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  • Alumni Foundation Policies


  • Alumni Foundation Fee Schedule

    (effective July 1, 2007)

    With a new emphasis on development activities at Minnesota State University Moorhead, the MSUM Alumni Foundation’s role will be increased greatly. Not only will the Alumni Foundation continue to manage and invest the gift assets of the university, but also the Alumni Foundation will continue to take the major leadership role in the actual raising of funds. A major capital campaign is imminent, and, with it, all development activities will be enhanced and increased.

    Unrestricted contributions to benefit Minnesota State University Moorhead, received as gifts to the MSUM Alumni Foundation, continue to be used for those purposes deemed most important for the university, including support of Minnesota State University Moorhead’s fund raising and development programs and the management of the MSUM Alumni Foundation. However, as we move forward toward more aggressive development activities and a major capital campaign, a variety of fees must be implemented to fund partially the increased costs for the operation of these programs.

    Restricted Gifts Operating Fee

    The restricted gifts operating fee would apply to all restricted charitable contributions – whether restricted to a college, department, program, or other purpose – received by the Minnesota State University Moorhead Alumni Foundation. The charge, 8.0 percent of the gift’s value, would be assessed as follows:

    • For charitable gifts of cash or cash equivalents, the operating fee would be assessed on the value of the gift.
    • For charitable gifts of real or personal property assets (including gifts of equipment), the operating fee would be assessed only upon conversion of such assets to cash or cash equivalents, and then would only be assessed on the net proceeds of the conversion.
    • For restricted endowment gifts, the operating fee would be assessed on the value of the gift, but might (at the account holder’s discretion) be paid out of initial earnings of the endowment as they are realized.
    • Exception: The annual phonathon has historically been operated with often quite severe costs returned to the units. This policy will set the fee for phonathon gifts at 20.0 percent on all gifts received via the phonathon, giving the phonathon an approximate "break-even” management fee. This fee, therefore, will be charged on phonathon gifts, not the 8.0 percent.

    It is important to note that while the gifts received would determine the fees, they would not necessarily be the source for payment of the fees. Payment might be from any source available to the benefiting program.

    Non-Endowment Investment Income

    All income from invested non-endowment funds would be for use in meeting associated operating expenses and for support of Minnesota State University Moorhead’s fund raising and development programs and the operation of the MSUM Alumni Foundation.

    Endowment Management Fee

    The endowment funds should have an annual objective to achieve a minimum annual average total return, as found in the Investment Policy as determined by the Minnesota State University Moorhead Alumni Foundation’s Investments and Finance Committee. Then on a quarterly basis, 5.0 percent (annualized) of a 12-quarter moving average of the endowment market value would be distributed to corresponding program accounts. Two percent (2 %) (annualized) would be retained quarterly by the Alumni Foundation as a management fee, and the balance then would be reinvested to benefit the endowment accounts. The investment objective of the endowment is one of growth and hedging against inflation. The Investments and Finance Committee may review the payout rate annually in the winter. Any changes could then be announced at the Spring Alumni Foundation Meeting of the Board of Directors, also allowing account holders to plan for the next fiscal year.


    Alumni Foundation Gifts in Kind

    Minnesota State University Moorhead Alumni Foundation, Inc.

    Gifts-in-kind are non-monetary items of tangible personal property such as art, collectibles, books, equipment, automobiles, inventory, and other physical assets or materials that represent value to Minnesota State University Moorhead.  We welcome many gifts-in-kind and are most grateful when donors think of us with this form of philanthropy.

    However, gifts-in-kind can also present the university with issues of liability and extended budget issues.  Therefore, it is appropriate that there be set guidelines for the acceptance of gifts-in-kind and that both donors and university personnel understand the necessary procedures and approvals before a gift-in-kind is officially accepted.

    Gifts-in-kind, as defined above, must indeed be tangible property.  Unreimbursed expenses such as food, professional or personal services, and limited use of private property are not considered tax-deductible, charitable gifts-in-kind by the Internal Revenue Service.  We might certainly receive such gifts, but the donor will not receive a receipt for gift-in-kind from the Minnesota State University Moorhead Alumni Foundation.

    Acceptance of Gifts-in-Kind by the Minnesota State University Moorhead Alumni Foundation

    When offered a gift-in-kind, the University may choose either to use or sell the gift-in-kind property or to decline the gift.  When evaluating the acceptance of a gift-in-kind, the University will consider if the gift is needed, wanted, and/or has use within the institution or if it can be sold to benefit the University.  Consideration will be given to the cost of accepting the gift (e.g. shipping and handling costs, installation charges, licensing fees, etc.), the long-term viability of the gift (e.g. maintenance costs, associated personnel needs, storage fees, insurance rates, copyright issues, etc.), and the resale market if the gift is to be sold.  Some gifts, of course, will require paperwork documenting ownership (e.g. a signed title for a car or boat).

    In light of these issues and responsibilities then, the ultimate acceptance of a gift must fall not to an individual faculty member but to the unit’s director.  Therefore, only Deans may accept gifts-in-kind for the individual colleges of Minnesota State University Moorhead.  In the other divisions, gifts-in-kind may be accepted by the Vice Presidents.  Because of the possibility of a gift impacting an area’s overall budget, gifts-in-kind that have values of over $5,000 will only be accepted if they are approved by the President.

