Virginia Tech Foundation
  • Prohibited Expenditures

    • The Foundation is a tax-exempt non profit organization. Due to its recognition by the Internal Revenue Service as non profit organization, the Foundation has certain fiduciary responsibilities related to gifts it receives and manages on behalf of the university. In order to ensure that the Foundation operates within this framework, certain expenditures will be prohibited. The following list is NOT all-inclusive. No expenditures within these classifications can be made from Foundation funds without prior approval of the Foundation´s Chief Operating Officer or Controller.

      1. Student Loans and Awards - Requests for student loans must be handled through the University´s Office of Scholarships and Financial Aid. Per OSFA, any awards must be handled through the VTF Award Letter and processed by OSFA.
      2. Parking Permits, Tickets, Kennel, Baby Sitting, Laundry Charges, Motel Videos, Personal Phone Calls, Insurance Expense and Tux Rentals - Due to the personal nature of these expenditures, they are prohibited. However, reasonable laundry charges are permitted if the traveler is staying more than 6 days. Phone charges incurred while traveling are calculated as incidental expense and are reimbursed within the M&IE rate.
      3. Salaries/ Wages - Wages and/or salaries must be handled through the university payroll system. Payments made to university employees, regardless of their employment status, for honorariums or independent services, are prohibited. Honorarium payments to non-resident aliens are handled through the University Controller´s Office.
      4. Research/Supplemental Grants - All research contracts must be processed through the Office of Sponsored Programs. Supplemental grant applications are processed through the Office of the VP for Research and are not paid directly to individuals, except for expenditure reimbursement.
      5. Tuition - Tuition cannot be paid directly to a student, rater it must be paid to the university. The VTF Scholarship/Award Letter form must be used. SCHEV awards cannot be processed through the Foundation.
      6. Textbooks/Manuals/Text Materials - The University Bookstore has been officially designated and assigned the responsibility of providing textbooks and related teaching supplies for the university community. VTF fund holders cannot engage in the direct sale of instructional materials to students. The Foundation will not honor any requests for payments or reimbursements for expenditures related to textbooks and/or other instructional materials relating to such sales.
      7. Travel Loans - Since the university has established its own American Express corporate travel card and travel loan programs, the use of Foundation funds for travel loans is prohibited.
      8. First Class Airfare - Airfare charges should be at coach rates. No first class airfare charges are permitted.
      9. Automobile Rental for Travel - Generally, automobiles cannot be rented for trips originating in Blacksburg unless Motor Pool does not have a vehicle available or the department can save at least $25 by renting a vehicle from another source. Car rental services are now available through a contract between the university and Enterprise. The contract provides university employees with an unlimited mileage rate. Traveler must attach a Motor Pool Confirmation statement that a car was not available or a cost comparison statement to any reimbursement or payment request. Automobile rental is acceptable for travelers who fly and need transportation while at their destination. Please refer to University Policy 20335 (Travel Procedures) for more information.
      10. Automobile Rental Insurance - Insurance obtained from an automobile rental agency is considered a personal expense and cannot be reimbursed to a traveler.
      11. Gifts and Awards to University Personnel - Gifts of cash (including checks), to university personnel are prohibited, unless they are for university approved employee service awards. The value of some awards is not considered taxable income to the individual: however, the Foundation will forward information regarding any award to the University Controller´s Office for income tax consideration. Please contact Payroll Manager at 231-9329 if you have any questions in this matter.
      12. Payments to Foreign Vendors or Non-Resident Aliens - The Virginia Tech Foundation cannot directly pay a foreign vendor or non-resident alien. The payee must be a U.S. company or citizen. If a department wants to use Foundation funds to pay a foreign vendor or non-resident alien, the funds must be transferred to a university/state account for payment.
      13. Petty Cash - Petty Cash accounts cannot be funded by Foundation monies.
      14. Donations - Donations to outside organizations are strictly prohibited. Foundation funds are restricted as designated by donors to support the university.
      15. Personal Expenses - Generally, no reimbursements are allowed for expenditures of a personal nature. The IRS guidelines of "reasonable and necessary business expenses" are utilized in all cases for determination of appropriate reimbursements.
      16. Personal Cell Phones - The Foundation follows the university policy on cell phones. This policy requires that all personal calls be reimbursed by the user.
      17. Late Fees/Finance Charges - The Foundation does not pay late fees or finance charges. Departments are expected to process requests for payment in a timely manner to avoid the assessment of such charges.
      18. Items for Resale - The Foundation´s tax exempt purpose is to support the research, education and outreach mission of Virginia Tech. The purchase and resale of tangible items is not in keeping with this purpose. Because of this inconsistency with our purpose as well as business licensing, sales and unrelated business income tax and product liability issues, the Foundation disallows the purchase of tangible items for resale to donors/employees/others for fundraising or other purposes.
      19. Political Activity - The Virginia Tech Foundation does not engage in political activity nor does it permit its resources to be used in any way to support political activity pursuant to the Internal Revenue Code. Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. Examples of political activity include making campaign contributions or paying to attend fundraisers for candidates.
      20. Expenses for Repair or Replacement of Damaged, Lost or Stolen Personal Property - The Virginia Tech Foundation will not pay to replace or repair personal property if damaged, lost or stolen, even if the employee was conducting university/Foundation business at the time of the loss or damage. Personal property includes but is not limited to personal vehicles, cell phones and computers. Employees should make claims to their own personal insurance for such repair or replacement, and note that the Foundation does not pay personal insurance deductibles.