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Policy and Procedure ManualChapter 270, Properties Use and Extracurricular Activities Responsible Department: University
Relations This section describes the policy and procedures for volunteer groups to be recognized as UCD Support Groups and the standards to which they must adhere. A. UCD Support Group--any group, organization, foundation, or association, other than the Cal Aggie Alumni Association or the UC Davis Foundation, (1) whose primary purpose is to provide assistance through fund raising, public outreach, and other support for the University's mission, or (2) whose representatives or activities make the entity indistinguishable from the University itself, or (3) that acts as an agent or intermediary for the University. Support groups must be affiliated with and endorsed by a UCD department, college/school, or administrative unit to raise gift funds or provide public support for the teaching, research, patient care, and public service programs of the University. Each support group shall be organized and operated so that contributions to it or through it to The Regents or the UC Davis Foundation shall be deemed tax-deductible contributions under relevant provisions of State and Federal tax law. B. UC Davis Foundation -a nonprofit, public benefit corporation established to receive, manage, and administer gifts, bequests, and trusts on behalf of UCD and to foster involvement of private citizens who wish to further the excellence of UCD through philanthropic support. The UC Davis Foundation, as the single designated campus foundation, is the only entity permitted by The Regents of the University of California to hold funds for investment purposes for the campus it supports. A. UCD Support Groups, whose purposes are to provide voluntary assistance to the campus or one of its units in the furtherance of the University mission, are encouraged as long as their operation and activities are a benefit to the campus and are conducted in accordance with University policies. B. As a public trust and the beneficiary of the funds raised, the University is obligated to require that the funds raised by support groups be adequately controlled and properly expended in the same manner as if the funds were raised by the University itself. C. Support groups must request and receive official and continued recognition from the Chancellor subject to the terms of this policy. 1. A request for recognition will be denied when an organization does not meet the required terms of recognition described in IV.A, below, or when the Chancellor determines that an organization does not serve the best interests of the University. 2. A group that is not officially recognized or loses recognition through failure to comply with this policy is prohibited from representing itself as raising funds or otherwise providing support on behalf of UCD or any unit thereof, or using the name of the University of California or UC Davis either expressly or by implication in connection with such activities. D. Support groups will be established as unincorporated organizations with a volunteer board that carries out fund raising or other activities through The Regents or the UC Davis Foundation, utilizing the financial and administrative requirements of The Regents or the UC Davis Foundation. E. The assets of each support group must be irrevocably dedicated for the benefit of UC Davis. In the event of a support group's dissolution, its assets must be transferred to The Regents or the UC Davis Foundation for purposes consistent with the terms of the individual gifts and the purposes of the support group. A. Procedures The Associate Vice Chancellor -University Relations is responsible for coordination of the UCD Support Group recognition process. Organizations or groups requesting recognition shall submit the following to the Associate Vice Chancellor -University Relations: 1. A current list of officers, board of directors (if any), and principal contact person. 2. A statement of the organization's purpose, goals, and enabling documents (i.e., bylaws, constitution, articles of incorporation, or other governing documents). If the group has previously applied for and been denied recognition, changes to these statements and documents since the last application shall be included. 3. A signed statement by the officers/representatives stating that the board of directors (or governing body) has read and formally voted that it will comply with this policy and all other applicable University policies. 4. A written statement of concurrence by the dean, vice chancellor, or UCDMC Director whose unit will be the recipient of the organization's support. The withdrawal of this endorsement at any time may be cause for revocation of recognition. 5. A list of the organization's planned activities (including fund raising and membership drives) and financial support for these activities. 6. A current roster of names and addresses of donors and amounts of contributions, and members upon the request of the Chancellor (or designee). 7. A signed statement by the officers/representatives stating that the organization's cash-handling practices are in conformance with UC policy. (See Administrative Guidelines for Support Groups, Appendix I.) 8. If applicable, a copy of the organization's most recent IRS Form 990 and annual financial statements (tax-exempt organizations only). B. Annual renewal A support group may maintain its recognized status by complying with the provisions of this policy and submitting annually (by October 1) to the Associate Vice Chancellor -University Relations the following: 1. All documents listed under IV.A, above. 2. If applicable, a list of external bank accounts approved by the Chancellor for support group use; including financial institution name and address, account number(s), associated taxpayer ID number, and statement authorizing designate University personnel to receive account information and records; and monthly account statements for the fiscal year. 3. A report of the activities of the organization during the preceding fiscal year (July 1-June 30). 4. A financial report for the preceding fiscal year. 5. Any changes to the support group's structure, purpose, goals, or enabling documents (i.e., bylaws, constitution, articles of incorporation, or other governing document). 