IX400 - USM

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  308.0 IX-4.00-POLICY ON ALUMNI ASSOCIATIONS
 
  (Approved by the Board of Regents, August 27, 1993)
 
 
  The Board of Regents ("Board") explicitly recognizes the alumni and
  former students of the constituent institutions ("Institutions") of
  the University of Maryland System ("UMS") as a special
  constituency, whose continuing interest in and support of the
  Institutions and of the UMS are both valued and encouraged.  The
  Board of Regents recognizes that the Institutions and the UMS have
  established special relationships with various entities organized
  to foster the relationship with alumni and to benefit the alumni.
  The Board encourages these ongoing and continuing endeavors.  It is
  the policy of the Board that the relationships between the
  Institutions or the UMS and alumni associations be conducted in
  accordance with applicable law and applicable policy and procedure
  governing the management of UMS and Institution funds, and use of
  UMS and Institution resources and employees, and that the alumni
  associations enjoying a relationship with any of the Institutions
  or with UMS manage their respective funds in accordance with
  generally accepted accounting principles.  To implement and ensure
  these goals, the Board adopted the following policy and procedures
  to govern the relationships with alumni associations:
 
  The Board encourages each Institution to recognize and cooperate
  with one or more alumni associations (as defined below), as the
  Institution deems appropriate and desirable, as a vehicle for
  fostering alumni interest and support for the UMS and its
  individual institutions.
 
   1.  Recognition:  An alumni association or organization may use
       the name, facilities or resources of one or more of the
       Institutions (or portions thereof), or of the UMS, only if
       recognition of it by the Board, in accordance with this
       policy, is then in effect.  The procedure for obtaining
       recognition is set forth below.
 
   2.  Minimum criteria for Recognition:  The Board may, but is not
       obligated to, recognize as an alumni association only an
       organization whose membership is generally restricted to
       alumni of one or more Institutions, or parts thereof, and
       which has as its sole purpose one or more of the following:
 
       A.   To foster and promote the general welfare of the UMS
            and/or one of its components; or
 
       B.   To advocate for public and/or private support for the
            benefit of the UMS or one of its components; or
 
       C.   To provide educational, charitable or cultural activities
            for the benefit of the alumni of UMS components.
 
       Each organization recognized as an alumni association shall
       comply with this Policy.
 
   3.  Affiliation with Institutions:  The Board shall recognize an
       alumni association in relation with one of the following:  the
       UMS, one of the eleven degree-granting Institutions, a college
       or other entity contained wholly within a degree-granting
       Institution, or such other component of an Institution, as the
       Institution may determine, or component of the UMS, as the
       Board may determine.   Recognition of an alumni association
       under this Policy does not imply that the alumni association
       is an Affiliated Foundation and does not imply in itself that
       the alumni association is part of the UMS or of an
       Institution.
 
   4.  Responsible Official:  The following official shall be the
       official responsible for relations with alumni associations
       recognized in relation with his or her Institution; including
       monitoring compliance with Board policies and agreements with
       the alumni association:
 
       A.   the UMS                  --   the Chancellor
 
       B.   the eleven degree-       --   the appropriate President
            granting Institutions
 
       C.   one or more colleges     --   the appropriate President
            or other entities
            contained wholly
            within a degree-
            granting Institution
 
       D.   any other component or   --   such official as the
            combination of                Board of Regents shall
            Institutions and              designate.
            components of the UMS
 
       The official listed above shall hereinafter be referred to as
       the "Responsible Official" with respect to any alumni
       associations affiliated with his or her institution or
       component.
 
