Foundation FAQs

Frequently Asked Questions

• What is the relationship between the university and the foundation?

  Since 1966, the university and the foundation have established a partnership, secured by a Memorandum of Understanding (MOU), which stipulates that the foundation will manage endowment funds and assist with private fundraising on behalf of the university. The MOU details the two organizations’ mutual goals and objectives, as well as the financial arrangements agreed upon to accomplish such goals. 

  This is a long-standing common practice at Millersville University and most other major public universities. It is also fully consistent with Pennsylvania statutes governing the proper University-Foundation relationship. 

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• How is the foundation structured?

  The foundation has a board of directors that includes alumni, friends, retirees and students from the Millersville University community. The University President, Vice President for Advancement and Vice President for Finance and Administration serve as ex officio members. The board has four nonvoting faculty members representing one of the four academic colleges at Millersville. The president of the Millersville University Alumni Association is also an ex officio member.

  Board members are elected for three-year terms and serve on the committee on directors, investment committee, spending committee and audit committee. Student directors serve for terms pursuant to their time as a student, Marauder Fund CEO, or for a two-year term. 

  The Foundation Board of Directors executes its fiduciary responsibilities under the strictest of guidelines. They understand the need for transparent and ethical dealings in all matters so as not to jeopardize our status as a 501(c)(3) nonprofit organization. Many also happen to be University alumni and major donors to the Foundation. Board membership is public.

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• What is the difference between restricted and unrestricted gifts?

  The vast majority of gifts the foundation receives are designated for specific purposes at the university. Restricted gifts are gifts given by donors with the intent to support a particular scholarship, faculty or program fund. The foundation has a fiduciary responsibility to comply with donor intentions with respect to the charitable gifts it accepts and may not expend funds in a manner inconsistent with the terms of the gift provided by the donor. It cannot appropriate any of these restricted funds for the operating expenses of the foundation, for example, or for any other purpose not in keeping with the specific provisions laid out by the donors when making their contributions. 

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• What are the reasons for a separate foundation?

  As separate tax-exempt corporations, institutionally related foundations can perform many functions more effectively than state offices. The Council for Advancement and Support of Education (CASE) has articulated reasons why public colleges and universities establish institutionally related foundations:

  • Provide a means of clearly separating state and private funds. Many donors prefer to make a gift to a private rather than a state entity. In this way, they can be assured that their gift will be invested profitably, distributed for the intended purposes, and not become confused with state appropriations or other funds.
  • Can invest beyond the low-risk, low-return strategies often mandated by states, thereby increasing the opportunity for greater investment return and, consequently, the revenue available to the primary institution.
  • Are not subject to regulations governing the sale or purchase of real property by the State and can perform these and other business transactions in a competitive and expeditious manner.
  • Can develop for-profit subsidiaries such as research parks or real estate foundations that contribute to the mission and resources of the college or university while shielding the primary institution from the risks associated with such investments.
  • Donors often feel more secure making a major gift to a foundation governed by individuals with extensive legal, business, and financial management skills. Foundation boards can operate in a businesslike manner and provide an engaging role for powerful and successful individuals who want to advance an institution.
  • Foundations can also serve to safeguard the privacy of donors who may not want the details of their personal finances to become a matter of public record.
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• What is the level of public disclosure?

  The Foundation's financial dealings are subject to public disclosure in the following ways:
  
  The Memorandum of Understanding between the university and the foundation is signed by the president of the university and the president of the foundation board of directors. It is then sent to the chancellor's office for his approval and that of the Attorney General's Office.
  By law, the foundation must retain an independent certified public accountant to perform a full audit of the foundation's books and accounts. 

  The foundation is required by federal law to file a newly expanded annual Form 990, in the same manner as numerous other public charities across the country.

  The foundation's independent auditors conduct audits of foundation expenditures to test for compliance with donor intent.

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