12.5 Cooperative Organizations
Refer to Section 17.0, Affiliated Organizations, of the Business Procedures Manual for more information on cooperative organizations.
An organization is a cooperative organization if it:
Is organized or operated primarily
- for the purpose of soliciting gifts or assisting a USG institution in soliciting gifts from third persons in the name of the USG institution or any of the institution’s programs; or,
- for soliciting grants and contracts or accepting grants or entering into contracts for research or services to be performed by or in conjunction with a USG institution or using the institution’s facilities; or,
Bills or collects professional fees in the name of or in behalf of faculty members of a USG institution who provide professional services within the scope of their employment by the institution; or,
Includes officials, faculty, staff, or employees of a USG institution as ex officio members of the organization’s board of directors or other governing structure; or,
Is formally designated as a cooperative organization by the Board of Regents or by the president of the relevant USG institution, and of those formally designated, certain cooperative organizations will be required to follow the Regents’ Guiding Principles for Cooperative Organizations. The Board of Regents and the president will determine the cooperative organizations that must follow the Guiding Principles.
(BoR Minutes, June 2004)
12.5.2 Relationship Between Cooperative Organizations and USG Institutions
A relationship, whether formal or informal, between a USG institution and a cooperative organization may be maintained only if:
- The relationship between the cooperative organization and the USG institution is in the best interest of the USG institution as determined by the Board of Regents and the president of the institution in consultation with the Chancellor (BoR Minutes, June 2004); and,
- The financial records of the cooperative organization, including any audits, are available for inspection by the president of the USG institution or the president’s designee; and,
- Any use by the cooperative organization of the name of the USG institution, or of a symbol or trademark of the USG institution, is approved in advance by the president of the USG institution or the president’s designee; and,
- The cooperative organization annually presents evidence satisfactory to the president of the USG institution or the president’s designee that the cooperative organization is adequately capitalized for any activities undertaken in the name of, for the benefit of, or in conjunction with the USG institution; and,
- The cooperative organization annually presents evidence satisfactory to the president of the USG institution or the president’s designee of insurance or self-insurance adequate in form and amounts to cover foreseeable liability arising from activities undertaken in the name of, for the benefit of, or in conjunction with the USG institution; and,
- There is a written general agreement or memorandum of understanding between the USG institution and the cooperative organization describing each party’s responsibilities so that it is clear to third parties dealing with the cooperative organization that the organization is acting as a legal entity separate from the USG institution; and,
- Actions of the USG institution’s officials, faculty, staff, or employees pursuant to the relationship are consistent with policies established by the Board of Regents and the USG institution regarding conflicts of interest, outside activities, and other matters (BoR Minutes 1988-89, pp. 150-151); and
- Not less than every two years, the president of the institution documents that he or she has reviewed the relationship between the institution and the cooperative organization and that all provisions of this policy are met to the president’s satisfaction. (BoR Minutes, Aug. 2014).