7.1.22 Foundation

Purpose

The Illinois State University Foundation, located in the University Alumni Center is a University-related, nonprofit corporation, organized under the laws of the State of Illinois. The purposes of the Foundation as stated in its constitution (Article I, Section 4 are to:

• Assist in developing and increasing educational opportunities and the facilities of the University for service to its students, alumni, and citizens of the State and nation by encouraging gifts of money, property, art, historic papers and documents, museum specimens, and other material having educational, artistic, or historic value;
• Receive, hold, and administer such gifts with primary objective of serving educational purposes of the University; to act as trustee of educational or charitable trusts; to administer gifts, grants, or loans of money or property, real or personal;
• Consider such acts and enterprises that are in the interest and welfare of the University; and
• Invest any funds given or entrusted to the Foundation that are not precluded from such investment by the donor(s).

The Foundation administers these gifts to ensure that the intent and integrity of the donor is properly exercised.

Donations

Donations to the Foundation are deposited and held in funds as designated by the donors. Monies received by the departments must be forwarded to the Foundation Office accompanied by a Foundation deposit form. New funds may be established on a case-by-case basis by submitting a fund request form (available on the Foundation's website under Internal Use Forms") to the Foundation Director of Business Affairs.

Payments made by the Foundation

General

The Foundation's Constitution requires Foundation funds to be administered "with the primary objective of serving the educational purposes of the University."

Two voucher forms are used for requesting payments by the Foundation: a voucher for non-travel expenses and a travel voucher. Both are available on the Foundation's website under "Internal Use Forms." Vouchers are processed daily; however, payments are made weekly. Typically, eligible vouchers received in the Foundation Office by 10:00 a.m. on Tuesdays will be paid during the same week.

Checks will not be written for less than $10.00. Fiscal agents should pay expenditures that are less than $10.00. He or she will be reimbursed collectively when the amount exceeds $10.00.

Departmental fiscal agents will take full responsibility for the accuracy and validity of expenditures from their departments' funds. However, Foundation officials have the right to return unpaid vouchers to the fiscal agent when additional information is needed.

Supporting documentation for reimbursements must include proof of payment, unless the payment is apparent from the receipts. Examples of documents that substntiate payment include a charge card slip or a copy of the front and back of an individual's cancelled check. An affidavit (available on the Foundation's website under "Internal Use Forms") may be submitted by the purchaser in lieu of lost documentation.

The Foundation is exempt from Illinois state sales tax; however, it is the responsibility of the purchaser to provide the vendor with tax exemption documentation, which is available from the Foundation office or on the Foundation's website under "Internal Use Forms." Illinois state sales tax will not be paid (or reimbursed to the purchaser) by the Foundation.

The Foundation is not subject to the State of Illinois or ISU purchasing requirements/procedures; however, departments should not make purchases from Foundation funds solely as a way to circumvent those requirements.

Non-travel Expense Vouchers

Original invoices and/or receipts must accompany the voucher. Disbursement will not be made from statements unless that is the only billing form received from the vendor; please note on the voucher if this is the case.

Travel Vouchers

Original invoices and/or receipts must accompany travel vouchers. Disbursement will not be made from statements only. If receipts supporting travel expenses are lost and a supporting affidavit is not obtained, state travel regulations will be followed (i.e., per diem, etc.)

In instances where the travel expenses are split between the Foundation and the University, the University travel voucher should be completed first and a copy of that voucher should be included with other supporting documentation submitted for Foundation payments.

Personnel Compensation from Foundation Funds

When a department wishes to hire an individual to perform a special service and this individual's compensation is paid with Foundation funds, the payment must be processed through the Payroll Department if this individual is already in the payroll system. This assures payroll tax withholding and proper reporting to the Internal Revenue Service (IRS). If fiscal agents do not process payments for services rendered through the Budget Office of Payroll, they will be responsible for issuance of 1099 (IRS) forms. If a fiscal agent enters into a contractual agreement, the appropriate contractual agreement form must be completed and filed in the Foundation Office.

Links

Illinois State University Foundation