Sponsored Project or Gift Designation
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Accurately classifying funds received by the University is essential to meet external reporting and IRS requirements, ensure compliance with donor or sponsor intentions, and uphold University policies and applicable federal regulations.
The guidelines below outline key characteristics of Gifts and Sponsored Programs to help University personnel make informed determinations. Note that not all characteristics must be present to classify funding as one or the other.
If the classification is unclear, faculty or staff should consult their grants specialist or development officer, who can request a formal review and determination by a Director in the Office of Sponsored Programs Administration.
Designating External Funding as a Gift or Sponsored Program
SPONSORED PROGRAM | GIFT |
|---|---|
| The funds are provided by a funding source that intends to receive a benefit or service. | The funding source intends the funds as a charitable donation (i.e., donor receives - no direct services or benefit). |
| The funding source and University both benefit from the transaction. | The University is the primary recipient of benefits from the transaction. |
| Unexpended funds may need to be returned to the funding source as outlined in the funding agreement. | Unexpended funds do not have to be returned to the funding source. |
| Conditions on how the funds will be used are specified by the funding source and typically include guidelines the University must follow to obtain approval on how, when and for what purposes the funds may be spent. | Conditions placed on the use of the funds are minimal and typically direct the funds to areas of interest rather than proscribe how the funds can be used. For example the donor may designate the funds for scholarships, construction/renovation, research support, or unrestricted activities. |
| The University is typically obligated to provide detailed deliverables or reports and there is a timeline for meeting objectives and delivery of results. Invoices and/or a financial report are typically required. |
Deliverables are typically restricted to stewardship reports. |
| Funding sources providing F&A/indirect costs are automatically sponsored programs but if F&A is not allowed, the funding is not automatically a gift. | In most cases, philanthropic gifts do not include F&A/indirect costs. |
| Typically investigator initiated and competitively/peer reviewed. | Can be investigator initiated. |
Gifts represent a non-exchange of value between the University and the donor. The donor receives nothing of significant value in return (i.e., no services, benefits, or deliverables).
Sponsored Programs involve an exchange of value between the University and the sponsor. Both parties provide something of value to the other such as funding, services, or other benefits, typically tied to specific objectives or deliverables.