Section V Financial Affairs

Please NOTE: This policy changes in 2008. To read the policy that goes into effect July 2008 visit this link: V.E. (post 7/2008)

E. Gifts and Institutional Foundations

  1. Acceptance of Gifts

    The Board may accepts gifts, legacies, and devises (hereinafter "gifts"> of real and personal property to the state of Idaho for the benefit of any institution, school or agency under its governance. Gifts worth more than $10,000 must be accepted by the Board before the gift may be expended or otherwise used by the institution, school or agency. The chief executive officer of any institution, school or agency. The chief executive officer of any institution, school or agency is authorized to receive, on behalf of the Board, gifts worth $10,000 or less and of a routine nature. (Section 33-3714, Idaho Code.)


  2. Institutional Foundations

    1. Private support for public higher education is an accepted and firmly established practice throughout the United States. Tax-exempt foundations are one means of providing this valuable support to help public colleges and universities raise money through contributions.


    2. The Board recognizes that foundations:

      1. Provide an opportunity for private individuals and organizations to contribute to college and university programs with the assurance that the benefits of their gifts supplement, not supplant, state appropriations to the institutions;


      2. Provide assurance to donors that their contributions will be distributed and utilized for specified purposes; and


      3. Create an effective forum for alumni and community leaders to help strengthen the colleges and universities through participation in the solicitation, management, and distribution of private gifts to these institutions.

    3. The Board, aware of the value of tax-exempt foundation to the well being of our colleges and universities in Idaho, and

      1. To preserve and encourage the operation of foundations associated with public colleges and universities in Idaho, and


      2. To ensure that foundations associated with Idaho public colleges and universities conduct their business responsibly according to applicable laws, regulations, and policies while fulfilling their obligation to contributors, to those who benefit from their programs, and to the general public.



    4. Definition of Foundations

      Foundations are separate, legal entities, tax-exempt under Section 501(c) of the Internal Revenue Code of 1986, as amended, associated with a public college or university and established for the purpose of receiving, holding, and/or using funds from the private sector for charitable, scientific, cultural, educational, athletic, or related endeavors that support, enrich, and improve the institution. The institutions shall develop agreements, subject to Board approval, which define the relationship between the institution and their related foundations. Technology transfer organization, including the Idaho Research Foundation, are not subject to this policy


    5. Accountability

      1. The Board does not have direct control over such foundations. The Board does, however, have the responsibility to ensure that the institutions under its governance act responsibly and are accountable to the public and to the legislature. The Board also has the responsibility to protect the good names of the colleges and universities and ensure that activities conducted in their names are proper.


      2. The institutions may provide limited and reasonable support to such foundations, including but not limited to the cost of utilities, maintenance, and janitorial services, and all or part of the salary and related personnel costs of staff support, provided such support is authorized in the agreement referred to in Definition of Foundations above.


      3. The institutions shall ensure that foundations provide adequate insurance to cover their operations and the activities of their directors, officers, and employees. Foundations shall not operate on state property or on any property under the control of the Board unless liability insurance coverage in amounts of not less than statutorily prescribed minimums is in effect.

    6. Conflict of Interest

      Board members, administrative officers and officials and all other employees of the institutions, school and agencies are subject to the Board's conflict-of-interest policy as stated in Section I, Subsection G, of the Board's Governing Policies and Procedures and any other applicable laws or regulations.


    7. Financial and Auditing Process

      Agreements between the institutions and their foundations shall include the following provisions:

      1. The foundations shall maintain financial and accounting records in accordance with generally accepted accounting principles.


      2. The foundations shall be audited annually by a qualified firm of independent certified public accountants. The audit shall be conducted in accordance with generally accepted auditing standards. Copies of these audit reports shall be distributed to the chief executive officers and the Board.


      3. The audit reports shall contain the foundations' financial statements and the auditor's independent opinion regarding these financial statements. Donor anonymity shall be protected to the extent allowable by law.


      4. The foundations shall permit the institutions and the Board to inspect and audit foundation books and records at reasonable times in order to ensure

    8. Transfers from Foundations to Institutions

      1. A formal procedure shall be established for institutions to accept gifts and donations transferred from the foundations. The institutions are not obligated to accept any gifts or donations from the foundations that are not consistent with the institutions' identified purposes and Board policies. In addition, the institutions shall not accept gifts or donations from the foundations if restrictive terms and conditions exist which do not comply with Board and institutional policies.


