The Potential Eta Kappa Nu Merger into IEEE

1
The Potential Eta Kappa Nu Merger into IEEE

• February 2008

2
Background

• HKN has always been financially poor.
• Primarily because gifts to HKN were not tax
  deductible.
• HKN applied for IRS 501(c)(3) tax deductible
  status in early 1950s.
• Application rejected by IRS in 1957, citing HKN
  as a Union, Fraternity, Social Club.
• HKN did little solicitation for this reason.
• This IRS application and rejection unknown to
  members until late in 1999.

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Background II

• Following a huge and complex preparation of
  application, submission, IRS fumbling and review,
  4 years later HKN received IRS 501(c)(3), in
  March 2004!
• Over the years HKN has lost contact with more
  than 90 of its members.
• IEEE was kind enough to contact their members,
  and encourage HKNers to reengage with HKN via
  www.hkn.org

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The Challenges

• Contact our lost HKNers.
• Demonstrate to them the lifetime values of
  todays HKN.
• Relate to them our dire financial situation, and
  how badly their support is needed.
• Ask them to make a special effort over the next
  few years to build a financially viable HKN.

5
Current Status

• The HKN Board of Governors has secretly chosen to
  meet HKNs Challenges by selling out to IEEE, and
  has signed a non-binding Memorandum of
  Understanding (MOU) to do so.
• As with most life decisions there are difficult
  trade-offs.
• The following highlight the major plusses and
  minuses.

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Advantages to the Merger

• HKN Financial stability
• Access to the IEEE database to data mine
  contact information on HKN members.
• A permanent corporate home for HKN.
• Potential for HKN Internationalization.
• Association with the powerful IEEE presence in
  industry could provide added credibility for HKN.

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Disadvantages to the Merger

• HKN loss of certification as a bona fide honor
  society.
• Loss of HKN member control, autonomy and
  independence.
• IEEE student membership required to be eligible
  for consideration for HKN membership!
• Merged HKN no longer a Lifetime membership!
• HKN Induction Fee 25 to 88 higher.
• After graduation, continuing IEEE membership
  required to remain an HKN member, plus a nominal
  annual HKN fee. Otherwise not an HKN member.

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Disadvantages II

• Requiring student IEEE membership for HKN
  eligibility will diminish the number of students
  eligible for HKN, and thus the number of new
  members.
• Internationalizing for HKN is hugely more
  challenging than for IEEE. The normalizing of
  school accreditation, curricula, and grading, to
  HKN standards may be impossible, resulting in HKN
  member value diluted and diminished globally.

9
HKNs Strengths

• HKN today is the best it has ever been, and
  offers more true value to its members than ever
  before
• Strong support from the HKN Front Office.
• An excellent Website providing great support to
  Chapters and members.
• The HKN tie with Experience a very powerful
  free lifetime benefit to all members, students
  and alumni.
• The Bridge magazine.

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Proposal

• We alumni and student members need to accept
  responsibility for our HKN.
• We need to tell the Board that they should be
  totally open and communicate by all possible
  means with its members regarding our dire
  financial situation and ask the members to solve
  our problem with tax deductible special gifts for
  the next few years to protect our HKN, and
  restore its financial viability.

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Proposal

• Request HKN Board publish an annual Financial
  Statement in the Bridge each year so that members
  know our fiscal status
• If, after 5 or more years this approach fails to
  improve our financial situation, then the HKN
  Board has a valid basis for pursuing outside
  help, like IEEE, or perhaps a merger with Tau
  Beta Pi. (The Board must also be vigilant to
  control HKN expenses.)