Original Issuance Date: June 2, 2021
Last Revision Date: June 2, 2021
1. Purpose of Procedures
Regent Policy Document (RPD) 21-11, Cost-Benefit Reporting for Foundations and Associated Affiliated Organizations, requires UW institutions to provide an annual accounting of administrative support provided to a primary fundraising foundation. A similar annual accounting must be provided for associated affiliated organizations that receive support valued at $100,000 or greater. If the total administrative support to associated affiliated organizations does not exceed $100,000, UW institutions must still provide an accounting for each organization at least once every five years. In accordance with RPD 21-11, the accounting must include a comparison of administrative support provided to and the benefits received from the organization, in a format developed by and submitted to the Vice President for Finance by March 31st following the end of a fiscal year.
2. Responsible UW System Officer
Vice President for Finance
Administrative Support: The personnel, facilities, or other monetary or material resources of UW System or a UW institution provided to a primary fundraising foundation or associated affiliated organization without direct and full reimbursement.
Associated Affiliated Organization: An entity that is legally distinct from the University but is organized and operated for the benefit and in support of the University and/or conducts activities that advance the mission of the University. Unless otherwise expressly authorized by the Board of Regents, associated affiliated organizations must hold a valid tax-exempt organization and corporate status under federal and applicable state law. The definition of affiliated organizations for this exercise excludes the following:
- University-recognized student, faculty, or staff groups or organizations
- Advisory councils established under the auspices and direction of an academic or administrative official for the benefit of the unit
- Other state agencies or statutorily-created entities, such as the UW Hospitals and Clinics Authority
- Research sponsors
- Licensees that do not otherwise have affiliate status
- University auxiliary enterprises
- Commercial contractors and vendors
- Lessors and lessees
- Labor unions
- Individuals, such as University retirees and alumni
- Institutions with which the University has programmatic affiliation agreements designed principally for student clinical program placements or scholar exchanges
- Subsidiaries of primary University foundations (covered under the 501(c)3 status of that primary foundation)
Primary Fundraising Foundations: Any entity subject to Regent Policy Document 21-9, Institutional Relationships with Foundations.
When completing sections within the, consider the following:
- Direct Salary and Fringe Benefit Support – For UW employees who perform some work on the foundation or associated affiliated organization’s behalf, individually list each employee by his/her title. Total salary and fringe benefit costs for the fiscal year should reconcile with the UW System’s system of record, the Shared Financial System (SFS). Institutions may determine the percentage of time each employee works on activities for the foundation or associated affiliated organization by referencing his/her position description or estimating effort dedicated to those activities. Detailed, time-keeping records are not required.
- Facilities Support – UW institutions should include any dedicated UW space provided to the foundation or associated affiliated organization for the exclusive benefit of that entity and not directly and fully paid for by organization. Do not include office space for UW staff who use that space for UW business as well. Facilities support should be calculated as a product of square footage and fair market value for similar space. Fair market value may be determined by conducting a market analysis for comparable space in that city/region, or by using the annual rates determined by the State of Wisconsin Department of Administration.
- Support Returned to the UW – UW institutions should include all contributions from the foundation or associated affiliated organization, including revenue received for grants, scholarships and program support, expenses paid by the foundation or affiliated organization on the UW institution’s behalf, and in-kind contributions. For all contributions except in-kind, the reported amount must reconcile with revenue reported within the UW System’s system of record or the foundation’s or associated affiliated organization’s Form 990. UW institutions will be required to provide supporting documentation for this amount, such as a query from the Shared Financial System (SFS) or Form 990. The amount reported as support returned to the UW System should exclude any amount the foundation or associated affiliated organization reimbursed the UW institution for employee salaries, fringe benefits and facility usage.
5. Related Documents
First approved: June 2, 2021