Signatory Authority Policy

Who may sign

Rationale

The Indiana University Alumni Association, Inc. (IUAA) is a 501©3 not for profit corporation. Alumni Communities (alumni chapters, constituent societies, and affiliate groups) are under the legal umbrella of IUAA, Inc. and not Indiana University. Since IUAA is the legal entity and fiscally responsible for all these groups, it is sound business practice for IUAA to be involved in any significant contracts/agreements which are entered by any of IUAA’s groups or by IUAA. Proper IUAA authority must be exhibited for the protection of IUAA, Inc. The Board of Managers of IUAA, Inc. delegates its authority to IUAA staff and key volunteers. They are defined as the paid professional staff of IUAA, school/campus alumni liaisons, or volunteers in officer positions with chartered alumni communities (alumni chapters, constituent societies, and affiliate groups).

Policy

Contracts/agreements

All significant contracts/agreements must be submitted to the CEO (or his/her delegate) of IUAA for review and execution. A significant contract is defined as any contract that would have any one of the following elements:

  • is not within the normal routine of IUAA business or approved budget,
  • has a potential fiscal liability in excess of $25,000,
  • generates yearly revenue in excess of $25,000,
  • is for more than one year.
  • would involve the contractual sale of any IUAA’s property both real and intangible.

IUAA staff are allowed to enter into agreements that are part of the normal course of IUAA business within their approved operational budget area. Volunteer leaders are allowed to enter into contract/agreements so long as the contract/agreement doesn’t have any of the above listed element(s) nor is of greater value than the net worth of the alumni group.

Contract/agreements that change the focus of IUAA strategy, are in excess of $50,000 in value, or commit the IUAA to a multi-year arrangement must go to the Board of Managers.

Banking accounts

Signature authority for IUAA corporate accounts will be the CEO, the Executive Director of Finance, and the Senior Executive Director. The Indianapolis corporate account in addition to the above signers also will have the IUPUI Executive Director as an additional signer. Checks of $20,000 or more or manually written checks must have two signatures.

Signature authority for alumni chapter accounts will be at least one local officer and the Executive Director of Finance for IUAA.

Investment accounts

Signature authority for IUAA investment accounts will be the CEO and the Executive Director of Finance. This would include the accounts at the IU Foundation. IUF policy requires two signatures for any withdrawals.

Transfer of funds

Transfers between bank and investment accounts (including ACH’s) in excess of $20,000 must have a second authorization.

Date of last update

This policy was last updated October 31, 2017