapter)

- LCDR Joseph Martin (Washington Area Chapter)

Batchelder Award transferred to Navy League management in 2015. The NAVADMIN will be

released mid-November, with submissions through January 31st. The selection board plans to

meet in April 2018, with award announcement targeted for June 2018.

** Foundation helps publicize this award but does not own the selection process. **

Spouse’s Report (Ms. Gracie Dziewiatkowski): Provided a review of recent efforts:

- Welcome Aboard Packet (‘Family Welcome Package’)

- Chapter Spouse Representative

- OP Spouse Roadshow

- GSA/IA Coverage

Development Committee (CAPT John Kizer): CAPT Kizer has point leading the

Development Committee. This committee will oversee all fundraising programs to include the

21st Century Club, the Tench Francis Legacy Society, named scholarships, planned gifts, and the

annual funds program. Additionally, CAPT Kizer’s team will work to identify potential donors,

both individual and corporate, as well as actively participate in the solicitation of both annual and

planned gifts to the Foundation.

Captain Kizer opened with an introduction of Crescendo Interactive, a company that manages

solutions for ‘Marketing Major and Planned Gifts.’ Capabilities include a mobile-friendly

website, emails and newsletters, print materials, proposal software, content management, donor

analytics, gift calculators, and training. Additional benefits to the Board include:

- No longer a need for a “Development Committee” consultant

- Tailor our program to the needs of our constituents

- Continuous legal updates

- Personal representative

- Notification when someone visits the website

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Captain Kizer proposed a motion to commit $5,500 for a one-year (2018) subscription to

Crescendo Interactive. The motion passed unanimously.

2018 efforts include:

- Need to work with Target Systems to establish link with Crescendo

- Content Management

- Start-up

- On-going maintenance

- Follow-up with potential donors

Heritage Committee (CAPT Tiffany Schad): CAPT Schad’s brief included the following:

- Museum Ship Display Update (USS IOWA)

- USS MIDWAY Veteran’s Park Display Update

- Strategic Communications / Outreach

- 2018 Way-ahead

The Board unanimously approved the “draft MOA” for future ship displays.

Captain Schad then introduced Mr. Jonathan Williams, CEO, of the Battleship IOWA Museum.

He provided an update on the IOWA and his desire to partner with the Foundation on an Enlisted

Galley Display. The goal of this display is to “bring alive the enlisted galley space through an

engaging and innovative experience …via dynamic sensory experience through visual, audio,

and smell, creating an authentic and engaging experience.”

Total cost of the Enlisted Galley Display is $33K, museum matching budget of $75K. All

displays to be completed by in-house talent. A donor plaque is included and will be prominently

displayed.

Potential future partner projects with Battleship IOWA Museum:

- Underway Replenishment Experience

- Activation of laundry, tailor, barber, and print shop

CAPT Schad took the action to share the complete project and three-phase plan (completed

within one year).

CAPT Kizer proposed a motion to approve $33K to fund the Enlisted Galley Display project.

Motion unanimously approved by the Board.

Veteran’s Park discussion tabled due to construction in San Diego. The CEO of the USS

MIDWAY would like to expand the idea to include a thorough explanation of the Supply Corps.

RADM Bird asked members to begin thinking about how NSCF would like to tell the Supply

Corps’ story both in San Diego and in other areas. RADM Bird is concerned the community is

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losing pieces of its history and would like to focus on documenting and preserving it, which will

also serve as an appeal to donors. CAPT Cassani recommended including a time capsule.

CAPT Schad would like to communicate ‘vignettes’. She asked chapter presidents to canvas

their chapters for interesting vignettes/accounts that could be published in the Oakleaf.

Chapter Relations (CAPT Bill Fenick): CAPT Fenick led a discussion on three topics: chapter

relations, strategic plan, and issues identified.

Foundation and chapters are one entity.