6. A statement listing University resources and percentage of staff time that will be needed by the support group. C. Privileges Officially recognized support groups are granted the following privileges: 1. Use of the name of the University of California, Davis, or an abbreviation thereof, as part of the organization's name, with the approval of the Chancellor. (See Section 310-65.) 2. Access to reservable University properties in accord with Section 270-20. 3. Use of the campus mail. 4. Use of Dateline UC Davis and UCDMC Update, on a space available basis, for announcements relating to the organization. 5. Right to post and exhibit materials on campus in accord with Sections 310-25 or 310-27. 6. Fund-raising activities, with approval of the Chancellor. (See Section 260-20.) 7. Use of University service departments, through the organization's unit affiliation. 8. Staff and operational support, through the unit affiliation. 9. Financial services from Accounting & Financial Services, through the unit affiliation and with appropriate approvals. 10. Funding allocations, through the unit affiliation. D. Revocation of recognition 1. If a support group does not comply with this policy, the Chancellor (or designee) shall by written notice require the support group to comply within a designated time period or have its recognition as a support group revoked. In the event a support group fails to comply within the specified time period, the Chancellor may take all necessary actions to revoke the support group's official recognition. 2. Upon revocation of recognition, the assets of the support group shall be transferred to The Regents or the UC Davis Foundation, as designated by the Chancellor (or designee) for purposes consistent with the terms of individual gifts and purposes of the support group. In the event the support group fails within 3 months to transfer its assets, General Counsel shall take legal action as may be necessary to compel the transfer. 3. Once official recognition has been revoked, the support group may no longer use the University's name, facilities, equipment, support staff, or other resources. If the support group fails to cease these activities, General Counsel shall take such legal actions as may be necessary. A. Organization 1. Each support group's operations shall be conducted and managed by its governing body, as set forth in its statement of purpose, goals, or enabling documents. These documents shall include the following clauses: a. The Chancellor (or designee) and the head (or designee) of the sponsoring department are ex officio voting members of the governing body. b. In the event of dissolution, or if a support group elects to become a nonrecognized organization, its assets shall be transferred within 3 months to The Regents or the UC Davis Foundation, as designated by the Chancellor for purposes consistent with the terms of the individual gifts and purposes of the support group. c. The Treasurer, University Auditor, and UCD Internal Audit shall be authorized to receive from any financial institution with whom the support group maintains accounts any information, records, or photocopies of transactions related to the accounts that the University may at any time request from the financial institution. d. The Chancellor (or designee) may request to review all records and documents of the support group at any time. 2. A support group shall operate as an unincorporated organization that instructs all donors to make charitable donations directly to The Regents or the UC Davis Foundation solely for the benefit of the University programs/departments for which the funds are donated. A tax-exempt organization incorporated prior to April 1996 may receive official recognition when the following conditions are met: a. The group is recognized as a tax-exempt entity under State and Federal income tax law so that contributions made to it will be tax-deductible, charitable contributions. b. The organization is responsible for properly issuing receipts to donors and acknowledging charitable gifts as stipulated by applicable tax law and/or services provided to the donors in connection with their gifts. c. The group maintains liability and other insurance as necessary in an amount appropriate to the organization's activities. 3. A support group shall not directly or indirectly employ or supplement the salary of, or provide any consultant fees, loans, or perquisites to, any University employees outside of the established University personnel policies and practices. A support group may establish a gift fund with The Regents from which University employees may receive payments, initiated by the campus department, in accordance with University personnel policies and practices. B. Activities 1. Courses, lectures, and seminars Support groups may not offer continuing education courses, but may assist in the administration of continuing education courses sponsored by academic departments when financial transactions are handled through University accounts. General interest lectures or seminars may be held. 2. Research projects Contracts, grants, clinical trials, or specific research projects funded by external sponsors must be entered into directly by the University and the research sponsor, and not through a support group. Gifts designated for a specific research project or a specific researcher, or otherwise intended to support research activities, may be made only to The Regents or the UC Davis Foundation and must conform to applicable University policies and procedures, thus enabling the University to comply with the State of California Political Reform Act, which requires disclosure by a faculty member of any financial interest in the donor. A support group may not be used as a vehicle to avoid these requirements. (See Section 230-01.) 3. Endowments Endowments may be held only by The Regents or the UC Davis Foundation. Therefore, a support group may not hold and invest endowment funds for the benefit of the University, The Regents, or the UC Davis Foundation. Unincorporated support groups can accept endowments only in the name of The Regents or the UC Davis Foundation. The terms of all endowments must be reviewed with the Chancellor (or designee) prior to formal acceptance. 