Gifts vs Grants
DEFINITION OF WHAT IS (AND WHAT IS NOT) A SPONSORED PROGRAM
GENERAL DEFINITION: “Sponsored programs” refers to scholarly, professional, and creative activities that personnel conduct with support from external funding instruments such as grants, contracts, cooperative agreements, or other agreements.
SPECIFIC DEFINITIONS: A. In addition to the general definition above, any one of the following conditions is sufficient to define a sponsored program:
Conditions Concerning the Nature of the Agreement/Activity
- A formal proposal exists requiring the endorsement of an authorized official.
- Progress, technical, final reports, and/or other exchanges are required. The proposed activity binds the university to a specific delivery of work including service to a sponsor.
- The activity has a specified performance period or completion date.
- The agreement for the activity contains compliance terms and conditions.
- The agreement for the activity contains provisions for confidentiality.
- The testing/evaluating of proprietary products is involved.
Conditions Concerning Financial/Institutional Involvement
- Initial pricing, expenditures, financial reporting, and/or performance may be subject to external audit.
- Billing, separate accounting procedures, and/or report of expenditures are required.
- Reimbursement/payment is contingent on completion of specified exchanges.
- Unexpended funds must be returned to the sponsor at the end of the activity.
- Cost sharing/cash matching is involved in the performance of the activity.
- The activity includes budgeted indirect costs.
- The activity involves disposition of property, whether tangible or intangible, that may result from the activity (e.g., equipment, inventions, copyrights, or rights in data).
A sponsored program is NOT:
- A voluntary donation — i.e., the donation transmittal information does not include any of the conditions defining a sponsored program.
- A voluntary donation of funds given irrevocably.
- A voluntary donation of personal property (e.g., cash, securities, books, equipment) provided by a donor without expectation of tangible or economic (except tax) benefit.
- The transfer of property with no implied responsibility on the part of the university or the foundation to provide the donor a product, service, technical or scientific report, intellectual property rights, or any other exchanges.
- Donations of real estate.
- Funds received directly by a faculty member (e.g., summer fellowships or travel grants).
- A project conducted as an external professional activity for pay.
- Honoraria — funds given directly to a faculty member by agreement not requiring administrative endorsement.
- Testing and service agreements processed through re-charge centers having an established fee for service.
- Teaching and professional services provided by university personnel to the public at large on a fee-for-service basis which do not meet any conditions for a sponsored program.
- Non-technical services to external organizations (e.g., lodging and food service to groups on campus; meeting facilities; sporting events).
- Fellowships and/or scholarships without a service component or other restrictions.
Last updated: 9/7/2018