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ARKANSAS STATE UNIVERSITY FOUNDATION, INC., POLICY STATEMENT

 

Section 1: Introduction

Section 2: Funds Administration

Section 3: Processing, Depositing and Receipting Assets

Section 4: Asset Management

Section 5: Spending Available Fund

Section 6: Reporting and Disclosure

Section 7: Forms


Section 1.     Introduction

Mission

The Arkansas State University Foundation, Inc. (The Foundation) is a charitable corporation created under and operating by the laws of the state of Arkansas.  The corporation is exempt from federal income tax under section 501(c)3 of the Internal Revenue Code. The taxpayer identification number for the Foundation is 71-0489924.

As defined in its Bylaws, the primary purpose of the Foundation is to receive, solicit, accept and hold, administer, invest and disburse any and every kind of property for such education, scientific, literary, research and service activities from individuals and organizations, including foundations, government agencies, and private businesses, to support the Corporation’s activities, and it shall manage endowments given to the Corporation for the benefit of all the Arkansas State University System campuses operations, sites and facilities.

Confidentiality

The Foundation, as a direct support organization of Arkansas State University, believes it should be sensitive to public scrutiny of its financial affairs. However, the Foundation’s ability to assure current and prospective donors that their personal or financial information will be held in confidence is essential to fulfilling its primary mission of raising private support for Arkansas State University.

It is the Foundation’s policy, upon receipt of a reasonable and specific request in writing, to make public Foundation financial information, including expenditures from Foundation funds, documentation regarding completed business transactions and information about investment and management of Foundation assets. The Foundation will not, however, release personal or financial information regarding a donor, prospective donor or volunteer.

Relationship to University

The relationship between Arkansas State University System and its campuses and the Foundation is specified in writing in the form of a mutually approved operating agreement. In this agreement, the Foundation agrees to provide support to the University in accordance with the provisions of its Articles of Incorporation, Charter and Bylaws. This support includes, but is not limited to, researching, raising, receiving, acknowledging, investing, accounting for and administering funds for the University to use for charitable, scientific and educational purposes.

Also the University will designate the Foundation as the primary entity for receipting, acknowledging, accounting for, managing and investing endowment funds. The Development Offices of the various campuses are responsible for researching, identifying and maintaining biographical and giving records of potential and actual donors.

Administration

The Arkansas State University Foundation is governed by a twenty-one (21) member Board of Directors, which has the authority to exercise or delegate all of its powers and rights except to the extent limited by law.  Of the twenty-one (21) Board members eighteen (18) are “at large” directors elected on a rotating basis, with up to six (6) being elected at the annual meeting, that carry three (3) year terms. In addition, the immediate past Chair, the Chair and Vice Chair of the Board of Directors serve as voting members of the Board and the President of Arkansas State University and a member of the Arkansas State University System Board of Trustees will serve as ex-officio, non-voting members.

Officers of the Foundation include the Chair, Vice Chair, President/CEO, Secretary, and Treasurer.

Standing Committees identified in the Foundation Bylaws are as follows:

Executive Committee – This Committee shall have and exercise the powers and authority of the Board of Directors in the management of the Foundation in compliance with the approved Bylaws.

Resource Development Committee– This Committee is responsible for identification and recruitment of potential new members of the Board of Directors, monitoring the involvement of members in meetings, committees, and their support of Foundation activities.

Finance and Investment Committee – Members of this Committee represent the interests of the Foundation on the Joint Committee on University Investments, assist with the development of the budget, and recommend expenditures for various purposes as needed.

Audit Committee – This Committee shall provide advice and assistance to the Board of Directors relating to accounting and reporting practices, financial reports, internal control and compliance issues.

Strategic Planning Committee – This Committee is charged with identifying future goals and objectives, and the related strategies for accomplishing them, on a five to ten year basis in conjunction with the strategies for all the campuses of Arkansas State University.

Code of Ethics

The Board of Directors of the Arkansas State University Foundation, Inc. has established the following code of ethics for its Officers and Staff to promote honest and ethical conduct including the handling of actual and apparent conflict of interest between personal and professional relationships; full, fair, accurate, timely and understandable disclosure in public communications;  compliance with applicable laws, rules and regulations; prompt internal reporting to an appropriate person of violations of the Code; and accountability for adherence to the Code.

This code cannot and is not intended to cover every applicable law or to anticipate every issue that may arise but sets out basic principles to be followed.

Basic Standards of Ethics - Board Members, Officers and Staff shall observe the highest standards of ethical conduct. In the performance of their duties, they shall act with fair dealing, complete honesty and full disclosure in all manners of business. Board Members, Officers and Staff shall maintain the highest standards of integrity, both inside and outside the workplace, fully observing all rules, laws and applicable regulations.

Foundation Officers have leadership responsibilities that include creating a culture of high ethical standards and commitment to compliance by demonstrating professional integrity in all aspects of conduct and proactively promoting ethical behavior among subordinates and peers.

Integrity of Records and Financial Reporting - Senior Financial Officers, defined as the President and Treasurer, are responsible for accurate and reliable preparation and maintenance of the Foundation financial records. Accurate and reliable preparation of financial records is crucial to proper management decisions and fulfillment of financial, legal and reporting obligations. Senior Financial Officers are responsible for maintaining internal controls and procedures for financial reporting to provide reasonable assurance that the Foundation financial statements are fairly presented in conformity with U.S. generally accepted accounting principles.