    Income Tax Charitable Deductions Available for a Gift-in-Kind

    If the University accepts a gift-in-kind and completes and transmits the necessary signed forms to the Minnesota State University Moorhead Alumni Foundation, then the donor of the gift-in-kind may claim a charitable deduction for the fair market value of the gift if it is accepted for the University’s exempt purposes.  If a gift-in-kind will not be used for the University’s exempt purposes, a deduction can only be claimed for the property’s cost basis (usually the original amount paid by the donor for the property).

    Instructions for Completing a Gift-in-Kind

    Specific instructions are in place for a gift-in-kind to be completed and thus for a donor to receive an income tax deduction:

    Contributions of Gifts-in-Kind Valued from $1.00 to $499.99 by the Donor  – The donor must complete his/her portion of the Minnesota State University Moorhead Alumni Foundation’s Gift-in-Kind Contribution form, including the donor’s social security number and address.  The Dean or Vice President of the receiving unit then must complete the department’s portion of the form.  The completed form should then be sent to the Alumni Foundation for receipting.

    Contributions of Gifts-in-Kind Valued from $500.00 to $4,999.99 by the Donor – In addition to the above instructions, the Dean or Vice President receiving the gift-in-kind must inform the donor that an IRS Form 8283 will need to be filed with his/her tax return to claim the deduction and that the donor should advise his/her tax consultant.  A copy of IRS Form 8283 will be sent to the donor along with the receipt for the gift-in-kind.

    Contributions of Gifts-in-Kind Valued from $5,000.00 and Above by the Donor  – In addition to the above instructions, the Dean or Vice President receiving the gift must pass the Alumni Foundation’s Gift-in-Kind contribution form on to the President for approval and signature.  The donor will then be informed that an IRS Form 8283 is absolutely required by the IRS and by the Minnesota State University Moorhead Alumni Foundation.  The donor will then need to have an independent appraiser sign the IRS Form 8283 and return it to the Alumni Foundation for acknowledgment and receipting.  For gifts of this value, the donor should certainly seek the advice of his/her tax consultant.  Note that if the item donated is sold, transferred, or disposed of within two years from the date of the gift, the Dean or Vice President must notify the Minnesota State University Moorhead Alumni Foundation in writing so that the Alumni Foundation might comply with IRS regulations regarding such a transaction.

    After the gift acceptance form has been completed and fully accepted by the Minnesota State University Moorhead Alumni Foundation, then the gift-in-kind may be immediately turned over to the University and added to its inventory, or the Dean or Vice President may ask the Alumni Foundation to hold ownership for disposal or for future considerations.

    If the unit or the President decides not to accept a gift, the donor should be notified by the Dean or Vice President and given a tactful reason why the gift cannot be accepted.

    Gift-in-Kind Contribution Form

     


    Alumni Foundation Investment Policy

    General Overview

    The Minnesota State University Moorhead Alumni Foundation, Inc. is a publicly supported corporation that has been determined to be tax-exempt under sections 501(c)(3) and 509(a)(3) of the Internal Revenue Service code. The Foundation exists solely to raise funds for Minnesota State University Moorhead and then to manage and disburse these funds for the ongoing support of the university.

    The offices of the Minnesota State University Moorhead Alumni Foundation are located on the campus of Minnesota State University Moorhead at 202 Owens Hall, 1104 Seventh Avenue South, Moorhead, MN 56563.

    The overall financial philosophy of the Minnesota State University Moorhead Alumni Foundation is to invest its assets in a manner consistent with its mission and prudent fiduciary management. Foundation assets serve a variety of purposes. They are used to fund its current operations, to fund ongoing grant requests of the University, and to assure a financial basis for future University and Alumni Foundation needs. In creating this investment policy, consideration has been given to these diverse needs and to the responsibility for sound stewardship of the assets.

    Investment Objectives

    The funds of the Alumni Foundation fall into four basic categories: (1) Permanently Restricted Funds (Endowment Funds); (2) Temporarily Restricted Funds (Spendable Funds); (3) Unrestricted Funds (Operating Funds); and (4) Reserve Funds.

    Since each of these funds has a different purpose, each should have a different investment objective. Permanently Restricted Funds provide a source of revenue for the Alumni Foundation in perpetuity and should be managed for long-term growth and maximum capital appreciation. Temporarily Restricted Funds provide a stream of income to the Alumni Foundation and yet must be available for immediate disbursement, if needed. They should be invested in income-producing assets, which have a high degree of marketability. Unrestricted Funds are used as operating funds; therefore, any investment of these funds must be limited to stable value investments such as cash equivalents. Finally, Reserve Funds might be invested in a variety of ways depending upon the size of the fund and the purpose for which it is intended.

    Marketability of Assets

    This policy requires that the investments held within the funds be invested in liquid securities that can be transacted quickly and efficiently with minimal impact to market price.

