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Board approves Fletcher Falcon Enterprise Corporation; chancellor cites billboard to generate $12k'$15k monthly
Summary
The board approved the formation of a Fletcher Falcon Enterprise Corporation (a 501(c)(3) auxiliary enterprise) and related governing documents; the chancellor described a donated property billboard expected to generate roughly $12,000'$15,000 per month to support the college mission while noting limits on advertising content.
The LCTCS Board of Supervisors on Feb. 5 approved articles of incorporation, bylaws, a master management agreement and a Cooperative Endeavor Agreement to establish the Fletcher Falcon Enterprise Corporation, a nonprofit vehicle intended to pursue revenue-generating enterprise services for Fletcher Technical Community College.
Chancellor Strickland described the Enterprise Corporation as distinct from a philanthropic foundation: it would allow the college to pursue business-type activities that return revenue to the institution, such as transcript fees, room rentals and other auxiliary services. "This organization or this Enterprise solution will enable the college to engage in some business activities that also generate money," she said.
Strickland detailed a proposal to build a digital billboard on donated property adjacent to Highway 90. She said state legislation allows higher-education institutions to place billboards along three designated parkways and that initial revenue from the Fletcher billboard is expected to be "somewhere in the vicinity of 12 to $15,000 a month." She added the billboard would belong to the Enterprise Corporation and that the chancellor would retain authority to approve advertising content; legislation and the board's framework would prohibit certain categories of ads and require alignment with the college mission.
Board members asked about liability risks to foundation assets, staffing implications and potential competition with local businesses. Supervisor Mount cited concerns that operating enterprise activities could expose a foundation's corpus to liabilities; Strickland said the enterprise corporation structure is intended to protect foundation assets and that the college would avoid direct competition with existing local businesses.
After discussion, the board approved the incorporation documents for the Fletcher Falcon Enterprise Corporation; the transcript records the motion, second and that the motion carried.