Diligence in accurately preparing and maintaining the Foundation’s records provides for the fulfillment of reporting obligations and provides the community, contributors, the media and the general public with full, fair, accurate, timely and understandable disclosure.

CONFLICTS OF INTEREST

The Arkansas State University Foundation, Inc. is committed to integrity and fairness in the conduct of all its activities. Inevitably, the interest of Directors and employees will involve them in organizations, causes, and other endeavors that intersect with the affairs of the Foundation. It would disadvantage the Foundation to deprive it of the involvement of interested colleagues, but their participation in Foundation decision making cannot impair the fairness and integrity of Foundation processes. The Conflicts of Interest Policy  is intended to further the work of the Foundation by facilitating the substantive contributions of its employees and Directors by providing for disclosure of other interests, requiring abstention from decision making actions that affect non-Foundation affiliations or interests, and assuring the preclusion of any appearance of bias or self interest in its activities

Conflict of Interest Policy

  1. Purpose. The purpose of this Conflict of Interest Policy is to protect the Arkansas State University Foundation, Inc’s (hereinafter called the Foundation) interest when it is contemplating entering into a transaction or arrangement that might benefit the private interest of an Officer, director or Committee member of the Foundation. Such transactions may include services provided by the Foundation; purchase of services and/or tangibles from a vendor; and/or access to specialized or privileged information which can be used for personal gain. This policy is intended to supplement but not replace any Arkansas laws governing conflicts of interest applicable to nonprofit and charitable corporation.
  2.  Applicability. This Policy applies to any transaction or arrangement between the Foundation and any “interested person”. An “interested person” is a director, Officer or member of a Committee with Board-designated powers who has a direct or indirect “financial interest”. A “financial interest” is (a) an ownership or investment interest in any entity with which the Foundation has a transaction or arrangement; (b) a compensation arrangement with the Foundation or with any entity or individual with which the Foundation has a transaction or arrangement; or (c) being an Officer, Director, employee or agent of any entity or individual with which the Foundation has a transaction or arrangement. Compensation includes direct and indirect remuneration and gifts or favors which are substantial in nature.
  3. Determination of a Conflict of Interest. With respect to any proposed transaction or arrangement between the Foundation and any entity or individual being considered by the Board of Directors or any Committee with Board-delegated powers: (1) any interested person shall disclose any financial interest and all material facts relating thereto to the Board or the executive Committee as soon as the interested person becomes aware of a possible conflict of interest; (b) upon the disclosure by an interested person of a financial interest and all material facts relating thereto and discussion with the interested person, he or she shall leave the meeting while the remaining members of the Board or executive Committee discuss the matter and determine, by majority vote without interested person voting, whether or not financial interest of the interested person constitutes a conflict of interest..
  4.  Addressing a Conflict of Interest. If a conflict of interest is determined to exist, then the Board or executive Committee shall: (1) require the interest person to leave the meeting during the discussion of, and vote on, the transaction or arrangement that results in the conflict of interest; provided, however, that the interested person may make a presentation at the meeting prior to leaving; (2) appoint, if it deems appropriate, a non-interested person or Committee to investigate alternatives to the proposed transaction or arrangement; and (3) determine, by a majority vote without the interested person voting, that the transaction or arrangement is in the Foundation’s best interests and for its own benefit; is fair and reasonable to the Foundation; and, after exercising due diligence, determine that the Foundation cannot obtain a more advantageous transaction or arrangement with reasonable efforts under the circumstances.  Any interested person who violates this Conflict of Interest Policy shall be subject to appropriate discipline including removal from office.
  5. Recording Conflicts of Interest. The minutes of all Board meetings and the meetings of all Committees with Board-delegated powers shall include: (1) the names of the persons who disclose financial interest, the nature of the financial interests and whether the Board or executive Committee determined that there was a conflict of interest; and (2) the names of the persons who were present for discussions and votes relating to the transaction of arrangement; the content of these discussions, including any alternatives to the proposed transaction or arrangement; and a record of the vote.
  6. Distribution of Conflict of Interest Policy.   At the first Board meeting, and at the first meeting of each Committee with Board-delegated powers following the annual Board meeting, a copy of the Foundation’s current Conflicts of Interest Policy shall be distributed to all Directors and Committee members.   On or before the date of the second Board or Committee meeting following the annual Board meeting, each director and Committee member shall sign and return to the secretary of the Board a written statement that he or she: (a) has received a copy of the Conflicts of Interest Policy; (b) has read and understands the Policy; (c) agrees to comply with the policy; (d) understands that the Policy applies to all Committees and subcommittees having delegated Board-powers; and (e.) understands that the Foundation is a charitable organization and that in order to maintain its tax-exempt status, it must continuously engage primarily in activities which accomplish one or more of its tax-exempt pursposes.
  7. Periodic Reviews. At the first Board meeting following the annual Board meeting, and at the first meeting of each Committee with Board-delegated powers following the annual Board meeting, and at such other times as the Board or executive Committee may deem appropriate, the Board, or executive Committee shall conduct a review of the Foundation’s activities to ensure that the Foundation is operating in a manner consistent with accomplishing its charitable purposes and that its operations do not result in private inurnment or impermissible benefit to private interests.

