The University and the Board of Regents are indebted to volunteer groups and non-profit organizations for their invaluable assistance in fundraising, public outreach and other aspects of support for the University’s mission. As a public trust and as a beneficiary of these fundraising and outreach activities, the University is obligated to assure that the funds raised and the activities conducted on its behalf meet the required legal and fiduciary standards, and exemplify prudent business practices.
This policy applies to Support Groups as defined in Section III below.
This policy does not apply to:
A support group, whose purpose is to provide voluntary assistance to the campus (or one of its units) in the furtherance of the University mission, must be officially recognized by the Chancellor. The campus will recognize and administer each of its support groups consistently in accordance with the best interests of the University. Support groups will organize and govern themselves according to UC policy and guidelines.
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. Therefore, the Chancellor has delegated the Support Group Office, Donor Stewardship – External and Business Affairs, to act as campus liaison to support groups and to ensure compliance with campus and system wide policies and guidelines.
To maintain its officially recognized status, a support group must comply with the provisions of this policy and submit annually to the Support Group Office - External and Business Affairs:
A tax-exempt organization incorporated prior to April 1996 may receive official recognition when the following conditions are met:
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.
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 San Diego 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.
Endowments may be held only by The Regents or the UC San Diego Foundation. Therefore, a support group may not hold and invest endowment funds for the benefit of the University, The Regents, or the UC San Diego Foundation. Unincorporated support groups can accept endowments only in the name of The Regents or the UC San Diego Foundation. The terms of all endowments must be reviewed with the Assistant Vice Chancellor, Advancement Services - External and Business Affairs prior to formal acceptance.
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.
Designated by the Chancellor to serve as liaison to Support Groups and ensure their compliance with campus and systemwide policies and guidelines. Work with development officers, program administrators, department or division heads and other designated personnel to determine any groups affiliation and reporting responsibilities to the University. Prepare draft reports for the Chancellor for required Presidential reporting.
The general administrative responsibility for coordination of UCSD Support Group activities and for implementation of these policies, except as otherwise provided herein, is a responsibility of the Support Group Office, Donor Stewardship, UCSD External and Business Affairs. Among these administrative responsibilities are:
Serve a primary purpose to provide assistance to UC San Diego through fundraising, public outreach, or other support for the University’s mission of teaching, research, student service, patient care, and public service. Conduct business per all applicable UC, UC San Diego, State and Federal policies, guidelines, and laws.
Are responsible to identify any volunteer groups or organizations that are created for the benefit of their department, division, college or program(s). This includes the creation of membership and sponsorship organizations where gifts are given based at a gift level or gift category. All Advisory Boards of a department, division, college or program(s) must be identified.
The Chancellor, through the Support Group Office, 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:
Requests for exceptions to this policy shall be submitted in writing to the Support Group Office. The request will identify the specific exception being sought and why the exception is necessary. The Support Group Office will forward exception requests to the Chancellor for approval. Exceptions that void or liberalize the requirements for accounts with financial institutions are prohibited.
EXHIBIT A PRIVILEGES
Officially recognized support groups are granted the following privileges:
EXHIBIT B Documentation Required for Recognition Application and Renewal
All support groups with accounts maintained by the University or the Campus Foundation shall comply with the HPolicy for Handling Cash and Cash Equivalents (BUS 49)H.
Each support group that maintains an account with any form of financial intermediary (i.e., an account other than a University- or Campus Foundation-managed agency account) shall conform to the following provisions:
1. Maintain written evidence of approval from the Chancellor (or designee) to hold a specific account.
2. Obtain and maintain its own taxpayer identification number.
3. For non-tax-exempt organizations using an outside bank account, establish only a single demand-deposit (i.e., checking) account.
4. For tax-exempt organizations, limit outside bank accounts to two demand-deposit (i.e., checking) accounts at a single financial institution, one exclusively for membership dues transactions, if appropriate; the second for receipt of gifts and non-membership related transactions. Savings, money market or equivalent accounts in the same institution are permissible so long as: (a) the principal is not put at risk (e.g., an account must be insured); and (b) the funds are not invested for a fixed duration that would interfere with meeting the transfer requirements. Gift funds must be transferred to the University or to the Campus Foundation according to the schedule set out in the Administrative Guidelines for Support Groups (Sections IV.A.4 and IV.A.9).
5. Maintain a written record of authorized check signers. Such authorizations shall be approved by the governing board (if any), and any changes to the list of authorized signers shall be made on a timely basis.
6. Assure that bank statements are delivered directly by the bank to an identified individual who is not an authorized check signer or who does not prepare checks for signature, and who is responsible for promptly reconciling the account each month.
7. Assure that the monthly bank reconciliation statement is reviewed on a timely basis by an individual who accepts ultimate responsibility for the organization's funds.
8. Establish written cash receipting and depositing procedures.
9. Require two signatures on all checks in excess of $1,000.
10. Establish a mechanism to recognize in a timely manner when accumulated cash meets the requirement for transfer to the University.