45.03 - Definitions for Grants, Contracts and Gifts
Last updated 19-August, 2005
A. General. The university may enter into agreements with external funding agencies in which a question may arise over whether the agreement is a gift or a grant/contract. The following sections differentiate between a gift, grant or contract.
B-1. Grant or Contract. A grant or contract is an agreement based on an authorized proposal or application submitted by the university. The university accepts the award or agreement in writing and assumes an obligation to provide a deliverable in exchange for funding. Examples of a deliverable include the following: performing specific research, accomplishing a specific objective, providing a service, or producing a product. Separate accountability for the funds received is required.
B-2. Gift. A gift can be made in the form of a contribution of money, a legally-enforceable pledge or property. A gift can be based on a proposal or application. The term “gift” also includes grants made with philanthropic intent. By accepting a gift, the university assumes no liability to provide a deliverable, only the obligation to use the gift for the purpose(s) stipulated by the donor. Overall, there will be no reporting requirements. However, periodic reporting and a final accounting could be required by the donor without jeopardizing classification as a gift. Usually, there are no separate accountability requirements for each contribution, and the amounts received may be commingled with contributions received for similar purposes.
C. Information and/or Clarification. Inevitably, there will be situations when the classification of a grant or gift will be unclear. When such situations arise, personnel in the Grants and Contracts Office @ (111) 111-6689, and the Gift Administration Office @ (111) 111-6796, will jointly decide the proper classification and administration of the award.