---
kind: "section"
citation: "25 U.S.C. § 5421"
title: "25"
title_heading: "Indians"
number: "5421"
heading: "National Fund for Excellence in American Indian Education"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/5421"
units:
  - "Chapter 46 — Indian Self-Determination and Education Assistance"
  - "Subchapter VII — National Fund for Excellence in American Indian Education"
---

# §5421. National Fund for Excellence in American Indian Education

- (a) **In general—** As soon as practicable after December 27, 2000, the [Secretary](/usc/25/5411.md?p=5) of the Interior shall establish, under the laws of the District of Columbia and in accordance with this subchapter, a [foundation](/usc/25/5411.md?p=4) to be known as the “National Fund for Excellence in American [Indian](/usc/25/5304.md?p=d) Education” (hereinafter referred to as the “[Foundation](/usc/25/5411.md?p=4)”).
- (b) **Perpetual existence—** Except as otherwise provided, the [Foundation](/usc/25/5411.md?p=4) shall have perpetual existence.
- (c) **Nature of corporation—** The [Foundation](/usc/25/5411.md?p=4) shall be a charitable and nonprofit federally chartered corporation and shall not be an agency or instrumentality of the United States.
- (d) **Place of incorporation and domicile—** The [Foundation](/usc/25/5411.md?p=4) shall be incorporated and domiciled in the District of Columbia.
- (e) **Purposes—** The purposes of the [Foundation](/usc/25/5411.md?p=4) shall be—
  - (1) to encourage, accept, and administer private gifts of real and personal property or any income therefrom or other interest therein for the benefit of, or in support of, the mission of the Office of [Indian](/usc/25/5304.md?p=d) Education Programs of the [Bureau](/usc/25/5411.md?p=2) of [Indian](/usc/25/5304.md?p=d) Affairs (or its successor office);
  - (2) to undertake and conduct such other activities as will further the educational opportunities of American [Indians](/usc/25/5304.md?p=d) who attend a [Bureau funded school](/usc/25/5423.md?p=1); and
  - (3) to participate with, and otherwise assist, Federal, State, and tribal governments, agencies, entities, and individuals in undertaking and conducting activities that will further the educational opportunities of American [Indians](/usc/25/5304.md?p=d) attending [Bureau funded schools](/usc/25/5423.md?p=1).
- (f) **Board of Directors—**
  - (1) **In general—** The [Board](/usc/25/5411.md?p=1) of Directors shall be the governing body of the [Foundation](/usc/25/5411.md?p=4). The [Board](/usc/25/5411.md?p=1) may exercise, or provide for the exercise of, the powers of the [Foundation](/usc/25/5411.md?p=4).
  - (2) **Selection—** The number of members of the [Board](/usc/25/5411.md?p=1), the manner of their selection (including the filling of vacancies), and their terms of office shall be as provided in the constitution and bylaws of the [Foundation](/usc/25/5411.md?p=4). However, the [Board](/usc/25/5411.md?p=1) shall have at least 11 members, two of whom shall be the [Secretary](/usc/25/5411.md?p=5) and the Assistant [Secretary](/usc/25/5411.md?p=5) of the Interior for [Indian](/usc/25/5304.md?p=d) Affairs, who shall serve as ex officio nonvoting members, and the initial voting members of the [Board](/usc/25/5411.md?p=1) shall be appointed by the [Secretary](/usc/25/5411.md?p=5) not later than 6 months after the date that the [Foundation](/usc/25/5411.md?p=4) is established and shall have staggered terms (as determined by the [Secretary](/usc/25/5411.md?p=5)).
  - (3) **Qualification—** The members of the [Board](/usc/25/5411.md?p=1) shall be United States citizens who are knowledgeable or experienced in American [Indian](/usc/25/5304.md?p=d) education and shall, to the extent practicable, represent diverse points of view relating to the education of American [Indians](/usc/25/5304.md?p=d).
  - (4) **Compensation—** Members of the [Board](/usc/25/5411.md?p=1) shall not receive compensation for their services as members, but shall be reimbursed for actual and necessary travel and subsistence expenses incurred by them in the performance of the duties of the [Foundation](/usc/25/5411.md?p=4).
- (g) **Officers—**
  - (1) **In general—** The officers of the [Foundation](/usc/25/5411.md?p=4) shall be a [secretary](/usc/25/5411.md?p=5), elected from among the members of the [Board](/usc/25/5411.md?p=1), and any other officers provided for in the constitution and bylaws of the [Foundation](/usc/25/5411.md?p=4).
  - (2) **Secretary of Foundation—** The [secretary](/usc/25/5411.md?p=5) shall serve, at the direction of the [Board](/usc/25/5411.md?p=1), as its chief operating officer and shall be knowledgeable and experienced in matters relating to education in general and education of American [Indians](/usc/25/5304.md?p=d) in particular.
  - (3) **Election—** The manner of election, term of office, and duties of the officers shall be as provided in the constitution and bylaws of the [Foundation](/usc/25/5411.md?p=4).
- (h) **Powers—** The [Foundation](/usc/25/5411.md?p=4)—
  - (1) shall adopt a constitution and bylaws for the management of its property and the regulation of its affairs, which may be amended;
  - (2) may adopt and alter a corporate seal;
  - (3) may make contracts, subject to the limitations of this chapter;
  - (4) may acquire (through a gift or otherwise), own, lease, encumber, and transfer real or personal property as necessary or convenient to carry out the purposes of the [Foundation](/usc/25/5411.md?p=4);
  - (5) may sue and be sued; and
  - (6) may perform any other act necessary and proper to carry out the purposes of the [Foundation](/usc/25/5411.md?p=4).
- (i) **Principal office—** The principal office of the [Foundation](/usc/25/5411.md?p=4) shall be in the District of Columbia. However, the activities of the [Foundation](/usc/25/5411.md?p=4) may be conducted, and offices may be maintained, throughout the United States in accordance with the constitution and bylaws of the [Foundation](/usc/25/5411.md?p=4).
- (j) **Service of process—** The [Foundation](/usc/25/5411.md?p=4) shall comply with the law on service of process of each State in which it is incorporated and of each State in which the [Foundation](/usc/25/5411.md?p=4) carries on activities.
- (k) **Liability of officers and agents—** The [Foundation](/usc/25/5411.md?p=4) shall be liable for the acts of its officers and agents acting within the scope of their authority. Members of the [Board](/usc/25/5411.md?p=1) are personally liable only for gross negligence in the performance of their duties.
- (l) **Restrictions—**
  - (1) **Limitation on spending—** Beginning with the fiscal year following the first full fiscal year during which the [Foundation](/usc/25/5411.md?p=4) is in operation, the administrative costs of the [Foundation](/usc/25/5411.md?p=4) may not exceed 10 percent of the sum of—
    - (A) the amounts transferred to the [Foundation](/usc/25/5411.md?p=4) under [subsection (m)](#m) of this section during the preceding fiscal year; and
    - (B) donations received from private sources during the preceding fiscal year.
  - (2) **Appointment and hiring—** The appointment of officers and employees of the [Foundation](/usc/25/5411.md?p=4) shall be subject to the availability of funds.
  - (3) **Status—** Members of the [Board](/usc/25/5411.md?p=1), and the officers, employees, and agents of the [Foundation](/usc/25/5411.md?p=4) are not, by reason of their association with the [Foundation](/usc/25/5411.md?p=4), officers, employees, or agents of the United States.
- (m) **Transfer of donated funds—** The [Secretary](/usc/25/5411.md?p=5) may transfer to the [Foundation](/usc/25/5411.md?p=4) funds held by the Department of the Interior under [section 5341 of this title](/usc/25/5341.md), if the transfer or use of such funds is not prohibited by any term under which the funds were donated.
- (n) **Audits—** The [Foundation](/usc/25/5411.md?p=4) shall comply with the audit requirements set forth in [section 10101 of title 36](/usc/36/10101.md), as if it were a corporation in part B of subtitle II of that title.

