Types of Monies
When Is It a Gift, Grant, or Contract?
Gifts are made without anything of commensurate value expected in return by the donor. Contractual requirements are not imposed. However, use of funds may be restricted to a particular purpose such as a scholarship, professorship, or research in a broadly defined area. The Office of Development, including Corporate and Foundation Relations, seeks and receives gifts.
Grants are awarded to support scholarship, research, or service provided by Georgia Tech. The purpose is usually broadly specified. The terms of a particular grant determine how the funds are processed and used. Both Foundation Relations and the Office of Sponsored Programs (OSP) may seek and receive grants. However, OSP processes grants that have characteristics of a sponsored project. See OSP's Policies & Procedures Manual.
Contracts are written agreements between Georgia Tech and another sponsor or entity that establish reciprocal obligations and provide an economic benefit. The award is subject to conditions outlined in a contract signed by both parties. OSP processes (and frequently negotiates) all contracts.
Is It a Sponsored Project or a Gift?
Sponsored projects must be processed through OSP. The Department of Foundation Relations and OSP define a sponsored project as an externally funded research or scholarly activity that has a defined scope of work or set of objectives that provide a basis for sponsor expectations. Multiple factors are considered when deciding whether a funded activity should be processed as a sponsored project.
Sponsored Project Characteristics
- Sponsor requires specific deliverables; for example, technical report or evaluation.
- Sponsor requires return of unexpended funds.
- Award designates a sponsor employee (agent) as project technical monitor.
- Award contains provisions for intellectual property rights.
- Award restricts or monitors publications or use of results.
- Award payments are contingent upon programmatic or fiscal reporting.
- Award includes "boilerplate" terms and conditions imposed by the project sponsor.
- Award requires protection of sponsor and confidential information.
- Award requires sponsor approval to modify the itemized budget.
- Funding will be used to cost share a commitment on another sponsored project, or requires cost sharing from the university.
- Sponsor is a federal agency.
OSP and the Department of Foundation Relations will determine a project's classification when characteristics taken alone will not determine the classification. Such characteristics include:
- Proposal includes a defined period of performance.
- Proposal includes an itemized budget.
- Project involves the use of human subjects, vertebrate animals, radioisotopes on humans, radioactive materials, recombinant DNA, human body substances, etiologic agents, or proprietary materials.
- Proposal is submitted in response to a Request for Proposal (RFP).
- Proposal/award is governed by sponsor guidelines.
- Federal award has also been granted to project.
- Award was made in response to expectations of performance described in a written request for funding or other support.
Activities supported by a donor that generally are not considered sponsored projects may include the following characteristics.
- Award supports an unrestricted purpose or such activities as endowments (eminent scholars, endowed chairs, professorships), capital projects (construction, renovation, equipment), or general student support (scholarships, fellowships).
- Award contains only minimal requirements or reporting.
- Awards are irrevocable.
