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Policy 9301

Foundation Disbursement Policy

I. Purpose

The purpose of this policy is to establish guidelines for determining accountable uses for Foundation funds.

II. Policy

  1. General Expenditure Categories: Foundation guidelines for determining allowable uses of funds include general expenditure categories listed as follows:
    1. Salary, Wage and Benefit Payments: Direct payment to faculty, staff, students, and/or other full- or part-time employees of Longwood is unallowable. If support of the Longwood payroll charges or other compensation to Longwood employees is approved from Foundation funds, payment to the employees will be processed through the Longwood Payroll Office and funds will be transferred from the Foundation to the University.
    2. Honorarium and Consulting Fees: Payment of an honorarium or consulting fee is allowable provided the individual receiving payment is not an employee of Longwood.
    3. Guest Expenses: Reimbursement of expenses incurred for entertainment of guest lecturers and/or other guests of Longwood is allowable. Usually reimbursement is limited to expenses incurred for travel, food and lodging of guests, and the associated expenses for a reasonable number of Longwood staff accompanying the guests. Unusual circumstances should be cleared with the Foundation Office before the expenditure is incurred.
    4. Coffee Hours, Receptions, etc.:Reimbursement of expenses incurred for coffee hours, teas, and/or receptions may be reimbursed from Foundation funds provided the functions are in conjunction with Longwood business related activities.
    5. No Funds of the Longwood Foundationshall be expended in the following manner, with the exception of unrestricted monies designated specifically for the purpose of:
      1. gifts, socials for events such as sickness, death, memorial, retirement, appreciation or other special occasions, farewell, get acquainted, annual picnics, lunches, or dinners (working meals are allowable if Longwood employees are conducting official Longwood business);
      2. food and dietary supplies such as for routine use of water, coffee, cream, etc.;
      3. spouse related travel and/or expenses unless spouse performing in an official capacity;
      4. fines, parking tickets, penalties, cleaning, personal expenses associated with travel (such as movie rentals, health club fees, entertainment expenses, etc.).
    6. No funds of the Longwood Foundationshall be expended to other 501(c)(3) organizations, excluding small gift memorial type expenditures and expenditures for bona fide educational purposes or professional development for students, faculty or staff. However, the Longwood President may, at her/his sole discretion, use discretionary funds for the purchase of tickets when the President believes it is in the best interest of the University for a representative of the University to be present at a specific event. The following guidelines shall govern the purchase of such tickets.
      1. Tickets may not be purchased when all or a portion of the proceeds from the ticket sale benefit a political organization, an elected official or candidate for public office and efforts attempting to influence legislation.
      2. Tickets to events conducted as fund raisers for nonprofit organizations may be purchased to allow the presence of the appropriate Longwood official(s). (1997).
    7. No Expenditures Shall be Made for:any type of political function, golf tournaments, dinners, roasts, political party caucuses, or any other function which suggests a political orientation (1995).
    8. Association Dues and Publication Costs:Departmental and/or institution association dues and publications costs may be paid from Foundation funds. Payment of association dues and/or publication costs for the direct personal benefit of individual faculty or staff members is not allowed.
    9. Faculty and Staff Travel:
      1. Use of Foundation funds for travel expenses must follow the same procedures and advance approval process as required for travel expenses paid from state funds and the Foundation Travel and Expense Policy.
      2. The Foundation Travel and Expense Policy takes precedent when policies differ.
    10. Magazine Subscriptions:Magazine and other subscriptions to be paid from Foundation funds should be directly related to departmental teaching, research, and/or public service activities. Subscriptions must be mailed to a Longwood department, office, or the Longwood library.
    11. Supplies, Expenses, and Moveable Equipment:
      1. Supplies, expenses, and moveable equipment generally used for teaching, research, and/or public service activities may be purchased using Foundation funds.
      2. Basic moveable equipment such as refrigerators and microwaves being used in public areas for the benefit of a department may be purchased using foundation funds. Prior approval is required from the VP for University Advancement and the Foundation’s Chief Financial Officer.
      3. Title to moveable equipment purchased from Foundation funds is automatically transferred to Longwood University unless specifically indicated otherwise by the Foundation.
      4. Department head may recommend a specific vendor, manufacturer, etc., if specific supplies and/or equipment are required to maintain consistency with existing equipment or to meet teaching or research specifications.
      5. All equipment purchases will be requisitioned in the name of the Longwood Foundation, Inc.
    12. Other: Proposed uses of Foundation funds that are not directly related to the above categories or uses relating to unusual circumstances should be pre-approved by the Vice President for University Advancement and the Foundation's Chief Financial Officer before incurring the expenses.
  2. Control of Equipment: Listed below are Longwood guidelines for control of equipment purchases from Foundation funds.
    1. Assignments of Equipment: Equipment purchases from Foundation funds will be assigned to the requesting department until such time as the equipment becomes excess to department needs, obsolete, or considered of limited value beyond reasonable report. In these cases, disposal of the equipment must be done in accordance with the State's surplus property guidelines.
    2. Recording and Labeling of Equipment:Equipment purchased from Foundation funds will be recorded and labeled as a part of the Longwood inventory system, according to Fixed Assets Management Policy 4204.
    3. Approval of Equipment:The institution and/or the Foundation may elect not to approve an equipment request for one or more of the following reasons:
      1. high level of projected operating and/or maintenance costs;
      2. space needs requiring major alterations to existing structure;
      3. major installation costs; or
      4. duplication of existing equipment which is available for general use by Longwood faculty and staff.
    4. Contributed Equipment:Approval to accept contributed equipment must be obtained from the appropriate Longwood University Foundation Gift Review Committee. In all cases, approval must be obtained before acceptance from corresponding department chair, dean, and vice presidents. In some instances approval from the Vice President for Administration and Finance will also be necessary. Equipment contributed to the Foundation for Longwood use should be handled in the following way:
      1. Any department head having knowledge of possible equipment contributions should check with the University Advancement Office for procedures to follow.
      2. Upon completion of a review by the Foundation Gift Review Committee and notification of the circumstances to Longwood officials, title to equipment accepted by will be transferred to the University according to Fixed Assets Management Policy 4204.

Procedures relevant to this policy are contained in the instructions for completing a trust fund withdrawal form and the travel expense reimbursement policy located on the following links:

http://www.longwood.edu/assets/foundation/Instructions_for_completing_Trust_Fund_Withdrawal_form.pdf
http://www.longwood.edu/assets/foundation/TRP_51712.pdf

Revised and approved by the Cabinet, April 26, 2013
Revised and approved by the Board of Visitors, September 7, 2002.
Revised and approved by the Board of Visitors, June 14, 2013.