Terms of Agreement
Once the intent of a gift is specified, a written document is drafted to include the form of the gift, specifications for its award or use, and requested name. After the UMW gift officer, the donor, and Foundation approve and sign the document, it is presented to the UMW Board of Visitors for final approval and acceptance.
Charitable Tax Deductions
The UMW Foundation is classified by the IRS as a 501(c)(3) organization, so gifts to the UMW Foundation are eligible for charitable donation tax deductions.
The UMW Foundation follows the same accounting cycle as set forth by the Commonwealth of Virginia: July 1 through June 30.
All funds are accounted for and reported in accordance with Financial Accounting Standards Board (FASB) standards. The Foundation is fully audited by an external audit firm every year.
Endowment funds are pooled into a Foundation investment portfolio. This portfolio is invested in a widely diversified selection of funds under the supervision of the Investment Committee of the UMW Foundation Board of Directors.
A fee of one percent per year is deducted from endowment and major restricted account balances for portfolio investment and endowment management costs.
Endowment awards are authorized only after an account is fully funded and has earned interest for one complete fiscal year. Spending authority is approved annually by the Foundation Board of Directors and has historically been set at about five percent.
Annual Endowment Benefits to UMW
The following chart highlights the approximate annual amount available for scholarship awards or program services based on endowment funding at a spending rate of 5 percent..
|Funded Endowment||Annual Award/Payout|
|$ 50,000||$ 2,500|
|$ 25,000||$ 1,250|