Additional Guidelines for Faculty Owned or Controlled Entities

Following discussion in Dean’s council with AVP Research and Sponsored Programs and University Counsel

Allowable practices

  • Faculty may subcontract awards made to their own external non-profits (i.e., that they own/control) to other SF State Co-Investigators.

[Scenario: Dr. Thompson forms a non-profit called “Language Literacy” that tutors children in Livermore.  Through LL, Dr. T proposes to subcontract to SF State in a grant to the Department of Education with her colleague Dr. Lee as a Co-investigator.]*

  • Faculty may subcontract to other SF State faculty-owned/controlled non-profits in their SF State grant proposals.

[Scenario: Dr. Lee wants to include Dr. Thompson’s “Language Literacy” nonprofit in an SF State grant proposal to the Dept of Education as a subaward. ]

Not allowable under CSU or SF State policies

  • Faculty may not subcontract SF State grant-funded work to their own external non-profits

[Scenario: Dr. Thompson has a non-profit “Language Literacy”.  Through SF State Dr. T receives a grant from the Department of Education and wants to subcontract work to her own non profit Language Literacy.]

  • Faculty may not use funds awarded to external non profits that they own/control in order to buy out their SF State teaching.

[Scenario: Dr. Thompson has a non profit “Language Literacy”.  Through LL, Dr. T gets a grant from the Dept of Education.  Dr. T then wants to use those grant funds awarded to LL to buy out her own teaching at SF State.  [or: from a donor gift to LL; a foundation award to LL; or small biz sponsored agreement to LL]

  • Faculty may not use funds awarded to non profits that they own/control to buy out their SF State colleagues’ teaching if the SF State colleague is also a co-owner/founder/control funds in the non-profit.

[Scenario: Dr. Thompson has a non profit “Language Literacy”.  Through LL, Dr. T gets a grant from the Dept of Education.  Dr. T then wants to use those grant funds to buy out Dr. Lee’s teaching for work on the grant. Dr. Lee is formally connected to Language Literacy as a Board member (or, founder, or control funds and policy).]

* assume both Dr. Thompson and Dr. Lee are faculty at SF State