The USM Foundation requires a written contract for any disbursement request where the total payment to the vendor will be $5,000 or greater. The USM Foundation will only enter into contracts that are for fundraising purposes and that align with the USM Foundation’s charitable purpose(s). For all other contracts, even if the contract price is to be paid with USM Foundation funds, the contract should be entered into by the institution and signed by an authorized person per institution policy. Payment for such contracts can either (i) be made directly by the institution and reimbursed by USM Foundation through a disbursement request, or (ii) paid directly by USMF through an invoice directed to USM Foundation.
If the contract is with the USM Foundation, we require that it be reviewed and signed by the President, CFO or Director of Business Operations. If the contract is non-routine, complex, requires more than a year’s commitment, or has liability exposure, legal review may be required, so please allow sufficient lead time for the process.
Though not always required, we strongly advise a written contract. A written contract has many advantages: it formalizes the promises exchanged between the parties, and it details the other terms affecting the performance such as start and end date and payment schedules. It also details each party’s rights and provides tangible proof of the parties’ agreement.
A sample Independent Contractor Agreement can be found on the Business Forms page. It is most suitable for agreements with individuals, but the basic format can be used for agreements with companies. The contractor’s document, subject to review, is acceptable.
Independent Contractors
The complex Internal Revenue Code and IRS rules, regulations and procedures sometimes make it difficult to make the distinction between employee status and independent contractor status and are often subjective in nature. If you think you need to pay an individual for personal services and it is not through an incorporated organization, you must contact the USM Foundation before making such a commitment.