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The overall year 2000-01 was excellent
in most respects. Incredible support by alumni through their volunteer
efforts, gifts, and record bequests were impressive, while corporate
financial support of THE BENT reached a record level. Extensive
improvements were made to the website and to the new automated membership-reporting
system.
Chapters
The 2000 Convention granted a charter
to Cedarville University, formally established as the Ohio Nu Chapter
on March 3, 2001. A sketch of the institution and an account of
the installation were published in THE BENT. Inspection teams visited
the local engineering honor societies at the University of Portland
and the University of Texas at San Antonio. Their petitions, one
from Dartmouth College (inspected the previous year), and one from
the University of Missouri-Kansas City (where members of Missouri
Alpha have operated for 16 years) will be considered by the 2001
Convention. A petition for a new chapter was received from the local
honor society at Virginia Commonwealth University, and an inspection
team will visit the campus in the fall.
Tau Beta Pi has chartered 59 alumnus
chapters. Fifteen units are active, and their activities are
reported in THE BENT.
The Annual Chapter Survey was conducted
in the spring. A total of 135 chapters (down from 177) completed
surveys and reported 1,271 projects. A report on the contents of
the survey was published in the September
2001 issue of THE BULLETIN.
A large Bent monument was dedicated
by California Psi. Special anniversary celebrations were held by
Alabama Beta (75th), Oklahoma Alpha (75th), and Louisiana Gamma
(50th). Membership The chapters initiated 7,075 members in 2000-01, four percent below the previous year and the lowest total since 1973-74. This included 6,736 undergraduates, 198 graduate students, 88 alumni, and 53 eminent engineers. Tau Beta Pi's total initiated membership on July 31, 2001, was 445,521, and an estimated 46,000 are deceased. During the school year, about 27,266 engineering students in the 221 Tau Beta Pi chapter schools were scholastically eligible for membership in the top one-fifth of their senior or the top eighth of their junior classes. About 41.4% of these were members of Tau Beta Pi at the close of the year, down from 44.9% the previous year. About 6.1% were not initiated, chiefly because of their chapters' failure to hold spring ceremonies. The remaining 52.5% indicated a lack of interest in membership, up from 50.5% last year. Tau Beta Pi chapter schools graduate about 92% of all B.S. engineers completing their undergraduate education at 324 ABET-accredited and 14 other schools. Thirty-one chapters held only one election and initiation of new members during the year; all others held two or more, except Illinois Beta and Texas Iota, which held none. Seven chapters held unapproved initiations. One member resigned during the year, and one was expelled. Convention The 95th Convention of Tau Beta Pi was held in October 2000 in San Francisco with California Alpha, Gamma, Zeta, and Eta as the hosts. The meeting was fully reported in THE BENT and THE BULLETIN. The 2001 Convention will be held in Columbus with Ohio Gamma as host, and the 2002 meeting will be hosted by Michigan Epsilon in Detroit. The 2000 Convention approved three amendments to the Constitution and Bylaws of the Association, which were ratified by Executive Council vote for invalid and non-voting chapters: to include equivalent insurance protection in the requirement for bonding, to replace "Officers of the Association" with "These Directors," and to define the requirements for international chapters. The Convention decided to use the standard reimbursement schedule for the 2001 Convention; continued to reimburse 20% of the cost of a coach/super-saver airline ticket purchased by the travel-plan deadline for one non-voting delegate per chapter (up to $200), and assigned a review of this practice to the 2002 Convention; and studied the new Tau Beta Pi image materials and made numerous recommendations. The delegates also: accepted an invitation from Texas Beta to host the 2003 Convention in Lubbock (which acceptance was later approved by the Executive Council); assigned a review of "undignified" electee duties to the 2001 Convention; and made recommendations regarding potential petitions from international institutions and referred future work to a task force for study and to report to the 2001 Convention. Officials The Executive Council of Tau Beta Pi, elected for the 1998-2002 term, comprises President D.M. Green, Vice President E.J. D’Avignon, and Councillors J.A. Atkins, C.P. Rice, and G.D. Peterson. Council meetings were held on Aug. 12 and Oct. 4, 2000, Jan. 13, March 10, and June 8, 2001. One slate of Council candidates was nominated in the spring of 2001 for the 2002-06 term; known as the Four Corners Slate, it will stand for election by the delegates to the 2001 Convention. Tau Beta Pi has three appointed officers with responsibilities in major areas of its interest: D.S. Pierre Jr. serves as Director of Fellowships, A.R. Hirsch as Director of Rituals, and R.W. Pierce as Director of Engineering Futures. Members of Tau Beta Pi's Fellowship Board include H.J. Chaya, S.L. Holl, and V.A. Marsocci. The Trust Advisory Committee, which directs the investment activities of the corporate trustee, includes R.F. Smith (chair), J.A. Runde, and J.W. Johnson Jr. The District Directors at the end of the year were: District 1 Henry H. Houh Christopher E. Morgan Keith S. Wilberg District 2 Selden J. Houghton Thomas A. Pinkham IV Andrea J. Pinkus Jason Rogan District 3 Nila D. Bhakuni Michael D. Malmstrom District 4 J.S. Bibb III Lisa C. Pawlak Russell L. Werneth District 5 L.