Harrassment

Arkansas State University Foundation, Inc. is committed to creating and maintaining a work environment that is free from all forms of harassment, including sexual harassment.

Sexual Harassment occurs:

1. When submission to, or toleration of, such conduct on or off campus is made a term or condition of instruction, employment, or participation in other Foundation activities;

2. When submission to, or rejection of, such conduct by an individual is used as a basis for evaluation in making employment decisions affecting the individual; and

3. When conduct has the purpose or effect of unreasonably interfering with an individual’s employment performance or creating an intimidating, hostile, or offensive environment.

Supervisors must recognize that their positions necessarily embody unequal power relationships with their subordinates. Because of the inherent power difference in these relationships, the potential exists for the less powerful to perceive a coercive element in suggestions relative to activities outside those appropriate to the professional relationship.

It is the responsibility of supervisors and staff members to behave in such a manner that their words or actions cannot reasonably be perceived as coercive.

Employees should report incidents of sexual harassments to the Human Resources Department of Arkansas State University - Jonesboro.

Arkansas State University Foundation, Inc. prohibits retaliation and will not retaliate against any employee who makes a good faith report of alleged harassment, even if the employee was in error.

EQUAL EMPLOYMENT OPPORTUNITY

It is the policy of Arkansas State University Foundation, Inc., to provide equal employment opportunity to all qualified persons; to prohibit discrimination because of race, color, ancestry, religion, gender, age, disability, national origin, status as a Vietnam era special disabled veteran or other status protected by law; and to promote the full realization of equal employment opportunity through a positive continuing program of affirmative action. It is the responsibility of all personnel, supervisory and non-supervisory, to see that this policy is implemented throughout the Foundation.

Non-Discriminatory Responsibilities of Arkansas State University Foundation, Inc.

ASU Foundation, Inc., is committed to compliance with all federal and state laws regarding discrimination of any type including the following provisions:

Section 504 of the Rehabilitation Act of 1973.

Section 504 protects qualified individuals with disabilities who are defined as persons with a physical or mental impairment which substantially limits one or more major life activities. Major life activities include caring for self, walking, seeing, hearing, speaking, breathing, working, performing manual tasks, and learning. Some examples of impairments which may substantially limit major life activities, even with the help of medication or aids/devices are AIDS, alcoholism, blindness or visual impairment, cancer, deafness or hearing impairment, diabetes, drug addiction, heart disease, and mental illness. Persons who have a history of, or who are regarded as having, a physical or mental impairment that substantially limits one or more major life activities, are also covered. In addition to meeting the above definition, for purposes of receiving services, education or training, qualified individuals with disabilities are persons who meet normal and essential eligibility requirements.

Title II of the Americans with Disabilities Act of 1990.

ASU Foundation, Inc. is committed to complying with all applicable provisions of the Americans with Disabilities Act ("ADA"). Title II of the ADA prohibits discrimination against qualified individuals with disabilities on the basis of disability in all programs, activities, and services of public entities. It is ASU Foundation, Inc., policy not to discriminate against any qualified employee or applicant with regard to any terms or conditions of employment because of such individual’s disability or perceived disability so long as the employee can perform the essential functions of the job. Consistent with this policy of nondiscrimination, ASU Foundation, Inc., will provide reasonable accommodations to a qualified individual with a disability, as defined by the ADA, who has made ASU Foundation, Inc., aware of his/her disability, provided that such accommodation does not constitute an undue hardship on ASU Foundation, Inc.,. Employees with a disability who believe they need a reasonable accommodation to perform the essential functions of their job should contact their supervisor or the Human Resources Department at Arkansas State University - Jonesboro. ASU Foundation, Inc. encourages individuals with disabilities to come forward and request reasonable accommodation.

Age Discrimination Act of 1975.

The Age Discrimination in Employment Act (ADEA) protects individuals who are 40 years of age and older from employment discrimination based on age. The ADEA’s protections apply to both employees and applicants. Under the ADEA, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment including, but not being limited to, hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.

Retaliatory Action Prohibited.

Retaliation against a person who files a charge of discrimination, participates in an investigation, or opposes an unlawful employment practice is prohibited by the above laws and ASU Foundation, Inc. Any employee who needs further explanation or who believes he or she has been discriminated against under these laws should contact the Arkansas State University – Jonesboro, Human Resources Department.

Corporate Governance

The Audit Committee of the Foundation has the responsibility for reviewing the Foundation’s financial information which is provided to constituents and others, the system of internal control and the audit process.

The Foundation’s internal controls and operating procedures are intended to assist in providing assurances of the quality of the information reported and the assessment of the financial disclosures made or necessitated and to detect and to prevent or deter wrongdoing or improper activities. However, even the best-designed systems cannot provide absolute assurance or safeguards against improper activities. Nor can they ensure that Foundation policies and procedures will not be violated, misunderstood or misinterpreted.

The Audit Committee is charged with the responsibility to establish a mechanism for employees and others to submit confidentially and anonymously any concerns or complaints regarding questionable accounting, internal accounting control and/or audit matters of ASU Foundation, Inc.

Section 2.     Funds Administration

In order to ensure compliance with donor’s restrictions on the uses of their gifts, the Foundation maintains over 600 separate funds or accounts. Each account is assigned 

an Account Controller in the department, college or unit for which the gift is restricted.

