Grants Disbursement

Sachs Program grant awards can be disbursed in one of three ways, depending on the grant category and the nature of the awarded project, in accordance with University of Pennsylvania policies.

Below are guidelines for each of the three methods of disbursement, including:

Which are available based on an applicant’s grant category and the nature of their project.
Important considerations associated with each method.
Steps required to receive grant funds for each method.

Understanding these guidelines is essential as we cannot provide support outside of university-approved options for receiving and managing grant funds.

Information about what it means to be a Fiscal Conduit for a Sachs Program grant award can also be found on this page.

Three Disbursement Methods

Internal Transfer via Fiscal Conduit

Grant funds can be transferred to a University of Pennsylvania department, program, or center to manage the funds as a designated Fiscal Conduit. The Fiscal Conduit will work with the grantee to help them spend against the grant using a university budget code. This may include purchasing supplies, paying contributors, booking travel, and other expenses, all within the grantee’s approved project budget. Please see more information below about the role of a Fiscal Conduit.

Penn Marketplace Award

Grant funds can be disbursed directly to individual students, faculty, and staff members as an award through Penn Marketplace. If the grantee is not already in the system as a supplier, they will be onboarded by Sachs Program staff and paid through Penn Marketplace in collaboration with the Provost’s Office of Administrative Affairs. Penn Marketplace awards are subject to tax but not employee benefits.

Please note that for this method to be approved, the grant or project must be completely distinct from the faculty or staff member’s employment at Penn. If this is not the case, the grant must either be issued through a Fiscal Conduit, or it becomes compensation, as per university policy.

SAC Account Transfer

Student groups supported by the Student Activities Council (SAC), and which have an active SAC account, can receive their grant as a transfer to their SAC account if approved by the Office of Student Affairs. This approval must be confirmed before submitting an application.

Disbursement Methods by Grant Category

The following grant disbursement methods are available based on the Sachs Program grant category and determined by the nature of the project, in accordance with university policy.

Student Grants
Students must receive Student Grants as awards through Penn Marketplace, except for student groups with active SAC accounts (if approved by the Office of Student Affairs).
Artist Residency Grants
Artist Residency Grants may only be disbursed through a Fiscal Conduit. No other option is available.
Community Partnerships Grants
Community Partnerships Grants may only be disbursed through a Fiscal Conduit. No other option is available.
Curricular Support Grants
Curricular Support Grants may only be disbursed through a Fiscal Conduit. No other option is available.
Independent Creative Production Grants
Independent Creative Production Grants may either be disbursed through a Fiscal Conduit or as an award through Penn Marketplace. Please note that for those requesting an award, in order for this method to be approved, the grant or project must be completely distinct from the faculty or staff member’s employment at Penn. If this is not the case, the grant must either be issued through a Fiscal Conduit, or it becomes compensation, as per university policy.
Project Support Grants
Project Support Grants may either be disbursed through a Fiscal Conduit or as an award through Penn Marketplace. Please note that if the project is related to your employment at Penn, it must be issued through a Fiscal Conduit. For those requesting an award, in order for this method to be approved, the grant or project must be completely distinct from the faculty or staff member’s employment at Penn. If this is not the case, the grant must either be issued through a Fiscal Conduit, or it becomes compensation, as per university policy.
Rolling Grants
Rolling Grants may be disbursed through a Fiscal Conduit or as an award through Penn Marketplace, depending on the nature of the request. Please note that for those requesting an award, in order for this method to be approved, the grant or project must be completely distinct from the faculty or staff member’s employment at Penn. If this is not the case, the grant must either be issued through a Fiscal Conduit, or it becomes compensation, as per university policy.

Important Considerations

Internal Transfer via Fiscal Conduit

The grant is transferred to a budget code that the Business Administrator (BA) for the Fiscal Conduit you are working with provides. The university, via the BA, manages the grant funds, assisting with all aspects of grant spending, including making payments to partners, vendors, contractors, etc.
Working through the university can involve complex multi-step processes and can take time. You should discuss your budget and expenses with your designated Fiscal Conduit as early as possible. This is particularly the case when it comes to paying individuals, which can take weeks up to months. So, if you are trying to get project partners paid quickly, this is important to keep in mind.
When a grant is managed by the university, the individual grantee will only be taxed on and have employee benefits come out of any portion of the grant paid to them as income via the fiscal conduit. If a grantee is receiving a portion of the grant as income (as opposed to receiving the whole grant as an award that they manage independently), this would be paid through Penn Workday (payroll) so employee benefits plus taxes would be applied.
It’s critical that you confirm ahead of applying that your intended Fiscal Conduit is willing and has the capacity to support your project in this way. We strongly recommend you identify and discuss this with your department’s Business Administrator (BA).

Penn Marketplace Award

The grantee retains autonomy in managing the grant funds. This means that they are directly responsible for managing payments to partners, vendors, contractors, etc; they do not need to coordinate these payments with the university. This can, in theory, mean that you can pay partners and purchase supplies on a faster timeline.
In order for this method to be approved, the grant or project must be completely distinct from the faculty or staff member’s employment at Penn. If this is not the case, the grant must either be issued through a Fiscal Conduit, or it becomes compensation, as per university policy.
Penn Marketplace awards are considered taxable income, and some percentage of grant funds will be due as tax. The tax amount will differ depending on an individual’s residence and tax status. The university does not provide tax advice, so any tax implications should be reviewed and handled by an external accountant.
Student groups that are not SAC-supported or do not have an active SAC account, will need to receive their grant as an award through Penn Marketplace, the same as an individual grantee. Student groups may either designate one individual to receive the grant on the group’s behalf or set up an LLC to receive the grant on behalf of the group.

