6.10—Sponsored Funding Bonus Request

Effective: 03/01/2010
Senate Proposal: No
Responsible University Officer: Vice President for Administration
Responsible Office: Human Resources

Policy Statement

Eligible faculty have the opportunity to replace a portion of their general fund research institutional base salary and to receive a bonus from the release of salary paid by the general fund.

Policy Requirements

The salary support for a sponsored funding bonus:

  • applies only to externally funded salary during the academic year;
  • must be derived from externally supported research, instructional or other sponsored grants or contracts that pay the federally negotiated facilities and administrative costs;
  • derived from grants and contracts must include authorization to use funds for faculty salaries and fringe benefits;
  • derived from external funds must fully pay all direct costs, including associated fringe benefits.

Approval by the chair and/or dean for a sponsored funding bonus is contingent on the eligible faculty:

  • meeting the requirements and purpose of the bonus, maintaining a high level of productivity, and satisfying the workload expectations of their academic unit, and
  • not being released from teaching or service responsibilities as defined by their respective academic unit.

Sponsored funding bonus requests:

  • require preapproval of at least two (2) weeks prior to the starting date of the semester in which the work will be performed, and
  • approval of department chair and/ or dean (as applicable) and Provost.

Bonus payments are taxable at the time of payment.

Reason for Policy

Established to enhance the research, scholarship, and instructional activity of faculty by increasing the level of external funding. The sponsored funding bonus is to provide funds for eligible faculty who seek extramural funding above their institutional base salary.

Sponsored funding bonuses are calculated as 75% of the grant and contract salary paid to the eligible faculty, up to a maximum of 20% of the faculty’s institutional base salary. Calculation of any bonus shall exclude the value of any benefits. Any additional bonuses shall not modify the faculty's institutional base salary.

Bonuses are subject to any applicable university, State or Federal laws, regulations or policies.

Sponsored funding bonuses will be in paid in lump-sum, after the end of the semester in which the work was performed and not until the payroll certification and confirmation from the Principle Investigator, or eligible faculty, and Sponsored Programs Accounting is attained.

Participation is:

  • voluntary and is not mandated upon either the eligible faculty or the University, and
  • not an entitlement, but may be made available to eligible faculty when both the University and the eligible faculty determine that it is in their mutual best interests to do so.

The University reserves the right to suspend or terminate this policy or the participation of any eligible faculty at any time.


Exempt and non-exempt staff, instructional-track faculty (assistant teaching professor, associate teaching professor, teaching professor), hourly (including represented employees), fixed term, and temporary employees are not eligible to receive sponsored funding bonuses.


Office/Unit Name Telephone Number
Human Resources 487-2280


Eligible Employee - An employee who holds a tenured or tenure-track general fund supported academic appointment.

Institutional Base Salary (IBS) - Annual compensation paid by the University for an employee's appointment, whether that individual's time is spent on research, instruction, administration or service. IBS does not include additional, bonus, or faculty summer compensation. IBS also excludes any income that an individual is permitted to earn outside of duties for the University.


Department Chair and/or Dean - Ensures the request is being submitted at least two (2) weeks prior to the start of the semester in which the work is performed; ensures the eligible faculty meets the bonus requirements; reviews the request and signs the Bonus Request Form indicating approval. If not approved, informs eligible faculty of reasons the request is not approved.

Eligible Faculty - Provides good fiscal and administrative management of all external funds for which they are principal investigator; completes necessary reports in a timely and effective manner; ensures the sponsored funding bonus request is submitted at least two (2) weeks prior to the start of the semester in which the work is to be performed; and provides written justification for the bonus.

Eligible Faculty's Primary Department - Reviews and assists in completing the Bonus Request Form, ensures appropriate approvals (of at least two signatures) on the request form, and ensures written justification is included with the request form. Prior to bonus payment time, supplies to Human Resources, a copy of the Gross Earnings Payroll Expense report to ensure release time (amount generated covers the amount on the Employee Personnel Action Form [EPAF]). If not enough release time is generated, contacts the Human Resources to discuss other options, such as department to complete a budget transfer form.

Human Resources - Receives the completed form and reviews for accuracy and appropriate signatures, obtains provost/vice president signatures as applicable, and processes request for payment.

SPA - Reviews the Request for Account Distribution form, and when approved, forwards to Payroll.


In support of this policy, the following procedures are included:


Forms and Instructions

In support of this policy, the following forms/instructions are included:



Adoption Date

03/08/2010 Approved by VP for Administration.


04/10/2017 Transfer of policy page from HTML to CMS. Business and Finance numbers renamed from "2.6000" to "6. Human Resources". Specifically from "2.6010—Sponsored Funding Bonus Request" to "6.10—Sponsored Funding Bonus Request".
09/22/2016 Editorial changes made to Related Policy Information and updated procedure to include online process.
05/08/2012 To reflect current University titles and practice, MTU is now Michigan Tech and the email address for questions is now hbwebmaster.
08/10/2009 Reviewed by Executive Team.