Account Controllers must be employees of Arkansas State University. The Account Controller, in conjunction with his or her supervising Dean, Director or Vice President, is responsible for disbursing monies for the purpose intended by the donor.

In most cases, it is the donor’s intent that provides the criteria for determining an account’s restricted purpose. In other instances, accounts are established for the general use of a given department, college, center or program, with no specific donor restrictions.

ACCOUNT TYPES

The Foundation currently recognizes the following account categories:

Unrestricted – Accounts comprised of gifts to the Foundation without any stipulation as to its use. Such an account is used at the discretion of the Foundation President/CEO.

Restricted Discretionary – Accounts comprised of gifts directed to a specific campus, college or department with no stipulation made as to its use. Such accounts are used at the discretion of the head of the campus, college or department.

Restricted Scholarship – Accounts comprised of gifts made to specific non-endowed student scholarship funds. These funds are awarded in compliance with policies established by the Arkansas State University Financial Aid Office.

Endowment – Funds received from donors with the restriction that the principal is either not expendable or cannot be spent until a certain date or purpose is achieved.

Planned Gifts - Accounts comprised of gifts, such as deferred gifts like charitable trusts, or bequests, such as wills and life insurance, that donors design and structure with the assistance of financial professionals (lawyers, accountants, etc.).

Agency – Funds held and managed by the Foundation on behalf of Arkansas State University and related entities such as the ASU Alumni Association and the Arkansas State University Red Wolf Club, Inc.

Establishing New Foundation Accounts

A new account may be established in the Foundation for any purpose consistent with the Foundation’s mandate to support the mission of Arkansas State University. The Foundation cannot establish funds for programs or purposes that:

  • involve contract deliverables, fees-for-services, proprietary research, services within the mission of Grants and Contract Accounting;  
  • would jeopardize the Foundation’s tax-exempt status.

Contact the Arkansas State University Grants and Contract Accounting Office for further information on these types of transactions.

The Advancement Offices of each System Campus shall determine the minimum amount required for an endowed fund. A new non-endowed fund should be established for a unique purpose and should be expected to be used for a period of not less than two years. To reduce the number of Foundation funds to be administered, new gifts can often be placed in existing funds and still fulfill the intent of the donor or a specific need. It is recommended that a non-endowed account be established only if there is reasonable belief that the account will receive at least $2,000 in gifts and the fund’s use is not limited to a single event.

Requests to create new Foundation accounts must be submitted in writing using the REQUEST FOR NEW ACCOUNT NUMBER FORM (ASUF01). Accounts are established and categorized based on information provided on the form along with any related donor correspondence and/or memorandums of agreements. Definitions related to new account number request are as follows:

Account Name – The account name is referred to in all donor acknowledgements and stewardship reports. Therefore, the name should clearly and concisely reflect the purpose and intent of the account. If the donor has entered into a gift agreement, the account name must be as reflected therein.

Account Controller – The account controller is the individual who is responsible for expenditures from the fund. This person must be an employee of Arkansas State University.

Approval - Deans, directors or vice-presidents of a college or unit must approve the appointment of new account controllers. If the new account controller will be the dean/director, or the dean/director is not available to appoint a new account controller, the request will require the signature of the vice president.  Associate or assistant deans may not appoint fund administrators.

College/Unit - Each Foundation account is associated with a college or unit and appropriate department.

Type of Fund – Clearly indicate if an account is to be endowed.  Gifts deposited into endowment accounts are considered to be principal and, therefore, are not expendable. Spending limits for endowments are determined in accordance with policies approved by the Joint Committee on University Investments. The minimum required amount to open a new endowment is $10,000. Non-endowed accounts make no distinction between principal and income and are not subject to spending limitations.

Purpose - Identify the type of activity the account is intended to support and any donor restrictions on its use. Attach copies of all relevant correspondence. Be specific.

Changing Existing Foundation Accounts

All requests to modify an existing Foundation account name or account controller should be made in writing using the applicable forms described below. Requested modifications should be addressed in the following manner:

Account Name – Requests to change the fund name should be made using the REQUEST TO CHANGE ACCOUNT INFORMATION (Form ASUF02). Changes in the fund name should be made only to clarify the identification of the fund.  Account names should reflect the intended purpose of the account and/or any donor restrictions. Changes must not violate any specific requests or restrictions.

Account Controller/Signer – Changes in account controllers and authorized signers must be submitted in writing using the REQUEST TO CHANGE AUTHORIZED ACCOUNT SIGNER (Form ASUF03).  Requested changes must be approved by the appropriate dean, director or vice president. If an account controller is being changed on multiple funds, a single written request that includes the requested change, a list of the affected accounts and names, and all required signatures may be submitted in lieu of separate forms.

Purpose – A request to change the purpose of a fund must be submitted in writing using the REQUEST FOR CHANGE IN ACCOUNT PURPOSE (Form ASUF04) by the dean, director or vice president to the Foundation’s controller. The request must state the reason for the change and be accompanied by a letter of authorization from the donor(s) when applicable. In most cases, a change in purpose will require the establishment of a new fund and a transfer of the balance from the old to the new fund.

Non-endowment Status - Changing a fund’s status from non-endowed to endowed involves three steps: (1) a new endowed account must be established; (2) the account balances must be transferred from the non-endowed account to the new endowment account; and (3) the non-endowed fund must be closed. A request to change an accounts status must be submitted in writing using the REQUEST FOR CHANGE IN ACCOUNT STATUS (Form ASUF05).

