S.C. Code Regs. § § 62-835
Current through Register Vol. 48, No. 11, November 22, 2024
Section 62-835 - DefinitionsA. Endowments refer to endowment funds as defined under the South Carolina Uniform Management of Institutional Funds Act of 1990 (34-6-10) as an institutional fund, or any part of it, not wholly expendable by the institution on a current basis under the terms of the applicable gift instrument. An institutional fund is defined under the South Carolina Uniform Management of Institutional Funds Act (34-6-10 ) as a fund held by an institution for its exclusive use, benefit, or purposes, but does not include (i) a fund held for an institution by a trustee that is not an institution or (ii) a fund in which a beneficiary that is not an institution has an interest, other than possible rights that could arise upon violation or failure of the purposes of the fund or (iii) funds other than endowment funds held by a governmental organization. A lead trust, term endowments, or quasi-endowments (governing board designated endowments) do not qualify as an endowment for purposes of this program. Only permanent endowments, whose principal must be maintained permanently, are eligible to participate in this program.B. Gift instrument as defined under the South Carolina Uniform Management of Institutional Funds Act of 1990 (34-6-10) means a will, deed, trust, grant, conveyance, agreement, memorandum, writing, or other governing document (including the terms of any institutional solicitations from which an institutional fund resulted) under which property is transferred to or held by an institution as an institutional fund.C. Endowment funds may be constituted of permanent gifts or donations to the qualifying college or university or to its principal foundation of, among others, cash, income producing securities, an income producing business, real property, personal property, fixed assets, mortgage notes, and life income gifts or bequests. Research grants, training grants, and other funds received by the institution in the performance of a contractual obligation do not qualify as endowment funds for purposes of this program.D. Principal foundation means a foundation designated by the Board of Trustees of the qualifying college or university and registered with the South Carolina Secretary of State.E. Endowment earnings refer to the amount which may be appropriated for expenditure from an endowment fund as defined under the South Carolina Uniform Management of Institutional Funds Act (34-6-20), which is so much of the net appreciation, realized and unrealized, in the fair value of the assets of an endowment fund over the historic dollar value of the fund as is prudent.F. Historic dollar value, as defined under the South Carolina Uniform Management of Institutional Funds Act (34-6-10), means the aggregate fair value in dollars of (i) an endowment fund at the time it became an endowment fund, (ii) each subsequent donation to the fund at the time it is made, and (iii) each accumulation made pursuant to a direction in the applicable gift instrument at the time the accumulation is added to the fund.G. Newly created endowments refer to new gifts made to existing or to new endowments on or after July 1, 1997, for the four-year institutions, and on or after July 1, 1998, for the technical colleges. Gifts received or pledged prior to these dates, are not eligible to participate in this program. Gifts must be placed in an endowment for purposes of this program; they become eligible for State matching funds as described below only when a revenue stream is produced. As in the case of a gift of real estate, for example, the real estate must generate a revenue stream through its sale, rental income, etc. in order to be eligible for State matching funds. Similarly, pledges may not be credited toward this program until the gift is in hand and generating revenue through earnings (income) of the endowment fund. A payment made on or after July 1, 1997, on a pledge made prior to July 1, 1997, at the four-year institutions or on or after July 1, 1998, on a pledge made prior to July 1, 1998, for the technical colleges may not be credited toward this program.H. Year means a state fiscal year beginning on the first day of July and ending the following June thirtieth.I. Academic purposes are defined as those activities directly related to (i) the teaching and learning of graduate or undergraduate students enrolled in credit programs, including student support services; (ii) tuition assistance and academic scholarships for such students; and/or (iii) academic scholarship and research conducted by faculty related to their fields of study, including endowed chairs. Endowment disbursements used for support of public service activities that have no teaching or research components are not eligible for matching monies from the State Higher Education Matching Gift Fund. Similarly, disbursements from endowments established to construct athletic facilities, provide athletic scholarships, or support auxiliary enterprises are not eligible for match. However, earnings on endowments established for the construction of academic teaching or academic research facilities or for instructional or academic research equipment are eligible for match from the Gift Fund. Monies from the State Higher Education Matching Gift Fund must be expended on comparable academic purposes as defined above. The Commission on Higher Education shall make the final determination as to what constitutes an Academic purpose.Added by State Register Volume 22, Issue No. 6, Part 3, eff June 26, 1998; Amended by State Register Volume 23, Issue No. 5, eff May 28, 1999.