IMPORTANT: Press Club of Dallas Update

Dear Press Club Member:

As you know, I became president of the Press Club last month. Openness, transparency and accountability are important to me, the board of directors and the members of this organization. As a result, I want to make you aware of several issues related to the Press Club and the Press Club Foundation.

The Press Club board and the Foundation board have been working to bring these issues to closure, which arose over the past several weeks. Our objective is to resolve them, and to put in place new policies and procedures that preserves the Club’s reputation and ensures its ability to raise scholarship funds for journalism students. While I’m disappointed that we haven’t yet resolved every issue before us, we have made progress. I expect we will resolve all them within a few weeks.

Issues

1) Elizabeth Albanese resigned on March 14. The following is the substantive text of her email to the board:

“I had hopes of creating a new type of organization that would move the club forward as a 501(c)3. Certainly I believed that this was the best course of action for the club itself and never perceived it as a threat to any current operating modes. I see now, however, that this issue has created a great division between the Press Club Foundation and the Press Club Board of Directors, which can only damage both organizations. As such, I step aside to allow the board to lead the club in whatever direction it chooses.”

2) There is a question between the Press Club board and the Foundation board as to whether there should be two distinct entities. The fundamental question, in my judgment, is whether having two distinct organizations and boards of directors makes sense today. It may have in the 1970s when the decision was originally made. Today, I am, and other Club board members are, interested in exploring other options. We will continue to work with the Foundation to resolve this issue in a way that is in the best interests of both entities.

3) The Foundation determined in late January to suspend the stipend it provides for Club operations. It is my understanding that the Foundation, rightly so in my view, had serious concerns about the failure to have more fundraising events in 2006. The Press Club is obligated to hold two to three events per year on behalf of the Foundation to generate scholarship funds. For a variety of reasons, the Press Club did not meet its responsibility in 2006.

Despite the Club’s best intentions, we only held one fundraising event last year – the Katie Awards – which was profitable. We had plans for a Gridiron show and a Roast, but neither materialized. In fact, due to a lack of oversight and appropriate board control, the Club spent more than $11,000 in 2006 for a Gridiron show – most of which is deposit on a venue. The board subsequently determined not hold the Gridiron, and we are negotiating for a return of the deposit. Equally important, we’re working with the Foundation to stage events that generate scholarships proceeds in 2007.

4) Unrelated to the Foundation’s stipend decision, both boards learned in early March that Elizabeth had used a Foundation credit card for personal expenses. While this was completely inappropriate, the Club’s finance committee – which includes members of both boards as well as general members of the Press Club – reviewed this matter with the Club’s bookkeeper. All personal expenses have been more than fully repaid. Equally important, I assure you this will not happen again as long as I have a leadership role in this organization.

5) In suspending the stipend, the Foundation also asked for a list of 2006 Katie Award judges. A simple, and legitimate, request. However, we do not currently have that information, though we are working in a variety of ways to obtain it and have been for several weeks.

It is difficult to explain why that information isn’t readily accessible. In fact, there is no good reason other than, in my judgment, sloppy management on the part of the Press Club board. In my opinion, the responsibility and accountability rests with each member of both boards — including me.

Actions

These are the steps we have taken to address this issue:

• A thorough review of all documents, files and computer records in the possession of the Press Club.

• Formal and informal communications with Elizabeth asking for any and all information related to who judged the 2006 Katie Awards.

• Personal outreach to other individuals and organizations, locally and nationally, who may have knowledge of or participated in judging the 2006 Katie Awards.

To date, these efforts have failed to turn up any useful information.

Special Committee

As a result, this week a special committee was named to pursue any and all avenues that it deems necessary to investigate this matter, determine the facts and report back to the board and the membership.

Hugh Aynesworth -- Dallas bureau chief of the Washington Times and a long-time member of the Press Club chairs the committee. Committee members are Tony Pederson, chair of the SMU School of Journalism and former executive editor of the Houston Chronicle; Darwin Payne, a former reporter with the Dallas Times Herald and former professor of journalism at SMU; and, John Miller, currently a professor at TCU and former news director at WFAA.

The committee has already begun its work. Once its investigation is complete, I will call an special open meeting of the Press Club for the committee to report its findings. Where ever the facts lead, we will fully report and follow them.

In addition, working with the Foundation, the Press Club board will put in place new procedures and policies to assure the membership, and Katie participants, that the judging process going forward is thorough, rigorous and above reproach.

Mr. Pederson, Mr. Payne and Mr. Miller have also agreed to serve in an advisory capacity on that effort as well. Their charge is to review the criteria, the rules and to give us guidance on establishing a system of judging that will be more transparent.

In closing, let me state that the men and women who serve on the Press Club and Foundation boards are talented, dedicated and committed in their volunteer service. All of us serve because we believe in providing relevant and substantive programs and activities that are meaningful to the members. We also believe in the notion of helping others, through scholarship support, who want to enter the journalism or mass communication profession.

On a personal note, I apologize to you for what I believe is our collective poor management of these issues. I can tell you that the membership of both boards are working closely and diligently to resolve them expeditiously. I will keep you informed as new information becomes available.

I am happy to answer questions you have about any of these issues. You should feel free to contact me at [email address redacted]. You are welcome to call me as well. The best number to dial is my cell phone. Please understand that I may not be able to call you back until after business hours.

Sincerely,

Tom Stewart

President

Press Club of Dallas