Should the gift or grant be directed to the PSU Foundation? The Foundation is PSU's preferred recipient of many types of private gifts for the following reasons:

• PSU Foundation has a systematic method to acknowledge the donor's gift with a thank you letter within days of receipt. No such acknowledgment will be triggered for gifts directed to the University.
• PSU Foundation maintains a database of donor names, addresses and gift history so the information will be available to assist future contact with your donors. Tracing revenue by donor is problematic within University gift accounts.
• The PSU Foundation has a reliable retrieval system so that your donors' names can be given appropriate recognition by the University through means such as a listing in the Annual Report and invitations to donor events. Such recognition is not reliable for University-directed gifts. These recognition activities are an important factor for donors' continuing generosity.
• Many donors prefer to give to a private non-profit, rather than an institution, which receives significant public support. The Foundation is a 501(c)(3) organization

However, certain forms of private funding must be directed to the University and others fall into a gray area and require a judgment call.

• If a privately funded grant is really sponsored activity, it must be directed to the University.
• If state employees or facilities are being employed to generate earned revenue, that revenue must be directed to the University. However, state employees or facilities may be employed to generate charitable donations which should be directed to the Foundation.

Grants applied for in the Foundation's name must go through the University's grant procedure. The Foundation can accept privately funded grants and contracts for charitable projects. All privately funded grants and contracts which support sponsored activities, or those requiring University cost sharing, must be directed to the University.

A process is already in place to help faculty and staff determine sponsored projects from charitable projects:

1.) Faculty members should meet with the development officer for their academic unit before moving ahead with any private funding outreach.

2.) Every academic project for which external funds are needed must be reviewed internally in advance. The Office of Research and Sponsored Projects requires the Proposal Internal Approval Form (PIAF) for every grant proposal.

3.) The front side of the PIAF leads the faculty members through a preliminary review by the ORSP and the Development Office. (NOTE: All funding from public sources must be directed to the University.)

4.) ORSP and the Development Office staff will determine the appropriate track for the project, and sign and date the PIAF and make a note at the top of the form if it is to go through the Foundation. The faculty member will be advised how to proceed with approvals and submittal.

5.) In order for a grant to be processed and approved by the Foundation, the grant application must include a completed PIAF.

6.) Grant applications to non-public funding sources must always be coordinated within the Central Development Office. All grants applied for in the Foundation's name must be approved in advance. Do not apply for grants in the Foundation's name without prior approval from the Foundation.

7.) Most of the time, grant payments must be deposited into an account named specifically for that grant, rather than deposited into a general departmental account. If your proposal is funded, please contact Jordan Norris, x5-5070, to open an account.

If you have questions about where your grant monies should be directed, contact either the Foundation or the Office of Research and Sponsored Projects.