KCTCS Board of Regents Policies

7.4 Recognition of Independent Foundations

7.4.1 Purpose

The Kentucky Community and Technical College System (KCTCS) Board of Regents hereby establishes this policy as a framework to formally recognize independent 501(c)3 charitable organizations that represent the philanthropic interests of both benefactors and beneficiaries of KCTCS and its member colleges. This ensures a consistent standard of professionalism, ethics, confidentiality, accountability, and donor expectations across the charitable organizations designated with this recognized status.

7.4.2 Scope

This policy applies to any non-KCTCS entity that seeks recognition by KCTCS as a duly organized, official foundation properly affiliated with KCTCS for the purposes of raising private funds and working to enhance programs and services for any institution of the Kentucky Community and Technical College System (KCTCS).

7.4.3 Policy

1. To achieve and maintain recognition by KCTCS as a duly organized, official foundation properly affiliated with KCTCS for the purposes of raising private funds and enhancing programs and services of any KCTCS institution, a non-KCTCS entity must substantially comply with the provisions of this policy and any implementing KCTCS administrative policies.
   
   
2. Though recognized by KCTCS, these foundations remain independent for the purposes of fiduciary governance and to limit undue influence of the philanthropic investments entrusted by the donors of these respective foundations.
   
   
3. Entities that do not comply with the provisions on this policy shall not be recognized by KCTCS or once recognized may forfeit recognition as a duly organized properly affiliated foundation of KCTCS and may be subject to legal process as determined by KCTCS.
   
   
4. Requirements. To be recognized as independent foundations of KCTCS: 
   1. The foundation must first be recognized by the United States Internal Revenue Service (IRS) as a Section 501(c)(3) organization. A copy of the IRS Determination of Tax Status shall be supplied to the applicable college and to the KCTCS administration official primarily responsible for foundations, advancement, and philanthropy.
   2. The Foundation’s Articles of Incorporation shall provide that its primary purpose is to support KCTCS and/or the specific college with which it is associated. The Articles shall also provide that, in the event the Foundation is dissolved, all assets and property will be used in accordance with donor intent and in a manner benefitting KCTCS and/or the particular college with which it is affiliated.
   3. The Foundation’s bylaws must provide that the members of its board shall serve without compensation, but by proper resolution of its board, Foundation board members may be reimbursed for reasonable and necessary expenses paid or incurred in the performance of their duties for the Foundation.
   4. The role of the Foundation’s bylaws, governing board, and committees shall not be inconsistent with applicable KCTCS policies or procedures.
   5. The Foundation must reasonably cooperate with KCTCS and the specific college with which it is associated, as appropriate for an independent foundation.

7.4.4 Procedure

Consistent with this policy, the KCTCS President may administratively recognize or withdraw recognition of a Foundation and promulgate administrative policies and procedures to implement and manage this Board of Regents policy.