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Other Types of Charitable Transactions

Find information on other types of charitable transactions.


Fellowships are awards that enable individuals to pursue study in their fields or to introduce them to related fields. Although not consistently defined, some sponsors place the emphasis on contribution to the individual's own scholarly development. A fellowship often advances, synthesizes, or enlarges the applicant's special area of interest. Or, it may enable the recipient to study in a different area which will extend his or her competence. The salary support provided by a fellowship may be referred to as a stipend. Fellowship types may include Research Fellowship; Training Fellowship; or Traineeship. Fellowships may be considered gifts or grants, depending upon terms and conditions.  


Sponsorships come in two forms:

  1. A "Qualified Sponsorship" is considered a gift. This classification is applicable  when only incidental benefits are returned to a sponsor by the donee entity (the University), such as use of the sponsor’s name, logo or products for acknowledgment, or less than 2% in value of goods or services returned to the sponsor, then the sponsorship is a “qualified sponsorship” to the donee entity and is not subject to Unrelated Business Income Tax (“UBIT”).
  2. When substantial commercial value (generally meaning commercially viable advertising of the sponsor and their products or by virtue of UC San Diego training of sponsor company personnel) is returned to a sponsor by the donee entity, the sponsorship is considered income to the donee entity and advertising or marketing expense to the sponsor.  Such income may be subject to UBIT by the donee.       

Fundraising Event Underwriting

Event Underwriting is solicited often at UC San Diego and is treated as a charitable gift as long as the value of goods and service returned to the sponsor are less than the amount of the underwriting. It serves to cover event or activity costs for a fundraising event. Some benefits, in the form of event tickets, etc, may be provided in return to the underwriter, as quid pro quo, and will be receipted accordingly.

Grants and Contracts

Grants and Contracts are administered by the Office of Contract and Grant Administration (OCGA). They are written agreements between two organizations where one organization provides funds or other forms of support in exchange for research or other services. Grants and contracts are the primary vehicles used to fund faculty research projects. The University enters into agreements with many different organizations, including private nonprofit foundations, private corporations, the State of California, the federal government, and other governmental entities. The University of California itself also acts as a sponsor by distributing intra-University funds to support research, teaching, and public service. Unlike gifts, grants and contracts impose terms and conditions on the campus, and can be revoked if the campus fails to abide by them.

Note: The governing document for classification of an award from a private source is UC San Diego - PPM 150-35.