Is this a Gift or Grant? Barbara Inderwiesche, Allison Ramos Sponsored Projects Administration
Definition: Gift •A gift is the irrevocable transfer of property or money… •to a qualified Organization - 501(c)3 •that has no donor-imposed Conditions or Controls. •It must be Voluntary •No Strings attached: It must be made without getting, or expecting to receive, anything of equal value. •Gifts and bequests are awards given with few or no conditions specified. Gifts may be provided to establish an endowment or to provide direct support for existing programs. Frequently, gifts are used to support developing programs for which other funding is not available.
What Gifts *do not* include Principal Investigator defined work Specific performance terms Specifications on how the funds should be spent Terms and conditions Financial and technical reporting requirements
Period of performance Detailed budget
Examples of Gifts Cash and cash equivalents Securities Real estate Trusts and other deferred gifts Gifts-in-Kind (that further the University’s Mission!)
Works of art Computer software/hardware Equipment Books and other types of collections Any item that can be converted to cash
Definition: Grant A type of financial assistance awarded to an
organization for the conduct of research or other program as specified in an approved proposal. Financial support provided for research study
designed and proposed by the Principal Investigator(s).
Questions to consider… Are grants and contracts voluntary? Are they given without expecting something in return? Are they free from terms and conditions? Are the awards irrevocable? NO!
The Role of Sponsored Projects Review “gifts” to make determination on case-by-
case basis
Consider donor’s intent Exercise reasonable judgment Cannot base judgment on presence or absence of a single characteristic or criterion
If not a gift, SPA notifies the faculty member and
department administrator
Provides guidance for processing as grant/contract
Administrative Fees Gifts
Grants
Gifts received are subject Sponsored Projects awards are subject to to this campus’ UCI’s Federally Administrative Fee negotiated F&A rate UCI’s Administrative Fee
is currently 5% www.policies.uci.edu/adm/pols/680-10.html
http://www.research.uci.edu/ora/sp/faciladminco sts.htm
A note on Fellowships An award of financial assistance to UCI to
provide for the subsistence of a student during their research training
Stipend not salary (exempt from IDC base) Allowance for supplies, materials and services (not exempt from IDC base)
Fellowships with terms and conditions
processed by SPA as grants Fellowships without conditions are processed by Advancement as gifts
Pop Quiz (Gift or Grant) You give money to your child for their birthday You give money to your child to pay for college tuition
and books and ask for itemized receipts A payment to an individual, including tuition A payment that is conditional on a future event (eg.
symposium, conference or art exhibition) and does not include any terms and conditions.
Case Study 1 e-Bucks, Inc. sends UCI a check for $100,000 to support the research of Professor Perry Element in the Department of Chemistry. Professor Element tells you that the check arrived without a cover letter. The check stub memo states that the funds are for the professor’s “research project on the dynamics of state-to-state photodissociation….” What would you do? What kinds of questions would you ask?
Case Study 2 – Part I ABC, Inc. makes a donation to UCI to support Dr. Terry Sloan. The donor letter indicates that the funds are unrestricted for Dr. Sloan’s research on the immune system of fruit bats. The check provided by ABC indicates that the funds are the first quarterly payment for a study of immune system responses to a newly synthesized rDNA molecule. What would you do? What kinds of questions would you ask?
Case Study 2 – Part II Same fact pattern. Only now, you discover that three months earlier, Dr. Sloan submitted a proposal for this study to ABC, Inc. You inquire about the proposal with Dr. Sloan and she tells you that the proposal was denied. ABC, Inc. also provides an agreement to be signed with a clear period of performance and reporting requirements. How does this change the situation?
Questions to ask PI and Sponsor… Was a proposal submitted for this money? Does the sponsor have an agreement they
want signed by UCI? Is there a Period of Performance? What does the sponsor want in return?
Reports? Nothing?
Avoid Delays Get the correct office involved
Ask several questions before determining Gift or Grant Refer to Gift/Grant decision chart Still unsure? Contact your Sponsored Projects Officer
Submit all necessary documentation and secure all
required signatures Remember the 700-U form (and addendum materials
if applicable)
Gift / Grant / Contract Decision Chart
Gift/Grant/Contract Decision Chart http://www.research.uci.edu/ora/forms/sp/Job%20Aid%20-%20Is%20it%20a%20gift_2008.pdf
Who to contact
Office of Research Administration
Grace Park, COIOC & Gift Administrator (949) 824-7218
[email protected] Barbara Inderwiesche, Senior Contract and Grant Officer (949) 824-7697
[email protected]
Allison Ramos, Principal Contract and Grant Officer (949) 824-3428
[email protected]
Your Sponsored Projects Officer
University Advancement is the official Office of Record for gifts and pledges to UCI
Gift Administration
Laurel Brenner, Director of Advancement Services –
[email protected], 949-824-5751 Lacy Weishalla, Manager of Gift Administration –
[email protected], 949-824-7631
QUESTIONS?
