Guide to Independent Trustee Status

Under University policy, your status as Independent is determined by a strict four-part test. You must meet all four of the following criteria at all times during the Current Period (May 1 to the present date) to be considered independent.

If you fail to meet even one of these criteria, you must disclose the specific exception on your Conflict of Interest form.


Criterion 1: No Employment or Officer Role

The Rule: You were not compensated as an officer or employee of the University or a Related Entity.

  • Note: A Related Entity is any organization that is 35% controlled by you and/or your Family Members.
  • Example of a Violation: You serve on the Board of Trustees but also accept a paid part-time administrative role within a University department.

Criterion 2: The $10,000 Contractor Threshold

The Rule: You did not receive total Compensation or other payments exceeding $10,000 from the University as an independent contractor.

  • Exemption: This does not include the reimbursement of expenses incurred in your capacity as a Trustee or Board Committee Member.
  • Example of a Violation: You are a specialized consultant who provided $12,000 worth of technical training services to the University this fiscal year.

Criterion 3: No Direct or Indirect University Transactions

The Rule: Neither you, nor any Family Member, was involved in a transaction with the University that is required to be reported as a Business Transaction on the University’s tax return.

  • Includes: Direct deals or indirect transactions through your affiliation with another organization.
  • Example of a Violation: Your spouse (a Family Member) owns a supply company that sold $15,000 worth of equipment to a University laboratory.

Criterion 4: No Transactions with Related Organizations

The Rule: Neither you, nor any Family Member, was involved in a Business Transaction with a University Related Organization that must be reported on that organization’s tax return.

  • Note: A University Related Organization is any entity controlled in whole or in part by the University (e.g., a University-controlled Real Estate LLC).
  • Example of a Violation: You personally lease office space to a Real Estate LLC owned by the University for $1,500 a month.



Summary Checklist

To certify as Independent, you must be able to answer NO to all of the following:

  1. Were you a paid officer or employee of the University or a Related Entity?
  2. Did you receive more than $10,000 in Compensation as a University contractor?
  3. Did you or a Family Member engage in a reportable Business Transaction with the University?
  4. Did you or a Family Member engage in a reportable Business Transaction with a University Related Organization?