GIFTS, GRANTS, AND CONTRACTS4-H STATE TEAM MEETING

December 5, 2012

Topics• Gift/Grant Decision Tree• Examples

Before we start……

What questions would you like us to address today?

Is it a gift? Yes, if…• Donor is an individual, company, association,

or foundation • Qualifies as charitable contribution by IRS• Donor may define the purpose • Unexpended funds do not have to be returned • No quid pro quo • A report of expenditures may be requested• Research results are not required to be shared

Is it a grant? Yes, if…• Project has stated goals and objectives• The sponsor has expectations about how the

funds will be spent• Grant deliverables may include formal project

reports.• A detailed financial report is required.

Gifts vs. Grants Process• No F&A charged to gifts• Gifts can be solicited at the local level or with the

help of the development office• Some gifts are also unrestricted grants and need to

be processed through the grants and contracts office

• Modest F&A for unrestricted grants with some formal deliverable requirement– Amount of F&A varies based on sponsor

Gifts vs. Grants ProcessITEM CHARITABLE

CONTRIBUTION OR GIFTUNRESTRICTED

GRANT GRANT

Maximum Deliverable Gift Acknowledgement Confirmation of Use and Purpose Final Technical Report

Documentation Company Letter Stating Gift or Charitable Contribution

Company Letter Stating Financial Support

Negotiated Legal Terms and Conditions

Funding Restriction None $50,000 per company, per PI, per fiscal year None

F&A None 15% of Total Awarded Full (currently; 19.8% MTDC)

B. Penn State University– Funder accepts PSU EIN

Action:– Solicit locally if gift for a

county– Contact development if

gift for state program team

– Contact grants and contracts for all others

B. PS Philanthropic Fund– Use only if funder will

NOT accept PSU EIN– Funding is a gift

requiring no more than a stewardship report at the end of the year

ONLY Action:Contact Grants and Contracts

Decision TreeA. Funding Opportunity

Examples1. Local Foundation to fund a county program– Website states that they only pay 5% overhead– Requires a binding signature– A follow up letter is required to confirm the use

of funds

2. Company to support robotics clubs in multiple counties– Online application will not accept PSU EIN– Requires binding signature and tax status

Examples3. Corporate donation for a county program– Accepts PSU EIN for online application– Requires a proof of tax status– No detailed follow up is required

4. Corp Foundation to support multi-county/ statewide programs

– Accepts PSU EIN– Gift recognized at statewide events with no formal

report back.

Opportunity to continue discussion

Extension Volunteer/Staff Fundraising SessionDecember 20, 20128:00am – 9:30am - Discuss follow up topics from this meeting- Announcements sent via email https://meeting.psu.edu/ksfundraising/

Questions?Ag Sci Development Office814.863.1373

Grants and Contracts OfficePenny Regelplr5@psu.edu 814.865.5419