Distinguishing between a Gift, Grant and Contract
GCU faculty and staff may seek and receive extramural support for research, scholarship, teaching, or programmatic initiatives. This extramural support may take the form of a sponsored project (a grant, contract, cooperative agreement) or a philanthropic grant or gift. The University has obligations to its sponsors and donors to appropriately classify financial support received to ensure good stewardship of the funds and to maximize any benefits that may accrue to both the sponsor/donor and the University. Therefore, it is important that gifts are recorded properly and in compliance with the University’s policies and procedures.
The table below will guide you in determining if the support you are seeking is a grant, a contract, or a gift. Please contact the ORG for additional guidance.
FACTOR | GRANT | CONTRACT | GIFT |
Source | Government Agencies; Non-Profit Organizations; Corporations | Government Agencies; Non-profit Organizations; Corporations | Individuals; Family, Corporate and other Foundations; Don or Advised Funds; Corporations |
Purpose | Funds are provided in support of an institutional goal or public purpose designed by the Principal Investigator. | Procurement mechanism for purchasing a specific service or product. | Gifts are used in accordance with the intent of the donor and for the purpose of the gift fund to which they are processed. |
Proposal Process | Formal process, usually including a statement of work and budget. May be in response to a request for proposals or other funding announcement which could be broad or specific. | Formal process, usually including a statement of work and budget. May be in response to a request for proposals or other funding announcement which is usually very specific. | Informal process, with proposals created for certain donors, programs and/or projects. Would likely contain a summary of the project or program costs, as a fundraising "ask"; no deliverables or quid pro quo included. |
Scope of Work/Budget | The Principal Investigator defines the scope of work which is included in the award document. | Joint or Sponsor defined Scope of Work which is included in the contract. | N/A |
Document | Award Letter or Grant Agreement | Contract | Most gifts have no formal documentation. If documentation exists, it may be a gift letter, or other governing document outlining the intent of the gift. All endowments must have a governing document. |
Value Exchanged/ Deliverables | Deliverables are provided as outlined in the scope of work including a final report or other tangible deliverables. Acknowledgement the sponsor in any publications. | Goods or services are delivered on specific dates, which might be referred to as milestones as defined in the contract. | Nothing beyond an assurance that the intent of the gift will be honored. The donor receives no consideration in exchange for the gift. |
Reporting | Specific reporting requirements as defined in the agreement, which might include progress reports and a final report. | May require progress reports, which may coincide with milestones as defined in the contract. | Courtesy reports to the donor about the impact of the gift are encouraged but generally not required. |
F&A (Facilities and Administrative) Cost Rates | F&A cost are typically assessed at the University's federally negotiated rate, or a reduced or no rate as determined by the sponsor's written policy. | F&A cost are typically assessed at the University's federally negotiated rate, or a reduced or no rate as determined by the sponsor's written policy. | N/A |
Deadline/Period of Performance | Specific period of performance is defined | Specific period of performance is defined | N/A |
Excess Funds | The sponsor may require return of unspent funds. | The sponsor may require return of unspent funds. | Gifts cannot be returned to the donor, unless exceptions are made when the gift is made (e.g. contingent project dates or program milestones must be met.) |
Penalty for Non- Performance | Sponsor may terminate the award and require the return of some or all funds. | Sponsor has the right to stop work or terminate the contract for non-performance. | No financial penalities, but the reputational risk of non-compliance can be severe. |
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Sponsored Agreements: /home/ocg/get_started/sponsored_agreements
Types of Sponsored Agreements: /home/ocg/get_started/sponsored_agreements/types_of_sponsored_agreements__
Other Research Agreements: /home/ocg/get_started/other_research_agreements
Gifts, Grants, and Sponsored Agreements: /home/ocg/get_started/sponsored_agreements/gift_grant_and_sponsored_agreements
Distinguishing between a Gift, Grant and Contract: /home/ocg/get_started/sponsored_agreements/_distinguishing_between_a_gift_grant_and_contract
Planning: /home/ocg/grant_life_cycle/planning_
Proposal Development and Submission: /home/ocg/grant_life_cycle/proposal_development_and_submission
Negotiation and Setup: /home/ocg/grant_life_cycle/negotiation_and_setup_
Award Management: /home/ocg/grant_life_cycle/award_management
The Institutional Animal Care and use Committee: /home/compliance/the_institutional_animal_care_and_use_committee
Institutional Review Board: /home/compliance/institutional_review_board
Conflict of Interest: /home/compliance/policies/conflict_of_interest
Responsible Conduct of Research: /home/ocg/grant_life_cycle/proposal_development_and_submission/compliance/responsible_conduct_of_research~2
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The Institutional Animal Care and use Committee: /home/compliance/the_institutional_animal_care_and_use_committee
Institutional Review Board: /home/compliance/institutional_review_board
Conflict of Interest: /home/compliance/policies/conflict_of_interest
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CONTACT
The Office of Research and Grants