Closing Foundation Accounts 

A request to close an idle or redundant fund should be submitted in writing by the dean, director or vice president to the Foundation’s controller. Any remaining assets in the account should be transferred to another Foundation account with a similar purpose.

The dean, director or vice president must state that the transfer of monies are not in contradiction with the terms of the gift(s) to the original fund. If the account to be closed has a negative asset balance, funds must be transferred into the closed fund to bring the balance to zero.  

Document Retention and Destruction Policy

The Sarbannes-Oxley Act addresses the retention and destruction of business records and documents and turns intentional document destruction into a process that must be carefully monitored. In keeping with this requirement, the ASU Foundation has adopted the document retention requirements published by the National Council of Nonprofit Associations, 2004.

 

Minimum Retention Requirements by Document Type

Document                                                                     Minimum Requirement

Accounts payable Ledgers and schedules                                7 years

Audit Reports                                                                       Permanently

Bank Reconciliations                                                             2 years

Bank Statements                                                                  3 years

Checks/Requisitions for major purchases                                Permanently

Contracts, mortgages, notes and leases (expired)                   7 years

Contracts (still in effect)                                                        Permanently

Correspondence (general)                                                     2 years

Correspondence (legal and important matters)                Permanently

Correspondence (with donors and vendors)                            2 years

Deeds, mortgages & bills of sale                                            Permanently

Depreciation Schedules                                                         Permanently

Duplicate deposit slips                                                           2 years

Employment applications                                                       3 years

Year End Financial Statements                                            Permanently

Insurance Policies (expired)                                               3 years

Insurance records, current accident reports, claims          Permanently

Inventories                                                                            7 years

Invoices/Requisitions                                                              7 years

Minutes, bylaws and charter                                                    Permanently

Personnel files                                                                        7 Years

Tax returns                                                                            Permanently

Responsibilities – The Treasurer shall be responsibile for managing retention, storage and destruction of records. 

 

Section 3.     Processing, Depositing and Receipting Assets

All gifts for the benefit of the University must be sent immediately to the office of University Development located in the Administration Building.  An ASSET TRANSMITTAL FORM ( Form ASUF06) should accompany all assets sent to University Development. All checks, cash and negotiable securities should be hand delivered to the office of University Development in order to expedite processing and to ensure receipt by the Foundation.

Outright Gifts include current assets irrevocably transferred to the Foundation (or the university) for less than adequate consideration. Almost any type of property owned by the donor may be donated, either through transfer of 100 percent interest, or in some cases a partial interest, in the property including:

  • Cash
  • Securities (both publicly traded and closely held)
  • Tangible personal property (such as artwork, jewelry, collections, livestock)
  • Intangible assets (patents, copyrights, trademarks, franchises)
  • Real property.

The Foundation cannot accept gifts if they:

  • involve contract deliverables, fees-for-services, proprietary research, or services within the mission of Grants and Contract Accounting;
  • would jeopardize the Foundation’s tax-exempt status.

Gift Receipts and Quid Pro Quos

A receipt is sent to each donor upon physical delivery of the gift. The receipt reflects the amount or type of the gift and the value of any quid pro quo received by the donor. A “quid pro quo” is a payment made partly as a contribution and partly for goods and services provided to the donor by a charity.

IRS rules require that a donor substantiate any charitable contribution of $250 or more with a receipt (a canceled check is specifically not sufficient) from the Arkansas State University Foundation, Inc. indicating the amount of the payment, the value of any quid pro quo received by the donor from the University and the resulting amount of the gift.

In addition, the IRS requires the receipt to state affirmatively if the donor has not received any quid pro quo. The Foundation’s receipts reflect those requirements.

 

An example of a quid pro quo contribution is when a donor pays a charity $100 to attend a dinner event. The market value of the food and entertainment is $40. This amount is not what the charity pays for the food and entertainment, but rather the market value of those items. Accordingly, $60 would be eligible as a tax deductible gift.

Completing the Asset Transmittal Form (ASUF06)

Prepared By – The name and telephone number of the preparer is required, so that we can contact that person if questions arise. Please print or type this information clearly.

Fund Number and Name – Be sure to verify this information before submitting assets to the Foundation for deposit. Errors such as transpositions may result in the asset being deposited to the wrong fund.

If you are depositing an asset into a new fund that is in the process of being established, enter the fund name and “to be assigned” for the fund number. Submit the Asset Transmittal Form and the asset with a copy of the REQUEST FOR NEW ACCOUNT NUMBER FORM (ASUF01).

Type of Deposit - Check only one type of deposit per transaction. Please do not mix different types of deposits on the same transmittal form. Please refer to the following sections for additional information and descriptions of different types of assets.

Was any quid pro quo provided to the donor? – You must indicate whether any quid pro quo was received for all gifts deposited. If yes, please attach supporting documentation that verifies the current market value of any quid pro quo provided to the donor.

Type of AssetCash should be hand-delivered to the ASU Foundation or the  Campus Development Office. A cash receipt will be issued to the courier to confirm delivery.  Checks should be made payable to the Arkansas State University Foundation, Inc. Checks made payable to Arkansas State University or any of the ASU System Campuses , or any University entity, such as a college, unit, or program, may also be deposited into the appropriate Foundation fund.