    Allowable Assets

    Cash Equivalents:

    Treasury Bills
    Money Market Funds
    CD's with maturities less than a year limited to the FDIC insurance coverage limit to include the principal and accumulated interest

    Fixed Income Securities:

    U.S. Government and Agency Securities
    U.S. and Foreign Corporate Bonds
    Mortgage Backed Bonds
    High Yield Bond Mutual Funds

    All individual bonds, when purchased, must carry a credit rating of A- or higher as rated by S&P or an equivalent rating from Moodys, Fitch or another nationally recognized rating agency. If/when a security drop drops below BBB or equivalent, the manager must report that information to the board along with proposed action for that security. If the manager continues to hold the downgraded security, they shall report the status of that security to the Investment and Finance Committee within their normal reviews.

    Any purchase of high yield bonds must be through the use of a mutual fund or ETF and cannot represent more than 10% of the total bond holdings.

    No purchase shall be made which would cause a holding to exceed 7% of the fixed income allocation

    Equity Securities:

    Common Stocks
    Convertible Notes and Bonds
    Convertible Preferred Stocks
    American Depository Receipts (ADRs)
    Stocks of Non-U.S. Companies (ordinary shares)

    No purchase shall be made which would cause a holding to exceed 7% of the portfolio. If mutual, collective or commingled funds are used, the fund shall not be considered as a single issue or single holding.

    Alternative Assets: Allowed only in marketable form such as mutual fund or ETF.

    REITS
    Commodity

    Asset Allocations

    Permanently Restricted Funds (Endowment Funds) and temporarily restricted funds that are not included in the current year spendable funds

    Alumni Foundation policy requires a payout from the market value of endowed funds for programs based on the current spending policy, plus the administrative fee. If the Alumni Foundation is to be able to rely on this source of revenue and meet growing disbursement needs, its endowed assets must increase at a rate greater than the payout rate.

    Our goal is to increase the value of the endowed principal over 10-year time periods, after adjustments for annual payouts, by the rate of inflation, as measured by the CPI, plus 1%. Historically, equity investments, such as common stocks, are the only assets that have produced total returns equal to this goal. Therefore, it is appropriate that 70-100% of the endowed funds be invested in equity securities.

    We recognize that the asset allocation of these funds may be less than 40% equities for short periods of time. However, managers must notify the Alumni Foundation’s Vice President or the current Treasurer if they intend to maintain an equity allocation of 60% or less for longer than 30 days. This provision is included for the specific intention of discouraging market timing.

    Temporarily Restricted Funds (Spendable Funds)

    Temporarily Restricted Funds serve multiple purposes. They are given to meet the immediate needs of the university and, therefore, must be accessible at all times. They also provide cash flow for the operating needs of the Alumni Foundation as all income is transferred to operating accounts.

    Due to the accessibility requirements and the need for the generation of income, it is appropriate for Temporarily Restricted Funds to be invested 100% in income-producing assets. Historically, fixed income securities, such as bonds, have provided the highest level of income generation, from time to time dividend producing equalities may be appropriate. Although bonds are subject to some price fluctuation, the level of volatility is generally moderate.

    Liquidity is also a consideration, although it is unlikely that all funds within this account would be needed at the same time.

    We do not expect funds invested in fixed income securities to appreciate in value. Our goal is to earn income on an annual basis at a rate equal to the rate of inflation, as measured by the CPI, plus 2-½ %.

    Unrestricted Funds (Operating Funds)

    Unrestricted Funds support Alumni Foundation operations and activities and programs throughout the University campus. Therefore, it is imperative that these funds remain liquid.

    Although the Unrestricted Funds are used as operating capital for the Alumni Foundation, utilization should be made of interest-bearing accounts, including money market funds, when appropriate. Comparisons should be made of available depositories and fund families to make certain a competitive rate of return is being received. Our goal is to receive an average return equal to the rate of inflation, as measured by the CPI, less 1%.

    Reserve Funds

    As Reserve Funds are accumulated, they will be invested according to the purpose for which they are ultimately intended. The Investment and Finance Committee will establish appropriate investment guidelines as special projects are identified. Those guidelines will be documented as an addendum to the Investment Policy.

    Recognizing the strategic allocation of Foundation, assets will be the most significant determinant of long-term investment returns and variation in asset values. As such, the asset allocation is determined by the four categories of funds as previously defined. Outlined below are the long-term strategic asset allocation guidelines, determined to be the most appropriate, given each Fund’s objective and time horizon.

    Permanently Restricted Funds (Endowment Funds)

     Asset Class

    Sub-asset Class

    Lower Range

    Target

    Upper Range

    Evaluation Benchmark

    Equity   70% 100% 100%  
      U.S. Equity
    Large Cap*
    Mid Cap*
    Small Cap*

    40%
    0%
    0%

    60%
    20%
    10%

    100%
    40%
    20%
    S&P 500
    Index
    Russell
    Midcap
    Russell 2000
      Non-U.S. Equity* 0% 10% 20% MSCI EAFE Index
    *as a percentage of total equity holdings          
    Fixed Income Investment Grade Bonds 0% 0% 30% Barclays Int. Gov/Credit Index
    Alternative Assets REITS or Commodities 0% 0% 10% Wilshire REIT Index or Dow Jones USB Commodity Index
    Cash   0% 0% 30% 90 Day U.S. Treasury Bills

     

    Temporarily Restricted Funds (Spendable Funds)

