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Board authorizes chair to sign MOU with TSU Foundation to avoid interruption of scholarship support
Summary
With the foundation's notice terminating the existing agreement effective July 1, trustees authorized the chair to sign a proposed memorandum of understanding to preserve scholarship flows and governance continuity; one trustee recused and one abstained before the motion passed.
The Tennessee State University Board of Trustees voted on June 30 to authorize Board Chair Winton to sign a proposed memorandum of understanding with the Tennessee State University Foundation, after the foundation gave notice terminating the previous governing agreement effective July 1, 2026.
Chair Winton told trustees that without a governing agreement "as of July 1st, both institutions will operate without a framework defining fund flow, fiduciary responsibilities, personnel arrangements, and operational authority," and described that condition as "an unacceptable governance condition for a foundation managing approximately $140 million in charitable assets during an active capital campaign." The chair highlighted finance-committee figures showing the foundation provided $3,755,369 in scholarship support to 1,604 students in fiscal 2026 and said the foundation had committed $1.8 million of unrestricted funds; the chair warned that without the agreement those funds could not reach students.
The chair framed the action as necessary to reduce immediate student harm, preserve donor confidence for a campaign described in board materials, and address accreditation and compliance risks. The presentation cited SACSCOC governance expectations and federal/state fiduciary requirements, including the uniform prudent management of institutional funds act.
Before the roll call, Trustee Trober disclosed prior service on the foundation and recused themself from deliberation and the vote. One trustee said they were not comfortable voting on the material as presented and recorded an abstention. After the roll call the motion passed.
The board recorded that the MOU in the board materials was developed through engagement between the parties, reviewed by legal counsel for both institutions, and reflected national governance standards. Trustees asked the administration to continue communication with stakeholders and to ensure the MOU's operational details support timely scholarship distribution.
