Does BSUF charge a fee or commission for its services?
officers and Directors are volunteers and serve without
compensation of any kind.
The Foundation’s minimal expenses are largely offset by
member dues and investment income.
Q.: Why is
it important that donors “express a preference” for the
institution they wish to support with their donation – why can’t
they just instruct BSUF where to send it?
A.: The IRS
specifically permits donors to express a preference, and allows
foundations to consider such expressions of preference in making
foundations are required to exercise sole control and discretion
over the use of contributed funds.
The IRS will not allow a deduction for a donation that is
conditioned upon the funds being used as directed by the donor,
because that leaves BSUF no discretion in using the funds and
therefore does not represent a “gift”to BSUF within the meaning
of the Code. It
would be a gift to the designated institution, but that
institution is unlikely to be a
“charity” within the meaning of the
hence no deduction would be allowed.
Q.: How are
grants made, and how long does the process take?
A.: The Board of
Directors meets once each Quarter to consider and vote upon
Normally the Directors will approve grants equal to
the sum of all donations with an expressed
preference received since the previous Board
No one has authority to make advance commitments on the
Directors’ behalf with respect to size and timing of grants.
Q.: How are
grants acknowledged by BSUF?
donation of more than $250 is acknowledged with a personal
letter from the President of BSUF, accompanied by an official
receipt for tax purposes.
A copy of the letter of acknowledgment (but not of the
receipt) is sent to the U.S. Representative of the institution
for which the donor expressed a preference.
Donations of $250 or less are acknowledged by sending a
every approved Institution have a designated U.S.
What are the duties of the person so designated?
every Approved Institution must have a U.S. Representative to
serve as a point of contact between that Institution, its
and friends, and BSUF itself.
The duties of a U.S. Representative are left to the
discretion of each Institution, owing to the lack of uniformity
in the size and geographic dispersion of their constituencies.
How does an institution learn that a donation has been
made with an expression of preference for support of its
programs or projects?
will receive an e-mailed report
showing all such donations the same day that the donations are
recorded in our database. An
also request from
BSUF (either directly, or through its U.S. Representative) a
list of recent donors who expressed a preference for support of
doesn’t BSUF include, with each grant check, a list of donors
whose gifts were reflected in that grant?
A.: From the
perspective of the Internal Revenue Service, BSUF is the “donor
of record” for a grant.
BSUF may not disseminate information that is inconsistent
with that presumption.
Q.: Can a
donor’s expression of preference include not only the
institution he or she wishes to have considered for a grant, but
also a specific program, project or fund at that institution?
The Directors are not bound by the donor’s wishes, but
they will give them due consideration.
Q.: If I
mail a donation to BSUF this year, can I be sure that my
preferred institution will be listed in this year’s Annual
Report as having received a grant?
mailed late in the year may not reach BSUF in time to be
considered for a grant at the last Quarterly Meeting of the
Board of Directors in early December.
Thus, the name of the institution receiving any grant
relating to this gift would
be listed in next year’s Annual Report.
Q.: What is
the advantage to be gained by donating securities to BSUF?
A.: If you
donate securities that have appreciated in price since you
acquired them, you are not liable for capital gains tax when
BSUF sells them, but you nevertheless receive a tax deduction
for the current market price of the securities.
One can use appreciated securities to fund a Charitable
Remainder Trust that pays the donor an income for life and
names the donor’s preferred Institution as beneficiary at
the donor’s death.
Q: Can I make a donation to BSUF and receive a tax deduction
from the Canadian Revenue Service?
A: No, but if you are a Canadian resident with US income
you can make a donation to BSUF and claim a deduction from the
US IRS against your US income.
Q.: How can
I make a tax-deductible donation to benefit a
scientific or literary organization that is not listed on your
Website as an Approved Institution?
cannot use BSUF for such a purpose unless the institution of
interest to you is on our Approved List.
You should encourage the institution to submit an
application for approval of its programs and/or projects by
BSUF’s Board of Directors.
To qualify for approval, an organization must be actively
engaged in fundraising and have significant potential for
attracting donations from people with
liabilities (whether they reside in the
Generally speaking, it should have 25 or more
friends who are prospective donors, or a realistic possibility
for a few large donations.
The likelihood of approval is enhanced if the institution
has a record of encouraging
and/or collaborating with like institutions based in the
for Approval of Institutions can be downloaded from this Website
Completed forms must be signed by the head of the institution.
They should be mailed or
and e-mailed to
BSUF’s Vice President for Institutions’ Approvals
Schools and Universities Foundation, Inc.
Madison Avenue, Suite 1006
New York, NY