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CENTRAL ASIA INSTITUTE Board of Directors Meeting

June 17, 2000

San Francisco, California

Final Minutes Approved January 20, 2001

CAI Board Members Present Guest Present Julia Bergman, Nicholas Clinch, Fundraising Thomas Hornbein, MD Geri Lesko Andrew Marcus, PhD, Vice-Chairman Thomas Vaughan, MD, Chair Staff Members Present Jennifer Wilson, Secretary Greg Mortenson, Executive Director Christine Slaughter, Assistant CAI Board Member Excused Gordon Wiltsie Call to Order Tom Vaughan called the meeting to order at 8:50am Approval of Minutes Tom Vaughan asked if there were any additions or corrections to the January 2000 meeting. Tom Hornbein commented on a correction about the term length of board members on the board. He referred to the one-year gap in between two sets of three years. The correction was board members will serve two consecutive three-year terms with one year off. Andrew Marcus requested future minutes follow a more standard format with less bulleting.

MOTION: Accept minutes with correction that board terms can extend for two consecutive three year terms, with a required year off after six years before rejoining the board. The Board can extend terms by a majority vote if circumstances warrant it. Tom Hornbein moved minutes be accepted with correction. Andrew Marcus seconded. Motion unanimously carried.

Andrew Marcus noted the draft budget imbedded in the minutes, but approving the minutes does not mean approving the budget included. Discussion Status of the Budget: Greg Mortenson has all information from Pakistan to help devise a budget and Pat Dunn will help get the Pakistan expenditures wrapped up. CAI funds include $200,000 in CD's and $14,000 in the checking account. Tom Vaughan stated that the 2000 budget was roughly $200,000 and wanted to know how much of that amount has been spent to date. An estimated $100,000 of total CAI funds should be left at the

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years end. Greg Mortenson roughly estimated about $37,000 in stock transfers. The $60,000 figure given to the board was from check and credit card donations. Nick Clinch commented CAI should sell stock immediately upon receiving it. Greg raised the question about teachParvi er endowments. Andrew Marcus expressed concern that CAI does not have a definite budget. Chief of Operations Position: Greg Mortenson had not made any headway other than preparing the ad. Tom Vaughan stated this issue was important in the previous board meeting and a solid administrative infrastructure is key to CAI's success. Tom Hornbein commented much energy was put forth to create this ad and this is the basic life support for Greg and wanted to establish a solution soon. Business Liability Insurance: Greg Mortenson reported business liability insurance costs about $1500. If approved, it covers each board member up to $1,000,000. Nick advised CAI get business liability insurance. Tom Hornbein wants to see what $1500 covered and review the policy term details. Jennifer Wilson felt working in a dangerous area created the need for insurance. ACTION: Board tasked Greg to review insurance policy term details to facilitate making a decision regarding this matter. G.M. Parvi's Status: Greg Mortenson reported of the estimated $6,000 taken from CAI, Parvi has paid back $1,800. Parvi is dedicated to CAI, meticulous with projects under his jurisdiction and irreplaceable. Julia Bergman could make judgement on her upcoming trip to Skardu. Brent Bishop's Trip Expenditures: Greg reported Brent and others who worked on Nike projects never produced a report on expenditures. Nick Clinch recommended CAI compose a draft of itemized expenditures to Brent for successful latrine and porter training projects. If Brent agreed with draft, have him sign it. Tom Hornbein and Tom Vaughan agreed.

ACTION: Greg Mortenson will produce a draft of Nike project expenditures and a one page draft report of project results and forward them to Brent for his edits and signature of approval.

Teacher Training Institute Text: Greg Mortenson reported CAI bought plane tickets for three master teachers who will work on the creation of the Balti workbook as a part of the Teacher Training Institute. Julia Bergman said those participants whose tickets were financed through CAI would fundraise upon their return to try to reimburse CAI. The ticket will come out of $20,000 Jinnah Library Project budget. Tom Hornbein suggested Julia produce a proposal and budget for fund allocation of $20,000. MOTION: Andrew Marcus moved to approve $20,000 workbook project pending budget from Julia. Jennifer Wilson seconded. Motion carried unanimously, Julia Bergman abstained.