     Asset Class

    Sub-asset Class

    Lower Range

    Target

    Upper Range

    Evaluation Benchmark

    Equity   0% 0% 0%  
      U.S. Equity   0%   S&P 500
    Index
      Non-U.S. Equity*   0%   MSCI EAFE Index
               
    Fixed Income Investment Grade Bonds 50% 100% 100% Barclays Int. Gov/Credit Index
               
    Cash   0% 0% 50% 90 Day U.S. Treasury Bills

     

    Unrestricted Funds (Operating Funds)

     Asset Class

    Sub-asset Class

    Lower Range

    Target

    Upper Range

    Evaluation Benchmark

    Fixed Income Investment Grade Bonds 0% 0% 50% Barclays Int. Gov/Credit Index
               
    Cash   0% 100% 100% 90 Day U.S. Treasury Bills

     

    Reserve Funds

     Asset Class

    Sub-asset Class

    Lower Range

    Target

    Upper Range

    Evaluation Benchmark

    Equity   0% 0% 0%  
      U.S. Equity   0%   S&P 500 Index
      Non-U.S. Equity*   0%   MSCI EAFE Index
               
    Fixed Income Investment Grade Bonds 0% 0% 0% Barclays Int. Gov/Credit Index
               
    Cash   0% 0% 100% 90 Day U.S. Treasury Bills


    Investment Monitoring and Control

    The Board of Directors of the Minnesota State University Moorhead Alumni Foundation has the responsibility to ensure that investments are being managed properly. The Board delegates to the Investment and Finance Committee the responsibility of meeting on at least an annual basis with investment managers to review performance and to report back to the Board with its findings.

    Investment Guidelines

    Risk. The Board of Directors of the Minnesota State University Alumni Foundation recognizes that every investment contains risk. The asset allocations stated above have been selected based on prudent fiduciary standards and current portfolio management practices. Consideration was given to the primary investment objective associated with each fund and to each fund’s time horizon, liquidity needs, and ability to withstand market volatility.

    Diversification. The portfolios will be structured in such a way as to minimize the risk of a large loss in any one security, industry, sector, or market. Each portfolio should never contain any more than 7% of the total shares outstanding for any one company. Likewise, there should be no more than 7% of the portfolio in any one holding, nor more than 30% of the portfolio in any one sector or industry. Equity securities should be broadly diversified among the stocks of companies in all capitalization ranges. Due to the lack of correlation between U.S. and foreign markets, equity portfolios could include foreign securities, not to exceed 25% of the total equity holdings. Foreign bonds are also permissible, not to exceed 25% of the total fixed income holdings. Managers with proven expertise and experience in foreign securities should be utilized for foreign holdings.

    Performance Measurement. The investment performance of total portfolios, as well as asset class components will be measured against the evaluation benchmark or another commonly accepted performance benchmark that closely matches the manager’s objective. Consideration shall be given to the extent to which the investment results are consistent with the investment objective, goals and guidelines as set forth in this statement. The manager shall also disclosure returns net of fees and appropriate risk measurements. The Investment and Finance Committee intends to evaluate the managers and comparative benchmarks over one, three, five, and ten-year periods (or since inception) and reserves the right to recommend changes in managers or advisors due to one of the following:

    1. Failure to adhere to the investment policy and/or reporting standards
    2. Significant underperformance or significant risk parameters
    3. Changes in investment management philosophy that would have a negative impact on the portfolio

    Restricted Asset Categories. The selection of specific investment vehicles (stocks, bonds, other marketable securities) should be made with consideration to assuring that no conflicts exist between these vehicles and the mission and goals of Minnesota State University Moorhead and the Alumni Foundation. Prohibited Assets:

    Futures contracts
    Limited partnerships
    Private placement securities
    Closely held business interests
    Real or personal property
    Unlisted stock or other securities
    Options
    Guaranteed Insurance Contracts
    Hedge Funds Prohibited

    Transactions:

    Short Selling
    Margin Transactions
    Private Loans


    Annual Review

    The Investment and Finance Committee and the investment managers will review this statement of investment objectives and guidelines annually. This annual review will include setting the distribution rate for the endowment for the next fiscal year.

     


    Alumni Foundation Conflict of Interest and Discharge of Duties for Directors and Officers Policy

    Approved By: Alumni Foundation Board of Directors
    Written By: Joan Justesen
    Origination Date: September, 2008
    Approval Date: October 3, 2008
    Effective Date: October 3, 2008
    Review Date:  September, 2009

    ARTICLE I
    PURPOSE

    The purpose of this policy is to protect the interest of Minnesota State University Moorhead Alumni Foundation (hereinafter, "the Organization”) when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an officer, director, or management employee of the Organization.  This policy is intended to supplement, but not replace any applicable state laws governing conflicts of interest applicable to nonprofit and charitable corporations.

    ARTICLE II
    DEFINITIONS

    A. Interested Person.

    A director, officer, or member of a committee with board-delegated powers, or who has a direct or indirect Financial Interest, as defined below, is an Interested Person.

