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A Gift? A Grant? OR An External Sale?

A Gift? A Grant? OR An External Sale?. Why is this even a question?. Gifts, grants, and sales ALL benefit the University No standardized definitions and “transactions” don’t always fit into neat boxes No single characteristic or test

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A Gift? A Grant? OR An External Sale?

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  1. A Gift? A Grant? OR An External Sale?

  2. Why is this even a question? • Gifts, grants, and sales ALL benefit the University • No standardized definitions and “transactions” don’t always fit into neat boxes • No single characteristic or test • Answers are a combination of the intent & expectations of the funder AND the responsibilities and goals of the University

  3. Reasons: • Historically, there are many reasons why it has been difficult to determine the proper classification of revenue received in academic departments • Costs vary depending on the classification of revenue • Indirect costs vs. no indirect costs • Unrestricted funds vs. restricted funds • Effort reporting vs. no effort reporting • External funding sources are not clear about the expectations that relate to acceptance of funding

  4. Current Matrix • Existing grid draws the three way comparison on the following additional delineations: • Scope of project • Project timing • Reporting requirements • Regulatory compliance & monitoring requirements • Fiduciary/administrative responsibility • Basic Definition • Funders • Funding • Documentation • Document terminology • Financial benefit • Stipulations on use of funds

  5. Past presentations and policy aids have tried to draw differences amongst gifts, grants, and external sales activities.

  6. Need to Review: • Fund classification work group formed October 5, 2007 at the request of: Richard Pfutzenreuter, Timothy Mulcahy, & Michael Volna • Charge to the group: • analyze revenue types • make recommendations on classification & treatment of revenue • determine whether one or more additional classifications are needed • determine where different forms of revenue should be administered

  7. Work Group: • Fund Classification group is comprised of: Pamela Webb Denise Seck Greg Miller Mark Bohnhorst Arnie Frishman Ed Wink • Group expanded to include foundations & Office of Technology Commericialization • The group has been meeting since October

  8. Early Findings: • Rarely, is there a distinction between a gift & an external sale • Determination of whether an activity is a gift or grant is likely • Determination of an activity as a grant or external sale is also likely • Classification of revenue from an activity is easier with two matrices rather than one

  9. Outcomes: • Work Group will develop a series of questions to direct proper classification of revenue • Use of decision matrices for classification of revenue • Tools may not cover every situation • Recommendations will be reviewed by the steering committee • Policies will be modified based on steering committee determinations

  10. For More Help • Gifts: University of Minnesota Foundation: Jan Gerstenberger (624-8374) jgersten@umn.edu website: http://www.foundation.umn.edu/facultyandstaff/corp.html Minnesota Medical Foundation: Carmela Kranz (626-8481) kranz001@umn.edu website:http://www.mmf.umn.edu • Grants/Contracts: Sponsored Projects Administration: Pamela Webb (624-1648) pwebb@umn.edu Kevin McKoskey (624-5066) kevin@umn.edu website: http://www.ospa.umn.edu/ • External Sales: External Sales: Greg Miller (624-4837) gam@umn.edu website:http://process.umn.edu/groups/controller/documents/main/osf_home.cfm

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