Contracts vs Honoraria
Contracts are negotiated prior to the service, while honoraria are issued after the service with no prior commitment.
Contracts
A contract is an agreement between the system and one or more other parties, creating obligations that are legally recognizable or enforceable. A contract may or may not require the transfer of funds, the transfer of tangible property, and/or the issuance of a purchase order.
Payments to contractors must be made in full compliance with all United States government and State of Illinois laws, orders and regulations. Specific issues related to payments are referenced throughout this section.
These can also be known as Professional and Artistic Services contracts.
From <https://www.busfin.uillinois.edu/bfpp/section-17-consultants-contractors/section-17-1>
Honoraria
An honorarium is a monetary token of appreciation for participation in an activity. It is not a contractual obligation to pay for services rendered. Honoraria cannot be paid to a University employee or to an organization. The University of Illinois System reports honorarium payments to the IRS on Form 1099-MISC.
From <https://www.busfin.uillinois.edu/bfpp/section-8-payments-reimbursements/request-payment-honoraria>
Procedures:
- Complete Library Non-Employee Honorarium/Award Request
- Guest will be screened through Export Control per University Policy (https://cam.illinois.edu/policies/rp-08/)
- If Guest passes screening, then the Business Office will contact them to set up a Vendor Profile with the University
- If Guest doesn’t pass screening, the requester will be notified that we are unable to pay guest.
- If paying via contract, the Business Office will setup a Purchase Order and will reach out to the requester after service date to verify services were rendered.
- If paying via honoraria, the Business Office will pay the dedicated amount to the guest after the vendor profile has been set up.
Updated 11/15/24