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K2 North Ridge Expedition Situation: Greg Mortenson briefed the board on the situation with Heidi Howkins and brought up the idea of drafting a resolution not to help expeditions. Nick Clinch recommended Greg not do anything he does not want his and CAI's name attached to. MOTION: Andrew Marcus moved CAI not provide material or personnel help to anyone not associated with CAI., unless it is necessary to protect human health and safety. Tom Hornbein seconds. Motion carried unanimously.

ACTION: Greg Mortenson will work with Bill Dowkins to send a letter to the K2 expedition demanding the K2 Expedition write a letter stating CAI did not receive compensation for help given to the K2 Expedition and has no associated with the K2 Expedition, Mountain Zone, and Quokka.

Addition of Robin Houston, MD, MPh to the CAI Board of Directors:

MOTION: Jennifer Wilson moved to nominate Robin Houston to the CAI board of directors. Julia Bergman seconded. Motion carried unanimously.

Start Date of Board Members:

ACTION: Andrew Marcus will develop a template for terms of board membership.

Debby Law's School Donation: Greg Mortenson reported the Law's want to give CAI an administrative fee but want a directive from the board on allocation of fees associated with the project. The Board was in favor of Greg working out appropriate administrative fees for the project and making sure the money is kept just for this project and not diverted to other projects in the region. Board of Directors meeting recessed for fundraising seminar at 11:00am. Call to Order Tom Vaughan recalled the meeting to order at 4:20 pm. Action Items Discussed in Fundraising Seminar Discussion about fundraising was led by Nick Clinch and Geri Lesko. As a result of this discussion, 5 action items were adopted. ACTION: Mail date for Summer 2000 Ikat newsletter set for July 15, 2000.

An envelope will be included in the newsletter to send to all CAI donors and non-donors. Fall newsletter to be mailed on November 15, 2000. Newsletter to be sent to all CAI database without an envelope. Upon Charlie's approval,

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newsletter will be sent to all AAC members with an envelope. CAI will send out direct mail appeal letter to CAI donors with envelope on December 1, 2000.

ACTION: Compile new files for all major donors, on computer and hard copy.

ACTION: Compile a donor calendar for Greg Mortenson to send out a biannual letter.

ACTION: Jennifer Wilson and Tom Hornbein take donor Scott Tweedy to lunch.

ACTION: Have a master donor database system that works for CAI.

Adjournment There being no further business, Tom Vaughan adjourned the meeting at 5:50 pm.

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Fundraising Seminar Below is a brief summary of key points discussed in the fundraising portion of the June 2000 board meeting, facilitated by Nick Clinch and Geri Lesko. INFRASTRUCTURE Stable and strong to help CAI grow and flourish. Without a strong infrastructure, CAI risks burnout. A key part to a solid infrastructure is a full-time, on-site administrative assistant. FUNDRAISING AND DEVELOPMENT PLAN A strong fundraising and development plan would sustain the organization. One year plan to include the following: • Mail existing newsletter • Insert envelope • Fall newsletter • Fall direct mail appeal • Gift acknowledgements Fall newsletter and direct mail appeal to be designed, written and produced before Greg returns to Pakistan in September. Continue solicitations to foundations and corporations. An established Donor Profile sheet will become part of a permanent file. Put on hold researching new corporations, foundations, and planned giving programs. Look at donor list to examine major donors and where they are coming from. GREG MORTENSON & CENTRAL ASIA INSTITUTE Historically, funding for CAI has come from Greg's slide shows, direct mailings, and personal contacts.

STRENGTHS WEAKNESSES • Greg on the road • Greg on the road too much • Vision and Mission has value • Infrastructure can't support work • Major Donor Potential - HIGH • Funds running out • In - country cooperation high • Pakistan politically suspect • Good return on investment •