1. How do I set up an endowment?
FEF manages many industry-related scholarships (i.e. AFS chapters), as well as several "Living" or memorial funds. The memorial funds provide a permanent projection of a cast metal leader's career and, in a real sense, continue the work to which a lifetime was dedicated.
The principal amount is restricted; only the earnings are used to provide scholarships to qualified students. All awards of this type carry the name of the donor, whether it is an individual, chapter or company. For more information, contact the FEF office.
2. How is FEF's money invested?
All funds entrusted to the Foundry Educational Foundation are managed according to FEF Bylaws with reasonable prudence by registered qualified independent investment managers who are registered under the United States Investment Advisor's Act of 1940, and assume full fiduciary responsibility for all assets under management. The investment managers are monitored quarterly through FEF's Investment Committee, and biannually by the Board of Directors. The guidelines provide the majority of investments to be in bonds or cash equivalents with some prudent exposure in equities for growth.
Our balanced approach objective is to provide a steady total return, with the majority of the funds invested in a balanced portfolio with current income for scholarship and operating needs. This is achieved by investing in a diversified portfolio of equities securities, and high quality, investment grade corporate and/or government bonds. Within fixed income, we use primarily intermediate maturities, providing us safety of principal, income, and liquidity. 30% to 50% of the portfolio will be invested in this manner, depending on market conditions.
The remaining 50%-70% of the portfolio will be invested to achieve growth, outpace inflation, and preserve the value of our dollars. This allocation is diversified among U.S. large cap, U.S. mid cap, U.S. small cap, foreign companies, REIT's, and liquid alternative investments. This acts as an inflation hedge, plus gives us needed liquidity. Short term assets are kept in money market funds, CD's, and other cash instruments.
3. What is metal casting?
A metal-forming process whereby molten metal is poured into a cavity or mold and, when cooled, solidifies and takes on the characteristic shape of the mold. Casting offers several advantages over other methods of metal forming: it is adaptable to intricate shapes, to extremely large pieces, and to mass production; it can provide parts with uniform physical and mechanical properties throughout; and depending on the particular material being cast, the design of the part, and the quantity being produced, it can be more economical.
4. How are metal castings used?
More than 90 percent of all manufactured goods in the United States contain cast metal components. These parts include engine blocks and heads, transmission housings, farm & construction equipment, medical parts, military parts, aerospace components and pipes & valves for plumbing fixtures.
5. What makes FEF different from other society foundations?
There is a "Key Professor" at each of the schools who handles the partnership FEF has with engineering education. This professor knows the students, teaches the courses, handles administrative requirements from FEF headquarters, and decides who is best suited to receive FEF funds. This personal approach is very important to the program's success. Students become aware of the Cast Metals Industry through the combination of scholarships and the professor's influence. Other scholarship programs make grants only on registration or letters of intent. FEF provides important interrelationships essential to students and Professors. The FEF Key Professor also is your contact as your company considers research, donation of supplies, recruitment, and other technical needs.
6. What is the difference between a certified school and an affiliated school?
An FEF certified school receives direct funding from FEF. Professors are allocated a specific amount of funding each school year that they use for scholarships and discretionary spending. An FEF affiliated school does not receive direct funding, but students are eligible to apply for any scholarship that is listed on the FEF website. Affiliated schools are also allowed to bring 1 or 2 students to the College Industry Conference (depending on the strength of registrations for the conference); whereas certified schools may bring up to 6 students.
7. When & why was FEF founded?
After WWII ended, there was a desparate need for skilled technicians and educated leaders in the cast metals industry. FEF was established in 1947 by the leaders of the metal casting industry, with the support of affiliated organizations and societies as an independent extension of metalcasting educational programs at colleges and universities across the country. The primary objective was to bring top-quality men and women into our industry. FEF has since become the lifeline of quality people to our Industry.
8. What is FEF's mission & vision?
Mission Statement: FEFstrengthens the metal casting industry by supporting unique partnerships among students, educators and industry, helping today's students become tomorrow's leaders.
Vision Statement: FEF shall be the premier organization that provides support to educators and students to prepare students for participation in metal casting and related industries through support for a wide variety of educational programs.
9. What is the benefit of contributing to FEF?
Donors recognize that FEF is a tax-exempt organization, under Section 501(c)(3) of the Internal Revenue Code, and contributions are deductible as allowed by law. In addition, FEF is favorably classified as an organization that is not a private foundation as defined in Section 509(a) of the IRS code.
FEF receives no other support than from the Cast Metals Industry. This cost-effective scholarship program has produced long lasting results for our industry, even to companies who have never hired an FEF graduate. We must not forget the future. We need your support to insure the continued strength of this important effort. Join the lifeline to the future through the Foundation for the Cast Metals Industry - FEF!
10. What is the Saugus Society?
Securities are particularly suited to direct giving. By transferring stocks to FEF, the donor avoids paying capital gains taxes and receives advantages in deducting stock value from income taxes. Life insurance is another possibility when FEF is named irrevocable, sole beneficiary. Proceeds are excluded from the taxable estate of the insured, and annual premiums paid are considered an educational gift. Wills establish lasting and final gifts to the Foundation. These gifts provide simple and convenient ways for you to immortalize your place in cast metals higher education. Donations of other non-cash properties, such as works of art, often can realize greater tax deductions than gifts of money. Special recognition is an important part of the Saugus Society. As with all financial matters of this type, you should seek legal assistance from attorneys qualified in this area. For more information, you can review the Saugus Society brochure.