Definition

For the purposes of this policy, “sponsorship” is a business relationship, commonly held to be a mutually beneficial arrangement or partnership between two individuals or entities, whereby one party contributes funds, goods, or services in return for recognition, acknowledgement or other promotional consideration.

Background

Bridgeway Foundation (“Foundation”) is the charitable giving arm of Bridgeway Capital Management, Inc., a for-profit entity. The Foundation is both a corporate and a private foundation. Under the definition of “sponsorship” adopted above, by entering into sponsorship agreements Bridgeway Foundation runs the risk of violating the self-dealing rules to which it is subject as a private foundation. Under those rules the Foundation’s grants or other activities may not directly produce sales or otherwise generate revenue for Bridgeway Capital Management, Inc. However, certain “incidental” or “tenuous” benefits such as a positive public image are permitted to accrue to Bridgeway Capital Management as a result of the existence of the Foundation. While we recognize that it is almost inescapable that the Foundation’s existence will likely generate public recognition and good will for Bridgeway Capital Management, Inc., to the extent possible, we wish to avoid even the appearance that the Foundation’s assets are being used to advertise Bridgeway Capital Management’s products and services.

Furthermore, we believe a sponsorship arrangement creates a conflict of interest, wherein the benefits that could accrue to the donor might erode the decision-makers’ commitment to choosing the best gift recipient.

Policy

Bridgeway Foundation takes a conservative stance in interpreting “incidental benefits.” In order to avoid real or perceived conflicts of interest and to separate the process of giving from organizational promotion, Bridgeway Foundation does not enter into sponsorship agreements. The Foundation will make direct gifts to organizations that are working in issue areas that fall within its areas of interest. However, it declines to be named on a marquee, plaque, banner, large “presentation” check, or the like, as this creates a promotional return for its gift. Where the Foundation has made a direct gift to an organization, the organization may include the Foundation on its list of donors in a program to be distributed at a sponsored fundraising event. Such organizations may also, for example, include the Foundation’s name and a small version of its logo among a group of donors on a t-shirt. We consider these to be “incidental” or “tenuous” benefits. Generally the Foundation will also encourage use of its name by organizations that it supports in such a way as to create leverage for that organization in its fundraising efforts with potential donors.