Alumni Associations Guidelines
July 01, 2003
This policy item applies to:
The alumni associations of the State University of New York (University) campuses serve as the liaison between the campus (or faculty/school) and its alumni in order to foster and maintain close and mutually beneficial ties. The alumni associations:
It is understood that as of the effective date of these guidelines, an alumni association may currently be structured or engaged in activities that would be inconsistent with the letter of the guidelines. In such cases, this entity may maintain its current structure or continue providing such services, following a case-by-case review by the campus president and the chancellor or designee. If such variances to these University-wide guidelines are to continue, appropriate provisions must be included in the contract executed between the campus and the alumni association.
Alumni activities under these guidelines must be organized and conducted under one of two alternative structures, at the option of the campus president. Any exceptions to this structure would require the campus president’s written approval in consultation with the chancellor or designee:
1. A campus’s alumni association(s) may be a non-profit corporation organized and existing under the laws of the State of New York, tax-exempt under §501(c)(3) of the Internal Revenue Code (IRC), and classified as a “supporting organization” to the campus under §509(a)(3) of the IRC. If there are multiple alumni associations on campus (e.g., associations for different colleges or schools), each should be similarly incorporated. No members of the campus council may serve on the board of the alumni association(s).
2. Alternatively, a campus may choose to conduct and finance the alumni affairs program under the auspices and financial and operational oversight of its development office. Under this latter structure, (a) an advisory panel(s) representing the alumni constituencies on campus may be constituted to support alumni affairs of the campus, and (b) the campus will maintain books and records of such program, subject to audit.
A formal contract, terminable in whole or in part with 45 days written notice given by the University, extending for a term of no more than 10 years (and subject to the review and approval of the chancellor or designee and external state agencies when required), must be executed between the campus and each alumni association, including an umbrella association, authorizing it to operate on campus, and enumerating its activities and providing for the sharing of and access to alumni information. Each activity category authorized to the alumni association would be identified in the contract, with written contract amendments required for new activities.
If the campus has elected a separately incorporated alumni association to carry out the bulk of its alumni activities, the campus president or designee and the campus development officer should be ex officio voting members of the board of directors of such non-profit corporation.
Each incorporated alumni association must prepare an annual financial statement in conformity with generally accepted accounting principles and have an audit conducted by a certified public accounting firm or sole practitioner (independent auditor) in accordance with generally accepted auditing standards. To enable the University to include pertinent information in its annual financial statements, the audit must be completed within 90 days after the close of the alumni association’s fiscal year. The independent auditor may be appointed for no more than a five-year term, after which each alumni association must resolicit these services through a competitive procurement process. No certified public accounting firm or sole practitioner can serve as the independent auditor for more than two consecutive five-year terms, after which the firm or sole practitioner is not eligible to serve again as the independent auditor until not less than a three-year intervening period has elapsed. The books and records, financial condition, operating results and program activities of the alumni association would also be subject to periodic audit by the office of the University auditor. The alumni associations may also be subject to audits by outside regulatory bodies to the extent allowed by law. All audit reports from whatever source, including the certified (consolidated) financial statements and management letter of the alumni associations must be transmitted to the offices of the campus president and the vice chancellor for finance and business and University auditor for review and acceptance.
Provisions in the articles of incorporation and other organizing documents of the alumni association must provide that the net assets of the organization shall be distributed to the campus or other campus-approved entity organized for similar purposes in the event that it is dissolved. Dissolutions and dispositions are subject to all applicable laws, regulations and restrictions and unless otherwise stated, the net assets revert to the campus or campus approved organization.
There are no definitions relevant to this policy.
There is no related information relevant to this policy.
There are no procedures relevant to this policy.
There are no forms relevant to this policy.
NYS Education Law §355(2)(i) (Powers and duties of trustees – administrative and fiscal functions).
Internal Revenue Code §501(c)(3) (Exemption from tax on corporations).
Internal Revenue Code §509(a)(3) (Tax exempt organizations).
There is no history relevant to this policy.