Distinguishing Between Gifts, Grants, & Contracts

Correct classification of external funds is essential for appropriate fiscal and fiduciary management by USU. Gifts, grants, and contracts are the principal forms of awards made by both governmental and private sources. The correct classification and processing of awards is sometimes complex and will require the exercise of informed judgment, particularly in cases where the nature of an award is not immediately clear. Rather than focusing on any single characteristic, each award must be considered in its totality. To clarify the process of determining classification and assure greater consistency among the various colleges, schools, departments, centers and administrative units of the University, please review the procedure for Distinguishing Between Gifts, Grants, and Contracts and consult the chart below.

Gifts to USU of a restricted or unrestricted nature that do not include any conditions that would classify it as a grant are not viewed as sponsored programs and are not processed through the Sponsored Programs Office, but through the gift transmittal procedures within USU’s Advancement Office. Gift solicitation and acceptance should be coordinated with the appropriate development officer in each college. 

Correct classification can be very complex. Rather than focusing on any individual characteristic, each award must be looked at in its totality. The information below summarizes a few of the criteria that are reviewed when making this determination.

Gift

Primary Intent

  • Charitable intent
  • No expectation of economic benefit or quid pro quo

Source of Funding

  • Individual
  • Private
  • Non-governmental

Purpose

  • General
  • Doesn't direct specific scientific inquiry
  • May be restricted to a particular purpose such as professorship or scholarship

Terms

  • General or non-restrictive
  • Irrevocable

Reporting/Deliverables

  • Minimal reporting
  • Stewardship vs. contractual obligation

Managing USU Office

Advancement, (435) 797-1364

Grant

Primary Intent

  • Public Good

Source of Funding

  • All

Purpose

  • Semi-Directed with broad, programmatic objective
  • Result of submitting proposal driven by outcome

Terms

  • Semi Restrictive
  • Revocable
  • Intellectual Property (IP) issues
  • Typically must return unexpended funds
  • Payments contingent on progress
  • Specific period of performance
  • Specific financial accountability
  • Sponsor approval may be required for deviations

Reporting/Deliverables

  • Required
  • Regular financial and progress report required
  • Final financial and Final technical Reports standard

Managing USU Office

Sponsored Programs, (435) 797-1226

Contract

Primary Intent

  • Economic Benefit or specific benefit to Sponsor

Source of Funding

  • All

Purpose

  • Specific purpose, service or objective
  • Result of submitting proposal driven by outcome

Terms

  • Restrictive
  • Revocable
  • Intellectual Property/Ownership issues
  • Data or Publication restrictions (even review and/or approval language)
  • Payments may be contingent on progress
  • Specific period of performance
  • Specific financial accountability
  • Sponsor approval required for deviations

Reporting/Deliverables

  • Required
  • Regular financial and progress reports required

Managing USU Office

Sponsored Programs, (435) 797-1226

License Agreement

Primary Intent

  • Economic Benefit or specific benefit to Sponsor

Source of Funding

  • All

Purpose

  • Specific purpose, service or objective relating to USU Intellectual Property (IP)

Terms

  • Restrictive
  • Revocable
  • IP/Ownership terms
  • Data or Publication restrictions (even review and/or approval language)
  • Payments may be contingent on progress
  • Specific period of performance or license term
  • Specific financial accountability
  • Sponsor approval required for deviations

Reporting/Deliverables

  • Required
  • Regular financial and progress reports required.
  • Final financial and Final Technical Reports.

Managing USU Office

Technology Transfer Services, (435) 797-1199

View the full, approved document defining gifts, grants and contracts.

Classifying Gifts, Grants and Contracts