5.0 Expenditure Request

5.1 Each request for an expenditure of Foundation account funds must be submitted on a Minnesota State University Mankato Foundation disbursement voucher with all of the appropriate signatures (department chair and/or college dean as defined by your department guidelines). The request shall state and describe, in detail, the payee, amount and purpose for each disbursement. The appropriate documents, such as invoices and receipts, must accompany the voucher.

5.2 Departments and programs are encouraged to note that the activity or event is sponsored by donations to the Minnesota State University Mankato Foundation.

5.3 Expenses not listed below require prior authorization from the office of Advancement Services. (6.0 Permissible and Impermissible Expenditure Policy)

5.4 Expenses incurred without prior authorization are the responsibility of the person(s) incurring the expense. Foundation fund donations can be used at any time but are subject to the following restrictions:

5.4.1 Must benefit the University in a way that supports its mission

5.4.2 Must fall within the donor’s intent for the gift

6.0 Permissible and Impermissible Expenditure Policy

Within the parameters established by the above-stated general principles, the prudent judgment of University officers charged with the responsibility of administering discretionary funds will determine the allowable range of expenditures. The underlying criteria for the use of all gift monies remain (a) the University must benefit in a manner that fits its mission and (b) the use must fall within the donor’s intent.

6.1 The following are examples of permissible and impermissible expenditures:

6.1.1 Summary: Discretionary funds may be expended for all purposes for which public funds may be expended. This includes all University “common expenditure objects” (i.e., salaries, wages, stipends, benefits, goods and services, travel, computing, equipment, scholarships, assistantships, awards, grants, telephone).

6.1.2 The following purchases are reimbursable (permissible) under this policy:

6.1.2.1 ordinary, reasonable, and necessary business expenses incurred in the conduct of the program for which the fund was officially sponsored;

6.1.2.2 social/cultivation activities that are documented with a “contact report” listing nonUniversity guests in attendance (including reimbursement for alcoholic beverage purchases);

6.1.2.3 hosting officially sponsored business functions such as advisory board lunches;

6.1.2.4 banquet liquor permits;

6.1.2.5 catering and beverage expenses for University events;

6.1.2.6 payment of prospective employees’ spouses’ travel when approved in advance by the appropriate vice president or dean;

6.1.2.7 payment of admission charges to social or business events at which attendance is required or recommended as part of an employee’s official duties;

6.1.2.8 authorized awards approved by the President and given to University employees on behalf of the entire University community in recognition of meritorious service, etc.

6.1.2.9 payment of sponsorship fees or other admission costs for other charitable organizations, where the President of the University determines it is important for university-wide public relations and community good will to have the University represented;

6.1.2.10 For food and beverage purchases for activities involving only faculty, staff and students: Limit of $200. The purchase order should be signed by the responsible person on the account. Purchases can be made for any activity that fits the underlying criteria described above.

6.1.2.11 Any purchase of alcohol for University events requires prior approval from the President’s Office (roster of attendees is to accompany Prior Authorization Form).

6.1.2.12 Plaques or other appropriate items to faculty and staff in recognition of outstanding achievement, retirement or distinguished service are reimbursable, but cannot exceed $75.00 per person.

6.1.3 The following purchases are not reimbursable (impermissible) under this policy:

6.1.3.1 Cash gifts and gift certificates for faculty and staff

6.1.3.2 Alcoholic beverages are not included as a reimbursable expense item when attending working retreats.

6.1.3.3 When an expense reimbursement has been paid from one source, such as an M&E account or activity account, another claim cannot be filed against a Foundation account to reimburse the portion that is over and above the maximum rates allowed by the established labor agreement or compensation plan.

6.1.3.4 Discretionary funds may not be used for expenses of a personal nature. Examples of such expenses include cash gifts to University staff; payment of spouse’s travel, meals, lodging, or other expenses when accompanying University employee, unless spouse’s attendance has been determined to be necessary in the conduct of the University’s business and has been approved in advance by the appropriate vice president or dean; expenses for which there is no documentation.

6.1.3.5 Expense reimbursement to University Employees for non-cultivation events may not exceed the maximum amounts allowable under the employee’s bargaining unit agreement or to Non-State Employees according to the Non-Managerial Unrepresented Employees Plan (217).

6.1.3.6 Discretionary funds may not be used for individuals to participate in, or provide funds for, any political campaign (including the publication or distribution of statements) on behalf of any candidate for public office.

6.1.3.7 Discretionary funds may not be used for support of other nonprofit or charitable groups unless the support is structured as from the University as a whole and where the President of the University has determined that the organization or event is important for University-wide public and community relations.

