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Prize Money - How to account for this

  • 1.  Prize Money - How to account for this

    Posted 23 days ago
    MGO has already agreed to accept this as a gift... 
    Faculty member is receiving prize money from this competition: Rainforest XPRIZE

    Definitely not a gift. But what IS it? 


    Updated question for the community: if we get the faculty member to accept the money personally, then he could turn around and donate it back to the University, yes? And if they come in 1st, 2nd, or 3rd place and win even more money, then he could do the same and again donate it back to IIT? 

    ------------------------------
    Cameron Alzubi
    Director, Gift Administration
    Illinois Institute of Technology
    calzubi@iit.edu
    giftadmin@iit.edu
    ------------------------------


  • 2.  RE: Prize Money - How to account for this

    Posted 23 days ago
    Cameron, it's not entirely clear what your circumstances are. When you say that the faculty member is receiving prize money, are they then turning around and donating that money to your institution? If so, that is a gift - the fact that they earned the money through a contest is irrelevant. 

    If, on the other hand, your institution is the entity which participated in the competition, and the faculty member is simply the person who "did the work" and there was no agreement in place btw the institution and the faculty member that would entitle the faculty member to some share of the prize, the money is simply non-charitable revenue. The faculty member can be honored in some fashion, but they never had any rights to the money to be able to gift it. If there was some arrangement whereby they would receive the prize money, then this is a gift again.




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