Groups of employees occasionally desire a means to collect personal funds to facilitate the giving of personal gifts or to hold personal events or parties. The university provides an account to assist them which is sometimes referred to as a Sunshine fund. The account is established as an “Agency” account (account begins with 47), meaning that BYU acts as an agent for the Sunshine Fund, acting much like a bank account. Sunshine funds are allowed to deposit funds and disburse payments at the direction of the employee group’s officers. Funds in the account are owned by the employee group and are not considered owned by the university. The nature of this personal gifting and event activity is not considered a tax reportable activity of the Sunshine fund or of the university. However, as the Sunshine fund may purchase products, they are subject to sales tax.
Other Agency Accounts
There may be other types of organizations or events that are affiliated with BYU but the collected and disbursed funds are not considered University funds. An agency account may be created for this purpose. All agency accounts that are not Sunshine funds will be required to apply for and maintain their own unique tax identification number. They are also responsible to ensure that all applicable regulatory reporting and distribution of financial reports is done timely.