University faculty and/or staff may seek and receive extramural support for research, scholarship, teaching, or programmatic initiatives. Extramural support may take the form of a sponsored project (a grant, contract, cooperative agreement) or a gift. The University has obligations to its sponsors and donors to appropriately classify funding to ensure good stewardship of awarded funds and to maximize any benefits that may accrue to both the sponsor/donor and the University. Appropriate classification also is necessary to ensure accurate financial reporting, in conformity with generally accepted accounting principles.
The University has a responsibility to classify awards as sponsored projects versus gifts, so that the establishment of accounts and reporting follow all applicable and appropriate procedures. Sponsored projects are administered through the Office of Research and Sponsored Projects; gifts are administered through the Office of University Advancement. Sponsored projects and gifts differ in several respects (see table below), although an individual funding arrangement may have characteristics of both sponsored projects and gifts. There may be occasions in which funding from external sponsors is not easily identifiable as a sponsored project or a gift. For instances where such uncertainty exists, the determination will be made by the Assistant Vice President for Academic Affairs for Research and Sponsored Projects, who will consult with the Office of University Advancement and/or the Office of the General Counsel.
Source of funds
Award document
Purpose/Scope of work
Sponsored projects
Government (federal, state, or local) agencies, non-profit organizations, corporations, corporate foundations
Award letter, grant agreement, contract, cooperative agreement document
The sponsor specifies how the funds should be used, as outlined in the award document
Gifts
Individuals, private foundations, nonprofit organizations, corporations, corporate foundations
Letter of donation or gift agreement
Restrictions on use of funds
Reporting requirements
Deadline/Terms
Indirect costs
Unused funds
Publication, intellectual property, royalty sharing or other specific restrictions may be a part of the award document
The sponsor may require reports related to the performance of specific duties or activities, budgetary expenditure reports, progress reports, and/or final reports
Typically the project is to be conducted within a specified time period
Follow the University rate structure, currently charged as a percentage of all salaries and wages (benefits are included in indirect costs). Rate may be limited by sponsor
Award may include a stipulation that unused funds be returned to the sponsor
The donor may restrict the gift, such as to a specific area of interest, department, program, or College or to a designated purpose
No restrictions regarding publication, intellectual property, royalty sharing in the award document
Award may require or University may initiate some reporting to the donor, e.g., information on how the funds were spent
Typically no time period restriction is associated with the use of funds
Generally not applicable
No requirement to return unused funds to the donor, as long as all funds are used for their designated purposes