Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through the provision of products or services.
The individual or group that provides the support, similar to a benefactor, is known as sponsor.
If the UW provides financial support for an event, conference, etc. that is not held at the UW then the UW is sponsoring this activity.
How to Process Sponsorship Payments
UW-Madison processes sponsorships on a Direct Payment (DP); however, the funding source may not be General Purpose Revenue (GPR) funds and must adhere to UW System Administration Financial Administrative Policies and Procedures (F46) Prizes, Awards, and Gifts.
Sponsorships and donations are not allowable on the Purchasing Card.
ACCOUNT CODE TO USE FOR SPONSORSHIPS
UW Madison sponsorships are processed using expense Account Code 3750 (Prizes & Awards) per Account Code description below:
Account Code: 3750 Prizes and Awards-Cash to Individuals (Tax Reportable)
- Payments to employees which are not service-related. All non-scholarship cash awards, cash prizes, and gift certificates to non-employees. For cash awards to UW System registered students, use account code 5711, program 9 because the Financial Aid Office needs to be aware of these payments. For scholarship awards to students registered at an academic institution outside the UW System, use account code 5710. For research support to students, fellows, scholars and trainees, use account code 5709. Any cash awards to employees for meritorious or distinguished service, exceptional performance, etc., must be paid through the payroll process. Sponsorship of events is considered a sponsorship award which is tax reportable to the recipient and should be coded to account code 3750.