Foreign Gifts and Contracts Disclosure Policy

Policy Summary

Departments, divisions, schools, or other units receiving gifts of any value from a foreign source promptly must report such gifts to the Office of the Vice President for Development and Alumni Relations in accordance with the Gift Acceptance Policy, and promptly must report all contracts of any dollar value with foreign sources to Financial Reporting in the Office of the University Controller.  

Related Regulations

Section 117 of the the Higher Education Act (HEA) codified at 10 U.S.C. § 1011f requires institutions that receive a gift from or enter into a contract with a foreign source, the value of which is $250,000 or more considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year, to file a disclosure report with the Department of Education.  Failure to file a disclosure report could result in civil action and assessment of costs against the university by the federal government.  

Who is Governed by this Policy 

• Staff
• Faculty

Policy

The university must submit a foreign source gift and contract disclosure report to the Secretary of the Department of Education (DOE) no later than January 31 or July 31 (whichever is sooner) following the receipt of the foreign gift of money or property or execution of a contract with a foreign source valued at $250,000 or more.  A gift or contract meets the $250,000 threshold either alone or when considered in combination with all other gifts from or contracts with that foreign source within a calendar year.  

To comply with the HEA reporting deadline, all foreign income including grants, contracts and gifts of money and property across the university must be aggregated properly to evaluate whether the reporting threshold has been met.  Accordingly, departments, divisions, schools or other units receiving gifts of any dollar value from a foreign source promptly must report such gifts to the Office of the Vice President for Development and Alumni Relations at [email protected] in accordance with the Gift Acceptance Policy, and report all contracts of any dollar value with foreign sources to Financial Reporting in the Office of the University Controller twice a year during the HEA reporting cycle.  In consultation with the Development Division and other appropriate University offices, Financial Reporting will prepare and submit all foreign source gift and contract disclosure reports to DOE. 

To enable the university to report accurately to the DOE, the department, division, school or other unit must provide specific information for each gift and contract.  Foreign gifts and contracts required information is covered in the Foreign Gifts and Contracts Required Information.

Definitions

Contract: Per 20 U.S.C. §1011f, the term contract means any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source for the direct benefit or use of either of the parties.   

Foreign Gift or Contract: A gift or contract received from or entered into with a Foreign Source. 

Foreign Source: A foreign source may be any of the following:  A foreign government or any agency thereof; a legal entity (governmental or otherwise) created solely under the laws of a foreign state; an individual who is not a citizen or national of the United States or a trust territory or protectorate thereof; or an agent acting on behalf of a foreign source. 

Gift: Per 20 U.S.C. §1011f, the term gift means any gift of money or property to the university.  Gifts may be unconditional/unrestricted, or conditional/restricted. 

Restricted or Conditional Gift or Contract: Any endowment, gift, grant, contract, award, present or property of any kind which includes provisions regarding:   

1. the employment, assignment or termination of faculty;  
2. the establishment of departments, centers, research or lecture programs, or new faculty positions;  
3. the selection or admission of students; or  
4. the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion. 

Related Information

• Foreign Gifts and Contracts Required Information
• Compliance with Laws when Conducting University Activities Overseas
• Anti-Money Laundering Policy
• Gift Acceptance Policy
• Categorization of External Funding
• Signing of Contracts and Agreements Policy 
• Section 117 of the Higher Education Act (HEA) codified at 20 U.S.C. § 1011f 

Contacts