Taxes and Contracts

Sale of Merchandise

 The Foundation may accept the proceeds from the sale of merchandise relating to fundraising activities (such as books, branded merch/apparel, etc.).  

The Foundation must be contacted before considering the sale of merchandise to ensure that taxable Unrelated Business Income is not being generated; otherwise, the IRS will assess Federal Income Tax on the net income from the sales.  

Please contact 


Independent Contractors (1099 Employee) 
The complex Internal Revenue Code and IRS rules, regulations, and procedures sometimes make it difficult to distinguish between employee status (of the University) and an independent contractor. Because of potential tax liability issues, independent contractors may not be employees of UMB, USM, or the State of Maryland. The Foundation issues an annual 1099 and reports to the IRS. 

You must contact the Foundation before making any commitment to pay for work or services of any kind. 

If it is determined that an independent contractor relationship will exist with the Foundation, an independent contractor agreement must be executed before the work begins. The Foundation has a template Independent Contractor Agreement with approved language that can be found [here].  We strongly encourage using the foundation template. If the contractor submits their own agreement, it will require an additional 5-7 business days for review.  

Vendor Contracts 
If the contract is intended to be paid from UMBF, it must be reviewed and signed by an officer of the Foundation. The contract must be written between the University of Maryland Baltimore Foundation, Inc. on behalf of the School/Unit and the vendor.  

Example: UMBF, Inc. on behalf of UMBSOD and Baltimore Catering Co.   

Vendor contracts must be suitable for the foundation and may not be appropriate or allowable. The Dean/VP or designee must approve of the proposed contract prior to Foundation review.  

The draft contract must be submitted for foundation review at a minimum of 7 business days before the deadline (expiration date of proposed contract terms) to allow reasonable time for internal review and consultation with our insurance carriers. Please specify if an insurance event certificate is needed. If the insurance certificate is requested after the contract review there will be a 5-7 business day turnaround time for our insurance partners to review the request and issue the certificate if approved. Contracts can be submitted to Pam Heckler at and copy  

If the foundation approves the contract, it should be circulated for signature via Docusign.  

When preparing a contract please keep in mind the following scenarios: 

  • Payment Terms/Methods must be compatible with UMBF operational process for disbursements and must accept a mailed check payment.  
  • The turnaround time for check issuance will follow regular disbursement processing schedule. 
  • The Foundation will pay for a deposits, but not 100% prepayments. Be aware if the vendor requires full payment due day of as we can only process the full payment after the expense has been incurred.  
  • Review of the contract is separate timeline from the submitting an EDRF for the deposit—it does not automatically happen if a contract is signed, a separate EDRF will need to be submitting.  
  • A separate request for the event certificate insurance is required, if needed, with  

When submitting an EDRF to pay a contractor, please submit the required documentation: 

  • Completed UMBF Independent Contractor Agreement 
  • Invoice from the Contractor  
  • Completed and signed form W-9. The payee’s legal name, social security number, home address, and signature must be included on the form.