Definitions for Administration of Contributions or Contracts

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See also:
Agreement Between DRDA and CFR on Sponsored Projects and Gifts
Is it a sponsored project or a gift?

Administration of Non-governmental Contributions or Contracts: Definitions

Contract:: involves a promise, or set of promises, the performance of which is recognized in law as a duty and obligation and for breach of which the law provides remedies. Each contract document contains a statement of work or a description of the services to be provided, or in the case of a gift agreement, the donors payments and uses for the donated funds by the University. The terms and conditions of a contract should be negotiated with great care. A breach of contract may exist if the University/contractor fails to deliver the results anticipated or to perform the work defined in the statement of work.

Contribution:: any cash, securities, or in kind gifts or grants from private sources, whether solicited directly or not, for which the donor does not retain any reversionary interest or cannot be expected to receive material, unique, or preferential benefit of commensurate value from the act of donating property. Contributions generally include both gifts and grants from non-governmental sources.

Exchange Transaction:: a contractual agreement by which the institution has given up an asset or incurred a liability of commensurate value to the amount of the grant. Not all sponsored agreements represent exchange transactions, however, since a grant may support activities for which the sponsor will not receive "commensurate value."

Gift:: a voluntary transfer of money or material goods from an individual or entity to the University without a return of commensurate value. It may or may not be given for any specific purpose.

Gift Agreement:: contains conditions and terms of the gift, including payments or transfers required of the donor and uses for the donated funds by the University. A gift agreement sets forth legally enforceable obligations, and a breach may occur if the donor fails to make a required payment or the University fails to apply the gift funds as promised.

Grant:: an award of funds or other property by a sponsor to achieve some general or specific purpose(s). The relationship between a sponsor and a grant recipient has not explicitly been defined by law. A grant generally is construed to allow greater discretion than a contract in the conduct of the research and to provide less specificity in the definition of the intended outcome of the research. While a grant is not as exacting in its provisions, it should be treated with the same respect as a contract.

Proposal:

Any written presentation to a potential sponsor for a research program in an academic unit or a sponsored program that provides pricing or cost estimates is considered a proposal, subject to the provisions of federal cost accounting standards. All proposals that will result in funding for sponsored projects if accepted require review and coordination through DRDA, utilizing a Proposal Approval Form (PAF).

Formal proposals are prepared and submitted to a potential sponsor and outline the scope of activities to be undertaken in response to a Request for Proposal (RFP) or other requests from a potential sponsor (e.g. RFQ). Informal discussion may also result in the submission of a written proposal to be evaluated by the external organization before a commitment is made to provide funds to support the program or project envisioned.
Unsolicited proposal may be submitted to a potential source of external funds, which then would be reviewed and acted upon much in the same manner as a formal proposal.
Gift solicitation may describe a general area or program to be supported by the requested funds, but do not take the form of a proposal (that is, gift solicitations do not include a description of the scope of activities or a statement of work to be undertaken). If directed toward a sponsored project, a gift solicitation is considered a proposal.

Sources and Uses:: Funds from external sources come to the University in several forms: gifts, grants, contracts (including exchange transactions), purchase orders, token payments. These funds, in turn, may be expended in support of a number of different University activities, ranging from very specific projects in research or capital construction to more general applications in terms of endowments and expendable funds. Tracking of these external funds in terms of their sources and uses serves several different purposes.

Sponsored Project:: any externally funded research or other scholarly activity that has a defined scope of work or set of objectives which provides a basis for sponsor expectations. In accordance with Section 3.06 of the Bylaws of the Board of Regents, DRDA or Contract Administration is the President's delegated representative to grant prior approval for submission of proposals which if accepted will lead to funding for a sponsored project.

Voluntary Transfers:: All contributions (i.e., gifts and grants) to the University of cash, securities, or in kind equipment or materials, whether for the benefit of the entire institution or any of its sub-divisions which are not made under Material Transfer Agreements, are considered to be voluntary transfers and must be reported to the President and the Board of Regents (Section 3.05 of the Board of Regents Bylaws). The Office of Development (647-6000) is responsible for reporting all such contributions.

Back to:
Agreement Between DRDA and CFR on Sponsored Projects and Gifts
Characteristics of a Sponsored Project