FOREIGN GIFT AND CONTRACT REPORTING LEGAL

Transcript:FOREIGN GIFT AND CONTRACT REPORTING LEGAL:
FOREIGN GIFT AND CONTRACT REPORTING LEGAL REQUIREMENTS Presented to Penn Development and Alumni Relations October 14, 2021 Training (updated November 18, 2021) Robert F. Firestone, Esq. Office of the General Counsel Elizabeth Duggins Peloso Office of Research Services 1 Today’s Presentation: (1) Summary of Existing Federal Law (2) Summary of Existing Pennsylvania Law (3) DAR and Central Division of Finance Processes and Deadlines—Who Does What, and Sends What to Whom? (4) “I Have a Question…”: Additional Resources Available to the Penn Community 2 Current Federal Law: 20 U.S.C. 1011f (called “Section 117” of the Higher Education Act). Penn needs to report gifts from, and contracts with, a "foreign source," where the aggregate amount Penn receives from that foreign source is $250,000 or more during the calendar year. Report Twice Every Calendar Year to U.S. Dept. of Education (by July 31, for previous Jan. 1 to June 30 [6 mos.]; and by January 31, for previous Jan. 1 through Dec. 31 [12 months]) 3 “Gift” is defined to include a gift of money OR PROPERTY (non-monetary). Includes gifts of securities, land/real property, equipment and goods. Value non-monetary gifts at Fair Market Value at the time the non-monetary property is “received,” or transferred to Penn (e.g., when title to stocks are transferred; when property title is transferred; etc.) Penn is defined to include all of its “intermediaries” if any part of the gift directly or indirectly benefits the university: Include the UK and Hong Kong Foundations Include gifts to Penn Wharton China Center; UPenn International; Penn Praxis; Univ. of Penn. Press; Morris Arboretum; Annenberg Center for Performing Arts (Penn Live Arts); etc. (Health System components—gifts DAR knows about vs. contracts) 4 Threshold: $250,000 or more, in the aggregate, RECEIVED during calendar year. All parts of Penn have to report every gift and contract, even if only for $1, from a “foreign source,” so gifts and contracts from the same “foreign source” can be aggregated across all other parts of Penn. Do not apply your own minimum financial “threshold” (e.g. only gifts of $25,000 or more.) Aggregating is done by the central Division of Finance from all the data from DAR and rest of Penn: Hypothetical Example: Takeda Pharmaceutical Company, incorporated in Japan, entered into a $90,000 contract with Wharton Executive Education to train Takeda finance professionals. Takeda Pharmaceutical Co. also makes a $200,000 gift to Penn Nursing to support a lecture series