    B. Financial Interest.

    A person has a Financial Interest if the person has, directly or indirectly, through business, investment, or his or her immediate family:

    1. an ownership or investment interest in any entity with the Organization has a transaction or arrangement;
    2. a compensation agreement with the Organization (other than for services as a officer, director or employee) or with any entity or individual with which the Organization has a transaction or arrangement; or
    3. a potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Organization is negotiating a transaction or arrangement.

    Compensation includes direct and indirect remuneration as well as gifts or favors that are substantial in nature.  A Financial Interest is not necessarily a conflict of interest.  A person who has a Financial Interest may have a conflict of interest only if the appropriate board or committee decides that a conflict of interest exists.

    ARTICLE III
    DISCHARGE OF DUTIES

    A.  Standard of Care

    It is the responsibility of each Interested Person of the Organization to discharge his or her duties in good faith, in a manner the person reasonably believes to be in the best interests of the of the Organization, and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.

    ARTICLE IV
    CONFLICTS PROCEDURES

    A. Duty to Disclose

    In connection with any actual or possible conflicts of interest, and Interested Person must disclose the existence of his or her Financial Interest and be given the opportunity to disclose all material facts relating to his or her Financial Interest to the directors or members of committees with board-delegated powers considering the proposed transaction or arrangement.

    B. Determining Whether a Conflict of Interest Exists

    After disclosure of the Financial Interest and all material facts, and after any discussion with the Interested Person, the Interested Person must leave the board (or committee) meeting while the Financial Interest is discussed and voted upon. The remaining board (or committee) members shall decide if a conflict of interest exists.

    C. Procedures for Addressing the Conflict of Interest

    1. An interested Person may make a presentation at the board or committee meeting regarding the proposed transaction or arrangement, but after such presentation, the Interested Person shall leave the meeting during the discussion of, and the vote on, the proposed transaction or arrangement that results in the   conflict of interest.
    2. The chairperson of the board (or committee) shall, if appropriate, appoint  a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.
    3. After exercising due diligence, the board (or committee) shall determine whether the Organization can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest.
    4. If a more advantageous transaction or arrangement is not reasonably attainable under the circumstances that would not give rise to a conflict of   interest, the board (or committee) shall determine by a majority vote of the disinterested directors (or committee members), whether the transaction or arrangement is in the Organization’s best interest and for its own benefit and whether the transaction is fair and reasonable to the Organization and shall make    its decision as to whether to enter into the transaction or arrangement in conformity with such determination.

    ARTICLE V
    VIOLATIONS

    A. Procedure

    If the board (or committee) has reasonable cause to believe that a person subject  to this policy has failed to disclose actual or possible conflicts of interest or failed   to discharge his or her duties in accordance with Article III, it shall inform the person of the basis for such belief and afford the person an opportunity to explain the alleged failure.

    B. Action

    If, after hearing the response of the person and making such further investigation as may be warranted in the circumstances, the board (or committee) determines that the person has, in fact, failed to discharge his or her duties in accordance with this policy or to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.

    ARTICLE VI
    RECORDS OF PROCEEDINGS

    The minutes of meetings of the board (or committee) shall contain:

    A. The names of the persons who disclosed or otherwise were found to have a Financial Interest in connection with an actual or possible conflict of interest, the nature of the Financial Interest, any action taken to determine whether a conflict  of interest was present and the board’s (or committee’s) decision as to whether a conflict of interest in fact existed.

    B. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussions, including any alternatives to the proposed transaction or arrangement and a record of any votes taken in connection therewith.

    ARTICLE VII
    COMPENSATION

    The following shall apply to any compensation committee:

    A. A voting member of the board of directors who receives compensation, directly or  indirectly, from the Organization for services is precluded from voting on matters  pertaining to that member’s compensation.

    B. A voting member of any committee whose jurisdiction includes compensation  matters and who receives compensation, directly or indirectly, from the Organization for services, is precluded from voting on matters pertaining to that member’s compensation.

    ARTICLE VIII
    ANNUAL STATEMENT

    Each director, officer, and member of a committee with board-delegated powers, shall complete and sign a Conflicts of Interest Policy Annual Statement annually.  The current form is attached hereto as Exhibit A.

    ARTICLE IX
    PERIODIC REVIEWS

    To ensure the Organization operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews shall be conducted.  The periodic reviews shall, at a minimum, include the following subjects:

    A. Whether compensation arrangements and benefits are reasonable and are the result of arm’s length bargaining.

     

    Alumni Foundation Gift Acceptance Policy

    Approved By: Alumni Foundation Board of Directors
    Written By: Joan Justesen
    Origination Date: September, 2008    
    Approval Date: October 3, 2008
    Effective Date: October 3, 2008
    Review Date: September 2009

    1. Introduction

    The purpose of this gift acceptance policy is to give guidance and counsel to those individuals within Minnesota State University Moorhead Foundation concerned with the planning, promotion, solicitation, receipt, acceptance, management, reporting, use, and disposition of private sector gifts.

    These policies must be viewed as flexible and realistic in order to accommodate unpredictable situations as well as donor expectations, as long as such situations and expectations are consistent with Minnesota State University Moorhead Foundation mission and policies. Flexibility must be maintained since some gift situations will be complex, and proper decisions can be made only after careful consideration of all related factors. These policies may, therefore, require that the merits of a particular gift be considered by the appropriate staff and/or committee of the board along with legal counsel and directors if necessary.

