{"id":98,"date":"2024-07-09T20:56:18","date_gmt":"2024-07-09T20:56:18","guid":{"rendered":"https:\/\/www.mtsu.edu\/policies\/?page_id=98"},"modified":"2026-04-04T07:50:56","modified_gmt":"2026-04-04T07:50:56","slug":"p130","status":"publish","type":"page","link":"https:\/\/www.mtsu.edu\/policies\/p130\/","title":{"rendered":"130 \u00a0Foundations"},"content":{"rendered":"\n

Approved by Board of Trustees<\/strong>
Effective Date: June 5, 2017<\/strong>
Responsible Division: University Advancement<\/strong>
Responsible Office:  Vice President for University Advancement
Responsible Officer: Vice President for University Advancement<\/strong><\/p>\n\n\n\n

I. Purpose<\/strong><\/p>\n\n\n\n

This policy assures that the relationship of the MTSU Foundation, Inc., (Foundation) to Middle Tennessee State University (MTSU or University) is clearly defined and is set forth in a formal, written manner that:<\/p>\n\n\n\n

    \n
  1. defines the legal authority and operating control of the University with respect to the Foundation;<\/li>\n\n\n\n
  2. describes the relationship of the Foundation to the University and the extent of any liability arising out of that relationship; and<\/li>\n\n\n\n
  3. demonstrates that the fund\u2010raising activities of the Foundation further the mission of the University.<\/li>\n<\/ol>\n\n\n\n

    II.<\/strong> Definition<\/strong><\/p>\n\n\n\n

    Foundation. For purposes of this policy, the Foundation is defined as a tax-exempt, not-for-profit corporation chartered within the State of Tennessee for the sole purpose of supporting and advancing the mission of the University\u2019s or its programs. This policy does not apply to any foundations established solely to support the University research activities.<\/p>\n\n\n\n

    III. The Foundation’s Relationship to the <\/strong>University<\/strong><\/p>\n\n\n\n

      \n
    1. The Foundation is not an operational function of the University; it is a separate legal entity. The Foundation\u2019s identity must be maintained separate from the University.\u00a0<\/li>\n\n\n\n
    2. The Foundation’s relationship to the University is based upon a shared interest in the University’s development and success of the University’s mission. Therefore, University participation in, and support of, Foundation operations and activities are appropriate and desirable.<\/li>\n\n\n\n
    3. The accountability of the Foundation, and of the University as it relates to the Foundation, is a concern common to the Foundation, the University, and the Board of Trustees (Board). The University should not promote, encourage, or agree to use the Foundation in ways that are, or appear to be, abusive, inappropriate, or do not follow sound business practices.<\/li>\n<\/ol>\n\n\n\n

