M51_Activity 1

A deliverable is defined as a tangible product or service resulting directly from the use of funds transferred to the foundation or university for which the original payer of the funds will receive a material, tangible benefit to which they would not otherwise been titled. (True/False)

• True

• False

Endowments are funds or monies that are permanently restricted by a donor. The intent is that the principal of the original gift can be used to provide a perpetual stream of financial support to a program, scholarship or professorship. (True/False)

• True

• False

Endowments are assigned two separate banner funds, these include

• an income/expense fund and an overhead fund

• an income/expense fund and an endowment corpus fund

• an endowment corpus fund and an various fund

The annual payout distribution for endowment funds is reviewed each year in mid-January. After the new payout has been determined, it becomes operational

• at the end of December.

• at the beginning of February.

• at the beginning of the upcoming fiscal year on July 1.

The foundation is committed to prompt payment of all requests for payment. Generally, checks are mailed within how many calendar days of receipt of the check request?

• 10 calendar days

• 15 calendar days

• 20 calendar days

Is the foundation exempt from sales tax?

• Yes, the foundation is EXEMPT from Virginia sales tax with the exception to the purchase of taxable services, such as meals and lodging services such as meals and lodging

• No, the foundation is NOT EXEMPT from Virginia sales tax with the exception to the purchase of taxable services, such as meals and lodging services such as meals and lodging

Contracts with university departments and an outside entity must be approved by Virginia Tech General Counsel (OGC) regardless of the funding (state or foundation funds).

• True

• False

Wages and/or salaries are allowable expenditures on foundation funding. (True/False)

• True

• False

The Virginia Tech Foundation can not directly pay a foreign vendor or non-resident alien. The payee must be a U.S. company or citizen. (True/False)

• True

• False

Scholarships that are to be paid from funds earning endowment income are paid only when the cash balance of the fund is sufficient to cover the payment. (True/False)

• True

• False