Rule 3341-6-52 | Acceptable use of foundation funds.
(A) Policy statement and purpose
The Bowling Green state university foundation, inc., solicits and receives gifts in support of Bowling Green state university's academic, research, and service mission. This policy outlines the acceptable use of funds held by the Bowling Green state university foundation for use by Bowling Green state university units and divisions.
(B) Policy
Funds held by the foundation are available to support the teaching, research and service missions of BGSU. Foundation funds may be used to further other educational and advancement interests and for specific stewardship purposes.
Spending policies of the Bowling Green state university foundation, inc. (the "foundation"), in so far as possible and appropriate, are congruent with the spending policies of Bowling Green state university (the "university").
These guidelines supersede any prior existing policies or other guidance regarding expenditures from funds.
(1) Acceptable fund uses
Any disbursement of funds held by the foundation must benefit the established purpose and needs of the relevant unit. In general, permissible disbursements include expenses for general support, operational needs, program expenses and other discretionary support.
All disbursements must be made in accordance with current university and Foundation policies and procedures and applicable IRS rules and regulations. All reimbursement requests must be for an ordinary and necessary business purpose. All expenditures are subject to review by foundation and/or university management.
(a) The following list provides examples of permissible uses of foundation funds:
(i) Alcoholic beverages used for official university functions and entertainment;
(ii) Flowers for:
(a) University events/official entertainment;
(b) Funerals or unique or special life events of donors or a member of a donor's family; or for individuals external to the university who have a philanthropic relationship or could have a philanthropic relationship to BGSU.
(iii) Community goodwill or sponsorship of community activities that relate to the university in some manner;
(iv) Stewardship activities or events;
(v) Travel and entertainment expenses, as permissible per Bowling Green state university's travel and entertainment policies, and designed to secure gifts or future gifts in support of BGSU;
(vi) De minimis gifts for persons external to the university who have or who could have a philanthropic relationship with BGSU; (de minimis defined as infrequent or occasional and valued at one hundred dollars or less);
(vii) Expenditures of a fundraising nature that are reasonable and necessary to the fulfillment of the foundation's fundraising goals;
(viii) Expenditures that focus on enhancing or developing alumni relations and are reasonable and necessary to promote goodwill among BGSU alumni;
(ix) Expenditures of a fundraising nature that are reasonable and necessary to the fulfillment of the duties of the administrative offices of the university.
(b) The following list provides examples of impermissible uses of foundation funds:
(i) Any expenditure that jeopardizes the foundation's status as a charitable organization, as defined by Internal Revenue Code section 501(c)(3);
(ii) Expenditures to support lobbying of an elected official or that benefit the political campaign of any candidate for public office;
(iii) Compensation of any amount that is paid for, or financial benefit that inures to, the personal benefit of an individual, as defined by IRS regulations; any prize or award that exceed de minimis amounts or frequency;
(iv) Fines, traffic tickets, parking tickets, impound and/or towing fees;
(v) Meals or reception expenses when only BGSU employees are in attendance unless there is a documented university-related, business entertainment purpose;
(vi) Flowers or gifts for a university employee, spouse or family member;
(vii) Travel or other travel-related expenses for spouse, significant other or family members;
(viii) Any expenditure that does not directly support Bowling Green state university; and is not considered a customary or reasonable expense incurred while conducting university business.
(2) Scholarships
Payments from any foundation fund for any scholarships must be coordinated and processed through the university's office of student financial aid to ensure compliance with all applicable restrictions, approvals, and regulations. No direct scholarship payment may be made to a student using foundation funds.
(3) Restricted funds- endowed and non-endowed
Expenditures from restricted funds must adhere to the guidelines outlined by the donor in the fund agreement for that specific fund. All expenditures are to be reasonable, to have a direct university purpose and to be compatible with and enhance the university's mission. All expenditures from restricted funds are subject to the permissible and impermissible fund usages described in this policy.
Supplemental Information
Amplifies: 3345
Prior Effective Dates: 7/1/2016