19-B-5: Financial Assistance

On March 15, 2019, in Bylaws Proposals, by Jen Saab

Amend Bylaws Article II, Section B as follows:

Assignment of scholarships, grants in aid, or student loans shall be controlled by the faculty through the regularly constituted committee on student loans and scholarships.

1. Institutionally Provided Financial Aid and Financial Benefits

a. Any financial aid or scholarships provided assistance to prospective or enrolled students in money or in kind, except that which comes from members of their immediate family or from those upon whom they are legally dependent, shall be administered by the institution’s regular process as approved by the office of financial aid.under policies and procedures established by the institution through its regularly constituted committee on student loans and scholarships. Under no conditions may an individual or organization provide direct financial assistance to a previously enrolled or prospective student.

All donations to the general athletics program and/or the athletics scholarship fund by outside organizations shall be deposited in an institutional fund and be administered by appropriate institutional committees under the control of the chief executive officer.

A member institution shall award no more financial aid or scholarships to a student-athlete than the actual cost of attendance as published by the institution. This may include but is not limited to:

  1. Tuition;
  2. Mandatory fees, books, and supplies required for courses in which the student-athlete is enrolled; and/or
  3. Board and room for the student-athlete only, based on the official board and room allowance listed in the official institutional publication.

b. Additional financial benefits in money or in kind provided by the institution and awarded to prospective or enrolled students is permissible so long as such items are available to the general student body, and awarded on such bases as will not discriminate for or against presumed or recognized athletes.

Further financial assistancebenefits to a student-athlete by a member institution, other than listed above, is prohibited.

  1. Athletically Related Expenses

a. Expenses incidental to intercollegiate athletic competition may be provided by an institution, directly or via an institution’s representative or authorized booster. A prospective or enrolled student may also receive expenses incidental to non-intercollegiate athletic competition provided by a club or recreational team, or tournament/event director.

These expenses include but are not limited to athletically related travel, lodging, meals, awards, apparel and necessary medical and/or dental expenses. Necessary medical and/or dental expenses may include medical, surgical, medication and therapy expenses incurred as a result of an athletic injury; medical examination costs; and athletic related medical insurance. Institutions shall not provide assistance for expenses for treatment of a student-athlete’s illness or injury not resulting from intercollegiate athletics participation.

b. For students who are members of an intercollegiate team, additional ancillary expenses are permissible when such expenses are related to the student’s membership on the team and provided by the affiliated conference or national office, institution or institution’s representative (if approved by the institution’s athletics director). Such additional ancillary expenses include but are not limited to student-athlete advisory or student-athlete leadership activities, team building outings, and mission trips.

Funds provided by boosters or booster clubs must be administered in accordance with COP Policy Article XIV.

Financial Benefits

Financial benefits in money or in kind is unrestricted when provided by a prospective or enrolled student’s immediate family or from those on whom they are legally dependent.

A prospective or enrolled student may receive financial benefits from other individuals, including but not limited to institutional and club coaches, host families, faculty members and friends. Such individuals may provide meals, transportation, entertainment, gifts or personal fundraisers. The value of such benefits must not exceed $1,000 per the institution’s fiscal year from all sources combined. Any expenses in excess of $1,000 must be reimbursed by the student at fair market value. Providing cash or preloaded debit cards is strictly prohibited. Ultimate responsibility for applying this regulation and tracking students’ financial benefits rests with the institution.

EXCEPTION 1: An institution may pay for necessary medical and dental expenses incidental to a student-athlete’s participation in intercollegiate athletics at the member institution.

EXCEPTION 2: An institution, affiliated conference, or the national office may provide actual and necessary expenses associated with attendance at a student-athlete advisory committee or student-athlete leadership meeting or activity, so long as the meeting or activity is sponsored by the institution, affiliated conference or national office. Such costs may be paid directly to the service provider or as reimbursement to the student-athlete, and allowable expenses may include but are not limited to cost of travel, meals, lodging, awards and personal gifts or apparel (in accordance with Bylaws Article VII, Section C).

EXCEPTION 3: An institutional representative or authorized booster, as approved by the institution, may provide an occasional meal for a student-athlete(s), not to exceed twice per month unless approved by the institution’s athletics director. The meal’s cost must not exceed the institution’s standard per diem amount for a student-athlete or $30 in value per person, whichever is higher.

EXCEPTION 41: In cases of a natural disaster or emergency, an institution may provide financial assistance to a prospective or enrolled student-athlete(s) in money or in kind provided the institution’s established financial assistance process or distribution method is followed, and any such assistance is available to the general student body. Aa third party relief organization (e.g. Red Cross, United Way, local community organization, etc.) or other first responders may also provide assistance in money or in kind provided any such assistance is available to all individuals affected by the disaster or emergency.

This does not include or restrict any financial benefits earned on the basis of employment or payment for actual services rendered.

Any financial benefits or recognized awards received through any athletic participation shall be subject to NAIA Bylaws Article VII, and are not subject to the financial assistance limitations described here.

All donations to the general athletics program and/or the athletics scholarship fund by outside organizations shall be deposited in an institutional fund and be administered by appropriate institutional committees under the control of the chief executive officer.

This regulation regarding maximum financial aid to a student-athlete is not intended to place pressure on any member institution to increase its program to this level. This regulation is made to protect the NAIA from overly ambitious programs and to help protect the amateur status of student-athletes.

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Intent: To reorganize the existing regulations regarding financial assistance to provide clear guidance regarding what can and cannot be provided to student-athletes, and expand the existing regulations in recognition of common accepted practices. The intent is to distinguish between the following types of financial assistance and provide the following guidelines:

  1. Financial aid and benefits provided by the institution, which closely mirror the existing policy that an institution can provide aid not to exceed the value of cost of attendance, and also permit an institution to provide any benefits that are available to the general student body;
  2. Athletically related expenses, which an institution or club team may provide for expenses incidental to competition, and permit an institution to provide for additional ancillary athletically related expenses for its student athletes; and
  3. Financial benefits provided by third parties, which would permit all other third parties to provide meals, transportation, gifts or personal fundraisers not to exceed $1,000 per fiscal year.

Effective date: May 15, 2019

Submitted by: Athletic Directors Association

Co-sponsored by: National Conduct and Ethics Committee

 

2 Responses to “19-B-5: Financial Assistance”

  1. Can a link, location of or wording for the COP Policy Article XIV referred to in this amendment be provided?