University Executive Directive #20-44 - Donations from Employees in Support of Their Own Programs/Research

Objective: 

This directive provides policies and guidelines for the acceptance of donations and gifts from employees directed to support their own activities, programs, or research received by the University or any of its auxiliary organizations. Policy and guidelines below are in compliance with the Political Reform Act of 1974, which contains a general provision against conflicts of interest in public decision making, as well as a provision for the adoption of a CSU Conflict of Interest Code. The restrictions of this Act apply to all CSU employees, without regard to whether they are required to file an annual conflict of interest form.

Statement: 

On occasion, San Francisco State University receives donations of funds from University employees to support their own research or other programs in their own units/departments. The University may also receive donations of funds from members of the University employees' families or from corporations in which an employee holds a significant or controlling interest.

Directive: 

A. Receipt, Acceptance, and Acknowledgment of All Gifts to the University 

1. Per UED 95-19 - Receipt, Acknowledgement and Acceptance of Gifts, all cash and non-cash gifts are to be received, accepted, and acknowledged by the University Advancement division. Once received, it is the policy of the University that such gifts shall be administered and managed by either The University Corporation, San Francisco State, except in those special cases where the donor, for clearly specified reasons, requests that the gift be administered and managed by the University. In approaching donors, the Office of University Development is obligated to inform them about this arrangement. 

B. Gifts from Employees to Support Their Own Activities 

1. Gifts to the University, the University Corporation, or San Francisco State University Foundation on behalf of the University from University employees to support their own activities may be accepted if the purpose of the gift is to support bona fide University activities, programs, or research. If a gift is a purchase for the University, such gifts must be subject to the University Corporation Procurement Policy.
2. The University or any of its related entities shall not be placed in the position of acting as a conduit of funds for which employees claim a deduction that is likely to be disallowed by the Internal Revenue Service. For definitions of charitable gifts, please refer to IRS Publication 526.
3. It is against University policy for any employee to deposit any gifts intended for the University in off-campus accounts. Such action is considered a misappropriation of University resources if the intent of the donor was to support the University or any of its activities.
4. The work or activity supported by these funds may not be combined with personal or appointment expenses. For example, an investigator may have a financial conflict of interest if he or she is a consultant to the company sponsoring research in his or her laboratory. Another example is a faculty member who owns significant equity in a company whose product he or she wants to test. Employee donor has a duty to disclose potential conflict of interest, including but not limited to: ownership share in a company that conducts business with SFSU; ownership share in a company that has made contributions to SFSU; receipt of an honorarium, free service, or a discount from a company that has made a contribution to SFSU.
5. Federal tax regulations provide that a gift may not be fully deductible if there is a direct or indirect personal benefit to the donor. The employee/donor should consult with a personal tax advisor as to whether his or her gift is considered a deductible charitable contribution per Section 170 of the Internal Revenue Code. Examples of circumstances in which a donation may not be fully deductible include when the funds are used to support the employee/donor's own salary or for travel or entertainment in which the employee/donor (or family members) participate. For this and other reasons, the University prohibits the use of donated funds (or substituted equivalent amounts from institutional funds) to fund any or all of the employee/donor's salary, including, but not limited to, additional pay, overload, or compensation through reimbursed release time (RRT). Donated funds may be used for the employee/donor's travel only when it is determined that such travel is for University business. 

C. Procedures for Gifts 

The following procedures must be followed for these gifts: 

• The Employee Donor Agreement Form must be completed by the employee and submitted to University Advancement.
• The University account in which donated research funds are deposited must be under the control of the VP, AVP, unit head, departmental business officer, or another official who is not under the supervision of the employee/donor.
• The unit head or other responsible party must ensure that expenditures of donated funds comply with relevant regulations.
• The unit head or other responsible party must acknowledge use of the donated funds and authorize use on the Employee Donor Agreement Form.
• The original Employee Donor Agreement Form must remain in a file in the unit or department, and a copy must be sent with the gift and/or a gift transmittal sent to the University Advancement Gift Processing Office in ADM 154C.
• Deficit spending in such accounts is not permitted. 

If you have questions as to whether the funds should be considered as a sponsored activity, please consult the Office of Research and Sponsored Programs (ORSP) at San Francisco State University.
 

[Archived Approved University Executive Order for reference: University Executive Directive #20-44 - Donations from Employees in Support of Their Own Programs/Research]