-K. "Jimmy" Lin Francisco E. Moreno Elizabeth A. Stephan District 6 Joseph J. Hanby Bethany R. Lancaster Ellen S. Styles District 7 Barry L. Frost III Heather Havens-Beardsley District 8 Michael J. Cunningham Stacey L. Forkner Joseph G. Macro District 9 Charles W. Caldwell E. Randolph Fowler District 10 Daniel A. Kamat Amy J. Plaskota District 11 James C. Hill District 12 Wade A. Hull Tricia E. Schwaller Larry A. Simonson District 13 Richard W. Mead District 14 Edward L. Tezak District 15 Scott E. Fable Tana L. Cicero District 16 Charles S. Hanskat Allen Klinger The Headquarters staff, which is located on the Knoxville campus of the University of Tennessee, includes Executive Director J.D. Froula, P.E., Assistant Secretary-Treasurer R.E. Hawks, Director of Development P.B. McDaniel, and seven additional employees. District Program Each District held a conference last year and meetings at the 2000 Convention, and Directors visited many chapters during the year. The Directors and the Council met in New Orleans, LA, during June 2001 and discussed means for improving regional activities and communications and helping the collegiate chapters. Engineering Futures A total of 181 training sessions in developing the leadership skills of student members was presented by 40 volunteer facilitators during 2000-01. This program helps to prepare engineering students for their careers by enhancing their technical effectiveness through interpersonal-skills and teamwork-development seminars. Fellowships The Summer 2001 BENT carried reports by Tau Beta Pi's 67th fellowship group of 35 students, 12 with stipend, who were selected in the spring of 2000. The 68th group, comprising 35 students-16 with stipend, will do graduate work in 2001-02 and was announced in the Summer 2001 BENT. Fellows with stipends are paid cash grants of $10,000 each. Four James Fife Fellowships, sponsored by an irrevocable trust bequeathed by William Fife, CA A '21, were given. Awards Tau Beta Pi's top chapter prize, the R.C. Matthews Outstanding Chapter Award, was given to Vermont Beta for the excellence of its total program in 1999-2000. Honorable mention was awarded by the Convention committee to Maryland Beta. The R.H. Nagel Most Improved Chapter Award went to Louisiana Gamma, with honorable mentions to California Gamma and Missouri Beta. The Council made one Chapter Project Grant under the Greater Interest in Government Program. The Headquarters staff gave 67 Secretary's Commendations to chapters for the perfection of their reports to the Headquarters office in 1999-2000 and 36 Chapter Project Awards for ingenuity and creativity in activities. The Distinguished Alumnus Award, established by the 1993 Convention for a continuing trial period and renamed in 1999, will be presented at the 2001 Convention to: Dr. James E. Drewry, VA A '60. The National Outstanding Advisor Award will be presented to the eighth winner, who was selected in June 2001 by a national selection committee of engineering deans: G.S. Jakubowski (chair) and T.S. Greene. The recipient of a $1,000 cash award and an equal sum to be presented to his dean's discretionary fund is Louis F. Geschwindner Jr., NY G '67, Pennsylvania Beta Advisor. During the year, the Executive Council gave five Resolutions of Appreciation, three Distinguished Service Awards, three Exemplary Service Awards, and eight Superior Service Awards to collegiate chapter advisors and national officials for long and outstanding service. Laureates A selection committee of three District Directors chose two winners from 11 nominees. Scholarships/Grants The third group of 16 Tau Beta Pi Scholars, who will complete their undergraduate engineering studies in 2001-02, was announced in the Summer BENT. Each Scholar receives a cash grant of $2,000. The inaugural Fluor, Jacobs, Merck, and Leroy E. Record Scholarships were awarded. In the Tau Beta Pi Chapter Performance Scholarship Program, 35 scholarships of $500 each were presented to students in 28 chapters. Six $1,000 grants for the first year of college study in 2001-02 for incoming freshman engineering students were provided by the Society (for a total of 30) through the national program conducted by the Society of Automotive Engineers. No Special Assistance Grant was made. Contributions from Alumni Tau Beta Pi's 2000 annual Alumnus Giving Program brought record gifts of $742,059 (up 1.8%) from 17,144 donors (down 2%), including 1,657 new donors (up 2%). Their names were published in the Winter and Spring 2001 issues of THE BENT. Included in the total are gifts of $17,364 allocated to the Fellowship Program from 155 companies that match gifts from employees. The 2001 Giving Program was begun in March, and the response by July 31 reached $497,175 from 11,1421 loyal members. The Society uses professional assistance in the conduct of this program; the national officers are deeply grateful to the generous alumni whose gifts fund important programs that help our chapters and student members. Other Activities Tau Beta Pi has maintained its affiliation with the American Association for