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What is a Refund of Expenditure for a Foundation?

Refunds of expenditures are payments intended to reimburse for specific expenses and can be matched against an original charge (for example: office supplies returned to a vendor in exchange for a refund). Often, the reimbursement is from the same person/entity to which the original expense was paid to. However, occasionally reimbursement of specific expenses may come from a different person/entity (for example, if a personal expense accidentally got charged to a P-card, and had to be reimbursed by the individual, or if a company reimburses for specific expenses incurred with an event or activity).

Note: If an individual or entity is helping to cover/defray costs by providing monies to pay for a portion of them, these monies should be treated as either Other Income or a Gift (depending on whether the individual or entity receives any direct benefit), and not a refund of expenditure. Often, these would be similar to a sponsorship.

Read More:

Select this link to access the Other Income/Refunds of Expenditure page, which contains the link to the FAI Transmittal for Other Income/Refund of Expenditures Form. This form should be submitted with any Refund of Expenditures deposits.

Updated on February 28, 2020

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