Research Corporation of the University of Hawaiʻi

Research Corporation
of the University of Hawai‘i
2.010 Tax Treatment of Program Expenses
I. Overview of Policy
A. General program and operational expenses that benefit a project or participant group as a whole and are not identifiable to a specific individual are not considered income to the individual and are thus not reportable to the Internal Revenue Service (IRS).
Examples include beverages provided at an informational community meeting, or a bus/transportation service that is open to any participant.
B. If the expense is to support a specific recipient (such as payments for an airline ticket or lodging), the expense may be a scholarship/fellowship. Refer to Policy 2.006 Tax Treatment of Non-Service Financial Assistance for Individuals for further guidance.
1. Exceptions
a. If the activity resulting in the expense (to support a specific recipient) is part of an official UH course curriculum (and the activity is specifically described in the class catalog), or
b. If the activity is part of the UH Chartered Student Organization.
2. If the expense is an exception as described in Section I.B.1. above, it is considered a program/operational expense, is not considered income to an individual, and is not required to be reported to the IRS.
3. If a program is unsure as to whether an expense qualifies as a program/operational expense, the program should discuss the matter with their respective Fiscal Administrator.
II. Relevant Documents
Policy 2.006 Tax Treatment of Non-Service Financial Assistance for Individuals
Date Revised: 2/02/2017