| Any institution-related foundation not controlled by the institution has a contractual or other formal agreement that (1) accurately describes the relationship between the institution and the foundation and (2) describes any liability associated with that relationship. In all cases, the institution ensures that the relationship is consistent with its mission. (Institution-related foundations) |
Judgment of Compliance
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Narrative
Sam Houston State University has only one foundation - The Sam Houston Foundation (SHF). It is not controlled by the institution; it is controlled by a board of five trustees, none of whom are SHSU employees. These trustees are appointed and affirmed by The Texas State University System (TSUS) Board of Regents [1]. The Foundation's financial condition as of 12/31/07 is documented on the SHF Income Statement and Balance Sheet [2] [3].
The Foundation was formed on April 17, 1967 and is still in operation today [4]. On July 31, 1967, it was declared a 501 (c) (3) organization by the Internal Revenue Service (IRS) [5]. On September 16, 1971, the IRS declared the SHF a 509(a) (3) organization [6].
The purpose of the SHF was and is to accept, receive, manage, operate, control, administer, and invest real, personal or mixed property, given, granted, donated, or bequeathed for the benefit of Sam Houston State College (which was later renamed Sam Houston State University), for educational purposes, student loan and scholarship funds, or any other trust or specified purpose [4]. These purposes of the trust are consistent with the mission of SHSU [7].
The trust document itself demonstrates that there is a formal agreement that accurately describes the relationship between the institution and the foundation. Section 2 of the document describes the liability of trustees [4]. In addition, the University has no liability in its relationship with the foundation.