- Shape chapter relations

- Fine-tune administrative needs

- Ensure chapter relations are aligned with the Foundation’s capabilities, and other non-

profits

- Strive to be recognized as one global organization

Goals over the next three years:

- Improve on what we have … we don’t necessarily need more, rather, we need to improve

on how we manage our internal and external affairs

- Tighten-up the Foundation-Chapter relationship and operating processes

- Create and develop a Chapter Relations capability with the Foundation to better assist the

Chapters

2017 Results / 2018 Plan:

- 36 Chapters

- $40K budget/year

- CVT usage remains low – continue to encourage Chapters to request funds

o Basic guidance is one request per Chapter per year

- Better define Chapter/Foundation relationship

- Build a working committee

o Looking for volunteers for three committees: Governance, Financials, and

Communications

Notes of Interest:

- Ensure we are not using the term ‘Association’

- Sense reluctance to totally align with the Foundation

- Fundraising for other 501.c.3 must get approval through NSCF BOD

NSCF will ensure legality IAW 501.c.3 rules

Increases transparency and credibility

- Low use of CVT

- Better communication with new presidents

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- Ensure proper turnover letters are completed

- Demand signal (info) for Chapters has grown

o Comms call monthly

o CSO SITREP

o Committee RFIs

Chapter Relations

Spouse lead

Treasurer

Social Media / Web team

- Data requests to scrub member list

Strategic Plan:

- Build a working committee where one does not currently exist

o Policy Development

o Data Management

o Resource/Financial Management

o Story Development

- Consolidated comms

- Continue to update Ops Guide

- Capture Chapter / Committee successes

- Initiate site visits

- Establish grant program in lieu of Community Values and Traditions (CVT) Program

Strategic Plan (CAPT Kurt Libby): CAPT Libby proposed motion to approve 2018 Strategic

Plan. Motion unanimously approved by the Board.

Action Item: By the first week in December, committee chairs must update their respective

2018-2020 Strategic Plan.

2018 Budget Proposal (CDR Evans): CDR Evans led 2018 budget proposal discussion,

detailing expected revenue, donations, current assets, and how they compared to planned

expenses.

RADM Bird spoke about realistic contribution to Foundation from Chapters. 2018 contribution

estimated at $25K across all Chapters. Several methods of fundraising, to include exploring

institutional giving, Distinguished Alumni contributions, and Estate Planning (Crescendo) were

discussed.

CAPT Fenick proposed a motion to accept the 2018 budget proposal. Motion unanimously

approved by the Board.

After the budget passed, RADM Bird asked that two Chapters present their Chapter reports.

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Chapter Presidents Forum (CAPT Fenick): CAPT Fenick led a discussion with the Chapter

presidents re Chapter concerns. There was a lengthy discussion as to whether, and when, NSCF

Chapters should engage with DoD legal regarding events they are hosting. CAPT Fenick will

create turnover guides for presidents and treasurers, and will post it on the website. Amy

Emerson will test the presidents’ email distro to ensure all Chapter presidents are receiving

Foundation SITREPS.

Mechanicsburg Chapter Report (CAPT Cassani):

CAPT Cassani distributes business cards with Chapter and president’s information to all new

members and families. The Mechanicsburg Chapter held several events fund raising events

including an auction, a golf tournament, dinner, and a holiday gift wrapping service.

- Funding Activity: $34.5K

- Profit: $22.5K

- Charitable Contributions: $16K

o Annual Charity Dinner and Auction:

50 donations from local businesses

100+ participants

Profit: $12.8K

o Golf Tournament:

50 community sponsors + 40 raffle prizes

Profit: $9.1K

Washington Area Chapter Report (CAPT Troy):

CAPT Troy discussed the Washington Area Chapter Plan, “Navigation of 3 Ships”:

- FriendSHIP

o Emphasize working together and cultivating informal opportunities for fellowship.

- MentorSHIP

o Create opportunities for all members to partake in professional development

opportunities.

- PartnerSHIP

o Establish lasting alliances with relevant professional partners and community

leaders.

RADM Bird recommended other Chapter presidents present experiences at the Fall 2018

meeting.

Recognition Awards Results (RADM Linda Bird): Awards were announced for the

following:

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- Small Chapter of the Year

o Pax River Chapter and Mechanicsburg Chapter

- Large Chapter of the Year

o San Diego Chapter and Washington Chapter

- Volunteers of the Year

o LCDR Craig Dziewiatkowski and LCDR Joseph Martin

- Distinguished Award Winners

o Robert E. “Bob” Riley and Douglas M. Moore Jr.

Closing Remarks (RADM Bird): RADM Bird thanked everyone for their tremendous work

and contributions to the NSCF. She is looking for candidates to serve as future board members

and volunteers on a number of committees. She reminded everyone the NSCF has the 2018 11-

day cruise along the Douro River in Portugal. Scenic is an all-inclusive cruise company hosting

the excursion. She reminded everyone the Spring meeting will be held 5 May 2018 in Atlanta,

GA. She congratulated the new board members and invited everyone to the DA ceremony,

social hour and dinner.

Meeting adjourned promptly at 1635.