the Advancement of Science, its association membership in the American Society for Engineering Education, and its affiliations with the Association of College Honor Societies and the American Association of Engineering Societies. The Executive Director is Tau Beta Pi's official representative to these organizations, although other officers of the Association occasionally attend their meetings. Tau Beta Pi is also an affiliate of the Junior Engineering Technical Society, which works with high-school students across the U.S.A. Tau Beta Pi continued an agreement with MonsterTrak to provide on-line job listings to members. The AlumNet Program, an electronic mentoring service to encourage student-alumnus interactions, was established for a three-year trial period. The Association was a contributing society to National Engineers Week 2001 and was represented at the inauguration of the new presidents of Bucknell University, RPI, and Tri-State University. Tau Beta Pi has maintained its classification under Section 501(c)(3) of the U.S. Internal Revenue Code as a tax-exempt, charitable and educational, non-private organization and is exempt from sales tax in 13 states. Collegiate chapters are separately classified under Section 501(c)(7) of the code. Treasurer’s Report The financial condition of Tau Beta Pi at the close of the fiscal year was excellent. Assets increased in 2000-01 by $1,264,000 to a total of $16,317,000. Excess of revenue over expense for the year was just over $1,172,000. Financial Position Statement Nearly all of the asset increase for the year was in investments and a receivable contribution. The several named trust funds are commingled and invested under the jurisdiction of the Tau Beta Pi Trust Advisory Committee. The trustee is the trust department of the National City Bank in Cleveland, OH. The trustee performed satisfactorily during the year, and the status of the trust at the end of the year was strong despite record unrealized losses. Investment earnings of the funds, less trustee fees and excluding capital gains resulting from security transactions, are used for the purposes indicated by the fund titles: paying for BENT magazines delivered to life subscribers, helping to pay fellowship and scholarship stipends, paying project grants to winners in the Greater Interest in Government Program, helping to support the Convention, and financing many useful activities of the collegiate chapters. Overall net earnings of the trust funds, including security sales, were -11.8%; the previous year's figure is 14.3%. Net earnings were -$1,613,000. Securities held by the trustee on July 31, 2001, are carried at market value of $14,467,500, an increase of 5.4% over the previous year, and comprise holdings in eight non-overlapping, no-load mutual funds. Equity securities constituted 85% of the total trust funds. A reclassification was made to the 2000 financial statements in order to add information about a split-interest agreement- a charitable remainder unitrust established in 1984 naming Tau Beta Pi as a 50% residual beneficiary. Assets and net assets as of July 31, 2000, were restated and increased by $279,000. The current liability in fellowships and scholarships is for those stipends committed in 2000-01 for payment to student winners in 2001-02. The 2001 Convention liability includes the assessments paid by new initiates during the year and $19,750 in gifts from 12 corporate sponsors. The deferred BENT subscription liability is for both annual subscriptions and the four-year subscriptions for new members included in the national initiation fee. The liability for delivering future magazines under four-year subscriptions is entered on the books at the time of initiation. The increase in BENT life subscription liability resulted from the 706 new life subscribers. Life subscription fees are recorded as a liability because of the commitment against the annual earnings of those fees to pay for copies of THE BENT to be delivered. This liability represents the total value of all life subscriptions in force on July 31, 2001, at their enrollment-fee prices. On the deaths of life subscribers, their paid fees are transferred on the books to the Fellowship Fund and then are reported as revenue. The net assets of the Association increased by $1,172,000, mainly because of generous contributions from alumni, excellent earnings on securities, and three bequests and five capital gifts totaling $3,240,000. A subsidiary report details the changes during the year in individual funds, most of which decreased after a loss in market value of securities of $2,675,000. THE BENT Life Subscription Fund balance decreased by $1,020,000, the Convention Fund fell by $409,000, the Fellowship Fund fell by $211,000, and the Program Development Fund dropped by $205,000. The new Leroy E. Record Scholarship Fund was established at $4,142,000 because of the most generous bequest in our history, and the new Campbell Scholarship Fund was established. Statement of Activities Chapter and initiation fees (shown less the BENT subscription portion) decreased by $5,700. Convention revenue consists of assessments for the 2000 Convention, $12,790 in industrial and alumnus gifts, and $90,950 from 151 alternate delegates and visitors. Overall contributions and bequests increased by $3,333,000. Total gifts from alumni and matching corporations in the two annual giving programs in 2000-01 amounted