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Grants vs. Gifts vs. Fund Raising

The words "gift" and "grant" and “fund raising” are used interchangeably by donors, grantors and faculty/staff, however, the nature of the transaction drives UVM accounting procedures (not the words). These procedures reflect IRS regulations, GASB standards, UVM policies and other related internal and external requirements. The information below covers the vast majority of distinguishing characteristics of gift, grant and fund raising transactions. 

GRANTS

If any of the following conditions are part of the transaction, then it is a grant to be processed via the Office of Sponsored Programs:

  • Any testing of the sponsor's drug (clinical trial).
  • Contains any intellectual property provision, including exclusive rights, first right or shared rights, etc.
  • Rights to get back unused funds/goods.
  • Exclusive or priority rights or services for the educational program funded.
  • Any right to direct expenditures, including choosing vendors.
  • Results of research or other work product is required (normally tied to a specific budget, timeline and financial or other detailed reporting).

GIFTS

The following conditions are acceptable as part of a gift transaction to be processed via Development and Alumni Relations and do not jeopardize the tax-deductibility of the transaction:

  • No terms whatsoever
  • General restriction on the use of the funds without controlling the expenditures
  • Anonymous
  • Trinkets or other insignificant products (2% or $85, whichever is less).
  • Naming of a room, building, program, college/school, scholarship, etc.
  • Sponsorship of an event or program (i.e., logo and/or name/address only).
  • Limited financial reporting or progress reporting for stewardship purposes only.
  • Supporting the general research activities of a particular faculty member or department, so long as there are no other terms or conditions regarding the research, procedures or results thereof.

GIFT WITH BENEFITS

The following conditions do impact the tax-deductibility of a gift and, depending upon the value, could negate the gift entirely:

  • Admission to a conference, event, dinner, golf tournament, etc.
  • Tickets, hats, jackets or other tangible substantial product.
  • Access to Athletics tickets or Athletics priority seating.
  • Advertising (call to action as part of a sponsorship; "visit us").
  • Any other products or services in exchange for the gift.

OTHER FUND RAISING
Other forms of fund raising may be conducted, but must be marketing as benefiting a particular gift fund at UVM to be deposited into a restricted fund; otherwise the revenue is general fund revenue. Fund raisers are processed via Development and Alumni Relations (along with Financial Analysis and Budgeting). Examples of fund raisers are:

  • Event or conference ("all proceeds" or "net proceeds" benefiting the ___ Fund)
  • Silent auction
  • Entrance to a raffle or other game of chance
  • Sale of food or apparel
  • Any gift with benefits where the benefit value is so great that it entirely negates the tax-deductibility of the gift.

UNRESOLVED

If a question still remains about the nature of the transaction then the Office of Sponsored Programs, Development and Alumni Relations and the Controller’s Office will render a decision on a case-by-case basis.