Md. Code Regs. 24.05.22.06

Current through Register Vol. 51, No. 24, December 2, 2024

Section 24.05.22.06 - Distributions - Documentation Required

A. A nonprofit institution of higher education seeking a distribution of matching funds from the Fund first shall obtain qualified donations in an amount equal to or greater than the amount of matching funds requested for distribution and shall submit a request to the Authority on such form as designated by the Authority from time to time that includes:

(1) The amount requested for distribution to the nonprofit institution of higher education;

(2) The amount of all previous distributions of matching funds from the Fund;

(3) The total amount of matching funds allocated to the nonprofit institution of higher education by the Authority for the fiscal year;

(4) The amount of qualified donations designated for use in requesting the distribution of matching funds from the Fund;

(5) A certification by the nonprofit institution of higher education that the information provided to the Authority in the approved research endowment plan remains true and correct as of the date of the distribution request and that the nonprofit institution of higher education does not anticipate any changes to that information; and

(6) Confirmation that the nonprofit institution of higher education's qualified donation has been deposited by providing the following documents:

(a) The validated deposit ticket showing the account number associated with the approved research endowment plan, canceled checks, and gift receipts;

(b) Bank statements, investment statements, canceled checks, and gift receipts; or

(c) Wire transfer documentation, gift receipts, and bank statements.

B. If the nonprofit institution of higher education is not able to provide the certification required by §A(5) of this regulation, the nonprofit institution of higher education shall submit an amendment to the approved research endowment plan pursuant to Regulation .05F of this chapter.

C. In addition to the written request for distribution, the nonprofit institution of higher education shall submit documentation for the qualified donations including:

(1) A cover letter that transmits the documentation and information required by §§A - C of this regulation;

(2) For a qualified donation that includes cash and cash equivalents or marketable securities that has already been received by the nonprofit institution of higher education, a deposit ticket or gift receipt and any designation identified by the donor;

(3) For a qualified donation that includes marketable securities, evidence in a form satisfactory to the Authority that the marketable securities are not subject to a lock-up agreement or other restriction on transfer that would prohibit or otherwise restrict the ability of the nonprofit institution of higher education to sell or otherwise dispose of the marketable securities;

(4) For a qualified donation that includes a bequest, evidence in a form satisfactory to the Authority that includes but is not limited to the will, trust agreement, or other documents evidencing the bequest;

(5) For a qualified donation that includes an unrestricted gift or bequest, or a portion of an unrestricted gift or bequest, a designation made in writing by the nonprofit institution of higher education and submitted with the request;

(6) Complete contact information for a technical manager or responsible institutional contact such as a dean, academic officer, or research director, who shall oversee the implementation or supervision of the activity, program, or individual sponsored by the endowed funds; and

(7) Complete contact information for a financial manager or compliance officer who shall be responsible for all associated financial statements or reports relating to the endowed funds or expenditures of proceeds.

D. State matching funds distributed to a nonprofit institution of higher education are to be invested in the same manner as other institutional endowment funds of the nonprofit institution of higher education.

Md. Code Regs. 24.05.22.06

Regulation .06 adopted effective 42:12 Md. R. 763, eff.6/22/2015; amended effective 51:17 Md. R. 778, eff. 9/2/2024.