6.1.4 Cash or cash

Equivalent

awards

(gift cards,

vouchers) to students must be awarded through the Financial Aid process.

6.1.5 Expenses Requiring Prior Authorization.

6.1.5.1 Authorization for all events involving alcohol requires submitting a Prior Authorization Form to the President and/or his/her designee a minimum of three (3)days prior to the event. A description of the event, the vendor’s name(s) and a list of specific items to be purchased from the vendor must be attached. A list of the participants, the estimated cost per participant and the overall estimated cost of the event must be stated. All costs related to the event must be listed.

6.1.5.2 Expenses incurred without prior authorization are the responsibility of the person(s) incurring the expense.

7.0 Bereavement Flowers Procedure

7.1 The Foundation will send flowers on behalf of the Foundation/University upon the passing of:

7.1.1 A member of the Purple & Gold Society (lifetime giving)

7.1.2 Legacy Society (planned giving)

7.1.3 Current/former MSU Foundation Board member (or partner/spouse).

7.2 Other requests will be considered for approval by the University President.

7.3 The use of Foundation funds for the purchase of all other flower arrangements, excepting 7.1 and 7.2 is prohibited.

7.4 If the member lived within 100 miles of Mankato, the local florist who won the bid for floral services will manage the flowers using a pre-determined Maverick arrangement. If the member lived beyond 100 miles a similar flower arrangement will be sent using a national flower service.

7.5 The ordering of flowers will be coordinated by the Director of Stewardship and Foundation Relations, in connection with the Office of the President.

7.6 The Director of Stewardship and Foundation Relations will manage the relationship with the local florist including any RFP process, and all payment arrangements.

Article Iii

Ethics and Accountability

Article 3-3.1 Mission Statement of Minnesota State University Mankato Foundation

Mission

To enhance the University’s ability to achieve its mission by encouraging and stewarding sustained philanthropic support from alumni and friends.

Title Accessing Database Information Version 1

Committee

Recommending: Governance and Membership Committee Approval Date 4.10.2020

Approved By Full Board Approval Date 5.13.2022

Governance and Membership Committee

Article 3-3.2 Conflict of Interest Policy and Conflict of Interest Disclosure Form

1.0 Purpose

The purpose of this conflict of interest policy is to establish the procedures applicable to the identification and resolution of conflicts of interest in the context of transactions or arrangements entered into by the Minnesota State University Mankato Foundation (hereafter, Foundation) where an Interested Person (defined below) may have a Financial Interest (defined below) in or Fiduciary Responsibility (as defined below) towards an individual or entity with which the Foundation is negotiating a transaction or arrangement. The determination that a conflict of interest exists does not prohibit the Foundation from entering into the proposed transaction or arrangement provided that the procedures set forth in Article III below are followed. This policy is intended to supplement but not replace any applicable state laws governing conflicts of interest applicable to nonprofit and charitable corporations.

2.0 Definitions

2.1 Interested Person

Any director, principal officer, or member of a committee with board-delegated powers who has either (a) a direct or indirect financial interest, as defined below (“Financial Interest”); or (b) a fiduciary responsibility to another organization, as defined below (“Fiduciary Responsibility”), is an interested person.

2.2 Financial Interest

A person has a Financial Interest if the person has, directly or indirectly, through business, investment or family (which are spouse, children and stepchildren, and other relatives living with such person):

2.2.1 an ownership or investment interest in any entity with which the Foundation has a transaction or arrangement (including but not limited to grants); or

2.2.2 a compensation arrangement with the Foundation or with any entity or individual with which the Foundation has a transaction or arrangement (including but not limited to grants);

2.2.3 a potential ownership or investment interest in, or compensation arrangement with, any entity or individual with which the Foundation is negotiating a transaction or arrangement (including but not limited to grants); or

2.2.4 other than an arm's-length relationship with prospective or actual grantees relative to the design of specific projects, preparation of specific proposals and review and oversight of funded projects, and the Foundation related activities.

Compensation includes direct and indirect remuneration as well as gifts or favors that are substantial in nature. Gifts and favors include any gratuitous service, loan, discount, money or article of value, but does not include loans from financial institutional on customary terms, articles of nominal value ordinarily used for sales promotion, ordinary "business lunches" or reasonable entertainment consistent with local social or business customs.

A Financial Interest is not necessarily a conflict of interest. Under Article III, Section 2, a person who has a Financial Interest may have a conflict of interest only if the board or appropriate committee decides that a conflict of interest exists.

