Commonly Used Terms

A grant is defined as an award mechanism to transfer money, goods, property, services or other items of value to accomplish a public purpose. In general, the following characteristics describe a grant:

• No substantial involvement is anticipated between the sponsor and recipient during a specified period of activity.
• The award comes with terms, conditions, and/or other contractual requirements that need to be met.
• There are budgetary and spending restrictions that must be followed and expenditures must be documented.
• Reports may be required including financial reports and technical or progress reports.
• Deliverables of some form are required, which may include the sharing of research results.
• An Authorized Organizational Representative (AOR) must transmit and/or sign.

Student education grants are offered based on financial need as determined by the results of the FAFSA. These funds are used to offset the cost of the student's education for an upcoming or current academic year for performance or criteria met during the previous academic year. Educational grants do not require repayment. A student’s financial offer will include grant funds whenever guidelines and funding levels permit. Priority for grants is given to students that meet the priority deadline on January 15. Grant funds are initially offered based on full-time enrollment status during the fall and spring semesters. If a student’s enrollment changes to three-quarter time or half-time status, grant funds will be reduced. Graduate students are not eligible for federal grants but may be eligible for state or institutional grants if they demonstrate need and meet specific requirements.

Example: The Financial Aid Office selects recipients based on financial criteria and/or grade level and cumulative grade point average as well as other criteria. Credit for the grant is reflected on the student's bill for tuition/fees and/or housing or a check is prepared and given to the student if other assistance has paid fees and housing.

• Impact for the student and the institution: The institution is required to report the grant as part of the student's total resources that are used to help offset the student's cost of education for the academic year.
• Result: As new resources are added to the student's financial assistance for the academic year, federal regulations governing the institution may require a small number of students to repay certain federal funds. In addition, the type of funds that certain students receive may also require that the institution withhold taxes from the proceeds of the grant.
• See https://onestop.utsa.edu/financialaid/types/grants/ for more information.

A contract is defined as a binding agreement between parties for the purpose of securing goods or services during a specified time period. In general, the following characteristics describe a contract:

• There is extensive input from the sponsor into the tasks to be performed.
• The principal purpose is to acquire property or services for direct benefit or use by the sponsor.
• The sponsor considers the award a “ procurement”.
• The sponsor requires formal reports of any kind, including financial or technical.
• Invoicing or billing is required, which could be a one-time, fixed-price invoice.
• The contracting mechanism has terms and conditions such as
  
  • Ownership of intellectual property or curriculum
  • Right of first refusal, or right of first negotiation of intellectual property developed at UTSA.
  • Ownership or access to research results.
  • Publication review of faculty, graduate student or post doc research.
  • Private or non-public meetings, seminars, or other forums in which the researcher will transfer research results to the Company
  • Deliverables of any kind.
• An Authorized Organizational Representative must sign the awarding document.

A gift is defined as any item of value given to the University by a donor who expects nothing of significant value in return, other than recognition and disposition of the gift in accordance with the donor's wishes. In general, the following characteristics describe a gift:

• There are no contractual requirements imposed and there are no "deliverables" to the donor. However, the gift may be accompanied by an agreement that restricts the use of the funds to a particular purpose.
• A gift is irrevocable. While the gift may be intended for use within a certain timeframe, there is no specified period of performance or start and stop dates.
• There is no formal fiscal accountability to the donor. There may, however, be annual or periodic updates sent by the Office of Development that may be thought of as requirements of good stewardship, and, as such, may be required by the terms of a gift. They are not characterized as contractual obligations or "deliverables."

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:

• US citizens – include in taxable income on your tax return
  • A 1099 will be issued for amounts greater than $600
• International students
  • 30% tax withholding
  • Reported on a 1042-S form

All prize or award payments made to employees must be paid through the payroll process, per the IRS tax code, where all applicable income and employment taxes are withheld. These types of payments are required to be reported on the employee's W-2 form.

Note: For International student's taxes may have to be withheld on all of these forms of payments.

Note: All of these forms of payments to students must be considered educational resources per federal regulations. Therefore, they have to be reported to the Financial Aid Office (onestop@utsa.edu or 210-458-8000).

