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.