The purpose of this is to consolidate and summarize the existing policies and procedures surrounding business transactions between NDSU and the NDSU Development Foundation. The following summary is based on a number of NDSU policies and procedures, a memorandum of understanding between NDSU and the Foundation, and NDSU Development Foundation Guidelines for Disbursement of Funds to NDSU Personnel (dated July 2011).
NDSU and the NDSU Development Foundation are two separate legal entities. NDSU is a part of the state government of North Dakota. The NDSU Development Foundation is a legally separate foundation, which is tax-exempt under IRS Section 501(c)(3). Since both entities fall under extensive legal and regulatory requirements, it is important to process transactions under the appropriate entity.
NDSU Accounting Office Guidelines – Bank & Investment Accounts – Foundation Accounts (source: NDSU Accounting Office website)