Definition: Recognition based on competition or other criteria.

Example: A competition is held and prizes for ranked positions (e.g., 1st, 2nd) are awarded to employees or students.

Tax Implication:

• US citizens – include in taxable income on your tax return
  • A 1099 will be issued for amounts greater than $600
• International students – 30% tax withholding
  
  • Reported on a 1042-S form
• All prize or award payments made to employees must be paid through the payroll process, per the IRS tax code, where all applicable income and employment taxes are withheld. These types of payments are required to be reported on the employee’s W-2 form.

Note: For International student's taxes may have to be withheld on all of these forms of payments.

Note: All of these forms of payments to students must be considered educational resources per federal regulations. Therefore, they have to be reported to the Financial Aid Office (onestop@utsa.edu or 210-458-8000).

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. See the UTSA Scholarship Hub.

Example: Colleges, departments, schools, or the Office of Financial Aid select recipients based on the criteria of the scholarship agreement (e.g., minority status, major, grade level, grade point average, financial need, or a combination of 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 tax residence, or a reduced rate of withholding, if a treaty is available (US Tax ID required along with other parameters).

Note: For International students, taxes may have to be withheld on all of these forms of payments.

Note: All of these forms of payments to students must be considered educational resources per federal regulations. Therefore, they have to be reported to the Financial Aid Office (onestop@utsa.edu or 210-458-8000).

An account that has no endowment to support it.

May be non-recurring.

• An academic job held by a student, which involves pay for services rendered. Either graduate or undergraduate.
• The school or department providing the assistantship determines the nature of undergraduate assistantships.
• Graduate assistantships are classified as Teaching Assistantships (TA) or Research Assistantships (RA).
• Teaching and Research Assistantships receive a full or partial tuition waiver.
• A monthly stipend is paid to Teaching Assistants for the performance of teaching duties. Research Assistants also receive a stipend for research duties (research is typically not related to the student's thesis research).

These terms can be found in old endowment agreements and refer to merit.

A separate fund, the principal of which cannot be spent. The principal is maintained in perpetuity and invested for the purpose of producing present and future income, which may be either expended or added to principal. These are donor-specified.

A separate fund, the principal of which may be spent, but is primarily intended to be maintained in perpetuity. Present and future income may be expended or added to principal. These are school- or department-specified, usually funds from several donors with common designation.

A separate fund, earnings of which may be expended or added to principal. Upon the passage of a stated period of time or the happening of a particular event, all or a part of the principal may be expended.

Refers to a fund into which earnings from an endowment are placed for expenditure.

An account intended to be used until reaching a zero balance, perhaps over a period of more than one fiscal year.

Financial support to reduce the cost of a graduate student's education. Some fellowships include a tuition waiver or a payment to the University in lieu of tuition. Fellowships may include stipends to cover living expenses.

Students receive payments to assist them in pursuing a course of study or research. This payment is not a payment for teaching, performing research, or other services. Fellowships are taxable income to the recipient. Exclusions to the taxable income are amounts used to pay for tuition/fees and books and supplies.

Money provided to a student to help pay for the student's education from federal, state, institutional, and private sources. Major forms of financial aid include gift aid (grants and scholarships) and self-help aid (loans and work).

The financial aid package is the complete collection of scholarships, grants, loans, and work-study employment from all sources (federal, state, institutional, and private) offered to a student to enable him or her to attend the University.

A federally mandated calculation. Standard cost of education less the family's contribution equals the student's financial need.

An individual working toward a post-Baccalaureate degree or certification.

Financial support which must be repaid, usually with interest. For more information on the loans that are available, see https://onestop.utsa.edu/financialaid/types/loans/

Funds provided to a student on the basis of some achievement.

Funds provided to a student on the basis of financial need.

Financial support to a specific student determined by an outside entity. Recipient selection is performed by the funding source (e.g., organizations, clubs, trusts, and foundations).

Individual enrolled in a professional degree program. For examples, see https://www.utsa.edu/pace/

An individual enrolled in a Baccalaureate degree program.