1. The term "affiliated foundation" as used herein shall mean any entity formed for the purpose of raising money to be spent for the benefit of USNH, one of its component institutions, or any division or department thereof.
2. The University System of New Hampshire Board of Trustees neither encourages nor discourages the formation or continuation of affiliated foundations.
3. The USNH Board of Trustees shall retain the ultimate control over the activities of any affiliated foundation including the raising, investing, and disbursing of funds.
4. The USNH Board of Trustees shall have the legal authority to terminate the existence of any affiliated foundation. The assets of any such terminated foundation shall become the property of the institution with which the foundation was affiliated, to be used in accordance with any specific donor restrictions and for the purposes for which the property was given.
5. USNH shall have unimpeded access to the books and records of any affiliated foundation and the right to conduct a full audit of the foundation's financial affairs.
6. The USNH Trustees will ensure that all of the affiliated foundations fulfill their obligation to cooperate among themselves by coordinating their fund raising efforts to most efficiently advance the interests of the University System as a whole.
7. Prior to the commencement of each fiscal year, every affiliated foundation shall establish fund raising and disbursement goals and budgets. Those goals and budgets shall be subject to the approval of the USNH Board of Trustees.
8. An affiliated foundation may expend money only for purposes which have been approved by the USNH Board of Trustees.
9. An affiliated foundation shall not accept any gifts with terms or conditions which violate any law or policy of the USNH Board of Trustees, except for those policies relating solely to the financial advisability of accepting a gift. The investment practices and policies of an affiliated foundation shall conform to, and be in accord with, the policies adopted by the USNH Board of Trustees.
10. The USNH Board of Trustees may require an affiliated foundation to have as voting members of its board of directors some minimum number (for example, three) of USNH Trustees. The Chairman of the USNH Board of Trustees shall appoint those members. At least one of the USNH members appointed by the Chairman shall serve on the executive committee of the foundation's board of directors.
11. Voting membership on the board of directors of an affiliated foundation shall be for a specific term (not to exceed five years) or ex officio. In no case shall such voting membership be permanent. An affiliated foundation's policies and practices shall provide for and encourage regular and beneficial turnover in the voting membership of the foundation's board of directors.
12. The USNH Board of Trustees may require an affiliated foundation to adopt personnel policies and employee salary and benefit schedules identical to those in effect for some, or all, classes of USNH employees.
13. The USNH Board shall retain the right to review and approve the adoption of, and any amendment to, the articles of incorporation, charter, partnership agreement, bylaws or any documents which provide for the establishment and structure of an affiliated foundation.
14. USNH and its component institutions shall not accept any gifts, loans, donations, disbursements, or any other thing of value from any affiliated foundation which does not conform to the standards set forth herein. Any such nonconforming foundation shall be prohibited from using the name, seal, and any other word, phrase, or symbol associated with USNH, its component institutions, or any departments or divisions thereof.