Policy

Original Issuance Date: January 25, 2019
Last Revision Date: May 29, 2019

1. Policy Purpose

The purpose of this policy is to establish standards that help ensure relationships between System, UW institutions and Primary Fundraising Foundations and Other Affiliated Organizations, including primary and real estate foundations, are productive, efficient, and beneficial to the UW System or a UW institution.

2. Responsible UW System Officer

Vice President for Finance

3. Scope

This policy applies to all Primary Fundraising and Affiliated Organizations that receive administrative support from the UW System or a UW institution.

4. Background

Primary Fundraising Foundations and Affiliated Organizations provide tangible and intangible value to the UW System and UW institutions, such as financial support and external relationships. They promote the UW System and UW institutions to varied audiences including alumni, community members, prospective students, current students, faculty, and staff, and sponsor activities that enhance the reputation and standing of the institutions.

However, UW System and UW institutions shall ensure that Primary Fundraising Foundations and Other Affiliated Organizations that receive administrative support do so in a manner consistent with the UW System’s or a UW institution’s mission and policies.

5. Definitions

Administrative Support: The personnel, facilities, or other monetary or material resources of UW System or a UW institution provided to a Primary Fundraising Foundations or Other Affiliated Organizations without direct and full reimbursement.

Other Affiliated Organization: An entity that is legally distinct from the University but is organized and operated for the benefit and in support of the University and/or conducts activities that advance the mission of the University. Unless otherwise expressly authorized by the Board of Regents, affiliated organizations must hold a valid tax-exempt organization and corporate status under federal and applicable state law.  The definition of affiliated organizations for this exercise excludes the following:

  • University-recognized student, faculty, or staff groups or organizations
  • Advisory councils established under the auspices and direction of an academic or administrative official for the benefit of the unit
  • Other state agencies or statutorily-created entities, such as the UW Hospitals and Clinics Authority
  • Research sponsors
  • Donors
  • Licensees that do not otherwise have affiliate status
  • University auxiliary enterprises
  • Commercial contractors and vendors
  • Consultants
  • Lessors and lessees
  • Labor unions
  • Individuals, such as University retirees and alumni
  • Institutions with which the University has programmatic affiliation agreements designed principally for student clinical program placements or scholar exchanges
  • Subsidiaries of primary University foundations (covered under the 501(c)3 status of that primary foundation)

Primary Fundraising Foundations: Any entity subject to Regent Policy 21-9, Institutional Relationships with Foundations.

6. Policy Statement

On an annual basis, the UW System or institution shall provide an accounting of administrative support when the total administrative support provided to the Primary Fundraising Foundations or Other Affiliated Organization is valued at $100,000 or greater.  This accounting shall include a comparison of administrative support provided and benefits received from the Primary Fundraising Foundation or Other Affiliated Organization, in a format developed by and submitted to the Vice President for Finance by March 31st following the end of a fiscal year. UW System Administration will annually provide a summary of reported administrative support and benefits received to the Board of Regents.

For Primary Fundraising Foundation, the UW System or institution shall enter into a memorandum of understanding (MOU) with the Primary Fundraising Foundation, in accordance with Regent Policy Document 21-9. For Other Affiliated Organizations, if the Other Affiliated Organization receives annual administrative support valued at $100,000 or greater in a calendar year, the System or UW institution must also have a written agreement with that entity within 6 months of that entity being identified by the UW System or UW institution as an Other Affiliated Organization that must report under this policy.

7. Related Documents

Regent Policy Document 21-9, Institutional Relationships with Foundations
Foundation and Other Affiliated Organization Cost-Benefit Report  xlsx

8. Policy History

Revision 1: May 29, 2019
First Approved: January 25, 2019

9. Scheduled Review

May 2024