State of the Foundation – Recording & Additional Q&A
Dear Supporters and Stakeholders,
Thank you to everyone who joined us on 2/26 for the State of the Foundation.
During the meeting, Chairman Stephen V. Beatty, Vice Chairwoman Kendra Speed Sellers, and Executive Director Lorne B. Steedley provided an overview of the Foundation’s governance structure, fiduciary oversight, audit and compliance standards, and long-standing commitment to donor protection. Leadership reaffirmed the Foundation’s financial stability, independence as a 501(c)(3), and its 50+ year legacy of stewardship. Updates were also shared regarding the 35th Annual Scholarship Gala & Tribute, direct student impact from scholarship allocations, the current status of the University MOU, and the Foundation’s continued commitment to constructive engagement that advances student success.
For those who were unable to attend, we are providing the full recording of the session here:
State of the Foundation Recording
Enter Passcode: ug8@0+BD
The meeting concluded with a live Q&A. Due to time constraints, we were unable to address every question during the webinar. As promised, below are the remaining questions along with the Foundation’s official responses.
Q: What information legally does the University leadership want from the Foundation that has not been provided, if any?
A: We do not discuss potential legal strategies or confidential governance matters publicly. If concerns arise that implicate regulatory review, those matters would be handled through appropriate legal channels.
Q: How will the separation from the University affect programs — both academic and affinity programs?
A: We do not anticipate any material changes. Our plans remains true to our mission to continue supporting the University, its students, academic and affinity programs.
Q: What is the underlying disagreement between the University and the Foundation? Is it simply a matter of renegotiation?
A: We have received no reply, formal or informal to that question or to several others submitted with legal counsel’s input.
Q: What does the suspension of the MOU mean for the Foundation, its donors, and stakeholders?
A: We do not anticipate any material changes. Our plans remains true to our mission to continue supporting the University, its students, academic and affinity programs.
Q: How can donors and partners be confident in the Foundation’s stewardship during this period?
A: The strongest proof point is our record. For more than 50 years, the Foundation has demonstrated excellence in fiduciary stewardship, governance, and accountability. That commitment is reflected in our adherence to fiduciary responsibilities and reinforced by our recent Four-Star Charity Navigator rating. These are objective measures that speak to the strength and stability of the Foundation.
Q: If the MOU/MOA states that Galas are hosted by request of the President, do you have approval for 2027?
A: The Foundation is an independent organization; the University/Foundation MOU does not include any language that gives the University authority over our actions and activities.
Q: Does this change the Foundation’s relationship with SCSU, its students, or its alumni?
A: No.
Q: Did the University suspend the MOU because of concerns about the Foundation’s conduct?
A: No, the University’s decision to terminate our memorandum of understanding did not contain any information pertaining to an abdication of fiduciary responsibilities.
Q: For new Foundation accounts started within the last 3–6 months, will those accounts remain at the Foundation?
A: Yes, those accounts remain at the Foundation. For additional information, please contact Necy Glover at nglover@scsufoundation.org.
Q: What is the general scope of financial support the Foundation provides to the University?
A: We have 70 students who graduated in December as a result of $290,000+ that came from the net proceeds from the Gala & Tribute. Over $500,000 has been made available directly to students over the past two years from the net proceeds from the gala & tribute.
Q: Why is there unrest between the two parties? Does that mean that you operated above board?
A: The Foundation takes its fiduciary responsibilities seriously and operates in accordance with nonprofit laws and governance standards. For more than 50 years, we have demonstrated a firm and unwavering commitment to the students, Alumni, and the donors of South Carolina State University.
Q: Where are the Foundation’s operating funds obtained?
A: The Foundation’s operating budget is supported through board-approved administrative fees associated with the management and stewardship of charitable funds. These fees cover the costs of compliance, financial oversight, reporting, audit support, and fiduciary administration required to safeguard donor contributions.
The Foundation does not rely on unrestricted gifts or event proceeds to fund its operations. Its administrative structure is designed to ensure responsible stewardship and protection of charitable assets.
Q: What financial reports are available?
A: Financial information is documented in the Foundation’s Annual Report. A copy is available at scsuf-archive.pillarwebdesign.com under “Latest News” on page 2.
Q: Please expound on the financial impact made toward student accounts in December prior to graduation.
A: The Foundation allocated more than $290,000 from Gala & Tribute proceeds to assist 70 students — approximately 35% of the December graduating class — in clearing outstanding balances and completing their degrees. Underscoring its continued commitment to measurable student success outcomes.
Q: Are there any paid board members?
A: No.
Q: What determines where non-designated donations are allocated?
A: When a gift is received without a clear designation, the Foundation, as the legal recipient and steward of the contribution, first seeks clarification from the donor to confirm intent. Donor intent governs the use of all charitable gifts.
If reasonable efforts to obtain clarification are unsuccessful, the Foundation’s Board, exercising its fiduciary responsibility, may allocate the funds in accordance with its mission and board-approved policies.
Q: It was mentioned in this morning’s BoT mtg that there is a request to the Foundation to support the University in the amount of $500k. Will that request be honored and or considered favorably?
A: The Foundation fully supports efforts to advance student success at South Carolina State University. Regarding the current request for $500,000 each for campus security and an additional $500,000 for NIL initiatives, the Foundation’s Board will evaluate the proposal in the context of its independent fiduciary responsibilities, reserve policies, and long-term sustainability obligations. As an independent 501(c)(3), the Foundation determines the allocation of its operating reserves and is not obligated to fund University initiatives. Each request is considered on its merits, with the primary focus remaining on student success and institutional stability.
No funding decisions are automatic, and any determination will be made by the Board in accordance with its fiduciary responsibilities. At this time, no further comment will be provided on ongoing governance matters.
Q: Is SCSUF obligated to accommodate a $1 million campus safety request given the MOU termination and current dispute?
A: The South Carolina State University Foundation is an independent 501(c)(3) organization governed by its own Board of Directors. As such, it exercises independent fiduciary oversight over its operating reserves and financial commitments.
The Foundation is not automatically obligated to accommodate funding requests, including the recently referenced $1 million campus safety request. All requests — whether for scholarships, capital improvements, or operational support — must be evaluated within the context of the Foundation’s financial position, reserve policies, long-term sustainability obligations, and established governance procedures.
The Foundation remains committed to student success and institutional stability. However, decisions regarding the use of Foundation reserves are made by its Board in accordance with its independent fiduciary duties and cannot be mandated by the University.
At this time, the Foundation does not have additional comment on ongoing governance matters.
Q: Will the SCSUF engage the South Carolina Office of the Inspector General and/or what options will the SCSUF pursue for relief, if at this time it can disclose?
A: The Foundation takes its fiduciary responsibilities seriously and operates in accordance with nonprofit law and governance standards. We do not discuss potential legal strategies or confidential governance matters publicly. If concerns arise that implicate regulatory review, those matters would be handled through appropriate legal channels.
We remain committed to transparency, responsible stewardship, and — most importantly — advancing student success.
Thank you for your continued trust and support.
Sincerely,
Lorne Steedley
Executive Director
South Carolina State University Foundation