11.7 Employee Donations for Programs Under the Perceived Control of the Employee

Policy Statement

The University of Illinois System may accept donations from an employee or an employee’s immediate family member in support of research or programs under the perceived control of that employee. In addition, the System is also allowed to accept donations of this type from any business entity where the employee or the employee’s immediate family member has a controlling interest and/or the authority to make a donation.

If the system agrees to accept this type of donation, then units must ensure that specific conditions are met when accepting and managing the donation.

Reason for the Policy

To avoid the appearance of a conflict of interest between an employee’s personal interests and system research, programs, and business activities.

Applicability of the Policy

Any unit who receives a donation from one of the following, where the donation is restricted to support research or programs under the perceived control of the applicable employee:

  1. The donation is from an employee, or
  2. The donation is from an employee’s immediate family member, or
  3. The donation is from a business entity where the employee or the employee’s immediate family member has a controlling interest and/or the authority to make a donation.

An immediate family member includes an employee’s spouse or domestic partner, parents, siblings, and children.

Procedure

To properly accept and manage this type of donation, the following conditions must be satisfied:

An  Employee Donor Agreement form must be completed and approved by the unit head, the University of Illinois Foundation (UIF), and the applicable university Conflict of Interest Office.

If the Employee Donor Agreement form is approved, then send the donation along with the approved Employee Donor Agreement form, a completed Gift Transmittal form, and any other supporting documentation (such as a letter from the donor) to UIF.

Once the UIF has sent the donation to Banner, these proceeds will be recorded as revenue to the applicable gift fund. It is then the unit’s responsibility to manage this donation by following the conditions outlined below.

  1. Donated funds must be recorded in a C-FOP controlled by the either the unit head or by another faculty or staff member who is not under the supervision of the employee associated with the donation.
  2. Donated funds (or substituted equivalent amounts from other types of funds) cannot be used to fund any or all of the salary of the employee associated with the donation.
  3. The employee associated with the donation can only use the donated funds for business travel and/or professional development expenditures when approved by the unit head.
  4. If the employee associated with the donation has any personal business activities (e.g., consulting services) that involves system students, then those system students are not allowed to receive any type of payments (e.g., wages) or financial aid (e.g., scholarships) from these donated funds.
  5. If the employee associated with the donation has any personal business activities (e.g., consulting services), then the donated funds should not be used to make payments to those personal business activities.

 

Forms Used in this Procedure

Employee Donor Agreement
Gift Transmittal

Related Policies and Procedures

11.2 Distinctions Among Gifts, Grants, and Contracts

Additional Resources

Conflict of Interest Contacts and Resources
Internal Revenue Code

Last Updated: September 10, 2020 | Approved: Senior Associate Vice President for Business and Finance | Effective: November 16, 2015