Okla. Admin. Code § 610:20-1-3

Current through Vol. 42, No. 4, November 1, 2024

Section 610:20-1-3 - Establishment and operation of endowment accounts

(a)Principal. The principal held in the Regents' Endowment Fund shall be used for the establishment of and allocated to endowment accounts within the Regents' Endowment Fund for the benefit of public institutions of higher education within the State of Oklahoma.

(b)Investment return.

(1) The investment return on the principal of the Regents' Endowment Fund shall be allocated for the benefit of individual institutions for which the accounts are respectively designated and shall be remitted to such institution for the support of endowed chairs and professorships approved by the State Regents, together with other activities approved by the State Regents to improve the quality of instruction and/or research at State System institutions.

(2) The investment income approved by the State Regents for distribution to an institution shall be deposited in the institution's operating revolving fund (Fund 290).

(3) Any investment income not designated for remittance to an institution shall become part of the principal of the Endowment Fund.

(c)Account levels. The levels indicated for each category are the amounts of private donations required to establish an account. The private donation will be matched dollar for dollar with public monies for those private donations $250,000 or less and at 25 cents of public monies for every private dollar received at $250,001 and above.

(1) Endowed chair accounts may be established at the comprehensive universities with a minimum private donation of $500,000; at other institutions, the minimum required is $250,000.

(2) At the comprehensive universities, professorship accounts may be established with a minimum private donation of $250,000. At other institutions, professorships may be established with a minimum private donation of $125,000. Thus, when fully funded with both private and public matching monies, professorships at comprehensive universities will be endowed with a minimum of $500,000 and professorships at other institutions will be endowed with a minimum of $250,000.

(3) Lectureships, artist-in-residence, and similar accounts may be established with a minimum private donation of $25,000 only at regional and special purpose universities and two-year colleges. Thus, when fully funded with both private and public matching monies, said accounts will be endowed with a minimum of $50,000.

(4) To be initially eligible for an endowment account within the Regents' Endowment Fund, an institution must request an account and must have on deposit as provided in (f) of this Section an amount equal to at least one-half (50%) of the requested account with a written commitment that the balance will be contributed within a thirty-six (36) month period.

(d)Time limitations. The total matching requirements shall be equal to the amount of the requested endowment account in each instance and shall be deposited within a period of thirty-six (36) months from the date of approval of the account by the State Regents. Provided, an institution may deposit in an endowment account matching funds in an amount which exceeds the required matching amount. Any endowment account for which the institution fails to provide the full matching amount within the time established shall be available to be awarded to another public institution of higher education. No investment return shall be remitted to any institution from an endowment account before the institution has deposited the total required match for the endowment account as provided in (f) of this Section.

(e)Private sources of matching monies. Funds that an institution provides for matching purposes must originate from monies contributed to the institution after July 1, 1988 from private sources specifically designated by the donor to be used for purposes specified in this program. Monies provided for matching purposes may not be drawn from regularly allocated funds from the Oklahoma State Regents for Higher Education, proceeds of fees or charges authorized by the State Regents for Higher Education, or from federal grants or reimbursements. In instances where the qualifications of all or a portion of the amount of matching monies are questionable, the institution shall request express approval of the State Regents to apply that amount toward the matching requirement. Monies for matching purposes may be contributed to and retained by a foundation for which the sole beneficiary is the respective institution. The foundation must demonstrate that the funds are being held on behalf of the institution as outlined in (f) of this Section; provided, monies contributed by a foundation whose sole beneficiary is an institution may qualify as private matching monies only if the monies are transferred from the foundation to the State Regents for deposit in the State Regents' Endowment Fund. Private matching monies contributed by the foundation may not be retained in that foundation, but must be deposited in the State Regents' Endowment Fund.

(f)Deposit of private matching monies.

(1) Any institution that receives matching monies shall deposit the matching funds to one of the following:

(A) The State Regents' Endowment Fund

(B) The institution's endowment matching fund

(C) A fund of a foundation whose sole beneficiary is that institution.

(2) If such matching monies are not deposited in the Regents' Endowment Fund, the net investment return on matching monies shall be retained in the fund.

(g)Ownership of private matching monies. Ownership of private matching monies transferred by an institution to the State Regents' Endowment Fund for investment shall remain with the institution. Upon request, the monies may be returned to the institution for deposit in item (f) (2) of this Section.

Okla. Admin. Code § 610:20-1-3

Amended at 11 Ok Reg 1485, eff 3-24-94 (emergency); Amended at 12 Ok Reg 1475, eff 5-25-95; Amended at 27 Ok Reg 1276, eff 5-27-10