Gifts of Royalty Payments

Royalties are payments made for copyright services performed or for the use of an invention and they should be made payable to the individual who performed the service.

1. If the royalty is made payable to the individual who performed the service, the check can be endorsed over to the UGAF.   
   1. The payment will be recorded as gift income.  
   2. A gift receipt will be issued to the person who earned the royalty.  
2. If the royalty is made payable to UGAF, the check will be recorded as other income and no gift receipt will be issued in either of the following cases.
   1. All rights to the property that has generated the royalty have been assigned to UGA or UGA Research Foundation.
   2. Royalties that are generated from work made for hire. Work made for hire includes “a work prepared by an employee or group of employees within the scope of his or her employment”. 
3. If the royalty is made payable to UGAF, UGAF will only issue gift credit to the faculty or staff member if UGAF receives proof from the third party that they will be issuing a 1099 Miscellaneous Income Form to the person who earned the royalty.