ESA Awards Policy

Policy for Establishing and Administering ESA Recognition Awards
Effective December 2010

Introduction

A policy for establishing and administering recognition awards was developed to provide guidance to those wishing to propose a new award and to ensure that the funding associated with the awards is maintained in a way that both fulfills the purpose of the funding group and protects ESA from undue financial burdens.

ESA provides various recognition awards to members and others. Currently, ESA has 15 recognition awards as summarized in the table below:

The awards are either funded by donor-directed funds or Governing Board-designated or directed funds. The donor-directed funds can be either through annual donations of funds that will be restricted or through endowments that will support the award for a longer period of time. Endowments are donations of cash, securities, or other assets which provide income for the continued support of an award. Donations are set up and accounted for as funds. The use of endowment funds may be permanently restricted or temporarily restricted based on donor- or board-imposed restrictions. Endowment funds are, however, generally established as a donor-restricted gift or bequest to provide a permanent endowment (a permanent source of funds) or a term endowment (funds for a specified period of time, temporary).

The ESA Governing Board may designate or direct that funds from either the current year budget or the reserves be used to fund an award.  If the award is funded through the budget process, it will be for a single year with the possibility of continuation only through inclusion in subsequent budgets.  If reserves are used to fund an award, they will be restricted either permanently or temporarily depending on the duration of the award. The policy that covers donor endowments will apply to the ESA Governing Board use of reserve funds to fund an award.

Types of Endowment Funds
 
• Permanently restricted endowment funds - (Designated fund) provide that the principal remains intact and a percentage of the available income earned (which consists of interest, appreciation, capital gains and losses) is used to create the plaque/medal for and given as cash to the award recipient annually. Endowment funds that must be maintained permanently are classified as a permanently restricted net asset.

• Temporarily restricted endowment funds – A designated fund that must be maintained for a specified term. This fund is classified as a temporarily restricted net asset. All funds generated plus the principal from a temporarily restricted Award Fund are spent based on the number of years the award is to be given.  The funds are used to create the plaque/medal for the award and given as cash to the award recipient annually.

Who may propose an award?
An individual, group of individuals (including the ESA Governing Board, Branches or Sections), or a company may propose a new award.  The new award may be named after a person that has made significant contributions to the profession or the Society. An example would be the Comstock Awards. An individual may not propose an award named to honor him or herself.  If the funds contributed for support of the award exceed $200,000 the award may be named after the donor, at the Governing Board’s discretion. An example would be the Nan-Yao Su Award. 

A new award can also be named to honor excellence in an area of entomology (e. g. Recognition Award in Insect Physiology, Biochemistry and Toxicology) or for a specific career stage (e. g. Student Activity Award). 

How much is needed to create a fund?
The minimum needed to create a temporarily restricted fund would be $10,000.  The minimum needed to create a new permanently restricted fund would be $25,000 (the fund may be built by further donations). The minimum amount to be given annually (or less frequently if the income from the fund is too small) to the awardee will be $1,000 regardless whether it is funded for a specified timeframe or indefinitely.  If the award is to be funded annually (either by donations or through the budgeting process) and no endowment is created, then the minimum amount would be $1,000 (existing awards of this type at the $500 amount will be permitted if the funding group is not willing to change the amount).

Process for Proposing a New Award
For any new award, the ESA headquarters staff and the Awards and Honors Committee will work with those proposing the award to define and describe the new award and associated fund. These two groups will examine the criteria for the award and ensure it is in keeping with the goals of the Society to reward excellence in entomological endeavors.  The following information is required:

1. What will be the exact name or title of the award and associated fund?
2. What type of fund will it be? If temporary, how many years will it be held?  If permanent, what percentage of the earned income will be used annually?
3. What will be the criteria for the award?
4. Suggested make-up of the judging panel.
5. If an endowment, will additional donations to the endowment occur or be allowed?

The proposed award with all of the associated information would be presented to the ESA Governing Board in the form of an agenda brief. The Governing Board would vote on the motion proposing the creation of the award at its next scheduled meeting. If approved, the Governing Board would formally notify the donor(s) and direct them to communicate with the director of finance to establish the fund. The Governing Board would also notify the Awards and Honors Committee so that they can begin the process of establishing a panel to evaluate nomination packages. An article would be written for the ESA e-newsletter to announce the new award and the year that nominations would first be accepted for it, and information will be posted on ESA’s website.

Distribution of Endowment Income for New Awards:
At the close of each fiscal year, the portion of investment returns earned within each Endowed Fund, which includes dividends, interest income, and capital gains, is distributed each year to support the award and/or program specified by the donor. The actual distribution is based on a rate that is approved by the Governing Board.  All funds will be held as part of ESA’s general investments and will be reported as separate funds on ESA’s balance sheet.

Distribution of Investment Returns as Follows for New Awards:
• Initial fee of 5% of the donated funds (maximum of $3,000) is paid to ESA to set-up the award.

• Administration fee of 0.5% is paid to ESA from the Fund each year the award is given.

• Award fee of 4.5% - 5% is taken from the fund to pay for the award itself. This amount is the amount used to produce the plaque/medal and the remainder is given to the awardee.  If there are not sufficient income funds for permanently restricted endowments to cover the cost of the plaque/medal and to give the awardee the minimum of $1,000 then the award will not be given that year.  Income from multiple years may be accumulated until the required amount is reached and the award will then be given.

• If returns are less than 1% no fee will be charged and no award will be given in that year.  If returns are > 1% and < 5% the fee will be charged and the remainder will be used for the award.  If the returns are > 5% the fee will be charged, the normal percentage used for the award and the rest kept in the fund and carried forward to the next year (e. g. 1% of the needed 5% for the year) or used for the award in the year earned if approved by the Governing Board.