   5.  Recommendation for Recognition:  The Responsible Official
       shall recommend to the Chancellor, for submission to the
       Board, that the Board recognize an alumni association pursuant
       to this policy, and shall provide to the Chancellor:  1) a
       statement of the purpose of the entity which is proposed to be
       recognized by the Board as an alumni association, 2) a
       description of the nature of the entity (i.e., whether it is
       a corporation, has 501(c)(3) status or other tax-exempt
       status, or similar relevant information), 3) if the alumni
       association is an Internal Alumni Association (as described
       below), a memorandum from the Responsible Official discussing
       the structure and functions of the alumni association, and 4)
       if the alumni association is an Incorporated Alumni
       Association (as described below), a copy of the proposed
       Alumni Association Agreement (as described below).  The Board
       shall be notified of any change in the purpose or scope of
       activities of an alumni association, a change in its legal or
       tax status, or a change in the Alumni Association Agreement,
       if required, with the Institution or the UMS, occurring after
       its recognition by the Board.
 
   6.  Organization of Alumni Association:  An alumni association
       will be recognized only if it is:  1) an office or activity of
       an office of the Institution or of the UMS and therefore
       legally is a part of the UMS ("Internal Alumni Association"),
       or 2) a private Maryland corporation, legally separate from
       the Institution, the UMS, or the State of Maryland
       ("Incorporated Alumni Association"), or 3) in exceptional
       circumstances, an unincorporated association which is formally
       established as a separate legal entity and which meets the
       Responsible Official's requirements and conditions, in which
       case such an alumni association shall be referred to as an
       Incorporated Alumni Association and governed by the provisions
       of this Policy, as appropriate, applicable to Incorporated
       Alumni Associations.
 
 
   7.  Internal Alumni Association:
 
       A.   Even though an internal alumni association is a part of
            the Institution or the UMS, it must be officially recog-
            nized by the Board after recommendation by the appropri-
            ate Responsible Official.
 
       B.   To ensure proper organizational and financial control,
            the UMS and each Institution, prior to the initial
            recognition of an Internal Alumni Association in relation
            with it, shall establish policies and procedures
            governing the operation of Internal Alumni Associations.
            The Responsible Official shall have the authority to
            terminate the recognition of an Internal Alumni
            Association that does not comply with the policies and
            procedures established by the Institution or UMS, as
            applicable.
 
       C.   All membership fees, gifts, activity fees and all other
            revenues generated by Internal Alumni Associations and
            payable to the Institution or UMS are to be held within
            UMS or Institution accounts.  In circumstances deemed
            appropriate by the Responsible Official, in accordance
            with law and with the prior consent of an Affiliated
            Foundation, such funds generated by Internal Alumni
            Associations may be managed by an Affiliated Foundation.
 
       D.   Each Internal Alumni Association and all UMS or
            Institution employees engaged in managing or in operating
            its activities, must comply with applicable policies of
            the Board and with federal, state and local laws.
 
   8.  Incorporated Alumni Associations:  Each Incorporated Alumni
       Association is subject to the following:
 
       A.   Each Incorporated Alumni Association must be in good
            standing in accordance with the law governing and
            practices of the Maryland State Department of Assessments
            and Taxation.
 
       B.   The management and control of an Incorporated Alumni
            Association shall rest with a Board of Directors.
 
       C.   Officers and staff members of an alumni association shall
            be bonded.
 
       D.   If otherwise in accordance with applicable law and UMS
            Policy, the Responsible Official and any other UMS and
            Institution officials (including members of the Board of
            Regents) may serve as voting members of the Board of
            Directors of any Incorporated Alumni Association,
            provided that UMS and Institution officials do not
            constitute a majority of the alumni association's Board
            of Directors.
 
       E.   If otherwise in accordance with applicable law and Board
            Policy, with the approval of the Responsible Official, an
            officer or employee of the UMS or an Institution may also
            serve as an officer, director or employee of an Incor-
            porated Alumni Association.
 
       F.   An official or employee of the UMS may serve on the Board
            of Directors, or as an officer, or an employee of an
            Incorporated Alumni Association, only if permitted under
            the Maryland Public Ethics Law, and the Policies and
            Procedures of the UMS and the appropriate Institution
            concerning conflicts of interest and commitment.
 
