Grants Disbursement

Sachs Program grant awards can be disbursed in one of two ways, depending on the grant award category and the nature of the supported project.

Below, we’ve outlined detailed information about the two disbursement options, including which option is available based on the grant category, the pros and cons of each option, and the necessary steps to pursue either.

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

The two disbursement options

Fiscal Conduit

The 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 purchase supplies, pay contributors, etc., according to the project budget. Please see more information below about the role of a Fiscal Conduit.

Award

The grant funds can be disbursed directly to individual students, faculty, and staff members as an award through the Penn Marketplace. If the individual is not already in the system as a supplier, they would be onboarded by Sachs Program staff and paid through the Penn Marketplace in collaboration with Provost Admin Affairs. Awards are subject to tax but not employee benefits.

Disbursement options by grant category

The following grants disbursement options are available based on the Sachs Program grant category.

Student Grants
Student Grants may only be disbursed as Awards through the Penn Marketplace. No other option is available.
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 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 (the University’s preferred method) or as an award through the Penn Marketplace.
Project Support Grants
Project Support Grants may either be disbursed through a Fiscal Conduit (the University’s preferred method) or as an award through the Penn Marketplace.
Rolling Grants
Rolling Grants may be disbursed through a Fiscal Conduit or as an award through the Penn Marketplace, depending on the nature of the request.

First-Year Seminar Grants are administered through a separate process in collaboration with the College of Arts & Sciences.

Responsive Grant and Ben Art Bucks are not currently active.

Pros and cons for each option

Fiscal Conduit

Pros
The university manages the grant funds. The university is responsible for managing payments to partners, vendors, contractors, etc. The 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.
Cons
For some expenses, working through the university can involve complex multi-step processes and can take time. You should discuss your budget and expenses with your 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.

Award

Pros
Grant funds can be disbursed relatively quickly. You retain autonomy in managing the grant funds.
Cons
Awards are considered taxable income. This would result in some percentage of the grant being owed as taxes, which will differ depending on the individual’s residence and tax status. The university is not allowed to give tax advice, so any tax implications would need to be discussed and handled by an external accountant. The grantee would also be directly responsible for managing payments to partners, vendors, contractors, etc.

Necessary steps for either option

Fiscal Conduit

Get approval from your sponsoring department, program, or center.
Share with them your budget and timeline.
Confirm in the application that you will be working with a Fiscal Conduit and which department, program, or center that will be.
If awarded 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 (if applicable)
- Email address
- Amount being paid
- What they are being paid for

Award

If awarded the grant, share the following information with The Sachs Program:
- Legal first and last name
- Preferred email address
- Address
- Phone number

What does it mean to be a fiscal conduit?

Being a Fiscal Conduit means agreeing to support the grantee in utilizing their grant funds. This agreement may include but is not limited to providing the following examples of support.

Processing payments for project partners (including onboarding vendors/partners)
Purchasing equipment
Processing payments for travel (airfare, hotels)
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.

If a department requires an administrative fee in order to manage a staff or faculty member’s grant, they should communicate this to the applicant as soon as possible, so that this can be incorporated into the project budget.

Important information about paying partners

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

Payments of $10,000 or more will 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. We will also offer advice on these issues to anyone submitting a draft application for review and will host a grants disbursement information session in December 2024 during the 2025 grant cycle.

Get in touch

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