History of the Foundation

History of the Foundation
Formation The New York State Jaycees Foundation, Inc. grew out of conversations among Frank J.
“Custy” Castellano, then New York State Jaycee Executive Vice President, Howard R.
Levine, a New York City Jaycees Past President and a Past New York State Jaycees
Legal counsel, and several other influential Jaycees. The New York City Jaycees had
organized a Foundation earlier, and this group believed there would be advantages to the
New York State Jaycees in formation of a Foundation.
Levine, an attorney, filed a Certificate of Incorporation on April 14, 1970. The Original
directors included Levine, Castellano, Frank Anmaleh, Joseph Cristiano, and Richard
Colburn, to serve until the first organizational meeting. By laws and Policies of the New
York City Jaycees Foundation were adopted except where at variance with the Certificate
of Incorporation of the New York State Jaycees Foundation.
The Internal Revenue Service issued a determination letter May 7, 1970, recognizing the
new Foundation as a 501(c)(3) organization, exempting it from Federal Income Tax,
allowing contributions by donors to be deductible under Section 170 of the Code, and
allowing bequests, devises transfers or gifts to or for the use of the Foundation to be
deductible for Federal estate and gift tax purposes under Sections 2055, 2106, and 2522
of the Code. The same day application was made to the Sales Tax Bureau, New York
state Department of Taxation and Finance for Exempt Organization Status to exempt the
Foundation from the payment of sales tax
Purposes and Objectives The Certificate of incorporation set forth eight separate purposes and objectives of the
new Foundation. The first seven can be characterized as follows:

  1. Promoting international understanding and friendship.
  2. Preventing school “drop outs” through career guidance, scholarships, and the
    promotion of other educational opportunities.
  3. Promoting physical fitness for youth and competitions to foster such fitness.
  4. Assisting medical organizations in the conduct of medical research and in the
    prevention of, and cure of, mental and physical disease.
  5. Assisting minority and underprivileged groups.
  6. Promoting the health, safety and welfare of New Yorkers, especially with respect to
    air pollution, traffic safety and water pollution.
  7. Promoting voting, voter registration and citizen involvement in governmental affairs
    at the local, state and national levels.
  8. The final purpose of the Foundation, as specified in the certificate of incorporation,
    can be characterized as “enabling,” authorizing the New York State Jaycees
    Foundation, Inc. to own, lease, build, or otherwise acquire a building to be used in
    carrying out the projects and programs which will further the aforesaid purposes.

