Outreach

Purpose

This policy establishes guidelines for revenue sharing when College of Education faculty members create and deliver non-credit courses. The policy recognizes both the College’s investment in infrastructure and administrative support, and the faculty member’s intellectual contribution and instructional effort.

Scope

This policy applies to all faculty members in the College of Education at all lines (non-tenure-line [teaching, practice, research], tenure-line) and ranks (instructor, assistant, associate, professor) as well as other faculty appointments who create and deliver non-credit educational programming (NCEP) as defined by AD03. NCEPs include any activity with academic content approved to offer educational value measures (EVMs), continuing education units (CEUs), or professional educational hours.

Revenue Distribution

Distribution Structure

Revenue generated from non-credit courses will be split equally:

• 50% to the faculty member’s designated 80 IO (Non-credit Activities) account or by percentage as designated and approved by all parties through the CoED internal approval form.
• 50% retained by the College of Education
• In the cases of self-supporting CoED centers (i.e., ISAL, PPDC, CSATS), courses offered after January 1, 2026, the center will receive 80% and the college 20% of revenue generation. All other CoED centers will make use of a 50/50 split. The center will indicate how the resources are to be distributed to the center and/or faculty IO.
• For the purposes of this policy, a “self-supporting center” is defined as a center where less than 50% of their operational funding comes from the College of Education. 

For courses where faculty members receive upfront payment for course development:

• College-funded development (e.g., summer salary from college): The College will first recoup its initial investment from course revenue. Once the initial investment has been recouped, the 50/50 revenue split will apply to all subsequent revenue.
• Department-funded development (e.g., summer salary from department): The department will receive revenue with a 50/50 split (50% to department / 50% to college) until the initial investment has been recouped. Once recouped, revenue will be distributed to the faculty member’s 80 IO (Non-credit Activity) with the standard 50/50 split (50% to faculty / 50% to college).

For courses developed without upfront payment, the 50/50 split applies from the first dollar of revenue generated.

The College of Education’s Finance Office will coordinate with the Department heads and manage revenue distribution logistics.

The College’s 50% share recognizes and covers the College’s investment in:

• Infrastructure for course development and delivery
• Participant registration systems and processes
• Revenue collection and financial management
• Administrative oversight
• Credit card processing fees and other transaction costs

Distribution Timeline

• Completed courses: Revenue will be distributed at the conclusion of the course
• Ongoing asynchronous courses: Revenue will be distributed quarterly

Collaborative Courses

When multiple faculty members collaborate on a course, the faculty share (50% of total revenue) will be divided among the collaborating faculty according to their agreed-upon allocation. Faculty members must establish and document their revenue split percentages prior to offering the course, similar to the process for determining percent credit on grant proposals using an internal approval form.

Faculty 80 IO Accounts

I. Account Structure

Each participating faculty member will have an individual 80 IO account established to receive their share of non-credit course revenue.

II. Allowable Expenditures

Funds in faculty 80 IO accounts may be used for the following purposes/allowable expenses (See FN10, TR01, TR02):

• Graduate or undergraduate student support (travel, wage payroll, assistantships, etc.)
• Travel for purposes directly related to one’s university role (e.g., conferences, data collection, trainings, etc.)
• Supplies and materials related to one’s university role
• Training and educational purposes (e.g., costs for continuing education)
• Research-related creative or scholarly activities (e.g., data collection, analysis, software)
• Equipment related to one’s ongoing university work or the work of their students

III. Prohibited Expenditures

The following are not allowable expenditures from 80 IO accounts:

• Faculty salaries/supplemental salary

IV. Expenditure Approval

Faculty members seeking to spend funds from their 80 IO (Non-credit Activity) for purposes beyond those previously indicated should obtain approval from the College of Education Research and Outreach Office using the one-time expenditure exception request form:

V. Fund Carryover

Funds in 80 IO (Non-credit Activity)s will be carried forward until the funds are expended, the faculty member departs, or there is a superseding change in university policy.

Course Development and Delivery

Approval Process

Approval for developing and offering NCEP should be coordinated through the CoED Office for Outreach and the Director of Outreach to ensure appropriate support, university approvals, and to avoid scheduling conflicts. All NCEP must receive final approval from the Director of Outreach before being offered. 