to a near record $732,383 (down 0.2% from 1999-2000). The Association is deeply grateful to the 15,830 members (down 8%) who contributed during the year. BENT publication revenue grew by $189,000 with a record level of recruitment advertising; expenses rose by $152,000. Normally, publication is a "profitable" activity when Life Subscription Fund earnings are included. Total earnings on the invested Life Subscription Fund were the third-highest ever. In 2000-01, the invested fund earned (before the trustee fee deduction) $1.74 per life copy delivered, compared with the previous year's $1.90. Earnings exceeded cost per life copy by $0.34. The total of interest and dividends in 2000-01 fell by $121,000. The record net loss on investments was $2,675,000; changes in market value are reported as either gains or losses in investments. The 10 major chapter programs (the first 10 under Expenses) usually show an operating loss. Convention expenses include the cost of attendance by one student delegate from each collegiate chapter, alternate delegates, alumnus delegates, chapter advisors, and visitors, but not by national officers, and rose by $134,000. Expenses for fellowships and scholarships grew by $65,000 because more Fellows needed stipends. (Revenue for fellowships includes all matching gifts from corporations and certain alumnus contributions, including those specifically earmarked by donors.) Since the Fellowship Program was inaugurated in 1929, Tau Beta Pi has given and committed $3,627,395 in stipends to a total of 775 young members. It is the major philanthropic program of the Society and is made possible by gifts from alumni and cooperating industrial firms. Initiation Fees Tau Beta Pi's low national initiation fee covers the cost of the official badge, membership certificate, copies of the Constitution and Bylaws and Information booklets, a subscription for student members to THE BULLETIN, and a four-year subscription to THE BENT. The national fee, formerly $21 during 1972-90 and $23 during 1990-94, was last raised on August 1, 1994, to $27. Prior to 1934, it was $15. In addition, new members are charged an assessment of $3 for partial support of the annual Convention of the Association. The initiation fee and assessment would be higher if not for the generous gifts from alumni. Student Loans Six new student loans were made to members in 2000-01 for a total of $15,000. None was for the amount of Tau Beta Pi's initiation fee. Twelve loans were repaid during the year, leaving 50 outstanding on July 31, 2001, with a principal balance of $88,750. Since inauguration of the loan program in 1932, 1,742 loans have been made to student members for a total exceeding $772,000. Editor’s Report THE BENT During 2000-01, the four issues contained a total of 248 pages (up 48 pages), and 375,756 copies of the magazine were available for paid subscribers. This is a 1.2% decrease in paid copies below the previous year's circulation total. Engineering and graduate-school recruitment advertising for the year totaled 38.9 pages, a 262% increase from the previous year. Total production cost of the magazine per paid copy was $1.40, up from $0.98 the preceding year. New BENT life subscribers added during the year numbered 706 (down 1%) bringing total life subscriptions to 74,371. Of all the life subscribers enrolled since 1929, when the plan was instituted, 6,448 are deceased, and their fees totaling $181,933.30 have been transferred to the Fellowship Fund in accord with the Constitutional requirement. An average of 400 copies per issue in 2000-01 was delivered to annual renewal subscribers, 30,076 copies to original four-year subscribers, and 63,463 copies to life subscribers, for a total of 93,939 paid copies per issue. The total number of paid copies for the Summer 2001 magazine was 94,014. THE BENT remains a member of Verified Audit Circulation. THE BENT carries articles on general professional topics in engineering, news about Tau Beta Pi and its members and chapters, and regular departments. The Association is indebted to the alumni who serve as judges and writers of the Brain Ticklers column: H.G. McIlvried III (chair), F.J. Tydeman, D.A. Dechman, and R.W. Rowland. Publication of THE BENT is a major activity of the Headquarters staff. By Bylaw provision, the Secretary-Treasurer of the Association serves as editor. THE BULLETIN During 2000-01, the three issues contained a total of 22 pages, and 32,000 copies were printed. All issues were published on the website. This newsletter, which received a major redesign, is published chiefly for the information of the student members and advisors of the collegiate chapters and is a valuable means of exchanging project ideas and distributing information and instructions on the operations of the student groups. The Executive Director serves as editor of THE BULLETIN. Other Publications & Website A new edition of the "Constitution and Bylaws and Eligibility Code" of the Association was published in August. The "Information Book 2001" was updated and reprinted in October. The President’s Book was updated on the website in July. The other Tau Beta Pi descriptive brochures and promotional materials were updated and republished during the year for chapter use. The Tau Beta Pi website received a major redesign in November and extensive improvements in June. It contains much interesting material at www.tbp.org. – James D. Froula, P.E.
