450-18: Infrastructure and Operations Assessment

To provide a portion of the financial support needed to fund campus infrastructure and core administrative services, the campus applies an infrastructure and operations (I&O) assessment to gifts and endowment income. Private grants, managed through the Office of Sponsored Research, are assessed according to the appropriate Facilities and Administrative (F&A) rate and are excluded from the I&O assessment.

1. All gift revenue, except for scholarships and gifts-in-kind as detailed below, is subject to assessment. The assessment directs a portion of gift revenue to the Infrastructure and Operations (I&O) fund, which is a component of the Chancellor’s Core Financial Plan (CFP).
2. Assessment by fund type
   1. For current operations, including restricted and unrestricted gifts, an assessment of 4% of the value of the gift is made when a gift is received by UCSF Foundation or Regents. An assessment of 6% of the remaining gift balance is made during the month that revenue from the gift is posted to a project for expenditure on the campus ledger.
   2. For endowment and FFE gifts, an assessment of 4% of the corpus or gift amount is made when the gift is received or FFE is established, and an assessment of 6% of the annual payout amount is made when the payout is posted to a project for expenditure on the campus ledger.
3. If the terms of a gift do not permit all or a portion of the I&O assessment, the benefiting department must designate an alternate source of funding for the assessment. Appropriate alternate sources include departmental unrestricted funds or sales and services funds, and may not include federal or state funds. If no acceptable alternate source of funding is available, the gift cannot be accepted.
4. Exemptions
   1. Scholarship exemption – Gifts restricted by a donor for scholarships or fellowships to pay tuition, living expenses, stipends, and/or other educational costs for students in professional and graduate degree programs at UCSF are exempt from the assessment.
      1. Gifts to support trainees in non-degree programs such as residencies and post-graduate clinical and research fellowships are not exempt from the assessment.
      2. Merit-based awards intended for research expenses are not exempt from the assessment.
      3. The use of gift funds for scholarships, when the funds are not specifically restricted by the donor for student support, does not exempt the fund from the assessment.
   2. Gift-in-kind exemption – Generally, gifts-in-kind retained for use are not subject to the assessment.
   3. The non-deductible portion of event ticket purchases, corresponding to the fair market value (FMV) of benefits received, are exempt from the assessment.
   4. Transfers of non-gift funds to FFEs are exempt from the 4% assessment on the corpus amount. These FFEs are not exempt from the 6% assessment on annual payout.
   5. Gifts to partner institutions, including affiliates, will be exempt from some or all of the I&O assessment. See Appendix A for the list of approved institutions and process for executing the exemption.
       

Appendix A - Partner Institutions

All collaborations and arrangements involving a reduction or refund of I&O on funds sent to affiliates, collaborators, or partner institutions require Chancellor approval. Gift agreements should also specify such arrangements.

As of October 2020, approved affiliates, consortium, and subcontracting partners include:

• Benioff Children’s Hospital Oakland
• Global Brain Health Institute (GBHI) UCSF/Trinity Consortium and Host Sites
• Multiple Sclerosis Microbiome Project Subcontracting Sites
• National Football League TRACK-TBI Collaboration Sites
• Gladstone Institute

Each quarter an email request shall be sent to [email protected] requesting a refund of the 10% I&O charged on funds sent to approved consortium and subcontracting partners. This includes the 4% gift fee charged upon receipt of the gift, and 6% revenue assessment charged upon receipt of funds on the SFCMP ledger.

NOTE: For the Gladstone Institute, only the 6% revenue assessment will be refunded as the Institute will charge an additional internal fee to all funds they receive.

Upon receipt, gifts are posted to the appropriate gift fund, project, and deptID. Gifts to UCSF Foundation and UCSF are posted to SFFDN and SFCMP PeopleSoft business units, respectively. Owner departments, as indicated by deptID, are responsible for disbursing funds from SFCMP to partner institutions.

I&O refunds will be processed quarterly upon email request, including the following details:

• Total funds disbursed to affiliates, consortium partners, or subcontracting sites
• MyReports transaction detail showing payments made by UCSF to consortium and subcontracting partners
• Chartstring, including fund, deptID, project, and function to receive the refund. This chartstring should mirror the chartstring of the payment source project.

1. University Development and Alumni Relations (UDAR) is responsible for administration of assessments under this policy.
2. Each department is responsible for informing all prospective donors about the I&O on solicitation materials, using approved language provided by UDAR.
3. UDAR shall notify the Campus Budget Office when gifts of $50,000 or more are assessed I&O in non-standard fashion according to this policy.

• Development Reference Guide, UC Office of the President