Wellesley recently addressed this issue.   We have a robust summer
research training program that provides research experience for
undergrads both on-campus and off-campus.  Sections of the programs are
open to both Wellesley and non-Wellesley students.  After several
discussions with PwC, we developed a nifty flow chart that indicates
what the institution's tax reporting responsibilities are --  based on
whether the funds provided for the research experience is 'compenation'
(i.e. of benefit to the institution) or 'a research scholarship/stipend'
(i.e. of no benefit to the institution).  This decision also changed how
we paid the funds out to the program's participants.

I'm willing to share the flowchart, but would have to fax or snail mail
it, as its not prepared in a software package that I can easily attach
to e-mail.  Please contact me directly, as I only receive this list in
digest form.

Gretchen

--
Gretchen Kemp Eckert
Associate Controller for Sponsored Programs, Wellesley College
106 Central Street, GRH139, Wellesley, MA  02181
Phone:  781/283-2250 FAX:  781/283-3710 E-mail:xxxxxx@wellesley.edu

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