      IV.<\/strong> General Requirements<\/strong><\/p>\n\n\n\n

        \n
      1. The governance structure of the Foundation must be determined by the Foundation. To ensure an appropriate level of University participation in the Foundation governance, the University\u2019s President or designee, the Vice President for Business and Finance, and the Vice President for University Advancement should hold an ex-officio, non-voting membership on the Foundation\u2019s governing body.\u00a0In order to assure that the Foundation acts as a separate entity, a quorum of its governing body may not consist of a majority of members who are employed by the University.<\/li>\n\n\n\n
      2. The University shall enter into a written agreement with the Foundation, which documents their understanding of their relationship and describes their respective responsibilities.\u00a0<\/li>\n\n\n\n
      3. The Foundation shall adopt an annual budget.\u00a0In order to assure that the Foundation\u2019s objectives are aligned with those of the University, the University shall advise the Foundation of its needs and priorities for the fiscal year in question.<\/li>\n\n\n\n
      4. The Foundation shall develop policies and procedures concerning its operations, including, but not limited to, the following:\n
          \n
        1. Policies that address the solicitation and acceptance of contributions to the Foundation.\u00a0The policies must incorporate sound business principles and safeguard compliance with donor intent and conditions. Such policies shall provide that, prior to acceptance of any gift to the Foundation that will require substantial University support such as staff, financial assistance, storage, on\u2010going maintenance, etc., approval must be obtained from the President of the University<\/li>\n\n\n\n
        2. Policies and procedures that address the management and investment of contributions to the Foundation, shall be subject to the requirements of the Uniform Prudent Management of Institutional Funds Act, T.C.A. \u00a7\u00a7 35-10-201, et seq.<\/li>\n\n\n\n
        3. Policies and procedures that address the Foundation\u2019s procurement and contracting activities.\n
            \n
          1. a.  Such policies and procedures shall implement sound business practices and prudent use of Foundation funds, including encouragement of the use of competitive procurement of goods and services, when practicable.<\/li>\n\n\n\n
          2. b.  Such policies and procedures must include a process for determining authority for authorizing contracts on behalf of the Foundation and for authorizing expenditure of Foundation funds. Authority for these functions cannot be delegated solely to an employee of the University.<\/li>\n<\/ol>\n<\/li>\n\n\n\n
          3. Policies\u00a0that, in accordance with T.C.A. \u00a7 49\u20107\u2010107(c), establish and adopt a code of ethics that apply to, and govern, the conduct of all members of the Foundation\u2019s governing body shall require that members review and acknowledge the code of ethics annually.<\/li>\n\n\n\n
          4. Policies must identify who may release the Foundation\u2019s records upon receipt of a request.<\/li>\n<\/ol>\n<\/li>\n\n\n\n
          5. No University funds, excluding philanthropic contributions to the University, may be transferred directly or indirectly to the Foundation; provided, however, this shall not prohibit the University from providing in\u2010kind services to the Foundation, such as office space and the use of support staff.\u00a0It is understood that instances may occur where a donor inadvertently directs a contribution to the University which is intended for the Foundation.\u00a0Procedures shall be established to clarify donor intent.<\/li>\n\n\n\n
          6. The Foundation must respect Board and University authority over personnel administration.\u00a0Foundation expenditures for compensation and other payments to,, or for the benefit of, University personnel and reportable as\u00a0income to the recipient, such as salary, expense accounts, automobiles, club, or other organization memberships and dues, etc., must be approved in advance, annually, by the University President, unless the salaries\u00a0funded by the Foundation are in accordance with University\u2019s compensation plan and included in the University\u2019s personnel budget. This provision does not apply to reimbursement of business expenses incurred by University employees or to non\u2010 taxable recognition awards given to University employees.<\/li>\n\n\n\n
          7. The Foundation\u2019s governing body shall issue reports, at least annually, on the activities of the Foundation, which shall be submitted to the President of the University.\u00a0An annual financial report shall be issued, prepared in accordance with generally accepted accounting principles, including all required note disclosures.<\/li>\n\n\n\n
          8. In accordance with T.C.A. \u00a7 49\u20107\u2010107(b), all annual reports, books of account, and financial records of the Foundation shall be subject to audit by the Comptroller of the Treasury of the State of Tennessee. Records and accounts maintained by the Foundation shall be audited on the same cycle as the University audit performed by the Comptroller, or, with the prior approval of the Comptroller, an independent public accountant may perform such an audit.\u00a0The contract between the independent public accountant and the Foundation shall be approved in advance by the Board and the Comptroller and shall be on forms prescribed by the Comptroller.\u00a0All annual reports, books of account, and financial records of a Foundation shall be available for audit by the internal auditors of the University.<\/li>\n\n\n\n
          9. Copies of the initial and amended Foundation charters and bylaws filed with the Secretary of State shall be maintained by the President of the University.<\/li>\n\n\n\n
          10. The Board shall have the authority to grant exceptions to this policy, when deemed appropriate and necessary.\u00a0An exception must be requested and granted in writing.<\/li>\n<\/ol>\n\n\n\n

            Forms: none.<\/p>\n\n\n\n

            Revisions: none.<\/p>\n\n\n\n

            Last Reviewed: June 2017.<\/p>\n\n\n\n

            References: T.C.A. \u00a7 35-10-2; \u00a7 49\u20107\u2010107; Uniform Prudent Management of Institutional Funds Act, T.C.A. \u00a7\u00a7 35-10-201, et seq.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Approved by Board of TrusteesEffective Date: June 5, 2017Responsible Division: University AdvancementResponsible Office:  Vice President for University AdvancementResponsible Officer: Vice President for University Advancement I. Purpose This policy assures that the relationship of the MTSU Foundation, Inc., (Foundation) to Middle Tennessee State University (MTSU or University) is clearly defined and is set forth in a formal, […]<\/p>\n","protected":false},"author":8,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"page-bannernosidebar.php","meta":{"footnotes":""},"class_list":["post-98","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/pages\/98","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/comments?post=98"}],"version-history":[{"count":1,"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/pages\/98\/revisions"}],"predecessor-version":[{"id":3114,"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/pages\/98\/revisions\/3114"}],"wp:attachment":[{"href":"https:\/\/www.mtsu.edu\/policies\/wp-json\/wp\/v2\/media?parent=98"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}