      2. A procedure shall be established to authorize transfers from the foundations to the institutions. All foundation transfers to the institutions shall be documented and reported annually to the chief executive officer of the institutions and the Board. Where restrictions apply to transfers, the foundations shall be certain that the institutions have access to any relevant documentation concerning donor intent.


      3. Transfers of real property from the foundations to the institutions are subject to all approvals required by Board policies for acceptance of gifts or real estate.

    9. Institutional Employees

      Salaries, loans, perquisites, or other benefits provided to or on behalf of an institutional employee by foundations shall be:
      1. Approved by the Board


      2. Paid by the foundations to the institutions, which in turn will make payments to the employee in accordance with normal practices, except where the Board approves a different form of payment.


      3. All payments made from the foundations to institutional employees shall be paid through the institutions. Employees shall not receive any payments or other benefits directly from the foundations or athletic associations. This provision shall include reimbursements for expenses incurred for authorized institution and foundation purposes.

    10. Foundation Employees

      Employees hired by the foundations in positions solely funded by the same are not entitled to state employment rights and benefits. These appointments are not subject to Board approval.


    11. Capital Facilities

      1. When foundation-controlled resources are used to build or acquire facilities for the institution's use, these facilities shall be related to the needs and purposes of that institution. In addition, where state general account appropriated funds will be used in the construction, operation, or maintenance of such facilities, prior Board and legislative approval shall be obtained pursuant to Section 33-3805A, Idaho Code.


      2. Planning, design, and construction of such facilities shall be in accordance with all applicable building codes and state and federal laws. Plan review coupled with adequate communication shall be conducted in cooperation with appropriate agencies as required.


    12. Foundation Land Transactions

      1. When an institution's chief executive officer becomes aware that a foundation is considering the purchase of land for the eventual or possible future use by, donation to, or development for the benefit of the institution, the chief executive officer shall report such possible land acquisition to the Board in executive session pursuant to Idaho Code 67-2345 (1) (c).


      2. Such reporting shall be at the first Board meeting following the chief executive officer becoming aware of the possible land transaction.


  3. Foundations for Other Agencies and ISDB

    Other agencies and ISDB under the Board's jurisdiction may establish foundations to accept gifts made for the benefit of the agencies' or school's operating purposes. These agencies and school are subject to the same policies as the institutional foundations. However, agency/school foundations with annual revenues less than $25,000 are not required to obtain an independent audit. These agencies/school must instead submit an annual report to the Board of gifts received and the disposition of such gifts.


  4. Idaho Educational Public Broadcasting System Foundations and Friends Groups

    Foundations and Friends groups that exist for the benefit of the Idaho Educational Public Broadcasting System (IEPBS) are required by Federal Communications Commission (FCC) regulations to have specific spending authority designated by the Board. Audits of the IEPBS Foundation and Friends groups will be conducted by the Legislative Auditor.

    1. By action of the State Board of Education, the Idaho Educational Public Broadcasting System Foundation, Inc., has been designated to accept gifts made for the benefit of public television in the state of Idaho. The Foundation will conduct its activities in a manner consistent with the Federal Communications Commission (FCC) regulations and the FCC license held by the State Board of Education.


    2. By action of the State Board of Education, the Friends of Channel 4, Inc., has been designated to accept gifts made for the Benefit of KAID TV, Channel 4. The Friends of Channel 4, Inc., will conduct its activities in a manner consistent with the Federal Communications Commission (FCC) regulations and the FCC license held by the State Board of Education.


    3. By action of the State Board of Education, the Friends of Channel 10, Inc., has been designated to accept gifts made for the benefit of KISU TV, Channel 10. The Friends of Channel 10, Inc., will conduct its activities in a manner consistent with the Federal Communications Commission (FCC) regulations and the FCC license held by the State Board of Education.


    4. By action of the State Board of Education, the Friends of KUID, Inc., has been designated to accept gifts made for the benefit of KUID TV, Channel 12. The Friends of Channel 12, Inc., will conduct its activities in a manner consistent with the Federal Communications Commission (FCC) regulations and the FCC license held by the State Board of Education.


 

Additional Resources


User Guide (.pdf)

Role & Mission

Strategic Plan

Tracking Table

Guidance Memorandums

Mandatory Student Health Insurance

 

 

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