About us
When the Armenian Cultural Association of America, Inc. was established on March 10, 1969, the original Board of Directors were, Tatul Papazian, Albert Derian, Robert Kaloosdian, James Tashjian, Setrak Minas, Murad Piligian and Anthony Varjabedian. Then in 1975, under the direction of Col. Harry Sachaklian with support from Dr. Hratch Aprahamian and others, the corporation filed and was granted the non-profit 501(c)(3) status. This new Non Profit Status allowed the opportunity for Our Organization to be financially supportive in the areas of Grants for Culture, Education, and Internship to advance the Armenian Mission in its many needs and endeavors. But this new status prohibits any political activity funding.
Ultimate and final authority is the Board of Directors & Officers of the Armenian Cultural Association of America, Inc. From this structure, an Executive Committee Chairman is appointed by ACAA and fully authorized to become the Managing Trustee of the ACAA Endowment Funds. The Managing Trustee of the ACAA Endowment Fund and all members of the Executive & Regional Committees serve at the will of the ACAA Board of Directors. Once the parameters of the endowment program had been established by the Board of Directors, then the Endowment Trustees, under direction of its Managing Trustee, is directed to complete and manage the funds in a prudent and fiduciary manner as expected by the standards of the ACAA.
The ACAA is a registered American 501(c)(3) non-profit corporation and donations are tax deductible.
At the ACAA Convention-Eastern Region U.S.A. in 1992, there was, by unanimous vote; a decision that all designated and endowed funds shall be preserved in the principal amounts and only the income from dividends, interests, and other means shall be expended. This decision mandated to the newly elected ACAA Board of Directors & each successive ACAA Board of Directors thereafter; that this task be formulated and prioritized prior to the next convention.
In 1995, the ACAA Board of Directors under the Chairmanship of Vasken Aivazian, Esq. began to prepare policies and procedures to activate and advance the visions of the Founders. The first Trustees of the ACAA Endowment Fund were Harold Mardoian, his son, Jack C. Mardoian, Esq. , Kenneth Hachikian and Bedros C. Bandazian. In the following years, policy and procedures for the operation of the ACAA Endowment Funds were implemented and fiduciary responsibilities in accordance with Federal and State regulations and statues were drafted. In compliance with the requirements of all 501(c)(3) non-profit corporations, the ACAA is audited each year by professional Certified Public Accountants. Their report and ACAA Tax Return is then sent to the Attorney General of the Commonwealth of Massachusetts. After the Massachusetts review, the documents are then forwarded to the US Treasury Department for their audit and review.
A policy and procedures are established for the Trustees of the ACAA Endowment Fund. This was created through the adoption of certain standards created by the Endowment Funds Committee with the approval of the ACAA Board of Directors and approval by the various ACAA Regional Meeting by vote of approval of these polices. Five Trustees are appointed to manage and supervise these accounts. Each Trustee is appointed for a term of Seven (7) Years but serve at the will of the ACAA Board of Directors. The Managing Trustee handles the day-to-day nuisances of the funds management with direct dialogue and input from the other Trustees. Only the Managing Trustee is involved in the relationship with the brokerage house, accountant and legal counsel. This system was established in order to avoid multiple voices and to avoid confusion of policy. In matters of policy, procedures, mandates or other viable matters, the Managing Trustee must have the approval of a majority of the Trustee Body in order to move forward. Basic administration is left to the Managing Trustee with the advice and counsel of the other Trustees. Though initially appointed as the Trustees only for the Hairenik Endowment Fund, these five Trustees operate now as the administrative body for all of the fiduciary funds owned by the organization and its various entities. The policy and procedures is documented with all brokerage companies handling our funds. Deviation from this policy must be made by properly executed corporate resolutions in accordance with adherence to current statutes of Federal and State Governmental bodies.
An annual report is given to the organization administrative body in written format. This report is, separate from the Central Committee Report, presented to the membership but is an integral part of the entire report. A separation of reports is necessary in order to preserve the integrity of the funds and the concept of endowment. Trustees and the Board of Directors can be personally held accountable for any violation of the tax-exempt status of this entity.
The preferred and recommended procedure for establishment of ACAA Trust Agreements is to have the Donor, their Attorney, the ACAA Trustees and the ACAA Board of Directors create the Trust Agreement prior to an Estate status. By negotiating in advance, all parties are aware the intent of the Donor and the realistic ability for the ACAA Endowment Fund to handle the bequest. The Trust Agreement can establish the details of the intent with or without funding at the current time. If the Donor wishes to begin the Trust prior to any bequest is no issue but once the Trust has been created and all parties are in agreement; then all parties will execute the drafted Trust Agreement. The Donor, the ACAA Board of Directors primary Officers and the ACAA Endowment Fund Trustees all must sign the Trust Agreement Implementation will begin once the Trust has been funded.
When the ACAA Board of Directors receives bequest and there is no prior Trust Agreement, the standard and accepted principles of management normally negotiated by a Donor and/or its Estate with the ACAA Board of Directors and its Endowment Fund Trustees, will then follow the accepted principle of preserving the principle, distribution of the annual dividends and interest and annually distribute any Equity enhancement using the accepted accounting system developed for the ACAA. Legal opinion has stated that once the funds are placed into the Endowment Funds system, it would become illegal to change this method and funds so deposited cannot again be withdrawn once considered principal dollar value amount. This is in accordance with the federal and state rules and regulations. Donor’s intent should be followed. Donors give in order to establish a Legacy.
In the ACAA Convention of 2017, the Membership voted unanimously that any funds over $100,000 must be transferred to the ACAA Endowment Fund with the creation of an Endowment Fund in the memory and intent of the Donor. The ACAA Board of Directors will not be allowed to expend any funds larger than the $100,000 unless approved by the majority vote of the next ACAA Convention.
All the brokerage firms who manage ACAA Endowment Funds are fully aware of the policies and procedures in the management of these funds. This has been documented within their archives. With each new broker, the entire philosophy of the ACAA Endowment Fund management principles is reviewed. There is a positive and clear understanding of management directives of these funds. Any deviation will warrant “red flag” and consequence measures must be adhered. Our goal is first to preserve capital, derive positive annual income and enhance respectable value without jeopardizing the Goals and Mission of the Armenian Cultural Association of America, Inc.