Administrative Support

The Director of Outreach, Matt Johnson ([email protected]), will assist faculty members in:

• Generating course registration pages
• Setting up enrollment systems
• Coordinating logistics
• Ensuring AD 55 and/or AD03 exemptions are obtained and renewed

Faculty Responsibility

Faculty members will not be held responsible for any costs associated with courses that run at a loss or generate no revenue.

Faculty members are responsible for:

• Course design and content development, including creating curriculum, materials, and assessments. Online courses should be developed in accordance with Penn State branding guidelines. This information can be gained by taking the course, “Designing Non-Credit Courses: From Idea to Implementation (LINK).

• Maintaining quality and academic standards appropriate to the content and level of instruction.

• Completing administrative requirements, including submitting enrollment data, providing reports as requested, and obtaining and maintaining AD03 (for in-person programs) and/or AD55 (for remote instruction) exemptions.

• Adhering to university policies and professional standards in all aspects of course development and delivery.

• Coordinating with the Director of Outreach for logistics, registration, and other administrative needs.

Time Commitment

There are no restrictions on when or how often faculty may teach non-credit courses. Faculty are expected to fulfill their regular academic duties and responsibilities while teaching NCEPs. 

• Faculty members must comply with Penn State’s AC80 Conflict of Interest and Conflict of Commitment policy when teaching non-credit courses. 

• Teaching non-credit courses does not count toward required workload commitments for tenure-line or non-tenure-line faculty.

   

Intellectual Property

All intellectual property created in the development of non-credit courses is subject to the University’s Intellectual Property Policies and Procedures as outlined in the University Intellectual Property Agreement (IPA) that all faculty have signed. Intellectual Property Policies are overviewed at the following website: https://policy.psu.edu/sections/intellectual-property-policies

Consistent with University policy, courseware and course materials developed using University facilities or resources, or within the scope of a faculty member’s responsibilities, are assigned to the University. The University retains all intellectual property rights in such materials, including the right to:

• Continue offering the course after a faculty member’s departure consistent with University policy, courseware and course materials developed using University facilities or resources, or within the scope of a faculty member’s responsibilities, are assigned to the University. The University retains all intellectual property rights in such materials, including the right to:

• Modify or update course materials

• License course materials to third parties

Questions regarding intellectual property should be directed to the Office of Technology Management (311 Barron Innovation Hub, 123 S. Burrowes Street, State College, PA 16801).

Policy Administration

This policy is administered by the College of Education. Questions regarding this policy should be directed to:

• Director of Outreach: Matt Johnson ([email protected])

• Finance Office: Anita Bowes ([email protected]) 

Policy Effective Date

This policy is effective March 1, 2026, and applies to all non-credit education programs offered on or after this date.

I have an idea for a non-credit course. Where do I start?

Start my reaching out to Matt Johnson, Director of Outreach ([email protected]), for an initial consultation to discuss the process and the kind of course you’re interested in developing. You can talk through the course concept, target audience, delivery method (in-person, online, asynchronous/synchronous), and a timeline. This step is important because it helps ensure you have support through the process and will (hopefully) avoid some of the pitfalls. At that point, you should get approval from your Department Chair or Program director before moving on with development.

What types of courses does this apply to?

This guidance covers all non-credit educational programming as defined by Penn State Policy AD03. That includes any activity with academic content that has been approved to offer education value measures (EVM), continuing education units (CEU), or professional education hours. If you are offering something that carries academic content and provides participants with a credential or completion marker, this policy likely applies. If you are unsure, reach out to Matt Johnson ([email protected]) to discuss your specific situation.

How does revenue sharing work?

Revenue from non-credit courses is split 50/50. Half goes to your individual 80 IO (Non-credit Activity) account, and half is retained by the College of Education. The College’s share covers infrastructure, registration systems, revenue collection, administrative oversight, and transaction costs like credit card processing fees.

What if I developed the course using summer salary or other upfront funding?