## Source credit

(Pub. L. 93–638, title VIII, § 801, formerly title V, § 501, as added Pub. L. 106–568, title XIII, § 1302, Dec. 27, 2000, 114 Stat. 2936; amended Pub. L. 108–267, § 1(a),(b)(2), July 2, 2004, 118 Stat. 797; renumbered title VIII, § 801, Pub. L. 111–211, title II, § 231(d)(1), (2), July 29, 2010, 124 Stat. 2278.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (h)(3), was in the original “this Act”, meaning Pub. L. 93–638, Jan. 4, 1975, 88 Stat. 2203, known as the Indian Self-Determination and Education Assistance Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables.

### Codification

Section was formerly classified to section 458ddd of this title prior to editorial reclassification and renumbering as this section.

### Amendments

2004—Pub. L. 108–267, § 1(b)(2), substituted “National Fund for Excellence in American Indian Education” for “American Indian Education Foundation” in section catchline.

Subsec. (a). Pub. L. 108–267, § 1(a), substituted “a foundation to be known as the ‘National Fund for Excellence in American Indian Education’ (hereinafter referred to as the ‘Foundation’)” for “the American Indian Education Foundation”.

### Statutory Notes and Related Subsidiaries

### Short Title

For short title of this subchapter as the “American Indian Education Foundation Act of 2000”, see section 1301 of Pub. L. 106–568, set out as a Short Title of 2000 Amendment note under section 5301 of this title.