Foundation Terminology

Sales and Use Tax Exemption

As a non-profit corporation the USM Foundation is exempt from paying sales and uses taxes on purchases in the state of Maryland. The Sales and Use Tax Exemption Certificate can be provided to vendors to verify our exemption.

Spendable Income

Available funds to be spent each year on activity as stated by the MOU and based on the spending rate.  Spendable income is determined by the MOU if specifically defined in the MOU or by a formula using the spending rate and the December 31 market value.  For example, the spendable income for FY 14 would be determined by the spending rate for FY14 and the December 31, 2012 market value.  Foundation policy allows unused spendable income to be carried forward for two years from the year of allocation.   

Spendable Income Project Activity Report

For Operating accounts, this report shows the beginning and ending balances, and all activity for a given time frame. For endowment accounts this report shows the beginning and ending Spendable Income balance, and all expense activity applied to an endowment’s Spendable Income for a given time frame. 

Spending Rate


The rate set by the Foundation Spending Policy Committee to determine each FY’s spendable income allowance.  The spending rate is applied to the appropriate December 31 market value to determine Spendable Income.


SS-4 Form

The IRS Application for Employer Identification Number. This form is submitted by the Foundation to the IRS whenever a new trust is established in order to obtain a taxpayer ID for the trust.

Stock Gift

Stocks, bonds, or other securities can be transferred to the Foundation as gifts. Giving the gift of stock can have a two pronged tax benefit for the donor. First, they get a tax deduction for the value of the stock on the date of the transfer, and they can avoid paying capital gains tax on any increase in value of the stock since its original purchase.

Our Vision

Our vision is to attract broad resources that transform the USM and its institutions, create a network of advocates to embrace the USM’s role as an educator and economic engine, and to grow a long-term, sustainable culture of philanthropy across the University System of Maryland.

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