3.2.13 Institution-related Foundations

Comprehensive Standard: Any institution-related foundation not controlled by the institution has a contractual or other formal agreement that (a) accurately describes the relationship between the institution and the foundation, and (b) describes any liability associated with that relationship. In all cases, the institution ensures that the relationship is consistent with its mission.

X  Compliance
     Partial Compliance
     Non-Compliance

Narrative:

Georgia State University has five university-related foundations:

  • Georgia State University Foundation, Inc.  
  • Georgia State University Research Foundation, Inc.
  • Educational Foundation, Inc.
  • Alumni Association, Inc.
  • Athletic Association, Inc. 

The relationship between all of these organizations and Georgia State University are governed by the BOR Policy Manual policy on “Cooperative Organizations.” [1] As stipulated in this policy, all cooperative organizations must sign a uniform  BOR “Memorandum of Understanding.”  This memorandum describes the relationship between Georgia State University and the cooperative organization, including criteria for establishing and maintaining the relationship.  While the Memorandum of Understanding must be renewed every five years, the cooperative organization must meet legal, fiscal, and administrative criteria on an on-going basis.  An independent audit must be conducted annually; a copy must be provided to the president of the university.

The Memorandum of Understanding is explicit regarding liability.  “Neither the Cooperative Organization nor the Institution shall have any liability for the obligations, acts or omissions of the other party.  The Cooperative Organization shall not accept any gift, donation, grant or enter into any transaction that creates any liability for the Institution, without advance written approval by the President.”

The following statement is excerpted from the BOR Policy Manual: “A relationship…between a System institution and cooperative organization may be maintained only if…the cooperative organization annually presents evidence satisfactory to the president of the System institution or the president’s designee of insurance or self-insurance adequate in form and amounts to cover foreseeable liability arising from activities undertaken in the name of, for the benefit of, or in conjunction with the System institution…” [2]

These statements codify the understanding of liability associated with the relationship. Georgia State University ensures that all relationships with cooperative organizations are consistent with the university’s mission.  The BOR Policy Manual states that:

“A relationship…between a System institution and cooperative organization may be maintained only if…the relationship between the cooperative organization and the System institution is in the best interest of the System institution as determined by the Board of Regents and the president of the institution in consultation with the Chancellor…”

This statement indicates that—in addition to the Georgia State University President—the Board of Regents and the USG Chancellor must also confirm the appropriateness of the relationship. [3]

MOUs for the five university-related foundations are included as links [4], [5] and [6].

Supporting Documentation:

  1. BOR Policy Manual Section 1905
  2. BOR Policy Manual Section 1905
  3. BOR Policy Manual Section 1905
  4. BOR Memorandum of Understanding between Georgia State University Affiliated Foundations—
    • a) Georgia State University Foundation, Inc
    • b) Georgia State University Research Foundation, Inc
    • c) Educational Foundation, Inc
  5. Alumni Association MOU
  6. Athletic Association MOU