(c) ENDOWMENT FUND.— 
(1) IN GENERAL.—In carrying out subsection 
(b), the Foundation shall establish a fund for pro-
viding endowments for positions that are associated 
with the Congressional Council on Childhood Obesity 
and the Department of Health and Human Services 
(referred to in this title as the ‘‘Department’’) and 
dedicated to the purpose described in such sub-
section. Subject to subsection (g)(1)(B), the fund 
shall consist of such donations as may be provided 
by non-Federal entities and such non-Federal assets 
of the Foundation (including earnings of the Foun-
dation and the fund) as the Foundation may elect 
to transfer to the fund. 
(2) AUTHORIZED EXPENDITURES OF FUND.— 
The provision of endowments under paragraph (1) 
shall be the exclusive function of the fund estab-
lished under such paragraph. Such endowments may 
be expended only for the compensation of individuals 
holding the positions, for staff, equipment, quarters, 
travel, and other expenditures that are appropriate 
in supporting the positions, and for recruiting indi-
viduals to hold the positions endowed by the fund. 
(d) CERTAIN ACTIVITIES OF FOUNDATION.—In car-
rying out subsection (b), the Foundation may provide for
the following with respect to the purpose described in such 
subsection: 
(1) Evaluate and make known the effectiveness 
of model plans used by schools to reduce and pre-
vent childhood obesity. 
(2) Create a website to assist in the distribution 
of successful plans, best practices, and other infor-
mation to assist elementary schools, middle schools, 
and the public to develop and implement efforts to 
reduce and prevent childhood obesity. 
(3) 
Participate 
in 
meetings, 
conferences, 
courses, and training workshops. 
(4) Assist in the distribution of data concerning 
childhood obesity. 
(5) Make Challenge awards, pursuant to sub-
section (e), to elementary schools, middle schools, 
and local educational agencies for the successful de-
velopment and implementation of school-based plans. 
(6) Other activities to carry out the purpose de-
scribed in subsection (b). 
(e) CHALLENGE AWARDS.— 
(1) PROGRAM AUTHORIZED.—The Foundation 
may provide Challenge awards to elementary schools, 
middle schools, and local educational agencies that 
submit applications under paragraph (2).
(2) APPLICATION.—Each elementary school, 
middle school, or local educational agency that de-
sires to receive a Challenge award under this sub-
section shall submit an application that includes a 
plan to reduce and prevent childhood obesity to the 
Foundation at such time, in such manner, and ac-
companied by such additional information as the 
Foundation may reasonably require. 
(3) SELECTION CRITERIA.—In the program au-
thorized under paragraph (1), the Foundation shall 
provide Challenge awards based on— 
(A) the success of the plans of the elemen-
tary schools, middle schools, and local edu-
cational agencies in meeting the plans’ stated 
goals; 
(B) the number of children in the commu-
nity served by the elementary school, middle 
school, or local educational agency who are in 
need of assistance in addressing obesity; and 
(C) other criteria as determined by the 
Foundation. 
(f) GENERAL STRUCTURE OF FOUNDATION; NON-
PROFIT STATUS.— 
(1) BOARD
OF
DIRECTORS.—The Foundation 
shall have a board of directors (referred to in this
title as the ‘‘Board’’), which shall be established and 
conducted in accordance with subsection (g). The 
Board shall establish the general policies of the 
Foundation for carrying out subsection (b), includ-
ing the establishment of the bylaws of the Founda-
tion. 
(2) EXECUTIVE
DIRECTOR.—The Foundation 
shall have an executive director (referred to in this 
title as the ‘‘Director’’), who shall be appointed by 
the Board, who shall serve at the pleasure of the 
Board, and for whom the Board shall establish the 
rate of compensation. Subject to compliance with the 
policies and bylaws established by the Board pursu-
ant to paragraph (1), the Director shall be respon-
sible for the daily operations of the Foundation in 
carrying out subsection (b). 
(3) NONPROFIT STATUS.—In carrying out sub-
section (b), the Board shall establish such policies 
and bylaws under paragraph (1), and the Director 
shall carry out such activities under paragraph (2), 
as may be necessary to ensure that the Foundation 
maintains status as an organization that— 
(A) is described in subsection (c)(3) of sec-
tion 501 of the Internal Revenue Code of 1986; 
and
(B) is, under subsection (a) of such sec-
tion, exempt from taxation. 
(g) BOARD OF DIRECTORS.— 
(1) CERTAIN BYLAWS.— 
(A) INCLUSIONS.—In establishing bylaws 
under subsection (f)(1), the Board shall ensure 
that the bylaws of the Foundation include by-
laws for the following: 
(i) Policies for the selection of the of-
ficers, employees, agents, and contractors 
of the Foundation. 
(ii) Policies, including ethical stand-
ards, for the acceptance and disposition of 
donations to the Foundation and for the 
disposition of the assets of the Foundation. 
(iii) Policies for the conduct of the 
general operations of the Foundation. 
(iv) Policies for writing, editing, print-
ing, and publishing of books and other ma-
terials, and the acquisition of patents and 
licenses for devices and procedures devel-
oped by the Foundation. 
(B) EXCLUSIONS.—In establishing bylaws 
under subsection (f)(1), the Board shall ensure