It depends where the funding came from. If the College funded your development work (for example, through summer salary paid by the College), the College will recoup that initial investment from course revenue before the standard 50/50 split begins. If the department funded the development, the department receives revenue under a 50/50 split with the College (50% department, 50% College) until the investment is recouped. After that, revenue shifts to the standard 50/50 split, with your share going to your 80 IO account.

I run or work in a self-supporting center. Does this split work differently for us?

Yes. For self-supporting College of Education centers (ISAL, PPDC, CSATS), courses offered after January 1, 2026 follow an 80/20 split (80% to center, 20% to College). For the purposes of this policy, a “self-supporting center” receives less than 50% of its operational funding from the College. The center determines how to distribute resources between the center and individual faculty IO accounts. All other College of Education centers use the standard 50/50 split.

similarly

Your 80 IO funds work similar to RIF accounts. You can use them for graduate or undergraduate student support (travel, wages, assistantships), professional travel related to your university role (conferences, data collection, trainings, supplies and materials, continuing education costs, research-related activity (data collection, analysis, software), and equipment related to your work or the work of your students. You may not use 80 IO funds for faculty salary or supplemental salary. If you want to use the funds for a purpose not listed here, you can submit a one-time expenditure request through the Research and Outreach Office (Karen Murphy, [email protected]).

What is an 80 IO account and how do I get one?

An 80 IO (Non-credit activity) account is an individual account established for you to receive your share of non-credit course revenue. Think of it as a designated fund you control for professional expenses. To set one up, coordinate with the College Finance Office (Anita Bowes, [email protected]). Funds in your 80 IO carry forward from year to year until they are spent, you leave the university, or a change in university policy.

What if I want to co-teach a course with a colleague?

You can collaborate. When multiple faculty members develop or deliver courses together, they can split the faculty share (50%) among the team according to whatever allocation you agree on. The key requirement is that this split is documented and agreed upon before the course if offered, using the Non-Credit Professional Activity: Development Checklist. This is similar to how you determine the percent credit on a PIAF before submitting a grant proposal.

What approvals and exemptions do I need?

That depends on your delivery method. For in-person courses, you’ll need to complete an AD03 Exemption Form, which requires signatures from your Program Chair, the Associate Dean of Research, the College Financial Officer, a Risk Management representative, and a Youth Compliance representative. If you’re offering Act 48 hours for K-12 teachers, there is an additional intake form and coordination with Marilyn Snyder ([email protected]). For online courses, you’ll need an AD55 Exemption, coordinated through Stephanie Russell ([email protected]), and a Canvas course shell requested through the Director of Outreach (Matt Johnson, [email protected]). In all cases, you’ll also need approval from your Department or Program Chair.

What if my course doesn’t make money or runs at a loss?

You will not be held responsible for any costs associated with courses that run at a loss or generate no revenue. The financial risk does not fall on you.

Who owns the course materials I develop?

All intellectual property created in the development of non-credit courses is subject to Penn State’s Intellectual Property Policies and Procedures, as outlined in the University Intellectual Property Agreement (IPA) that all faculty have signed. Consistent with university policy, courseware and course materials developed using university facilities or resources, or within the scope of your responsibilities, are assigned to the university. This means the university retains the right to continue offering the course after a faculty member’s departure, modify or update the course materials, and license materials to third parties. If you have questions about IP, the Office of Technology Management (311 Barron Innovation Hub) is the right contact.

Does teaching a non-credit course count toward my workload?

No. Teaching non-credit courses does not count toward required workload commitments for tenure-line or fixed-term faculty. There are no restrictions on when or how often you may teach non-credit courses, but you are expected to fulfill your regular academic duties and responsibilities. You should also be mindful of Penn State’s AC80 Conflict of Interest and Conflict of Commitment policy.

What support will I get through this process?

The Director of Outreach (Matt Johnson, [email protected]) will work with you throughout the process, including generating course registration pages, setting up enrollment systems, coordinating logistics, and ensuring AD03 and/or AD55 exemptions are obtained and renewed. You are strongly encouraged to complete the asynchronous, self-paced course “Designing Non-Credit Courses: From Idea to Implementation,” which covers Penn State branding guidelines and current best practices in distance education. The Development Checklist walks you through every step from initial planning to launch approval.

Download the checklist for developing a non-credit professional activity.  Checklist (pdf document)