(1) All university/college personnel handling monies on behalf of an affiliated foundation (whether receiving or disbursing) shall be adequately bonded with the amount of the bond and name of the surety being reported to the Board.
(2) Each institution governed by the Board shall have in place a Memorandum of Understanding, Joint Resolution, Development Services Contract or other similar document (hereinafter “Relationship Documents”) with such affiliated foundation(s) which collectively, at a minimum:
- Summarizes the overall relationship between the foundation and the college/university and how the foundation’s assets, functions, gift administration or grant-making serve the college/university’s mission.
- Identifies specific services provided by the foundation, which might include fundraising, gift acceptance and advancement services, records and data management, investment services, real estate projects or other activities in support of institutional functions and priorities, and any payments or consideration provided to the foundation in exchange for such services (precise fees or payments may be documented in separate agreements).
- Describes records, including alumni and donor records, owned either by the institution or foundation, and policies governing the use and sharing of such records. The Relationship Documents should also include language related to the privacy of student information subject to the Family Educational Rights and Privacy Act (FERPA) and include procedures for providing and safeguarding any student information in full compliance with FERPA.
- Defines reciprocal responsibilities and mutual expectations regarding the frequency, content and method of reporting between the college/university affiliated foundation and its supported institution. This should include a requirement for an independent annual audit of the foundation and a requirement that it be provided to the supported institution.
- Defines terms for the foundation’s use of the college/university’s name, service marks, branding and other proprietary college/university property