       G.   An Incorporated Alumni Association may not engage in any
            activity that conflicts with federal or State laws, rules
            and regulations, applicable policies, or the role and
            mission of the UMS or the Institution.  Incorporated
            Alumni Associations shall comply with applicable Internal
            Revenue Code provisions and regulations and all other
            applicable policies and guidelines.
 
       H.   All activities of an Incorporated Alumni Association
            shall be in conformance with activities permitted under
            Section 501(c)(3) or 501(h) or other section governing
            its tax-exempt status, if applicable, of the Internal
            Revenue Code.  In particular, "No substantial part of the
            activities (of an incorporated alumni association) shall
            be carrying on propaganda, or otherwise attempting to
            influence legislation."  Furthermore, no incorporated
            alumni association shall directly or indirectly
            "participate in, or intervene in (including the
            publishing or distributing of statements) any political
            campaign on behalf of (or in opposition to) any candidate
            for public office."  In particular, an Incorporated
            Alumni Association may not make any contribution, whether
            in money or in kind, to any candidate for public office.
            For example, the purchase of tickets to an event intended
            to raise money for use by a candidate in a political
            campaign is a violation of this policy.
 
       I.   Except with the express, prior approval of the
            Responsible Official, no Incorporated Alumni Association
            shall conduct educational or research activities
            (including administration of the receipt of a research
            grant or contract) that would be considered within the
            normal scope of the mission of the UMS or any of its
            components.
 
       J.   An Incorporated Alumni Association may not offer an
            educational program (i.e., an organized course of study
            that leads to the award of a certificate, diploma or
            degree) unless it has obtained a certificate of approval
            from the Maryland Higher Education Commission to operate
            as an institution of post-secondary education or is
            otherwise permitted by existing law.  An Incorporated
            Alumni Association shall not apply for a certificate of
            approval without first obtaining written approval from
            the Responsible Official.
 
       K.   Each Incorporated Alumni Association shall enter into
            written agreement ("Alumni Association Agreement") with
            the UMS or with the Institution, as appropriate, which
            shall be reviewed from time to time by the Responsible
            Official and subject to termination or modification based
            upon such review.  The Alumni Association Agreement must
            be signed by the Responsible Official and by the alumni
            association officer authorized by the alumni
            association's bylaws to do so.
 
       L.   The Alumni Association Agreement shall set forth: 1) the
            use by an Incorporated Alumni Association of UMS
            facilities, services, resources, employees, and other
            supportive assistance, and 2) the consideration from the
            Incorporated Alumni Association for that support.
 
       M.   In the Alumni Association Agreement, the Incorporated
            Alumni Association shall release the Institution, the
            UMS, the Board and the State and their respective
            officers and employees from liability for loss or damage
            to the alumni association's property or injury to alumni
            association employees on UMS property.
 
       N.   All correspondence, solicitations, activities, and
            advertisements on behalf of an Incorporated Alumni
            Association shall use the name of the alumni association
            and shall be clearly identified as an activity of that
            alumni association to ensure that the public is aware
            that the activities undertaken by the alumni association
            are separate and distinct from those of the UMS.  The
            letterhead of an alumni association shall carry the
            complete legal name of the alumni association (e.g., The
            University of Maryland, College Park Alumni Association,
            Inc.).  Trademarks, service marks, logos, seals, or the
            name of the UMS or any of its constituent Institutions or
            components may be used by an alumni association only with
            the prior written approval of the Responsible Official.
 
       O.   In all negotiations and transactions with third parties,
            for fund raising, enterprise activities and all other
            activities, each Incorporated Alumni Association shall
            take care to ensure that all parties involved are aware
            that the alumni association is an independently
            established and separately operated legal entity from the
            UMS.  Obligations of Incorporated Alumni Associations
            shall not be obligations of the UMS or the State of
            Maryland.
 
