Exchange Transaction
Phrase used to describe the condition that occurs when a sponsor requires something of tangible value (data, intellectual property rights, technical reports, etc.) in return for a gift or a grant. Gifts with such “strings” are not gifts, and legally cannot be accepted as gifts by the University, UGARF, or the Arch Foundation. To do so would jeopardize each entity’s tax exempt status with the Internal Revenue Service. Merely requiring a report of financial expenditures on a gift or a grant does not constitute an exchange transaction.