Gift vs. Grant Determination

What is a Grant?

A grant is a financial contribution from a sponsor in exchange for specific duties such as research and development. Grants may come from a U.S Government, at the federal, state, or local level, or the private-sector.

The presence of any of the following conditions may require that the funds be treated as a grant:

• The proposal is in response to a formal Request for Proposals or Letter of Intent
• There is a specific time period for conducting the project. (i.e. “start” and “stop” dates)
• The sponsor requires a detailed line item budget for the proposed work
• Unexpended funds must be returned to the sponsor at the end of a designated period

What is a Grant? (cont.)

The presence of any of the following conditions may require that the funds be treated as a grant:

• The sponsor requires detailed financial reporting beyond a summary report of expenditures
• The funding agreement includes terms and conditions for the disposition of tangible property (i.e. equipment, records, technical reports, or other deliverables)
• The funding agreement includes terms and conditions for the disposition of intangible property (i.e. intellectual property, rights in data, copyrights)

What is a Gift?

A gift is a donation of money or property from a sponsor with the expectation of nothing significant of value in return. Gifts may come from an individual, non-governmental sources or the private-sector (such as groups, non-profits organizations and businesses). A gift can be either restricted or unrestricted.

An unrestricted gift may be spent at the discretion of the university and is not limited to specific purposes, objective, programs, or organizational units. A gift is considered unrestricted if the donor does not specify how the funds are to be used.

A restricted gift is a contribution designated for a specific purpose, objective or program, but the donor does not have specific control over expenditures or over the work performed. As long as the general interest of the donor is met, the funds may be spent at the discretion of the university.

What is a Gift? (cont.)

The presence of any of the following conditions may require that the funds be treated as a gift:

• The funds are intended for capital improvement
• The funds are intended for the use of the university’s endowment
• The award is to fund to a general area of interest of the donor such as scholarships, infrastructure, or general research support
• Funds are awarded irrevocably
• The sponsor specifically intends for the award to be a charitable gift
• The sponsor has no expectations of a deliverable
• There are no formal financial or programmatic reporting required beyond a general progress report