CLASSIFICATION OF GIFTS AND SPONSORED GRANTS

Why is this important? The University has a fiduciary obligation to sponsors and donors. The proper classification of external funding sources facilitates the assignment of responsibility, the proper recognition of achievements, and the appropriate reporting of results.

A gift is any item of value given to the University by a donor who expects nothing in return other than recognition and disposition of the gift in accordance with his or her wishes.

Any funding provided by a governmental authority, either at the federal, state, or local levels, is not treated as a gift.

Characteristics of a Gift:

Absence of contractual requirements and with no deliverables. However, the gift may be for a stated purpose, with the use of the funds restricted to that purpose.

Irrevocability of the gift, with no specified period of performance.

No requirement of formal fiscal accountability beyond general stewardship and communication as a courtesy to the donor, e.g., progress reports, reports of expended funds and balances.

Qualifies for tax purposes as a charitable contribution by the donor.

Questions? Please contact the Development Office .

Characteristics of a Grant or Contract:

Submission of a formal proposal by the University.

Contractual agreement binding the University to a specified line of scholarly study or educational training within a specified period of performance.

Award documents contain provisions regarding intellectual property rights, and/or the disposition of tangible or intangible results from the project.

Award documents require formal accountability (budgets and financial reports) for all funds received and expended.

Grant or contract may be cancelled by either party for failure to perform.

Questions? Please contact the Office of Sponsored Programs.