South Carolina Code of Regulations › Chapter 62 - STATE COMMISSION ON HIGHER EDUCATION › Article VII - SOUTH CAROLINA ACADEMIC ENDOWMENT INCENTIVE ACT OF 1997/SOUTH CAROLINA HIGHER EDUCATION MATCHING GIFT FUND › Section 62-835 - Definitions

Current through Register Vol. 48, No. 6, June 28, 2024
A. 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.