Effective December 2002

Policy on Gifts to Northwestern University from Faculty and Staff

 

Under IRS regulations, the basis for a charitable deduction is that the donor does not have constructive receipt or personal benefit from the use of funds. The definition of what constitutes personal benefit is based upon facts and circumstances. In order to assure that all facts and circumstances are examined, and that appropriate independent oversight is given to the disposition of gifts, all gifts from faculty and staff must be credited to either departmental or school accounts which are controlled by an individual other than the donor. (If members of the immediate family also work at the University, this prohibition also extends to any accounts that such immediate family member may control.)

As with all gifts, donations from employees must be routed through the University Development Division’s Gift and Record Services Unit. Only Gift and Record Services can issue a gift receipt that constitutes official University recognition of gifts for tax purposes.

For gifts received greater than $500, a statement that the gift is not being used for personal benefit will be required from the faculty or staff member. Faculty and staff should use Faculty and Staff Gift Transmittal Form (http://www.northwestern.edu/finsys/polcydoc/gifts/facultygift.pdf) for this purpose.