Secretary-Treasurer and Editor
Statement of Financial Position
THE TAU BETA PI
ASSOCIATION
For the years ended July
31, 2000 and 2001
REVENUE
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|
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Unrestricted
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Temporarily Restricted
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Permanently |
Restricted
2000-01
|
1999-00
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Initiation and chapter fees
and fines
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$ 132,770
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|
|
132,770
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137,311
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Chapter and individual sales
|
73,056
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|
|
72,268
|
72,268
|
Contributions and bequests
|
751,919
|
3,489,390
|
|
4,421,309
|
907,790
|
Convention
|
125,958
|
|
|
125,958
|
81,022
|
BENT publication
|
392,604
|
|
|
392,604
|
203,323
|
Life subscription fee transfers
|
11,912
|
|
|
11,912
|
10,417
|
Student loan interest
|
4,525
|
|
|
4,525
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7,584
|
Miscellaneous
|
1,957
|
|
|
1,957
|
954
|
Interest and dividends
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995,503
|
74,999
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|
1,070,502
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1,191,208
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Net gain (loss) on investments
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(2,487,908)
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(187,432)
|
|
(2,675,340)
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636,277
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Change in value of rec. fr.
L.E.Record G. Tr.
|
0
|
183,432
|
|
|
|
Change in value of split-interest
agreements
|
0
|
102,226
|
9,915
|
112,141
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(4,658)
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Satisfaction of program restrictions
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64,489
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(64,489)
|
0
|
0
|
0
|
TOTAL REVENUE
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66,785
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3,598,460
|
9,915
|
3,245,235
|
3,245,235
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EXPENSE
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|
|
|
|
|
Program services:
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|
|
|
|
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Chapter and new initiate supplies
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231,283
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|
|
231,283
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289,393
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Cost of chapter and individual
sales
|
60,601
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|
|
60,601
|
63,663
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Convention
|
408,025
|
|
|
408,025
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274,489
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District Program
|
192,845
|
|
|
192,845
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183,864
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Engineering Futures Program
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127,911
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|
|
127,911
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124,641
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Greater Interest in Government
Program
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3,737
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|
|
3,737
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3,728
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BULLETIN publication
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31,476
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|
|
31,476
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21,299
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Student Assistance Program
|
1,118
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|
|
1,118
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1,098
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Laureate Program
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7,447
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|
|
7,447
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5,558
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Advisor Award Program
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5,012
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|
|
5,012
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4,175
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BENT publication
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525,883
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|
|
525,883
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373,556
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Fellowship/Scholarship Program
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262,233
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|
|
262,233
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197,031
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Alumnus Program
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12,818
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|
|
12,818
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10,668
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Student Loan Program
|
4,672
|
|
|
4,672
|
6,049
|
|
1,875,061
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|
|
1,875,061
|
1,559,211
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General and administrative
|
382,140
|
|
|
382,140
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382,936
|
Alumni Giving Program
|
245,659
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0
|
0
|
245,659
|
233,240
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TOTAL EXPENSE
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2,502,860
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0
|
0
|
2,502,860
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2,175,387
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Change in net assets
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(2,436,075)
|
3,598,460
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9,915
|
1,172,300
|
1,069,848
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Net assets, beginning of year
|
10,588,786
|
777,463
|
1,012,998
|
12,379,247
|
11,030,293
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Net assets, end of year
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$8,152,711
|
4,375,923
|
1,022,913
|
13,551,547
|
12,100,141
|
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| ©2008 The Tau Beta Pi Association, Inc. All rights reserved. All individual email addresses on Tau Beta Pi national or chapter websites are exclusively for use in the conduct of Tau Beta Pi related business. Any other use, including recruiting and marketing, is strictly prohibited. Founding member of the Association of College Honor Societies. |
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