Name and Address of Donor – List each donor separately. Attach a list of donors if necessary. Be sure to provide an address for the donor if one is not shown on the asset. Names and addresses are required to send gift receipts and acknowledgements to donors and to identify the correct donor record in our files. In the case of corporate checks, it is especially important to specify the company representative’s name and the correct mailing address provided on the check.

Non-Cash or In-Kind Gifts

 

The Foundation must approve in advance the acceptance of all non-cash gifts, except publicly traded securities. If such gifts are accepted, the needs of the University will determine whether the gift is held, sold or ownership is transferred to the University.

When property is transferred from the Foundation to the University, it is subject to all normal restrictions on University property.

 

A GIFT-IN-KIND INFORMATION FORM (ASUF07) must be completed for all gifts-in-kind. This form must be accompanied by an Asset Transmittal Form (ASUF06).

 

The receipt for a non-cash gift will describe the gift (e.g. 2 IBM personal computers, 25 shares of ABC common stock) but will not assign a value to the non-cash gift.

 

For non-cash gifts with a value in excess of $500, it is necessary for the donor to complete and file an IRS Form 8283 in order to obtain a charitable contribution income tax deduction. As a courtesy, donors of non-cash gifts are sent a copy of IRS Form 8283 and an explanatory letter detailing how to report the gift for income tax purposes. The donor must submit the completed IRS form 8283 to the Foundation for acknowledgment signature by the appropriate Foundation Officer.

 

IRS regulations state that the individuals authorized to sign the Foundation’s tax returns are the only authorized signatories for Form 8283. Any such forms sent to constituent offices should be forwarded to the Foundation Controller.

 

Publicly Traded SecuritiesIf a donor desires to make a gift of publicly traded securities, please contact the Foundation’s Controller for specific instructions and assistance.

 

Real Property - Gifts of real property must be coordinated in advance with the Foundation’s Gift Acceptance Committee. The Committee will consider the appropriateness of the gift, the liability associated with the asset, the disposition of the asset and any other relevant information concerning prospective gifts of real property in order to make a determination to accept or reject the proposed gift. Gift acceptance considerations will include the following:

 

General Warranty Deed - Transfer should be made by general warranty deed. Each transaction requires documents tailored to that particular property and owner. The donor’s legal counsel should prepare the deed, bearing in mind that a general warranty deed is preferred. University personnel cannot prepare legal documents or provide legal counsel in connection with a gift.

 

Inspection - Personal inspection by the Foundation Gift Acceptance Committee before transfer of the property to the Foundation.

 

Environmental Survey – An environmental title search and assessment (phase I environmental survey) may be required before transfer of the property to the Foundation.

 

Qualified Appraisal – For non cash gifts in excess of $5,000, the donor is responsible for obtaining a “qualified appraisal”,  as defined by the Internal Revenue Code, which is required to support the charitable deduction on the donor’s tax return.

 

Responsibility – For property valued at less than $10,000, the donor may be required to pay all costs of transfer to the Foundation, including environmental assessments, title searches and current taxes.

Payroll Deductions 

ASU faculty and staff members may make charitable contributions to any active fund at the Foundation through payroll deduction. To initiate a payroll deduction, a completed FACULTY-STAFF PAYROLL DEDUCTION GIFT AUTHORIZATION FORM (Form ASUF08) should be submitted to the office of University Development.

The donor should indicate the total amount to be deducted biweekly and the fund number or name of the program being supported. Payroll deductions are made from 24 pay periods annually, or until a total giving goal is met by the donor.

Payroll deductions will continue until employment terminates or until the office of University Development is notified, in writing, of the donor’s desire to cease deduction. Please include the donor’s Social Security Number (SSN) on all correspondence regarding payroll deductions.

Gifts in Lieu of Honoraria

Payments to the Foundation that are given in lieu of honoraria will be credited as a gift from the payer, provided they are accompanied by a letter from the payer identifying the asset as a charitable contribution.

If an honoraria check naming a faculty member as a payee is endorsed to the Foundation, it will be receipted as a gift from the payee. The payee is responsible for reporting the honoraria as income.

Memorial and Tribute Contributions

Notify the office of University Development as soon as possible of expected memorial contributions, so that these gifts will receive special treatment. Formal acknowledgements will be sent to the donors and to the decedent’s family by the Foundation. Please provide the following information:

  • Full name of the decedent;
  • Name and address of spouse of family member to be informed of memorial gifts;
  • Fund name and number to be credited.

Please include a copy of the obituary notice if one is available.

University Development may also send out special acknowledgements for tribute gifts made to commemorate special occasions. Please provide the following information:

  • Full name of honoree;
  • Name and address of donor;
  • Reason for tribute;
  • Fund name and number to be credited.

Scholarship Contributions

  Scholarship awards in which the contributor names a specific student as the recipient should be sent directly to the ASU Office of Financial Aid. These awards are considered to be personal financial aid provided to the specified student and do not qualify as charitable contributions to the university.

Matching Gifts

Many employers will match gifts made by their employees for the benefit of Arkansas State University. Employees of participating companies should obtain matching gift application forms from the personnel offices and submit the forms with the gifts. Forms may also be submitted within a short period after a gift has been made.

If you receive a matching gift form, please forward it to the office of University Development.

We will process the form and send it back to the company. When the matching gift is received, it is deposited into the same funds as the original gift.

