For any entity organized separately from the institution and formed primarily for the purpose of supporting the institution or its programs,

1. the legal authority and operating control of the institution is clearly defined with respect to that entity;
2. the relationship of that entity to the institution and the extent of any liability arising out of that relationship is clearly described in a formal, written manner; and
3. the institution demonstrates that (a) the chief executive officer controls any fund-raising activities of that entity or (b) the fund-raising activities of that entity are defined in a formal, written manner which assures that those activities further the mission of the institution.

JUDGMENT: Compliant

STATEMENT OF RATIONALE FOR JUDGMENT OF COMPLIANCE

The SWTJC Foundation is an entity organized separately from Southwest Texas Junior College and was formed primarily for the purpose of supporting SWTJC and its programs.  The Foundation Board members are also the members of the SWTJC Board of Trustees.  Legal authority and operating control of the Foundation are clearly defined in its Memorandum of Understanding agreement with the College. The SWTJC Foundation was initially founded as an entity to provide facilities outside of the college district taxing area.  State statutes had prohibited the institution from acquiring facilities outside the taxing district.  Though the years the state legislatures changed the law allowing college districts to acquire/build facilities outside the taxing district.  However, the Foundation purchased and built facilities in Del Rio and Eagle Pass and lease them to the College.

Evidence

SWTJC Foundation Articles
SWTJC Foundation Memorandum of Understanding
SWTJC Ground Lease Agreement