4. Fund raising a. Only officially recognized support groups may conduct fundraising activities in support of the University's mission. b. Fund-raising activities must be conducted in accord with Section 260-20. c. Fund-raising campaigns or solicitations for the benefit of the University shall be approved in advance by the Chancellor, the UC Davis Foundation, the President, or The Regents, as appropriate under University and campus policies. d. All fund-raising activities of a UCD Support Group, including membership fees and solicitations, shall be coordinated with the appropriate unit/office and the Associate Vice Chancellor -University Relations. e. Gift funds received by a tax-exempt support group that are intended to benefit the University or a specific department or program must be transferred to The Regents or to the UC Davis Foundation. 1) Funds must be transferred at least quarterly, or at any time the gift account balance exceeds $100,000. 2) Gifts for an endowment must be transferred within five working days. 3) The transfer shall be accompanied by a transmittal letter attesting to the donor's explicit intentions along with the original gift correspondence from the donor. The support group shall retain a copy. f. A support group shall not attach any additional terms, conditions, restrictions, reporting requirements, intellectual property rights, or other conditions to a gift without prior written approval of the Chancellor. g. A support group shall not engage fundraising consultants or personnel without the approval of the Chancellor and the support group governing board. If approval is granted, the full cost of such fees shall be borne by the support group. h. The University and/or UC Davis Foundation retain the authority to accept or reject gifts and transfers of funds from support groups. 5. Gift solicitations a. Donors must be advised that restrictive terms attached to gifts designated for the benefit of the University are subject to University approval. The University and the UC Davis Foundation retain the authority to accept or reject gifts and transfers of funds from support groups. Support groups may not attach additional terms, restrictions, reporting requirements, intellectual property rights, or other conditions to a gift without prior written approval of the Chancellor. b. Support groups shall instruct donors to make gifts directly to the University, payable to The Regents or the UC Davis Foundation. c. Gifts made payable to The Regents shall be deposited directly into the appropriate gift account and reported on the general ledger. Gifts made payable to the UC Davis Foundation shall be deposited directly into the foundation bank account and recorded in the financials. Gift funds shall not be deposited into a separate support group bank account. d. Support groups shall not solicit or accept planned gifts (e.g., gifts of trust or life insurance). All planned gifts must be given directly to The Regents or the UC Davis Foundation. 1) Support groups may accept bequests only if they immediately notify the General Counsel upon receipt of initial notice of the bequest. 2) Bequest distributions for endowments must be transferred to The Regents or the UC Davis Foundation within five working days. 3) Bequests that are to be a qualified charitable contribution may be received only by The Regents, the UC Davis Foundation, or a tax-exempt organization. e. Support groups may not solicit or accept deferred gifts (i.e., estates, bequests, trusts, life insurance, real tangible property). f. Donors must be advised of administrative costs or gift fees charged to gifts or income either by a support group or as a result of UCD policy. 1) A support group may not charge gift processing fees or other charges against its gifts except as documented and approved in writing in advance by the Chancellor (or designee). 2) If charges against restricted gifts or income there from are to be made for costs of administering a gift to the support group, the support group shall include in its literature a statement to that effect. 6. Advocacy A support group is prohibited from participating in any political campaign on behalf of any candidate for public office. However, advocacy on behalf of the University is permitted if it is consistent with the legislative, budgetary, and electoral objectives of the University, if it is performed in conjunction with the University, and if the support group receives formal written approval from the Chancellor. Under these conditions, a support group may attempt to influence legislation on behalf of the University, provided that it is not a substantial part of the support group's activities. C. Financial administration 1. The financial activities of a support group shall be administered in accordance with prudent business practices and generally accepted accounting principles. 2. Support groups shall operate on a fiscal-year basis commencing each July 1 and ending each June 30. 3. Support groups shall provide an accounting record for each fundraising campaign, including revenues, expenses, and net income, to the Chancellor. 4. Business transactions involving a support group and the personal or business affairs of any support group trustee, director, officer, staff member, or volunteer shall be approved in advance by the governing board. The Chancellor must be notified in writing when such an occurrence transpires. Additionally, trustees, directors, officers, staff members, and volunteers of a support group shall disqualify themselves from making, participating in making, or in any way attempting to use their official positions to influence a decision in which they have or would have a financial interest. 5. Membership dues a. A support group may recruit members and collect dues for the financial administration of the organization. 1) Membership dues that are not gifts must be deposited into a Regents' agency account or departmental account, unless written permission is obtained from the Chancellor to maintain a bank account. 2) Only payments relating to administrative costs such as office supplies, stationery, membership mailings, or group-sponsored events may be expended. b. Non-gift membership dues assessed by a support group are limited to a reasonable amount per individual per year. The amount of membership dues to be assessed must be submitted annually to the Associate Vice Chancellor -University Relations for approval. 6. Accounts with financial institutions a. With the written approval of the Chancellor (or designee), an unincorporated non-tax-exempt support group may maintain a single bank account that shall not exceed $10,000, solely for non-gift revenue (e.g., membership dues). 