Gifts and private grants are received from alumni and other friends of the University, campus-related organizations, corporations, foundations, and other nonprofit entities. Private grants are received from for-profit and other organizations. This funding is generally for a specific purpose - such as a scholarship or an endowed chair - and is a restricted, nonrecurring funding source. Although restricted, private funds provide enhancements to the academic program beyond what would otherwise be possible.
Depending on the policies of the granting agency, some private grants include overhead. The amount may range from 1% to 9% of the grant. All overhead from private sources is returned to the Office of the President. UCOP retains a portion, and returns the balance to the campus as Educational Funds (not to be confused with the Ed Fee that is paid by students).
