§ 21-16-1104 — Endowment challenge fund matching program; matching payments; agreements with foundations; annual reports

(a) To the extent funds are available in the separate
account of any community college within the endowment challenge
fund, the state treasurer shall match endowment gifts actually
received by that community college's foundation. Except as
provided in subsection (k) of this section, a match shall be
paid under this subsection by the state treasurer at the time
any accumulated amounts actually received by a community college
foundation total ten thousand dollars ($10,000.00) or more.
Matching funds shall only be available for expenditure to the
extent cash or cash equivalent contributions are actually
received by the community college. Endowment gifts actually
received by a community college foundation may also be
accumulated until such time as state matching funds become
available. The match shall be made by transferring from the
separate challenge fund account to the appropriate community
college an amount equal to the amount accumulated by its
foundation. The recipient community college shall immediately
transfer matching funds received under this subsection to the
community college foundation.
(b) Each community college district shall enter into an
agreement with its foundation under which the foundation shall
manage the matching funds received under subsection (a) of this
section in the same manner as other permanent endowment funds
are managed by its foundation, including the permanent
investment of funds, maintenance of the fund corpus as inviolate
and the expenditure of fund earnings for endowment purposes
only.
(c) Earnings from endowment funds established with
matching funds under this section shall be expended only for the
purpose of the endowment, including increasing the balance in
the fund corpus and reasonable costs of administration.
(d) Except as provided in subsection (k) of this section,
to the extent funds are available to the separate account of any
community college, the state treasurer shall make transfers to
the appropriate community college under this section not later
than the end of the calendar quarter following the quarter
during which foundation gifts total at least ten thousand
dollars ($10,000.00). Prior to the receipt of any substantial
endowment gift, the donor shall be notified by the foundation
that there may or may not be any state matching funds available
for the gift. If funds are not available for any community
college account, the amount of gifts to that foundation may be
accumulated until such time as matching funds become available.
Except as provided in subsection (k) of this section, if gifts
are made through a series of payments or transfers, no matching
funds shall be transferred under this section until the total
value of all payments or transfers actually received totals at
least ten thousand dollars ($10,000.00).
(e) Except as provided under subsection (f) of this
section, matching funds paid under this section shall not be
distributed to or encumbered by any community college foundation
in excess of the amount in the challenge fund account for that
college. Except to the extent authorized under subsection (f) of
this section, matching funds shall not be transferred to any
community college by the state treasurer except to match gifts
actually received by its foundation.
(f) Notwithstanding subsection (e) of this section,
matching funds may be distributed to or encumbered by a
community college foundation in excess of the amount within the
challenge fund account of that college if:
(i) Endowment gifts for that college exceed the
amount within its challenge fund account;
(ii) The college enters into a written agreement with
another college having unencumbered amounts remaining within its
challenge fund account;
(iii) The college with unencumbered amounts within
its account agrees to transfer any portion of its unencumbered
amount to that college;
(iv) Matching funds transferred by the state
treasurer for amounts transferred between colleges pursuant to
this subsection shall be divided equally between the colleges
participating in the agreement.
(g) If the president of any community college determines
that the purpose of an endowment gift to the community college's
foundation is not consistent with the mission or capability of
that college, the gift shall not qualify for matching funds
under this section.
(h) For the purpose of computing the matching amount, the
state treasurer shall use the value of an endowment gift based
upon its fair market value at the time the gift is received by
the community college foundation. The community college shall
provide evidence of fair market value for any gift if requested
by the state treasurer and shall fund the cost of providing any
requested evidence.
(j) Each community college shall on or before October 1 of
each year submit a report from its foundation to the state
treasurer and the community college commission on the endowment
matching program under this section for the preceding fiscal
year. The report shall include a financial summary and a review
of the accomplishments resulting from endowment program
expenditures.
(k) To the extent funds are available in the separate
account of any community college within the endowment challenge
fund, the state treasurer shall distribute matching funds not to
exceed five thousand dollars ($5,000.00) for each fallen heroes
endowment as follows:
(i) Two thousand dollars ($2,000.00) for the first
one thousand dollars ($1,000.00) actually received in a fallen
heroes endowment; and
(ii) Three thousand dollars ($3,000.00) for an
additional one thousand dollars ($1,000.00) actually received in
a fallen heroes endowment, excluding any funds deposited in a
fallen heroes endowment pursuant to this paragraph.
(m) Nothing in this section obligates the legislature to
match accumulated endowment gifts authorized under this section.
The legislature reserves the right to modify or terminate the
matching program at any time.