Internal Organization At the first organizational meeting of the Foundation, the then current members of the
Executive Committee of the New York State Jaycees were named as the Board of
Directors of the New York State Jaycees Foundation, Inc.  In effect, each elected and
appointed officer of the Jaycees wore two hats. This continued from 1970 until 1977,
when a reorganization took place under the direction of the sitting State Jaycee President
Larry A. Clever.
The Executive Committee (nominally the Board of Directors of the Foundation) renounced
its right control and direct the affairs of the Foundation on October 15, 1977, electing
nine individuals to three year, staggered terms as directors of the Foundation. This
change was dictated by two considerations. First, the tax status of the Foundation was
jeopardized by the direct control of the Foundation and its affairs by officers of a non tax
exempt organization. It was necessary to achieve an “arms length” relationship that would
be satisfactory to the Internal Revenue Service. Second, the Foundation had languished
under the direct control of the officers of the Jaycees. Each of those individuals had
assigned responsibilities and duties in the Jaycees which claimed the greater part of their
energy and attention.
The nine Directors included; Bob Massey, a Past National Director; Bernard Sweeney, a
Past State President; John Jankowiak, a Past State President; Michael Mendrick, a Past
State President; Alan Bourne, a Past President of the New York City Jaycees; John Van
Gorder, a Past National Vice President; Robert Stockton, a Past Legal Counsel; Gil
Rashbaum, a Past Legal Counsel; and Howard Levine, a Past Legal Counsel.  Serving
with them was Larry Clever sitting State Jaycee President.
In 1981, this structure was replaced in a reorganization under the direction of Past State
President David Burley. The current, self-perpetuating Board of Trustees was organized
at that time, with one third of its Elected Trustees elected each year to three year terms,
with the possibility of re election. Elected Trustees may range in number from a minimum
of nine to a maximum of thirty six. Designated Trustees are appointed by the New York
State Jaycees to serve for one year. One Designated Trustee may be appointed for each
nine Elected Trustees, with the sitting President of the New York State Jaycees serving as
the first Designated Trustee. Leadership is elected from among the sitting Trustees for
one year terms, including the Chairperson, Vice Chairperson, Secretary, Treasurer, and
Past Chairperson.
A distinguished group of current and past Jaycees and Jaycee Women have served as
Trustees since 1982 – Alan Bourne, David Burley, Jim Bushey, Larry Clever, Pam
Crandall, Bill Cucculelli, Steve Davis, Greg Dunfield, Joe Emerson, Gary Eye, William
Farren, Gerald Gortner, Phil Hubbell, Robert 0. Jones, David Kaczor, Barry Kaufmann,
Duane Kepple, Lois Kepple, Jack Maines, Frank Masten, Ron McMahon, Mike Mendrick,
Ron Napierkowski, Gary Okrepkie, Pat Paulsen, Mike Ricketts, Dave Rothberg, Jeanne
Stewart, Bob Stockton, Walt Thronsen, Russell Williams, and Joe Winnert were among
early trustees.
Activities and Funding There has been substantive activity since the Foundation was formed over thirty years
ago. The Foundation was deeply involved in the retirement of the mortgage principal on
the office building (Custy’s Castle), a goal achieved by all of us in 1987. It has funded
sewage system and parking lot repairs, purchased a computer and a wide variety of office
equipment for the use of the Jaycees, and sponsored State Jaycee Officer Training
schools, Outstanding New Yorker programs, Outstanding Young Farmer programs,
Outstanding Young New Yorker programs, awards programs, Speak Up programs, Hugh
O’Brien programs, and various programs of local chapters.
In 1982, uniform procedures were adopted for applicants to use in seeking Foundation
support for programs and projects. A brief form, “Funds Transfer Authorization/Non
Designated Funds Request,” is required, including a summary description of the planned
program or project’ This form must be filed in a timely manner to allow proper review by
the Foundation Board of Trustees. Additional information may be required prior to
consideration for approval; all activities of the Foundation must be in accord with the
powers and limitations specified in the Certificate of Incorporation, and consistent with
funding restrictions, if any. The Foundation has no current independent sources of
revenue, no trust funds, no bequests, no cash reserves, and no rich patrons. Funds must
be raised from internal or external sources, including sponsors, fund raisers donations,
etc,, to meet the financial needs of any worthwhile program or project. To be precise, for
a program or project to be funded, monies have to be raised from other sources and
channeled to the Foundation. A potential sponsor who wants to support a quality program
or project can make a contribution, to the Foundation and enjoy the benefits of the tax
deduction. The Foundation’s exemption from sales tax on appropriate purchases allows
any such funding to be stretched.
A person with a specific program or project would find it helpful to speak with Trustees of
the Foundation to learn how to proceed with a proposal. The operational procedures and
policies of the Foundation are designed to protect its status as a tax exempt organization.
in that respect, it is important to note that Jaycees have no prior authorization to solicit
funds on behalf of or in the name of the New York State Jaycees Foundation, Inc., nor to
commit the Foundation to expenditures not specifically approved by the Trustees as part
of a approved program or project.
Special Programs The late Irving S.K. Chin, a Chinatown Jaycee, spearheaded the formation of the
Founders Club for the New York State Jaycees in 1970. He hoped to create a group akin
to an alumni club, through which funds could be raised for the support of the Jaycees.
Since that time, nearly three hundred people have become members of the Founders
Club, by contributing the sum of $25.00 each. All monies realized from these
memberships are committed to the purchase of equipment and furniture for Custy’s castle.
Frank J. Castellano, then Executive Vice President of the New York State Jaycees, formed
the Century Club in 1973. Deeply committed to the Jaycees, he hoped to retire the
mortgage, removing a financial burden on the organization. He planned that “any
Exhausted Rooster, JCI Senator, Past Officer, Active Jaycee, Former Jaycee or Jaycee
chapter” would be eligible to join the Century club upon the donation of $100.00, with all
funds committed to mortgage reduction. Over two hundred and twenty five memberships
were issued during the active life of the program.
Control and direction of the Founders Club and the Century Club were transferred to the
Foundation by a motion adopted by the New York State Jaycees an October 13, 1981.
The Century club was closed to new members when the mortgage was retired, with final
arrangements being made for a plaque in honor of the individuals and chapters who
became members. The Founders club is still active and open, and new members would
be welcomed at this time.

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