1) Income from this account may be expended solely for the benefit of membership (e.g., meetings, social events). 2) Balances in excess of $10,000 shall be transferred as an unrestricted gift to The Regents or the UC Davis Foundation within 20 working days. 3) Monthly account statements shall be forwarded to the campus department of the support group operations when the account balance exceeds $5,000. 4) The Chancellor may approve, in writing, maintenance of accounts in excess of $10,000 when maintained for a specific project. b. Support groups are prohibited from using the tax identification number of the University, UC Davis Foundation, or any other campus entity when opening an account with a financial institution. The Chancellor shall be given, in writing, the tax identification number used by the support group as soon as it is obtained from the IRS. c. Support groups may not borrow funds or otherwise incur indebtedness. d. All checks in excess of $1,000 drawn on external bank accounts require two signatures by members of the support group's governing body. e. Support groups may have current expenditure funds invested in certificates of deposit or other interest-bearing instruments. Support groups may not invest funds as endowments. D. Audit 1. Support groups shall permit the President (or designee, including the University Auditor) and the Chancellor (or designee) to inspect and audit their books and records, as well as those of their financial institutions relating to their accounts, upon request. 2. Support groups shall permit the University Auditor and UCD Internal Audit to review directly all bank account records. 3. Support groups shall maintain a conflict of interest policy no less stringent than that of the University (see Section 380-16). E. Responsibilities 1. The Chancellor is responsible for ensuring that adequate controls and processes are in place to determine that support groups are in compliance with this policy. 2. The Chancellor (or designee) shall notify each recognized support group in writing that compliance with these guidelines and any University policies and campus regulations referenced herein is a condition of continued recognition. 3. The Chancellor shall designate an official of the UCD unit that benefits from the support group to act as a liaison officer and to ensure that the support group is in compliance with this policy, unless the Chancellor designates another UCD entity as having those responsibilities. The department will provide services to the support group in accordance with established policies and procedures. 4. The Chancellor shall forward a support group report for the previous fiscal year to the President by February 15 each year. The report shall include a numerical report and annotated list, including name of group and dues schedule, based on the following categories: a. Entities in compliance or substantial compliance. b. Entities in compliance but operating under exception agreements. c. Entities with compliance pending. d. Entities applying for support group status. e. Entities pending dissolution. f. Entities affiliated under an approved operating agreement. g. Entities moving to an operating agreement. h. Entities requiring support group determination. i. Entities known to be out of compliance. j. Total number of support groups. k. Campus-administered programs. l. Inactive groups that may resume support group activities. 5. The general administrative responsibility for coordination of UCD Support Group activities and for implementation of these policies, except as otherwise provided herein, is a responsibility of the Associate Vice Chancellor--University Relations. Among these administrative responsibilities are: a. To maintain a central file of the enabling documents and amendments thereto, annual statements, and all other requirements related to each UCD Support Group. b. To maintain and publish annually a list of all officially recognized support groups. c. To provide a current list of all officially recognized UCD Support Groups and the individuals authorized to act on behalf of each group to the Campus Events & Visitor Services office to facilitate the group's use of University facilities and services. d. To provide to the Senior Vice President -Business & Finance an annual list of recognized UCD Support Groups and confirm that these organizations are following the appropriate administrative guidelines. e. To maintain a control record, which includes the information listed in IV.B.2, above, of all accounts with financial institutions approved pursuant to this policy and to forward a copy of such control record to the Director of Financial Controls and Accountability, UCOP, by February 15 of each year. F. Exceptions 1. The President may make an exception for a support group that normally would fall under this policy because of a unique situation; however, the Chancellor must recommend such an exception to the President in a letter that identifies the specific exception being requested and explains why the exception is necessary. 2. The Chancellor (or designee) may grant an exception to all or part of this policy for support groups with minimal levels of activity (i.e., whose activities result in gross revenues of less than $10,000 per year). All exceptions must be documented in writing, identify the specific exception, and explain why the exception is necessary. 3. The Chancellor cannot grant an exception that will void or liberalize the requirements for accounts with financial institutions. Further information on UCD Support Groups is available from the Office of the Vice Chancellor -University Relations. A. Office of the President: Policy on Support Groups, Campus Foundations, and Alumni Associations, 9/15/95, amended 9/22/05. B. Office of the President: Administrative Guidelines for Support Groups, 1/9/04. C. UCD Policy and Procedure Manual: 1. Section 260-20, Fund Raising for the University. 2. Section 270-05, Campus Organizations. 3. Section 270-20, Use and Reservation of University Properties and Event Arrangements. 4. Section 310-25, Distribution of Information and Literature. 5. Section 310-27, Posting of Information. 6. Section 310-65, Use of the University’s Name, Seal, and Other Trademarks. Copyright © 2006 The Regents of the
University of California, Davis Campus. All Rights Reserved. |
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