Fund-Raising Events

IRS regulations require that Arkansas State University and the Foundation provide written disclosures to donors stating what portion of a payment to the Foundation is deductible if a quid pro quo is provided. Brochures, tickets and other materials should disclose any quid pro quo elements of payments received as a result of fundraising events.

Please check with Advancement Services to ensure statements on promotional literature, tickets, etc. comply with IRS rules. Any faculty or staff members involved in the planning and execution of fundraising events on behalf of Arkansas State University should consult with Advancement Services personnel prior to distribution of any materials regarding the event.

All deposits of funds collected from fundraising events should be submitted to the office of University Development, accompanied by an ASSET TRANSMITTAL FORM (Form ASUF06).

Deferred and Planned Gifts

Deferred and planned gifts are those gifts put into place during the donor’s life that become effective at death or by which partial ownership or use of an asset is retained by the donor. Types of deferred and planned gifts include:

  • Bequest through wills (most property interests can be transferred by bequest)
  • Charitable remainder arrangements, including Charitable Remainder Unitrust, Charitable Remainder Annuity Trust, Charitable Lead Trust, and Remainder Interest in Personal Residence or Farm
  • Remainder Annuity Trust, Charitable Lead Trust, and Remainder Interest in Personal Residence or Farm
  • Retirement plan beneficiary designations

Gift methods not available through the Foundation include the charitable gift annuity, pooled income trust and donor advised funds.

Neither Foundation employees nor university employees offer tax or legal advice to donors, nor do they prepare legal documents such as wills or real property deeds. However, Foundation employees will work with donor’s legal and tax counsel to arrange for gift transfers that offer the greatest advantage to the donor.  

Section 4.     Asset Management

Investment Policy

The Foundation invests funds in accordance with the policies developed by the Joint Committee on University Investments. Members of this committee represent ASU and its related entities and serve at the approval of the university president. Foundation policies regarding investments are documented in the Foundation’s Statement of Investment Policy.

Banking Services

No less than every two fiscal years, the Foundation will issue Requests for Proposals (RFPs) to area banks and financial institutions soliciting bids for banking services.

As part of its fiduciary responsibility, the Foundation will objectively review all proposals submitted by the stated due date. The contract will be awarded to the applicant that offers the highest level of customer service coupled with the greatest potential to maximize net earnings on operating and surplus funds.

Income Allocations

Investment revenue and losses fall under the following categories:

  • Interest income cash, cash equivalents, and short term investments;
  • Dividend and investment income;  
  • Unrealized gains or losses due to fluctuations in market prices; and
  • Realized gains or losses due to asset liquidation.

Only accounts invested in the endowment pool qualify to receive allocations of income from the sources identified above.

Non-endowed accounts can qualify to receive interest income allocations. However, the distribution of interest income to non-endowed accounts must be requested in writing by the account controller and can only be distributed to accounts in excess of $5,000. The interest allocation will be based on the average money market rate offered by the Foundation’s bank.  

Section 5.     Spending Available Funds

Disbursement Policies

The following sets forth the responsibility and authority of the president, vice presidents, deans, directors and account controllers to administer funds of the Arkansas State University Foundation, Inc., and the guidelines for making disbursements

Authority and Responsibilities

The president, vice presidents, deans and directors are solely responsible for disbursements from funds that they control. Upon approval of the appropriate dean or director of a unit, the account controller is responsible for approval of all Foundation disbursements from unit funds.

The dean, director or vice president may be, or shall appoint, the account controller for each unit’s funds. In the absence of an account controller, the appropriate dean, director or vice president may sign for the account controller.

Within each unit, the account controller, dean, director or vice president may designate no more than two persons to sign requisitions on their behalf. An ALTERNATE SIGNATURE AUTHORITY DESIGNATION FORM (ASUF09) must be submitted to record these alternates with the Foundation. Any change to form ASUF09 requires a new form, with all pertinent signatures as of the date of change. All previous ASUF09 forms will be invalid.

Payments to account controllers, deans, directors or vice presidents, or payments that benefit them, must be approved by a higher authority.

General Disbursement Policies – Applicable to All Funds

All funds shall be administered with due regard to conditions attached to the gifts and governing statutes and rules, in accordance with what is reasonable, equitable and in the manner in which persons of ordinary prudence would act in the management of the property of another. Please be advised that, in accordance with Foundation policy, all disbursements are subject to public disclosure upon receipt by the Foundation of an appropriate written request.

There are four basic criteria that determine the legitimate use of Foundation funds:                                         

  •      The use must be reasonable and benefit Arkansas State University.
  •      The use must comply with the donor’s intent for the gift.
  •      The use must not jeopardize the Foundation’s tax-exempt status.  
  •      The use must comply with all applicable statutes and regulations.  

All disbursements must have written justification suitable for auditing purposes.

The following guidelines govern disbursements:

The account controller and the dean, director or vice president are charged with the responsibility of ensuring that the use of funds is reasonable and benefits Arkansas State University, falls within the donor’s intent of the gift, will not jeopardize the Foundation’s tax-exempt status, and complies with all applicable statutes and regulations.

Contracts in the name of the Foundation can be entered into only after review and acceptance by the Foundation’s counsel and must be signed by an officer of the Foundation.

No expenditure, direct or indirect, may be made for political contributions.

