1. Administrative Procedures and Conditions of Acceptance
   
    1.   With the exception of gifts to Athletics, the Alumni Association, and the Annual Fund, the Director of Donor Services and Special Projects shall be responsible for receiving, acknowledging, and distributing to the appropriate department or program all gifts of cash, equipment, material, or property made by private donors or organizations to the university. All such gifts must be channeled through the Office of Donor Services and Special Projects.
   
   2.   Gifts to Athletics, the Alumni Association, and the Annual Fund shall be administered according to the same policies listed in this section, except that the Director of Athletics, the Director of Alumni Relations, and the Director of the Annual Fund, respectively, shall assume the corresponding duties of the Director of Donor Services and Special Projects.
   
   3.   The university shall not accept any gift of cash, equipment, material, or property which carries a donor restriction in violation of university policy or state law.
   
   4.   Gifts of property or funds to the university become the property of the State of Texas at the time of the making of the gift or donation and cannot be returned except 1) to comply with the directions, limitations and provisions declared in writing when the gift or donation is made, or 2) in those instances that are appropriate under surplus property competitive bidding provided by state law.
   
   5.  No gift of equipment, material, or property valued at $5,000 or more may be accepted wtihout the approval of the Administrative Council and the President.  For unconditional gifts of equipment, material, or property valued at less than $5,000, the Vice President for University Advancement and Student Affairs is authorized to accept on behalf of the university.  All requests for such approval should be initiated through the Office of Donor Services and Special Projects. The Office of Donor Services and Special Projects will forward requests to the Vice President for University Advancement and Student Affairs for further action.  Requests should be submitted in writing with the following information:

              a.  Description of item

              b.  Condition and estimated value

              c.  Estimated maintenance costs

              d.  Method of delivery to campus, if applicable

              e.  Name of donor

               f.  Special donor conditions, if applicable

           The Library shall be exempt from this policy for the purpose of accepting gifts of books, magazines, documents, or similar
           resource materials.

      B.  Scholarships and Endowments

            1.  The university may accept and distribute scholarship funds to students selected by individual contributors or donor 
             organizations using their own criteria and selection procedures. However, such funds shall not be considered to be gifts to
             the university and the scholarships awarded therefrom shall not be considered competitive under state law.

             2.  For a scholarship to be considered competitive and for the donated funds to be considered a gift to the university, the 
              university must retain ultimate control of the application and selection process. Donors may establish general guidelines 
              and criteria, but may not designate a specific recipient.

              3.  The university may endow gifts for named scholarships and other purposes, provided such endowments amount to at 
              least ten-thousand dollars ($10,000.00) and the university retains control over the distribution and uses of the endowment
              income within donor guidelines. All endowments must have written agreements specifying the length of the endowment, 
              use of the endowment income, investment policy, and any terms or conditions which might be necessary to meet donor 
              objectives. Such agreements shall have a specified time limit not to exceed one-hundred (100) years and must provide for
              the distribution or use of the corpus or any unused income at the end of the endowment period.

              4.  Donors of scholarships funds may require that individuals from outside the university are represented on university 
              scholarship committees; however, the number of university personnel on such committees must always represent a 
              majority of the voting members.

               5.  Because conditions and circumstances change, persons who establish endowed funds may, from time to time, 
               amend their original agreements, providing such amendments are in writing and do not violate university policy or state 
               law.

     C.  Investment Policy for Gifts and Donations

                1.  The Vice President for Administration and Finance shall be responsible for investing and administering gifts of cash 
                securities after they have been received, recorded, and acknowledged by the Office of Donor Services and Special 
                Projects. Gifts of securities are to be sold as soon as reasonably possible after receipt unless otherwise specified by the
                donor.

                2.  The university shall hold, manage, invest, and reinvest the donated funds, which may be co-mingled with other funds
                for investment purposes only so long as each gift is credited with its proportionated share of income earned. The funds 
                shall always be invested in those investments which are permitted by the Public Funds Investment Act of 1987 (and as 
                such Act may be hereafter amended.

     D.  Monetary Enrichment of Employees by Donors

                 1.  No university employee may receive any part of his contracted university salary directly from a private organization or 
                 donor. All such salaries or salary supplements must be channeled through a university account and must have the 
                 approval of the President.

                  2.  Except for token gifts of appreciation of a non-monetary nature, no university employee may accept special 
                  compensation, monetary or otherwise, from any organization or donor for services performed in his/her role as a state 
                  employee unless approved by the President. This is not intended to exclude competitive cash awards made to faculty or
                  staff in recognition of outstanding performance, nor is it intended to exclude or prohibit university employees from       
                  contracting with outside organizations or donors to perform service on their own time and with their own resources.

      E.  Use of University Employees or Property by Donors

                 1.  No university employee may perform any service for a donor, or promise the use of university property or equipment, 
                 in return for a gift to the university unless such an arrangement conforms to state law and has the prior approval of the 
                 President Requests for approval should be initiated through the Office of Donor Services and Special Projects.

                 2.  No state funds may be expended to support the operations of an organization outside the final control of the 
                 university. University personnel may serve as liaison contacts with such organizations and may provide reasonable 
                 administrative support so long as such support is of direct benefit to the university as determined and approved by the 
                 President.

        F.  Employee Relations with Donor Organizations 
                  Except for organizations whose funds are under control of the university, no university employee may serve as an officer 
              or voting member of the Board of Directors of any organization which exists exclusively for the purpose of supporting 
              Midwestern State University, its students or programs unless approved by the Board of Regents. Social organizations      
              with memberships restricted to current or former employees of the university shall be exempted from this policy.