Issued: December 1, 1995
Latest Review: September 27, 2002
EMPLOYEE CHARITABLE CONTRIBUTIONS TO THE
This policy describes the general guidelines for employees to make tax deductible donations to the University.
2.0 Policy [Top]
The University of Virginia encourages its faculty and staff to contribute tax deductible gifts to the University. The University wants to allow employees flexibility in designating their gifts for schools, departments, programs, and projects of their choice. However, to preserve the tax deductibility of their charitable contribution to the University, the IRS requires that certain guidelines be met. Consequently, the University has adopted the following policy to preserve the tax deductibility of faculty and staff contributions to the University.
The University can accept designated gifts from faculty and staff only in circumstances in which there is no personal benefit to them from the University's disbursement of these funds.
In circumstances where faculty and staff designate gifts for use in their departments or for projects over which they have control, such funds can only be spent for purposes consistent with the University's mission (education/research/patient care). The University will retain ultimate discretion over the use of the funds contributed, and its fiscal policies will govern disbursement of these funds. PRIOR to the initial disbursement of the contributed funds, the dean or department head must prepare a brief memorandum detailing the clear connection of these expenditures to the faculty or staff member's services to the University. The dean or department head also must confirm that such expenditures are to be used to support the University's mission. This letter should be retained by the department and kept with the account documentation.
Faculty and staff who make contributions cannot approve expenditures from the accounts that are credited with their personal gifts.
If funds are not used in a manner consistent with the above policy, a subsequent IRS examination could result in disallowance of the employee's charitable contribution deduction for the gift. Please contact the Director of Gift Accounting in the Office of University Development at (924-6027) with any questions about this policy.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]