Comprehensive Standards:  Institutional Mission, Governance, and Effectiveness 3.2.13
An institution-related foundation, not controlled by the institution, has a contractual or other formal agreement that (a) accurately describes the relationship between the institution and the foundation, and (b) describes any liability associated with that relationship.  In all cases, the institution ensures that the relationship is consistent with its mission.

Compliance
North Carolina State University is in compliance with this standard.

Explanation
Thirteen foundations, separately incorporated and external to the university, exist to raise funds for or support NC State University activities.  Each of these entities has a charter or bylaws describing the relationship of the foundation to the university.  Following is a list of these entities with links to these agreements. 

• NC Agricultural Foundation, Inc.
• NC Engineering Foundation, Inc.
• NC Forestry Foundation, Inc.
• NCSU Foundation, Inc.
• NC State Investment Fund, Inc.
• NCSU Physical and Mathematical Sciences Foundation, Inc.
• Pulp and Paper Foundation, Inc.
• NC Tobacco Foundation, Inc.
• NC Veterinary Medicine Foundation, Inc.
• NCSU Alumni Association, Inc.
• NCSU Student Aid Association, Inc.
• N. C. State Partnership Corporation
• N. C. Textile Foundation, Inc.

The NC State Partnership Corporation has a subsidiary, NC State University Conference Center, LLC, whose mission will be to construct, develop, and operate a hotel and conference center on campus.  The Student Aid Association also has a limited liability subsidiary, the Wolfpack Club Student Housing Foundation, LLC, for ownership of a student housing project.

Several mechanisms protect the university from risks and liability and ensure that the activities of these foundations help NC State University as it pursues its mission.

First, any entity wanting to receive administrative support from the university or use the university’s name in fundraising must sign an agreement annually acknowledging and agreeing to abide by the provisions of the university’s coordination of fundraising activities policy.  This policy requires Board of Trustees approval of all fundraising projects, regular updates of long-range fund-raising plans, and coordination of fundraising with other foundations through the university.  The vice chancellor for university advancement is charged with establishing and implementing procedures for entering into these agreements.  In this way, the vice chancellor for university advancement is authorized to oversee all fundraising activities of the foundations to ensure cooperation for the university’s benefit.

Second, the university assures that foundations conduct their affairs consistent with the university’s purposes by utilizing university employees to handle the accounting and fundraising for all but two (Textiles Foundation and Student Aid Association) of the foundations.  This subjects these employees to the same oversight and policies as any other university employee. The N. C. Textiles Foundation, Inc. and the NCSU Student Aid Association, Inc. have their own employees.

The university has a written agreement with the NCSU Student Aid Association, Inc., that clarifies and documents the relationship between the two entities.  Also, the NCAA certification process provides for additional oversight for the university.

Finally, for all but two foundations (N. C. Textiles Foundation, Inc. and the NCSU Student Aid Association, Inc.), the university maintains additional control through two senior university officials—the vice chancellor for Finance and Business and the university treasurer—who act as treasurer and assistant treasurer of the foundations.

References

• NC State University’s coordination of fundraising activities policy (http://www.ncsu.edu/policies/alumni_dev/POL03.00.1.php)

• NC Agricultural Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_ag.pdf)

• NC Engineering Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_engr.pdf)

• NC Forestry Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_forestry.pdf)

• NC State Investment Fund, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_invest.pdf)

• N. C. State Partnership Corporation (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_partnership.pdf)

• N. C. Textile Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_textiles.pdf)

• NC Tobacco Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_tobac.pdf)

• NC Veterinary Medicine Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_vet.pdf)

• NCSU Alumni Association, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_alumni.pdf)

• NCSU Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_ncsufnd.pdf)

• NCSU Physical and Mathematical Sciences Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_pams.pdf)

• NCSU Student Aid Association, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_stu_aid.pdf)

• Pulp and Paper Foundation, Inc. (http://www2.acs.ncsu.edu/UPA/auth/compliance/standards/aoi_ppulp.pdf)

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