At the Armenian Cultural Association of America, Inc. Convention 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 and each successive Board thereafter, that this task be formulated and prioritized. Immediately, the newly elected ACAA Board of Directors in 1992 under the Chairmanship of Vasken Aivazian created the Property and Asset/Endowment Funds Committee and appointed three Trustees to manage, in a professional and conservative fiduciary manner, the investments and real property and stock portfolio assets of the organization into a viable and organized fiduciary funds management concept.
Prior to this mandate, the stock portfolio had been in a dormant status since its previous aggressive management by Harry Sachaklian, who had brought its existence into a recognizable condition but has since passed away. This new mandate demanded a different approach and Bedros C. Bandazian, as the Managing Trustee was assigned, to formulate the proper process for administration and accounting of these funds. Once instituted into a recognizable format, the ACAA Board of Directors anticipated that with good public relations, efforts by its membership and good public relations, these funds would indeed grow and enhance the operation of the organization.
Since the Armenian Cultural Association of America, Inc. had previously been established on May 10, 1969 in the Commonwealth of Massachusetts as a 501(c) 3 not for profit corporation, a new tax-exempt entity was not necessary.
In order to solidify this new process, a definite policy and procedures needed to be established. This was created through the adoption of certain standards created by the Endowment Funds Committee with the approval of the ACAA Board of Directors. Three Trustees were appointed to manage and supervise these accounts. Each Trustee was granted a term of Seven (7) Years but serve at the will of the ACAA Board of Directors. The initial Trustees were Bedros C. Bandazian, Harold Mardoian and Kenneth Hachikian. The Managing Trustee handles the day-to-day nuances 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 for the Hairenik Endowment Fund, these three 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.
