1. GIFTS, GRANTS, AND CONTRACTS 4-H STATE TEAM MEETING December 5, 2012

2. Topics Gift/Grant Decision Tree Examples

3. Before we start…… What questions would you like us to address today?

4. 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

5. 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.

6. 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

7. Gifts vs. Grants Process ITEM CHARITABLE CONTRIBUTION OR GIFT UNRESTRICTED GRANT GRANT Maximum DeliverableGift 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 RestrictionNone $50,000 per company, per PI, per fiscal year None F&ANone15% of Total AwardedFull (currently; 19.8% MTDC)

8. 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 Tree A. Funding Opportunity

9. Examples 1.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

10. Examples 3. 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.

11. Opportunity to continue discussion Extension Volunteer/Staff Fundraising Session December 20, 2012 8:00am – 9:30am - Discuss follow up topics from this meeting - Announcements sent via email https://meeting.psu.edu/ksfundraising/

12. Questions? Ag Sci Development Office 814.863.1373 Grants and Contracts Office Penny Regel plr5@psu.edu 814.865.5419