3.0 Fiduciary Responsibility

A person has a Fiduciary Responsibility towards an organization or individual if he or she:

3.1 occupies a position of special confidence towards such organization or individual;

3.2 holds in trust property in which another person has the beneficial title of interest, or who receives and controls the income of another; or

3.3 has a duty of loyalty or duty of care to an organization (by virtue of serving as an officer or director of an organization or other position with similar responsibilities). A duty of loyalty requires the person to refrain from dealing with the Foundation on behalf of a party having an interest adverse to the Foundation and refrain from competing with the Foundation. A duty of care requires the person to discharge his or her duties in good faith and in a manner he or she reasonably believes to be in the best interests of the Foundation.

A Fiduciary Responsibility is not necessarily a conflict of interest. Under Section 4, Part 2, a person who has a Fiduciary Responsibility may have a conflict of interest only if the board or appropriate committee decides that a conflict of interest exists.

4.0 Procedures

4.1 Duty to Disclose

In connection with any actual or possible conflicts of interest, an interested person must disclose the existence and nature of his or her Financial Interest or Fiduciary Responsibility and all material facts to the managers and members of committees with board-delegated powers considering the proposed transaction or arrangements.

4.2 Determining Whether a Conflict of Interest Exists

After disclosure of the Financial Interest or Fiduciary Responsibility and all material facts, and after any discussion with the interested person, he or she shall leave the board or committee meeting while the final determination of a conflict of interest is discussed and voted upon. The remaining board or committee members shall decide if a conflict of interest exists.

4.3 Procedures for Addressing the Conflict of Interest

An interested person may make a factual presentation at the board or committee meeting, but after such presentation, he or she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in the conflict of interest. An interested person shall not actively participate in the discussion of, or vote on, the transaction or arrangement that results in the conflict of interest, either formally at a board or committee meeting or informally through contact with individual board or committee members. In addition, the interested person should not be counted in determining whether a quorum is present for the board or committee meeting at which the transaction or arrangement that results in the conflict of interest is to be voted upon.

4.3.1 The chair of the board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.

4.3.2 After exercising due diligence, the board or committee shall determine whether the Foundation can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest.

4.3.3 If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the board or committee shall determine by a majority vote (or other voting requirement, as provided in the operating agreement) of the disinterested managers whether the transaction or arrangement is in the Foundation’s best interest and for its own benefit and whether the transaction is fair and reasonable to the Foundation and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination.

5.0 Violations of the Conflicts of Interest Policy

5.1 If the board or committee has reasonable cause to believe that a director has failed to disclose actual or possible conflicts of interest, it shall inform the director of the basis for such belief and afford the director an opportunity to explain the alleged failure to disclose.

5.2 If, after hearing the response of the director and making such further investigation as may be warranted in the circumstances, the board or committee determines that the director has in fact failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective actions.

6.0 Records of Proceedings

The minutes of the board and all committees with board-delegated powers shall contain:

6.1 the names of the persons who disclosed or otherwise were found to have a Financial Interest or a Fiduciary Responsibility in connection with an actual or possible conflict of interest, the nature of the Financial Interest or Fiduciary Responsibility, any action taken to determine whether a conflict of interest was present, and the board’s or committee’s decision as to whether a conflict of interest in fact existed.

6.2 the names of the persons who were present for discussions and votes relating to the transaction or arrangement, the names of the persons who recused themselves from such discussion and votes, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection therewith.

7.0 Annual Statements

Each director, principal officer, and member of a committee with board-delegated powers annually shall sign an acknowledgement and disclosure form that:

7.1 Affirms that such person has received and reviewed a copy of the conflict of interest policy and agreed to comply with its terms;

7.2 Requires that such person disclose any Financial Interest in or Fiduciary Responsibility towards any entity such person believes may enter into a proposed transaction with the Foundation in the upcoming year.

8.0 Periodic Reviews

To ensure that the Foundation operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:

8.1 Whether any grants are made to disqualified persons, or otherwise result in an excess benefit transaction.

8.2 Whether arrangements with other organizations conform to the Foundation’s applicable written policies, are properly recorded, reflect reasonable payments for goods and services, if any, further the Foundation’s charitable purposes and do not result in inurement or impermissible private benefit.

9.0 Use of Outside Experts

In conducting the periodic reviews provided for in Section 8, the Foundation may, but need not, use outside experts. If outside experts are used, their use shall not relieve the board of its responsibility for ensuring that periodic reviews are conducted.