SAC Account Transfer

SAC-supported student groups must confirm with the Office of Student Affairs that they can receive their grant through the SAC account, before applying.
SAC-supported groups may only apply for a Sachs Program grant for projects and activities that are not covered by their SAC budget.
SAC-supported groups must work with the Office of Student Affairs to spend against their grant, per the office’s policies and procedures.

Steps Required for Each Disbursement Method

Internal Transfer via Fiscal Conduit

Before Submitting an Application:

Get approval from your sponsoring department, program, or center, including (ideally) discussing the agreement with the department’s Business Administrator (BA).
Share your budget and timeline with the BA and discuss how they will support you in spending against the grant (what are their processes and procedures).
Confirm in the application which Fiscal Conduit and BA you will be working with.

After Being Awarded a Grant:

Complete the online Smartsheet form sent to you by Sachs Program staff, which is a necessary step for transferring the grant funds.
Make sure your BA completes the Smartsheet form that the Sachs Program sends to them (automatically, after you submit your Smartsheet form), which is also a necessary step for transferring the grant funds.
Share with your Fiscal Conduit a list of project partners that need to be paid, including the following information:
- Name
- LLC or business name (if applicable)
- Email address
- Payment amount
- Purpose of payment
Work with your BA to spend against the grant using the budget code they provided, which the Sachs Program used to transfer the funds to.

Penn Marketplace Award

Before Submitting an Application:

In the application, state your preference for receiving the grant as an award. Please note that in order for this method to be approved, the grant or project must be completely distinct from the faculty or staff member’s employment at Penn. If this is not the case, the grant must either be issued through a Fiscal Conduit, or it becomes compensation, as per university policy.
Consider the tax implications and include a line item in the project budget to account for taxes, if desired.

After Being Awarded a Grant:

Confirm that you are eligible to receive the grant as an award through Penn Marketplace in consultation with the Sachs Program and the Provost’s Office of Administrative Affairs.
If so, confirm if you are already registered as a supplier in Penn Marketplace.
If you are, please verify or update your bank account information on your supplier profile.
If not, please share the following information with Sachs Program staff as soon as possible so that they may register you:
- Legal first and last names
- Preferred email address
- Mailing address
- Phone number
Once you are registered, you will receive an email from Penn Marketplace to complete your supplier profile. Please do so as soon as possible, and be sure to include your preferred payment method. (Please note that direct deposit payment is recommended over payment by check.)

SAC Account Transfer

Before Submitting an Application:

Get approval from the Office of Student Affairs (OSA) including (ideally) discussing the agreement with the department’s Business Administrator (BA).
Share your budget and timeline with the BA and discuss how they will support you in spending against the grant. Familiarize yourself with their processes and procedures.
Confirm in the application that you will be transferring the grant to your SAC account and list the BA you will be working with.

After Being Awarded a Grant:

Complete the online Smartsheet form sent to you by Sachs Program staff, which is a necessary step for transferring the grant funds.
Make sure your BA completes the Smartsheet form that the Sachs Program sends to them (automatically, after you submit your Smartsheet form), which is also a necessary step for transferring the grant.
Share with your Fiscal Conduit a list of project partners that need to be paid, including the following information:
- Name
- LLC or business name (if applicable)
- Email address
- Payment amount
- Purpose of payment
Work with your BA to spend against the grant using the budget code they provided, which the Sachs Program used to transfer the funds to.

What Is a Fiscal Conduit?

A Fiscal Conduit is a University of Pennsylvania department, program, or center that agrees to support a grantee in utilizing their grant funds according to the budget that the grantee submitted to the Sachs Program or per changes approved by the Sachs Program. This may include, but is not limited to providing the following examples of support.

Processing payments for project partners (including onboarding vendors or partners)
Purchasing equipment
Processing payments for travel, airfare, hotels, etc.
Processing reimbursements
Settling other grant-related invoices

The department’s BA must also coordinate the transfer of funds with the Sachs Program, including sharing a budget code for the grant to be transferred to via a Smartsheet form.

Project Partner Payments

All payments to project partners must follow the university’s general policies and procedures for paying individuals, groups, and vendors.

Payments of $50,000 or more require a bid waiver, if the grantee is not willing or able to solicit three bids for that particular work or role. The bid waiver should explain why it is critical that you work or partner with that specific person or entity and why it is not possible to pursue bids for this work or partnership. The Sachs Program is happy to advise on bid waivers and can share more information about the bidding process if needed.

Additional information about the onboarding process for suppliers and Penn’s guidelines for allowable expenses will be shared with grantees and their designated Fiscal Conduit at the time of grant disbursement.

For More Information

If you have any questions about Sachs Program grant award disbursement, please email Sachs Program Associate Director Chloe Reison at reison@upenn.edu.