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NEH Program Income Policy
The following program income policy applies to all Endowment grants issued on or after August 1, 1996.
Program Income
Program income is money that is earned or received by a
grantee or a subrecipient from the activities supported by
grant funds or from products resulting from grant activities.
It includes, but is not limited to, income from fees for
services performed and from the sale of items fabricated under
a grant; usage or rental fees for equipment or property
acquired under a grant; admission fees; broadcast or
distribution rights; and license fees and royalties on patents
and copyrights. The federal share of program income is
determined by the percentage of total project costs that are
supported by NEH.
- Income Earned During the Grant Period
The federal share of program income earned during the grant
period shall be retained by the grantee and, unless the grant
award specifies how such income will be used, the grantee must
use it in one or more of the following ways:
- It may be added to the existing project funding to cover
increased costs of the project or it may be used to
support other projects in the humanities;
- It may be used to finance the non-federal share of the
project; or
- It may be used to finance the federal share of the
project costs, which would result in an equivalent
reduction in the amount of the NEH grant.
A report of program income earned during the grant period must
be submitted with the final Financial Status Report whenever
program income is actually earned during the grant period or
when the terms and conditions of the grant award specifically
require such a report. The report shall indicate the total
amount of program income that was earned and how it was used.
- Income Earned After the Grant Period
When NEH funding of a project amounts to $50,000 or more and
the total program income earned after the grant period exceeds
$50,000, NEH reserves the right to make a claim to or restrict
the use of the federal share of income earned during the seven
years following the grant period. Due dates for the
submission of program income reports may be listed in the
grant award. However, even if NEH does not specifically
require the submission of program income reports after the
grant period, it is the grantee's responsibility to submit a
report as soon as the cumulative amount of program income
earned during the seven years after the grant period exceeds
$50,000.
In reporting program income earned after the grant period, the
grantee shall indicate the amount and sources of the gross
income it has earned and the percentage of funding provided to
the project by NEH. The federal share of program income will
be determined by (1) deducting the first $50,000 in gross
income from total gross income, (2) deducting 5 percent of the
balance of gross income to cover possible grantee costs, and
(3) multiplying the balance of gross income by half the
percentage of funding provided to the project by NEH. For
example if NEH's award of $250,000 covered 60 percent of a
project's costs and the project earned $200,000 in program
income during the seven-year reporting period, the federal
share of that income would be $42,750 ($200,000 minus $50,000
minus 5% x 30%). Once the federal share of income equals the
amount of funding provided by NEH, NEH's claim to additional
income will be reduced by half.
If income is to be returned to NEH, a check made payable to
the National Endowment for the Humanities and identified as
program income must be submitted with the report.
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