Expenditures that result in personal benefit to the payee are inappropriate.

The account controller is responsible for ensuring that there are sufficient funds to cover disbursement. Requests from funds with insufficient balances are subject to being returned without processing.

Disbursement Policies - Restricted and Endowment Funds

Purpose – To strengthen internal control, improve operating efficiency and avoid duplication of effort, the Arkansas State University Foundation, Inc., (the Foundation) has revised its policies and procedures regarding the disbursement of funds from restricted and endowment accounts. The following revisions are part of a proactive response by the Foundation to legislation effecting Board Governance as identified in the Sarbanes-Oxley Act of 2002, otherwise known as the Public Company Accounting Reform and Investor Protection Act. 

Supplies and Services – All expenditures for supplies and services, including honorariums and contract labor should be processed through the Procurement Services Office in compliance with all applicable university rules and regulations. Direct payment to vendors and reimbursements to employees should be paid through established university accounts. The Foundation will fund these expenditures in the form of periodic budget supplements to the affected university accounts. Supplies and services obligations incurred for academic and administrative purposes that cannot be processed through Procurement Services will be paid directly by the Foundation.   

Travel – Travel expenses incurred while conducting academic and administrative business on behalf of the university shall be processed by the Office of Finance and Administration through established university accounts.  The Foundation will fund travel expenses in the form of periodic budget supplements to university accounts. All requests to pay "uncovered" travel expenses should be accompanied by a copy of the related TR-1 form submitted to the university and appropriate supporting documentation (receipts, invoices, etc.).

Computer Hardware/Software – The purchase of all computer hardware and software should be approved by IT Services and processed through Procurement Services in compliance with all university rules and regulations. Foundation funding for computer hardware and software will occur through the use of periodic budget supplements to university accounts.

Equipment/Fixed Assets – All equipment and fixed assets shall be purchased through Procurement Services in compliance with all university rules and regulations. Funding for these items will occur through the periodic budget supplements.  

Employee Compensation - Requests to pay university employees additional compensation above and beyond their current salary must be processed through the Payroll Office in compliance with appropriate rules and regulations as determined by Human Resources. Funding of such requests can be accomplished through budget supplements to university accounts incurring the direct expense.

Scholarships – Scholarship payments shall not be made directly to students. All scholarship payments must be processed in compliance with all applicable rules and regulations through the university’s Financial Aid Office. The Foundation will fund scholarships through the use of budget supplements upon notification from the Office of Finance in the form of an invoice with all appropriate supporting documentation.

Individual Reimbursements – Whenever possible, reimbursements to individuals for out-of-pocket expenses should be made through the university. If payment by the university is not possible, then reimbursement can be made by the Foundation. Keep in mind that all entertainment and meal expenses must comply with IRS regulations and state the business purpose for reimbursement.   

Completing the Foundation Requisition

All Foundation requisitions must be typed or plainly printed. Requisitions must also be accompanied by original receipts, invoices and any other relevant documentation.

Payee Information – The requisition must provide the payee’s complete name, Social Security Number (SSN) or Employer Identification Number (EIN), and complete permanent mailing address (not a campus address).

Description – This section is vital for auditing purposes and must be detailed enough to explain the expenses, its business purpose and the benefit to the university.

Approval – All Foundation requisitions must be signed by the authorized account controller and the appropriate vice president, dean or director.    

Section 6.     Reporting and Disclosure

Because Foundation records are maintained on an accounting software package separate and independent from the university mainframe IBM system, Foundation accounts cannot be accessed online by campus users. The following reports are issued by the Foundation throughout the fiscal year.

Monthly Reports - Hard copy reports are submitted monthly to all restricted discretionary Account Controllers. These reports consist of
    (a) a current balance sheet that identifies total assets, liabilities and fund balances (net assets) and
    (b) an account detail that lists all transactions in the account for the period in question.

Quarterly Consolidated Reports - Consolidated reports are distributed electronically to all deans on a quarterly basis. These reports summarize activity for all restricted discretionary, restricted scholarship, endowment scholarship and endowment program accounts for each college.

Interim Financial Statements – Unaudited financial statements are issued to the Foundation Board of Directors on a quarterly basis. These statements include a Statement of Financial Position and Statement of Activities for the most recent quarter.

Audited Financial Statements – The Foundation’s independent audit firm issues annual financial statements comprised of the following:

  • Independent Auditor's Report
  • Statement of Position
  • Statement of Activities
  • Statement of Cash Flow
  • Notes to the Financial Statements

IRS Form 990 - This form is submitted annually as required by the Internal Revenue Service. Copies of this form are available for public inspection upon receipt of written requests.

Endowment Reports – These reports are issued annually to donors who have established endowment accounts with Arkansas State University. Included in the report is a summary of financial activity, current market value, cost basis value, rate of return for the fiscal year and the names of scholarship recipients (if applicable).

Annual Foundation Report – This report, which is prepared by the office of University Development, is issued to the community each fall. The report relays the findings of the Foundation’s audited financial statements and highlights the activities and achievements of the Foundation, as well as the university’s faculty, staff and students.  

Section 7.   Forms

Please use the forms from the Forms Page as originals and make copies for your use. This section will provide all forms you will need to transact business with the Foundation. To ensure compliance with all matters contained in these forms, only photocopies of these original forms will be accepted by the Foundation. Alteration or customization of these forms is prohibited.