       P.   Incorporated Alumni Association funds shall be kept and
            managed separate from UMS funds.  UMS trust funds shall
            not be transferred to Incorporated Alumni Associations
            for any purpose except, when appropriate, by action of
            the Board of Regents after approval by the Attorney
            General's Office.  Funds or gifts payable to the Regents,
            the UMS, one of its constituent Institutions, or to any
            other UMS component shall not be deposited with an
            Incorporated Alumni Association.
 
       Q.   Incorporated Alumni Associations may not accept donations
            in the name of the UMS, or an Institution, or an
            Affiliated Foundation.  However, an Incorporated Alumni
            Association may raise funds in its own name and in turn
            donate them to the UMS, an Institution or an Affiliated
            Foundation.
 
       R.   Acceptance of gifts from an Incorporated Alumni
            Association is subject to applicable UMS policies on
            gifts.  Fund-raising campaigns and solicitations of major
            gifts for the benefit of the UMS shall not normally be
            carried out by an Incorporated Alumni Association in
            concert with an Affiliated Foundation or an internal
            endowment, unless all gifts received are donated to the
            Affiliated Foundation or the UMS.  Any and all such
            solicitations shall be approved in advance by appropriate
            UMS and Affiliated Foundation officials and should be
            compatible with the plans and needs of the UMS.
 
       S.   Financial activities of an Incorporated Alumni
            Association shall be administered in accordance with
            prudent business practices.  Financial commitments and
            expenditures by an Incorporated Alumni Association shall
            be in accordance with explicit, written policies and with
            budgets approved by the alumni association's governing
            board.  All disbursements by an Incorporated Alumni
            Association shall be in accordance with the written
            operating policies and procedures of the Incorporated
            Alumni Association.
 
       T.   In each year in which an Incorporated Alumni Association
            receives at least $30,000 in revenues, generated by dues,
            interest income and net special events income, each
            Incorporated Alumni Association shall be audited annually
            by an independent certified public accountant who is not
            a director or officer of the alumni association and who
            is approved by the Responsible Official.  For each year
            in which an audit is not required, the Incorporated
            Alumni Association shall submit to the Responsible
            Official its compiled financial statement, including
            balance sheet and income statement.  Each Incorporated
            Alumni Association should conduct its fiscal operations
            to conform to the UMS's fiscal year.  Each alumni
            association shall prepare its annual financial statements
            in accordance with generally accepted accounting
            principles.  The independent audit shall be a full scope
            review, performed in accordance with generally accepted
            auditing standards.  As part of the audit, the auditor
            shall verify a summary annual report of transfers of
            funds made to the UMS.
 
       U.   An Incorporated Alumni Association shall permit the
            Responsible Official or his or her designee to inspect,
            at reasonable times, the following documents:  the alumni
            association's books and records; its most recent federal
            and state tax returns; and a list of employees,
            consultants, and legal counsel for the fiscal year.
 
       V.   Within 180 days after the close of the UMS's fiscal year,
            each Incorporated Alumni Association shall provide the
            Responsible Official with copies of the following:  its
            annual audit report; a list of alumni association
            officers and directors; and an annual report of the
            alumni association's major activities.
 
       W.   The Chancellor may request from the Responsible Official
            information on Incorporated Alumni Associations according
            to the schedule and format specified by the Chancellor.
 
       X.   To ensure compliance with Sections 8(G) and 8(H) of this
            Policy, each year each Incorporated Alumni Association
            shall provide a separate audit of funds held for the use
            of the Chancellor and/or the president(s).
 
       Y.   At the request of the Chancellor or the chairperson of
            the Board of Regents, the Incorporated Alumni Association
            shall permit the internal auditors of the Board of
            Regents access to all books and records concerning funds
            held for the use of any officers of UMS, or any State of
            Maryland funds that may be held by the alumni
            association.
 
       Z.   The Board may revoke its recognition if the alumni
            association fails to comply with this policy or any
            agreement the alumni association may have with the
            Institution, UMS or an Affiliated Foundation.
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