201 Carter Drive, Suite 200
West Chester, PA 19383
This group of funds is used to account for resources received from donors or outside agencies, but are restricted to a specific purpose. The restrictions or guidelines for the fund should be in writing. Examples of current restricted funds are (1) gifts for scholarships and (2) non-scholarship gift funds. Additions to scholarships, athletics, or funds to support current operations are usually made by gifts through the Development Office. Donors have the opportunity to restrict their gifts to these types of funds.
The restricted funds office insures that all activity adheres to the guidelines and the budget for each fund.
To better assist you in accessing and monitoring your funds and if you have need of information related to budgeting, revenues and expenses in these funds, please contact:
|Name & Email||Position||Location||Phone|
|Kelly Smith||Manager of Grants and Restricted Funds||201 Carter Drive, Room 242||610-436-2518|
SAP Fund /Cost Centers beginning in 7518xxxxxx, 7552xxxxxx, 7533xxxxxx, 7539xxxxxx
Resources for which a donor or outside agency has stipulated, as a condition of the gift, that the principal amount is not expendable. The principal would remain inviolate and in perpetuity for investment. The investment earnings may be added to the principal, or expended for restricted or unrestricted purposes, per the donor’s request. Most of the endowment funds of the University are used to support specific named scholarship funds. Anyone interested in establishing an endowment should contact the Office of Development at 610-436-2868.
Definition: Financial support based on achievement, performance, or other criteria. The grantor does not specifically state that the money should be used for educational expenses. Example: Departments and schools honor students at award ceremonies held at the end of an academic year. Certificates are typically given to students at that time.
Tax Implication: Awards are taxable income to the recipients, even if no overt action was required by the recipient to receive the award. To the extent a recipient is awarded $600 or more in a taxable year, such award must be reported by the payor on Form 1099-Misc. If the aggregate award to a single recipient is less than $600 per year, the onus is on the recipient to report it as taxable income.
Definition: Recognition based on competition or other criteria.
Example: A competition is held and prizes for 1st, 2nd, and 3rd places are awarded to students.
Tax Implication: Prizes are taxable income to the recipients. To the extent a recipient is awarded $600 or more in a taxable year, such prize must be reported by the payor on Form 1099-Misc. If the aggregate prize to a single recipient is less than $600 per year, the onus is on the recipient to report it as taxable income.
Definition: Financial support based on academic achievement or other criteria that may include financial need. The donor of the scholarship sets the criteria for recipient selection. The grantor specifically intends money be spent to defray the costs of study, training, or research. Proceeds of the scholarship offset the cost of the student's education for an upcoming or current academic year, depending on when the student receives the funds.
Example: Departments, schools, or the Division of Financial Aid select recipients based on the criteria of the scholarship agreement (major, grade level, grade point average, financial need, or a combination other restrictive criteria). Credit for the scholarship is reflected on the student's invoice for tuition/fees and/or housing.
Tax Implication: Portions of the scholarship used to pay for qualified expenses, such as tuition, books, and fees, are not taxable income. The amount exceeding qualified expenses is taxable income for both US and international students. There is no tax withholding on scholarships for US citizens. There may be a 14% tax withholding for international students, depending on what country they are from.