    All fundraising activities and gift acceptance policies, and their day-to-day implementation, are designed and managed by the Vice President of Development in conjunction with the appropriate staff, and are subject to approval by the Alumni Foundation Board.

    The board, through the Investment & Finance Committee and the Vice President of Development, is responsible for the gift acceptance policy. This responsibility cannot be delegated or waived. These policies and authorizations shall be reviewed by the finance committee on an annual basis or as circumstances warrant.

    2. Gift Acceptance and Refusal

    The Vice President of Development of the Minnesota State University Moorhead Foundation and the Minnesota State University Moorhead Foundation Board has the authority to solicit and/or accept gifts on behalf of the Minnesota State University Moorhead Foundation. Unrestricted, outright gifts of cash, check, credit card, and publicly traded securities do not require approval. Routine gifts are accepted and administered by the development office, with final authority to accept routine gifts lying with the Vice President of Development.

    Minnesota State University Moorhead Foundation reserves the right to decline any financial commitment, gift, or bequest, as well as the right to determine how a gift will be credited and/or recognized.

    Minnesota State University Moorhead Foundation receives gifts in the form of cash, checks, and securities. Securities are received into the investment account with UBS Financial Services or Wells Fargo Investments.

    Gifts of securities will be acknowledged to the donor as the average of the high and low value of the securities on the day received.

    All securities will be sold immediately upon receipt into the account and transferred to the Foundation’s investment portfolio managed through Union Bank under the investment guidelines established and reviewed annually by the Investment & Finance Committee.

    The board shall have the right to refuse contributions that do not enhance, promote, and further the purpose of the Minnesota State University Moorhead Foundation and the long-range financial viability of the organization.

    Gifts will only be accepted where there is charitable intent on the part of the donor. The Minnesota State University Moorhead Foundation is unable to accept gifts that are overly restrictive in purpose. The most desirable gifts are those with the least restrictions, as unrestricted funds allow the organization to address its most pressing needs. Unless the board grants a specific exception, the Minnesota State University Moorhead Foundation will not accept any gifts that

    1. Contain a condition that requires any action on the part of the organization that is unacceptable to administration
    2. Contain a condition that the proceeds will be spent by the organization for the personal benefit of a named individual or individuals
    3. Require the organization and its administration to employ a specified person now or at a future date
    4. Inhibit the organization from seeking gifts from other donors
    5. Expose the organization to adverse publicity, litigation, or other liabilities
    6. Require undue expenditures, or involve the organization in unexpected responsibilities because of their source, conditions, or purpose
    7. Involve unlawful discrimination based upon race, religion, gender, sexual orientation, age, national origin, color, disability, or any other basis prohibited by federal, state, and local laws

    Noncash gifts will be accepted only when it is reasonably expected they can be converted into cash within a reasonable period of time or when the Minnesota State University Moorhead Foundation can utilize the property in its operations or to promote its mission.

    Gifts of property or real estate to the Minnesota State University Moorhead Foundation will be sold at the discretion of the Minnesota State University Moorhead Foundation, whose express policy will be to convert the property to cash at the earliest opportunity, keeping in mind current market conditions and the potential use of the property in the accomplishment of the mission of the Minnesota State University Moorhead Foundation.

    Property encumbered by a mortgage or other indebtedness cannot normally be accepted as a gift unless the donor agrees to assume all carrying costs until the property is liquidated. Exceptions to this guideline can be made when the value of the property exceeds the anticipated exposure, or will produce income, or will be used by the Minnesota State University Moorhead Foundation in its programs.

    Associated expenses of a gift made to the Minnesota State University Moorhead Foundation are to be borne by the donor, unless waived by the executive committee.

    Donors of property gifts of over $5,000, except for gifts of publicly traded stock, must obtain an appraisal by an independent third-party appraiser in accordance with current tax law requirements.

    To avoid conflicts of interest, the unauthorized practice of law, the rendering of investment advice, or the dissemination of income or estate tax advice, all donors of non-cash gifts must acknowledge that the Minnesota State University Moorhead Foundation is not acting as a professional advisor, rendering opinions on the gift. All information concerning gift planning from the Minnesota State University Moorhead Foundation is to be for illustrative purposes only and is not to be relied upon in individual circumstances. The Minnesota State University Moorhead Foundation may require a letter of understanding from a donor of a property gift, along with proof of outside advice being rendered, before such a gift will be accepted.

    All gifts of life insurance must comply with applicable state insurance regulations, including insurable interest clauses.

    All gifts and gift consideration must meet all applicable local, state, and federal laws and regulations.

    3. Restricted and Unrestricted Gifts

    Unrestricted gifts shall be encouraged unless 1) the donor indicates that he or she is only willing to make a restricted gift or 2) the option of a restricted gift will otherwise significantly increase the chances of obtaining a gift from the donor 3) the gift is solicited to address a specific need of the Foundation or university.

    In drafting instruments for the gift of restricted funds to the Minnesota State University Moorhead Foundation, or to any of its affiliated organizations, donors and their advisors shall be encouraged to use language that would permit application of the gift to a more general purpose if, in the opinion of the board, the designated purpose is no longer feasible.

