FAQs

How do you determine if an activity is representative of revenue generating or sponsored activity?

Question:

How do you determine if an activity is representative of revenue generating or sponsored activity?


Answer

The main distinction between grant and contract revenue and educational activity or other revenue lies in the nature and the purpose of the agreement. Sponsored activity is representative of scientific research, whether basic, fundamental or applied, or a unique non-recurring service, whether in the nature of research, instruction, or public service.

In addition, agreements involving human participants, laboratory animals, radioactive or hazardous materials, biohazards (including recombinant DNA), or export-controlled materials are typically considered sponsored activity. Moreover, agreements involving instructional activities (e.g., corporate or executive education), services not requiring novel intellectual explorations, or the routine sale of goods or services are normally NOT considered to be revenue generating activity. (See Section 22—Self-Supporting/Revenue Generating Activities).


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