91ÁÔÆæ

Frequently Asked Questions

• General Account Information
• Accounts Payable and Checks
• Endowments
• Raffles
• Employment and Payroll

• How can I find out how much I have in my account?

  • Please contact Tower Foundation:

    Phone: (408-924-6517)
    Email: Towerfoundation@sjsu.edu

• We need to change the signer or add a new signer on our account. What do I do?

  • Please complete an Account Authorization Form [fillable] [pdf] and email it and any questions you have to towerfoundation@sjsu.edu.

• Can we hire employees through our Tower account?

  • For most accounts, yes. Go to Human Resources > Request to Hire, Rehire, Change Employee Funding Account. Email Tower Human Resources at TowerHR@sjsu.edu for more information.

• I didn't receive my monthly reports. How do I see the account history?

  • We no longer distribute monthly paper reports. Your department or college may run a report through the authorized user for your department or college. To learn who has access or to request access, please contact Thin Thandar Kyaw (408-924-6517).

• Can I get a report showing all the activity in my account for a certain period (year-to-date, quarterly, fiscal or calendar year)?

  • Yes, please contact Thin Thandar Kyaw (408-924-6517).

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• I want to attend a banquet benefiting another college/department on campus. Can I pay for this out of my Tower account? Will I have to pay the 5 percent administrative fee?

  • Yes, you can pay this out of your discretionary account. Plesae complete a requisition form [pdf]. Check the "reclassifications" box and provide transfer information under "description" area. Fundraising events which are budgeted at over $5,000 of revenue must be approved in advance per CSU policy. Please contact with questions.

• A vendor has asked for Tower Foundation's W-9 form. How can I get one?

  • Please contact Sabrina Tanner (408-924-1191) to obtain a .

• I've lost my expense reimbursement check or a vendor didn't receive a check for an invoice. How can I get a replacement check?

  • Please contact Sherri Meyer @ sherri.meyer@sjsu.edu to request the check be voided and a replacement check issued.

• I just submitted a requisition. How long will it take to get my check?

  • In most cases it could take up to 14 days to be received.

• What kind of documentation do I need to provide for expense reimbursement? Do I need to provide original receipts?

  • You will need to provide an original invoice and/or original detailed receipt plus a credit card receipt, copy of a credit card statement, or cancelled check as proof of payment. For meal reimbursement, please also provide a list of attendees. We make exceptions to this rule if you have submitted your originals to the state and are requesting partial reimbursement from your Tower account. 

• I submitted a scholarship or award request a week ago, but the student still hasn't received the money. Why is it taking so long?

  • All scholarship and award payments must be verified with Admissions and Records (to ensure the student is carrying a full load in the current semester) and the student's tax status in the U.S. must be determined. Tower then issues a check to the Financial Aid and Scholarship office. Depending on the time of year and the number of requests, there may be a delay as Financial Aid considers the award in light of the student's total financial aid package.

• Why do we have to submit original receipts and invoices?

  • Original receipts and invoices are proof of payment and prevents duplication of payment. In some cases, such as for airline tickets purchased online and for expenditures which are being partly covered by the state, Tower will accept duplicate receipts.

• Can 91ÁÔÆæ and Tower employees receive honoraria from Tower Foundation?

  • An honorarium is a payment or award to an individual in recognition of a special service or distinguished achievement for which custom or propriety payment precludes a standard business rate. Students cannot recieve an honorarium. Honorarium payments are minimal gratuities and are not compensation for services rendered. Honoraria might be a taxable income to the recipient and subject to IRS Form 1099-Misc. 91ÁÔÆæ and Tower employees cannot receive honoraria through accounts payable. They must be paid through Tower payroll, and they will receive a W-2. Please contact Tower HR at TowerHR@sjsu.edu with questions.

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• What is an endowment?

  • An endowment is a gift to the University that is invested in perpetuity to provide sustained support for San José State University.  The donor specifies how the endowment earnings can be used.

• How does an endowment work?

  • The donor’s gift (also called the endowment corpus) is invested in the endowment investment portfolio. An annual distribution from the endowment provides spendable funds from investment earnings that may be spent to carry out the donor’s purpose. New gifts, long-term investment performance and a prudent spending policy influence the growth of endowments. The goal is to ensure that the endowed fund is nurtured to support the needs of future generations.

• Why are endowments important to 91ÁÔÆæ?

  • Endowments support initiatives that promote excellence at 91ÁÔÆæ — scholarships, fellowships and unique learning experiences for our students, professorships for distinguished faculty, and research and program support. 91ÁÔÆæ graduates are prized by Silicon Valley employers for their ability to contribute on their first day of employment. The hands on learning opportunities made possible by endowment donors contribute profoundly to 91ÁÔÆæ alumni success.

• What is the minimum amount for establishing an endowment at 91ÁÔÆæ?

  • The university’s minimum amount to establish an endowment is $50,000. Endowments can be established through outright or planned gifts (such as bequests).

• What laws regulate endowments?

  • The Uniform Prudent Management of Institutional Funds Act (UPMIFA), adopted in California in 2008, guides our endowments.

• Who will oversee my endowment in support of 91ÁÔÆæ?