    All receipts from unrestricted bequests, annuities, charitable remainder trusts, or charitable lead trusts shall become a part of the general endowment, unless the executive committee determines a particular unrestricted gift of the type enumerated in this paragraph should be deposited in a different account.

    4. Administrative Expenses

    The Minnesota State University Moorhead Foundation will not pay commissions or finder's fees as consideration for directing a gift to the Minnesota State University Moorhead Foundation or to any of the Minnesota State University Moorhead Foundation’s affiliates.

    Donors are responsible for obtaining their own appraisals for tax purposes of real property or tangible or intangible personal property being given to the Minnesota State University Moorhead Foundation and for any fees or other expenses related to such appraisals.

    The Minnesota State University Moorhead Foundation retains the right to obtain its own qualified appraisals of real property or tangible or intangible personal property being offered as a gift at its own expense.

    The Minnesota State University Moorhead Foundation will acknowledge receipt of gifts of tangible personal or real property in accordance with the federal tax law and will sign any IRS form or other documents necessary for the donor to obtain a tax deduction for such gifts, so long as such acknowledgment does not entail valuing the gift.

    5. Stewardship

    The Minnesota State University Moorhead Foundation will be responsible for good stewardship toward its donors by following these guidelines:

    1. All gifts will be acknowledged within the required, or otherwise reasonable, period of time.
    2. All gift acknowledgment letters/receipts will be prepared by the Vice President of Development or his or her designee.
    3. Gifts to the Minnesota State University Moorhead Foundation shall be reported in a manner consistent with the standards recommended by the Council for the Advancement and Support of Education (CASE) or the National Council on Planned Giving (NCPG).
    4. Files, records, and mailing lists regarding all donors and donor prospects are maintained and controlled by the Minnesota State University Moorhead Foundation. Maximum use will be made of information and contacts that members of the board, various volunteer groups, or the staff have with potential donors. Written reports of interviews and solicitations will be maintained in the donor prospect file and/or computer.
    5. This information is confidential and is strictly for the use of the Minnesota State University Moorhead Foundation board and staff. Use of this information shall be restricted to organization purposes only. Donor has the right to review his or her donor fund file(s).
    6. The Minnesota State University Moorhead Foundation will provide the contact of endowed and restricted scholarships with appropriate information about the recipients of said scholarship assistance.
    7. Gifts to the Minnesota State University Moorhead Foundation and accompanying correspondence will be considered confidential information, with the exception of the publication of donor recognition societies and/or an annual listing of donors. All donor requests for confidentiality will be honored.
    8. Names of donors will not be provided by the Minnesota State University Moorhead Foundation to other organizations, nor will any lists be sold or given to other organizations. The only exception to this is the donor listing in an annual report.

    6. Professional Advice

    Prospective donors shall be strongly encouraged in all cases to consult with their own independent legal and/or tax advisors about proposed gifts, including tax and estate planning implications of the gifts. No representative of the Minnesota State University Moorhead Foundation shall provide legal or tax advice to any donor or prospective donor.

    Upon request, representatives of the Minnesota State University Moorhead Foundation may provide to the donor sample bequest language for restricted and unrestricted gifts to ensure that a bequest is properly designated. The Minnesota State University Moorhead Foundation may also provide, upon request, IRS-approved prototype trust agreements for review and consideration by the donor and his or her advisors. The sample nature of such language or agreements shall be clearly stated on all documents given to donors, and donors shall be advised that consultation with their own legal advisors is essential prior to use of such standard language or specimen agreements.

    7. Confidentiality

    All information about donors and prospective donors, including but not limited to their names, the names of their beneficiaries, the nature and amounts of their gifts, and the sizes of their estates will be kept confidential by the Minnesota State University Moorhead Foundation and its representatives, unless the donor grants permission to release such information. All requests by donors for anonymity will be honored, except to the extent that the Minnesota State University Moorhead Foundation is required by law to disclose the identity of donors.

    8. Authority

    The board chair or his or her designee is authorized to enter into planned gift agreements on behalf of the Minnesota State University Moorhead Foundation and to execute any and all documents necessary or appropriate to consummate such agreements.

    Any exceptions to these gift acceptance policies may be made only in exceptional circumstances, on an individual basis, and shall require the approval of the chair of the development committee and the executive committee of the board.

    These gift acceptance policies may be amended by the executive committee, upon recommendation from the Investment and Finance Committee of the Board of Directors.

     

    Alumni Foundation Whistleblower Policy

    In recognition of the MSUM Foundation’s commitment to the highest standards of financial reporting and lawful and ethical behavior, the Board of Directors has adopted the following procedure for the reporting of illegal and unethical conduct in connection with the Foundation’s finances and other aspects of its operations, and the retention and treatment of such complaints, including confidential, anonymous submissions received from employees.

    Should any person know or have a reasonable belief that persons associated with the Foundation plan to engage or have engaged in illegal or unethical conduct in connection with the finances or other aspect of the Foundation’s operations, that person should immediately file a complaint with the Alumni Foundation Auditor or the Vice President of the Alumni Foundation. In the event that a complaint is reported to the Vice President, he or she shall promptly share the information with the Foundation Auditor, unless the complaint relates to acts or omissions by the Auditor. Employees may submit complaints on a confidential, anonymous basis.

