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IUF and IU Contract

Between the Trustees of Indiana University and Indiana University Foundation

This Agreement, effective as of July 1, 1989, between THE TRUSTEES OF INDIANA UNIVERSITY (“University”) and INDIANA UNIVERSITY FOUNDATION (“Foundation”) is designed to govern the relationship between the parties and the terms and conditions under which the Foundation provides certain services to or on behalf of the University.

Whereas, University is a statutory body politic and corporate of the State of Indiana charged to own and manage Indiana University, the state university of Indiana. Its power and duty includes “to possess all the real and personal property of such university for its benefit;…to expend income of the university for its benefit” (I.C. 20-12-23-2) and “to cooperate with other institutions to the end of better assuring the availability and utilization of its total resources and opportunities to provide excellent educational opportunity for all persons” (I.C. 20-12-23-2). Among its other necessary expenses are those incurred to secure support for scholarships, augment the quality of its faculty, conduct research, perform public service, and to secure the support of individual and corporate donors who will help fund other needs; and,

WHEREAS, Foundation is organized as a foundation under the laws of the State of Indiana as a not-for-profit institution for the sole purpose of supporting University by all means at its disposal and with a special emphasis on soliciting public support for University from national and international sources beyond the State of Indiana, as well as within, and to manage and invest the securities, monies and real and personal property it receives from such sources, and to expend its income (beyond that required to cover its costs of operation) to and for the benefit of University; and,

WHEREAS, in fulfilling its sole purpose, and not for pecuniary gain or profit, Foundation is organized to promote educational and charitable activities, to receive, hold, manage, use, and dispose of properties of all kinds, whether given absolutely or in trust, or by way of agency or otherwise, for the benefit of the University; more specifically, to finance research work and educational programs, to hold and exploit patents and copyrights, to subsidize publications, to found and establish fellowships, and to endow scholarships, to supplement all of the services that University should render to society; and,

WHEREAS, the Foundation has provided these services to University since its incorporation in 1936 and the University has compensated the Foundation in various ways, the most recent of which is through an agreement called the “Master Contract” which is dated July 1, 1971; and,

WHEREAS, the University desires the Foundation to continue to provide and even expand the development and other services it provides to the University and the Foundation is willing to do so.

NOW, THEREFORE, the parties agree as follows:

  • The Foundation will provide to and for the benefit of University development services including but not limited to fund-raising programs for individuals, corporations and foundation, associations and others; administration of gifts, gift funds, and trusts; stewardship and donor relations programs; and other services which may be requested by the University from time to time.
  • The Foundation may also serve as the contracting organization or grantee for certain grants or contracts with external funding sources as mutually agreed between the parties from time to time.
  • As compensation for such services the University agrees to pay the Foundation a sum that is determined annually. It is understood that this amount does not fully fund the costs of the services provided but is paid to supplement any other funds available to the Foundation for its operating purposes.
  • It is anticipated that the Foundation will provide development services to the University indefinitely, and that this agreement will be automatically renewed on an annual basis. However, the service fee paid by the University shall be negotiated on an annual basis.
  • Either party may terminate this agreement by giving six month notice to the other of its intention to terminate.
  • The service fee referred to in this agreement is expected to compensate Foundation for the services described in paragraph 1 above. When additional services are requested by University, the Foundation and University agree to negotiate separate arrangements for such services.
  • The Master Contract dated July 1, 1971, as amended and supplemented, as well as all interim agreements covering the general scope of services covered hereby, are hereby terminated.

Agreed to as of this 15th day of July, 1989

THE TRUSTEES OF INDIANA UNIVERSITY

INDIANA UNIVERSITY FOUNDATION