Repository: UIHistories Project: Board of Trustees Minutes - 1974 [PAGE 414]

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BOARD OF TRUSTEES

[November 21

I recommend approval, subject to further action by the Illinois Board of Higher Education. O n motion of Mr. Livingston, this recommendation was approved.

J O H N N. CROUSE DENTAL E N D O W M E N T F U N D , MEDICAL CENTER

(10) Under date of February 16, 1939, the Dental Protective Association of the United States established a trust known as The John N. Crouse Dental Endowment Fund with the Northern Trust Company of Chicago, Illinois, as Trustee, of certain funds to be applied for the following purposes: (2) The income of T H E JOHN N. CROUSE DENTAL ENDOWMENT FUND, as provided herein shall be used for the purpose of aiding and assisting in the maintenance of fellowships and scholarships in approved dental schools or dental colleges, scholarly and practical research for the advancement of the science and art relating to the profession of dentistry, and the presentation by a recognized scholar of a lecture to be known as The John N. Crouse Lecture, at such annual meetings of the Illinois State Dental Society as the Professional Board herein may designate, the lecturer on each occasion to receive a suitable scroll, medal, and minor honorarium, and to these ends shall be awarded to such person or persons or for such object or objects of dental research as shall be designated by a. Professional Board hereinafter referred to as the Board. The current balance of the fund is approximately $35,000. Under applicable Federal Income Tax and State laws, the Trustee has determined that the present value of the Endowment Fund is too small to warrant continuation in the face of the rules and regulations applicable to the Fund as a "private foundation" and desires to terminate the Trust. Accordingly, the Trust agreement has been amended to provide for its termination as of June 30, 1973, and the distribution of the assets and accrued income in equal shares to the Board of Trustees of the University of Illinois, Loyola University of Chicago, and Northwestern University "to be used in the dental schools of those organizations for purposes consistent with the objectives set forth in this trust agreement establishing the John N. Crouse Endowment Fund," subject to acceptance thereof by the named institutions. The University Counsel has stated that acceptance of the proposed distribution would not require that lectures provided from the proceeds oe delivered at the Illinois State Dental Society, nor would the proceeds in the hands of the University be subject to the direction of the Professional Board (of which the Dean of the College of Dentistry, or his designee, has been a member). The Chancellor at the Medical Center campus has recommended acceptance of the proposed distribution on the terms stated in the following resolution. I concur and recommend adoption of the resolution. Resolution WHEREAS, on February 16, 1939, the DENTAL PROTECTIVE ASSOCIATION OF T H E UNITED STATES, an Illinois not-for-profit corporation, as Settlor, executed a trust agreement with THE NORTHERN TRUST COMPANY, an Illinois corporation, of Chicago, Illinois, as Trustee, establishing THE JOHN N. CROUSE DENTAL ENDOWMENT FUND (herein referred to as the "ENDOWMENT FUND"); WHEFEAS, it appears that the ENDOWMENT FUND is a "private foundation" as denned in sections 509(a) and 4947(a)(1) of the Internal Revenue Code of 1954, as amended (herein referred to as the "Code"), and as such is subject to the 4% excise tax imposed by section 4940 of the Code and is required by P.A. 77-61,Laws of Illinois, 1971 (111. Rev. Stat. Ch. 148, sec. SI) to distribute the trust income for each taxable year at such time and in such manner as not to subject the trust to the tax on undistributed income imposed by section 4942 of the Code; WHEREAS, the ENDOWMENT FUND has a present value of $3S,000 and is too small to warrant continuation in the face of the rules and regulations applicable to a private foundation; WHEREAS, P.A. 77-61 further provides that the trustee of a trust, whenever created, which is, or is treated as, a private foundation as defined in sections 509