Ratifying the Current Structural Relationship Between the President of the Indiana University Foundation and the President of Indiana University

December 8, 2006

WHEREAS, the Indiana University Foundation was established by the IU Board of Trustees in 1936 as a separate not-for-profit corporation, with the primary purpose of providing for the fund-raising function of the university. The IU Foundation exists for the “exclusive purpose to support and benefit” Indiana University; and

WHEREAS, it is understood the president of the university and the IU Board of Trustees have the sole responsibility for charting the strategic direction of the university; and

WHEREAS, by historical custom and practice (with few exceptions), the president of the university has served as chair of the IU Foundation; and

WHEREAS, the primary duties of the IU Foundation Board of Directors are to provide for the directives/intentions outlined by donors in their gifts made to the university through the IU Foundation, and to provide the fiduciary stewardship of the funds generated from the fund-raising activities; and

WHEREAS, on October 26, 2004, the presidents of the university and the IU Foundation issued a joint memorandum to conclude then-ongoing discussions regarding the relationship between the IU Foundation and the university. In that memorandum they clarified the role of the IUF president as the Chief Development Officer of the university, for every campus and the university as a whole; and

WHEREAS, in 2005, the IU Foundation established an Executive Committee to operate as the coordinating committee for IU Foundation business. The chair of the Executive Committee serves as the vice chair of the IU Foundation. The president of the IU Foundation, in essence, reports to the chair and vice chair of the IU Foundation; and

WHEREAS, in 2006, Indiana University formed a Search Committee to recruit and select a new president of the university; and

WHEREAS, due to the current demands for private fund-raising activities to meet the growing needs of the university, it is important that the relationship between Indiana University and the IU Foundation be as strong, unified, and focused as possible; and

WHEREAS, in order to recruit the best presidential candidates, it is essential that there is unanimity between the IU Foundation and the university in the support for the current structure of the relationship between the IU Foundation president and the president of the university;

NOW, THEREFORE, BE IT RESOLVED, that the Trustees of Indiana University convey to the President of Indiana University and the Board of Directors of the IU Foundation that that we do support the current structure of the relationship of the IU Foundation president and the president of the university.

Unanimously approved on a motion duly made and seconded.