Development Account

Club Sports have the privilege of depositing donations into a tax-free development account managed by the MSU Development Office.  If you would like to spend money in the Development Account, you must meet with the Club Sports Director to ensure you are processing paperwork correctly.  Money in this account must be handled like any other donation to the university, whose details are laid out in the MSU Manual of Business Procedures.  Below are some details common to clubs:

  • Clubs have a web link to their Development Account page through University Advancement.  This is an easy way for people to donate using a credit/debit card.
  • Check or money order donations must be made payable to “Michigan State University” indicating the name of the club in the memo section of the check.  Be sure that the donor’s name and mailing address are submitted with the donation. Submit donations to 201 IM West, where the Rec Sports clerical staff will process your donation.  The mailing address is:
    393 Chestnut Road, Rm. 201, East Lansing, MI 48824
  • Donors receive a letter from the University Advancement verifying receipt of the donation as tax deductible.  While donors receive a generic letter from University Development, it is better for them to receive thank you notes from the club directly. Find out if you have received on-line donations with the Club Sports Director.  Remember: all donations through the Development Account are made to MSU, NOT your club.  If the donor’s intent was for the money to go directly to your club, we will deposit it there. However, those funds are not to be referred to as yours, they are MSU’s.  There are many rules and regulations regarding use of the Development Account that can be found in MSU’s Manual of Business Procedures.  If you have any questions about the use of this account, contact the Club Sports Director. 

Below are answers to some recurring club questions/concerns regarding the Development Account:

  • The easiest way to use this money is to (a.)have us pay an invoice for you or (b.) get reimbursed.
    - When requesting reimbursement for a tangible item (uniforms, parts, supplies, etc.), you need to provide proof of payment.
  • Receipts must include: itemized receipt (itemized  description of each item purchased, including the per unit cost, how many you purchased and the total for each item, zero balance showing you paid, the name and address of the business and possibly a copy of the check, the payee’s name on your bank statement highlighted, or the credit card charge confirmation.
     
  • Only donations are allowed in the Development Account.  If you have $300 in the Development Account and a $500 invoice to pay, you are not allowed to add $200 from your off-campus account to make up the different.  See the Club Sports Director if you are in this type of situation.
  • If you obtain space or need assistance from Infrastructure, Planning and Facilities (IPF), make sure you have enough money in your Development Account to cover the expense. Also be sure you provide IPF with your proper accounting information so we are billed accurately. 
    - Most clubs have a RSO account (starts with “AR”) for events which is NOT subject to the same rules as a Development Account.  However, one cannot receive tax deductible donations into a RSO agency (“AR”) account.  This is what all RSOs have access to. The Rec Sports Development Account is a university account, hence allowing clubs to receive tax deductible donations.
  • Clubs will not be reimbursed for gifts since accounting requires names of each person receiving a gift and this could directly impact their financial aid.
  • If another university requires a W-9 to pay a tournament fee, you may use your Employer Identification Number (EIN) and complete your own W-9 (can be found on the IRS website), do NOT use MSU’s W-9.  Unsure of your EIN?  Contact your financial institution to see if they have it (MSUFCU can usually assist with this).  In section 3 you may select “Other” then type in “Educational Organizations.”  Have those checks mailed to your IM Circle address, which should be your address for all things IRS related.

YOU MUST SPEAK WITH THE CLUB SPORTS DIRECTOR IN ADVANCE OF ANY PURCHASES THAT ARE OUTSIDE OF CLUB REIMBURSEMENT AND CLUB INVOICES.  There are many guidelines in MSU’s Manual of Business Procedures that must be followed, never assume something is covered and easily reimbursable.  Below are some critical details that relate specifically to Rec Sports sponsored Club Sports who utilize the Rec Sports Development Account for donations.  Reference this list before planning to use the Development Account and remember to always consult the Club Sports Director before assuming certain expenses are reimbursable:

  • No reimbursement for travel is allowed unless you submit a Travel Authorization form prior to leaving for the event.  That form is in addition to the on-line travel form.  You must contact the Club Sports Director at least two weeks before travel if you hope to get reimbursed for any travel expenses (including reimbursement for hotel, vehicles, gas, etc).  There are very specific procedures that must be followed before this type of reimbursement can occur.  Here are just a few examples of restrictions for clubs requesting reimbursement for travel:
    - If you rent a vehicle on your own any insurance you purchase is not reimbursable
    - 12-15 passenger vans are not allowed by MSU so there is no reimbursement for 12-15 passenger vans from this account.
    - You must fill the gas tank prior to returning a rental vehicle or you will not be able to get reimbursed (basically, don’t return it on empty and pay the rental agency to refuel – this violates university fuel service option rules).
    - When getting reimbursed for lodging and travel, it is much easier to reimburse the club rather than issue individual reimbursements.
  • If you plan to spend more than $10,000 with a vendor, you must go through MSU Purchasing to use the Development Account.  They will need 3 quotes from 3 different vendors and will go with the lowest bid, unless you can explain to them why one company may be better to use than the others.
  • If you want to purchase something that is > $2,500 but < $10,000, we would first need a quote from the vendor that gets submitted with a requisition to Purchasing to request a purchase order.
  • Taxable services (paying for officials, etc.) cannot be reimbursed; we would need to pay these for you directly as long as you have sufficient funds in your Development Account.
  • If you plan to pay coaches by using the Development Account or Endowment money (all Endowment expenses must be approved by the Rec Sports Director in advance), then coaches must complete a Personal Services Contract form before they are hired.  For more information on this, please speak with the Club Sports Director.
  • If you’ve been approved in advance for travel reimbursement, to get reimbursed for meals, the club must submit a spreadsheet that itemizes the names of the club members, the dates of the meals to be reimbursed and the signature of each club member as authorization for the reimbursement.