  • The Tower Foundation at San José State University holds the endowment. The Tower Foundation Board of Directors and its Finance and Investment Committee have the legal and fiduciary responsibility for endowment oversight. The Tower Foundation is an auxiliary of the California State University system.

• How are endowment investments managed at 91ÁÔÆæ?

  • The Tower Foundation has hired an external investment firm, Beacon Pointe Advisors, to provide investment advisory services. The endowment investment portfolio is invested according to the Investment Policy set by the Board of Directors. The investment portfolio is reviewed on a quarterly basis with the Finance and Investment Committee of the Board.

• What types of investments are permitted?

  • Permissible investments include value and growth equities, fixed income, private equity, real estate, and cash.

• How is spending determined?

  • The spending policy is set by the Tower Board of Directors.  The yearly distribution is based on a trailing three-year average market value. The distribution typically ranges 3% to 4%. A distribution is typically made regardless of challenging short-term investment performance.

• Why use a three-year average?

  • Three-year averaging helps smooth investment highs and lows and provide a steady, reliable stream of support to the donor’s designated purpose.

• How soon will new endowments provide a distribution to spend for programmatic purposes?

  • Due to the impact of the trailing three-year average, donors may elect to delay a distribution from their endowment in order preserve its value. In the first year an endowment is funded, the distributions will be about 1/3 of the full amount, in the second year 2/3, and 36 months after the endowment is funded, the full distribution will be available for the donor’s program of choice. The amount remaining which is not paid out in the distribution will remain in the endowment to further its growth.

• What happens to any excess returns in the endowment?

  • Investment earnings in excess of the amount distributed remain in the endowment investment fund to contribute to growth and protect against the impact of future market fluctuations.

• What happens when investment returns are negative?

  • In years where investment returns are negative, accumulated prior year gains are used to provide a distribution.

• What is an underwater endowment?

  • An endowment whose market value is less than the corpus (total gifts to the endowment). By law, the principal of an endowment can’t be spent without donor permission.

• Are any fees charged?

  • Fee Schedule for Current Use (non-endowment) Funds:

    All current use funds are subject to an administrative fee. The current administrative fee is 5% per transaction.  Tower does not charge administrative fees on scholarship accounts. The administrative fee helps support costs related to the operational costs of the Tower Foundation and its oversight of San José State‘s philanthropic resources.   

    Fee Schedule for Endowments:

    All endowments are subject to a management fee. The current management fee is annualized at 2%. The fee is assessed monthly based on the current market value of the endowment. The management fee helps offset costs related to the charges incurred as a result of the investments within the endowment pool and supports the administrative, financial, and operational costs of the Tower Foundation and its oversight of San José State‘s endowment.

    Why charge fees?

    The Tower Foundation of San José State is a nonprofit 501(c)(3) auxiliary organization responsible for the investment, administration, and banking of all philanthropic donations. The Tower Foundation is entirely self-supporting and receives no funding from San José State University. The California State University (CSU) system and University policy require that the Tower Foundation pay for its account management and business operations expenses. Additional expenses include annual external audits and tax preparation as required by the CSU and state and federal laws. The Tower Foundation pays salaries and benefits for staff performing this work and also pays overhead to San José State for shared services. Finally, in accordance with prudent business practices, the Tower Foundation is required to build and maintain a small reserve of funds that can be drawn on for these operational expenses, if necessary. 

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• We would like to hold a raffle to raise money. What do we need to do?

  • The Tower Foundation is authorized by the California Attorney General to hold charitable raffles. Please refer to our procedures [pdf] for charitable raffles for the information we'll need from you and the answers to many common questions. If you have questions, please contact Tower Foundation at Towerfoundation@sjsu.edu.

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• How do I put someone on Tower Foundation's payroll?

  • For the hiring process please go to Human Resources > Request to Hire, Rehire, Change Employee Funding Account. 

    For 91ÁÔÆæ/CSU personnel complete the Tower Foundation's University Appointment Form [pdf]. Once submitted to Tower HR, faculty appointments will be reviewed and sent to Faculty Affairs for review and approval; non-faculty appointments will be reviewed and sent to 91ÁÔÆæ UP. University employees may not work more than a 25% overload from all auxiliary sources. 

    For all other "new hires," complete Tower Foundation's Employee Appointment Form [pdf].

    All employees must complete the Form I-9 [pdf] and other employment documents. Email Tower Human Resources at TowerHR@sjsu.edu for more information.

• How do I recruit for a position?

  • It is the policy of the Tower Foundation to recruit for all vacant and new positions unless the position is to be filled for less than four months. In some cases, recruitment may be waived under business necessity circumstances. Student assistants may be hired without recruitment, please consult Tower Human Resources before discussing the hourly rate. Contact Tower HR at TowerHR-group@sjsu.edu for recruitment and advertisement.

• Can I transfer an employee from the Research Foundation to the Tower Foundation?

  • Tower Foundation and Research Foundation are separate legal entities and as such, employees of one foundation who transfer to a job at the other foundation must complete that foundation's new hire paperwork. Any service-connected benefits earned cannot be moved to the Tower Foundation.

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