Types of Funds
Sponsored Projects (5-ledger funds) activities involve a sponsor providing funds or other resources with conditions attached. A proposal is typically submitted to a funding agency, resulting in an award document that provides funds and identifies terms and conditions required to conduct a specified scope of work. The following is a sample of some of the criteria considered when determining if an award will be designated a sponsored project:
- Is the source of funds federal or federal pass through?
- Are funds from a state agency, municipality or foundation?
- Is the activity to be performed research? Instruction? Public service?
- Is there an award document that stipulates the method of payment as cost reimbursable, fixed price or letter of credit?
- Are there technical or fiscal reporting requirements?
- Is there a definite project start and end date?
- Are there any restrictions on specific uses of funds?
- Did the sponsor include a line item budget that identifies expenditures by activity, function or project period?
- Are there cost sharing or matching of funding requirements?
- Is there reference to terms and conditions such as compliance with federal or state regulations, allowable vs. unallowable costs, subcontracting, etc.?
- Are there record retention requirements?
- Are there contract clauses indicating the funding entity retains the right to audit or inspect pertinent financial documents, expenditures or other related records?
- Is there testing on animals or humans?
Self-Support funds (9-ledger funds) are projects that do not receive an award or donation from a particular funding source, but receive revenues based on activities, services or products provided by a project. These types of funds are called "Campus and Community Programs” or "self-support funds" and are funded primarily by campus users or users in the local community and augment the educational programs of the university. SDSU Research Foundation charges an administrative fee on expenditures and retains interest earned on cash balances to offset the costs of administering these funds.
Designated funds (2-ledger) are funds set up for allocations from SDSU Research Foundation’s general fund, also known as its operating budget. Research Support Funds are included in this category.
Gifts are donations of cash, stock, other investment assets, real property, equipment, or other items of value that may or may not have restrictions as to the use of the funds. Elements of a gift donation or bequest include:
- It is given without return of value to the donor and may be unrestricted as to purpose and/or could include funds for such activities as endowments, scholarships, capital projects, general student financial assistance.
- No reporting is required other than minimal reporting to the donor in the form of a general statement of how funds were used.
- It involves no written or oral contractual requirements other than the outline of the use of the funds via a donor agreement.
- There are no record retention or audit requirements.
- It is awarded irrevocably.
The Campanile Foundation is a tax-exempt, philanthropic entity that is an auxiliary organization of SDSU. The Campanile Foundation is responsible for the acceptance of gifts and ownership of most endowments. SDSU Research Foundation is responsible for the accounting and administration of these funds to prevent the duplication of existing services. Gift funds are established as C -ledgers and are assigned to an SRA grant specialist in the same manner as sponsored projects and campus programs.
In general, the policies and procedures that apply to the administration of SDSU Research Foundation funds are also applicable to The Campanile Foundation funds. However, because The Campanile Foundation and SDSU Research Foundation are two separate non-profit corporations with separate financial audits and tax identification numbers, the following restrictions apply:
- Cash may not be transferred between SDSU Research Foundation and The Campanile Foundation funds; and
- Expenditures may not normally be transferred after the fact between SDSU Research Foundation and The Campanile Foundation funds.
Exceptions may be made only with approval of the director of SRA, the chief financial officer of SDSU Research Foundation, or the chief financial officer of The Campanile Foundation.
In accordance with the agreement between The Campanile Foundation and SDSU Research Foundation, SDSU Research Foundation charges an administrative fee on expenditures and retains interest earned on non-endowment cash balances to offset the costs of administering these funds.
For more information about gifts and c-ledger funds visit the SDSU Research Foundation's website: Fund Setup - Gifts
