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.
Southwest Policy No.
4:01:07:02/17, “Foundations,” [1] adopted July 1, 2000, states on page 1,
“The Southwest Tennessee Community College Foundation is not an
operational element of Southwest Tennessee Community College; it is a
separate legal entity whose functions are supported financially by private
donations. The Foundation/College relationship is derived from a shared
interest in the development of Southwest Tennessee Community College.
Institutional participation in and guidance of Foundation operations are
therefore, appropriate and desirable. It is recognized that to be
effective in achieving its purpose, the Foundation must be maintained as a
separate entity from Southwest Tennessee Community College even though its
identity will be interrelated with that of the college.”
The college’s financial
liabilities toward the Foundation and the college’s control over potential
Foundation financial liabilities are defined in several sections of
Southwest Policy No. 4:01:07:02/17. [1]
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“The Foundation’s executive
body will adopt an annual financial plan. Staff of Southwest Tennessee
Community College will participate in the development of the financial
plan to ensure that college objectives are reflected in the allocation of
foundation funds.”
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“It is recognized that
investments by the Foundation are governed by TCA 35-10-101 et seq.”
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“The policy regarding
solicitation and acceptance of contributions will provide that prior to
acceptance of any gift to the Foundation…approval must be obtained from
the President of Southwest Tennessee Community College and, if applicable,
by the Chancellor…”
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“Foundation records
and accounts will be maintained by the college; however, they will be
maintained separate from college records and accounts and be shown as an
agency fund of the college.”
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“Records and accounts
maintained as an agency fund of the college will be audited on the same
cycle as the college’s audit performed by the Comptroller of the Treasury
of the State of Tennessee and will be reported upon as a part of the
agency fund of the college.”
The relationship between
Southwest Tennessee Community College and the Southwest Tennessee
Community College Foundation is described in the “Southwest Tennessee
Community College Foundation Policy and Procedures.” [2] This document
describes the responsibilities of Foundation Trustees and the Foundation
Officers in Article II, Sections A and E. The document also describes the
specific duties assigned to Foundation committees in Article II, Sections
B-D. The document further describes College Responsibilities in Article
II, Section F, listing specific responsibilities designated for the
President of Southwest Tennessee Community College and other
responsibilities assigned to the Vice President for Institutional
Advancement, who is designated as the college’s liaison to the Foundation.
The Foundation’s Mission
Statement [3] ensures that the relationship between the foundation and the
college is consistent with the mission of the college. “The Southwest
Tennessee Community College Foundation is a non-profit corporation
organized to enhance the mission of Southwest Tennessee Community College
through financial support of programs and facilities for broader
educational opportunities for the college's students, faculty, and staff.”