    The Auditor or the Vice President, as appropriate, shall promptly follow up on all credible complaints, with further investigation conducted, if needed, to resolve disputed facts. In conducting its investigations, the Foundation will strive to respect an employee’s request for anonymity and will strive to keep the identity of other complainants as confidential as possible, consistent with the need to conduct an adequate review and investigation.

    The Vice President of the Foundation or the Foundation Auditor shall report all complaints to the Chairperson of the Finance and Investment Committee of the Board, who shall report the complaint to the Executive Committee no later than their next scheduled meeting. The Executive Committee shall then decide whether and when to inform the entire Board.

    The Foundation shall take appropriate action in response to any complaint, including, but not limited to, disciplinary action (including termination) against any person who, in the Foundation’s assessment, has engaged in misconduct. In addition, the Foundation shall report such misconduct to the relevant civil and criminal authorities as required by law.

    The Foundation will not knowingly, with intent to retaliate, take any action harmful to any person, including interference with lawful employment or livelihood, for reporting a complaint in good faith pursuant to this policy or for reporting a complaint to law enforcement officers, governmental agencies, or bodies, or persons with supervisory authority over the complainant. Likewise, there will be no punishment or retaliation for providing information regarding a complaint in good faith to, or otherwise assisting in any investigation regarding a complaint conducted by the Foundation, law enforcement officers, governmental agencies or bodies, or persons with supervisory authority over the complainant. Finally, there will be no punishment or other retaliation for filing a good faith complaint, or otherwise participating or assisting in a proceeding filed or about to be filed (with any knowledge of the Foundation) regarding the complaint. An individual who deliberately or maliciously provides false information may be subject to disciplinary action (up to and including termination).

    Alumni Foundation Record Retention and Destruction Policy

    Approved By: Alumni Foundation Board of Directors   
    Written By:  Joan Justesen
    Origination Date: January, 2009
    Approval Date:
    Effective Date: May 1, 2009
    Review Date: April, 2010


    I.  Corporate/Organizational Records for the Alumni Foundation at Minnesota State University Moorhead (MSUM)/Alumni Foundation Office.

    • Incorporation documents including articles of incorporation, bylaws, and related documents will be stored in a corporate record file permanently.
    • Tax-exemption documents including application for tax exemption (IRS Form 1023), IRS determination letter, and any related documents will be stored in a corporate record file permanently. (Federal law requires copies of these documents to be held at organization’s headquarters office.  These records must be made available for public inspection upon request.)
    • Meeting/board documents including agendas, minutes and related documents will be compiled and filed on a yearly basis and stored in a corporate record file permanently.

    II. Financial Records/MSUM Business Office

    • The year end Treasurer financial report/statement will be filed in the MSUM business office permanently.
    • Periodic Treasurer’s reports will be compiled and filed on a yearly basis.  These will be stored with financial records in the MSUM Business Office, and destroyed after three years.
    • Bank statements, canceled checks, check registers, investment statements, and related documents will be compiled and filed on a yearly basis.  These will be stored with the financial records in the MSUM Business Office, and destroyed after seven years.
    • Federal law requires that the three most recent years 990 returns be made available for public inspection upon request.  These will be stored with the financial records in the MSUM Business Office, and will be destroyed after seven years. (retaining the most recent three years.)

    III.  Records of Gifts

    • Records of current cash gifts will be retained for four years by the Alumni Foundation Office.
    • Records of non-cash gifts, such as real property, will be retained during the time the Alumni Foundation has possession of the gift plus four years after the possession in relinquished.

    IV.  Alumni Records

    • Current information on MSUM graduates will be kept on the former student, if the information is available.
    • Alumni information may be used to plan class reunions, solicit charitable giving, solicit job leads for current graduates, and to communicate with graduates.  Alumni records provide the information that is available in alumni newsletters and directories and news media about the graduate.
    • The Alumnus information will be segregated from a former students education records.  (The Family Educational Rights and Privacy Act (FERPA) excludes from the definition of "education records” those records that "only contain information about an individual after he or she is no longer a student”.)

    V. Scholarship Records – Scholarship applications, selection criteria, and recipient selection are all handled by MSUM’s Financial Aid Office.

    • Scholarship applications will be complied and filed on a yearly basis, and will be stored with the scholarship records.  These records will be destroyed after three years.
    • Scholarship recipient information, including names, addresses, and school attending will be compiled and filed on a yearly basis.  The recruitment scholarship lists will include names, addresses, school attending when scholarship was received, amount awarded and year in which scholarship was received.  The retention scholarship lists include names, addresses, GPA, major, amount received and designated name of the scholarship received.  Both of these lists are stored in the Financial Aid office.  The list of past recipients of names scholarships will be kept in the MSUM Foundation scholarship files permanently.  This included recipient name, year received and amount of scholarship.
    • Selection committee records, including selection criteria used and other documentation regarding the selection process will be compiles and filed on a yearly basis.  These will be stored with the scholarship records, and will be destroyed after three years.

    VI.  Email Messages

    • No communication should be transmitted via email that could not be sent as a written document.