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Tip Sheet Volume
6:1
Is It A Gift Or A Contract?
Gifts and/or
contracts may be the result of a solicited or unsolicited proposal, a
competitive or non-competitive process, and always involve paperwork. In
order to determine if the funding is being provided as a gift or a
contract, the expectation of the funding source needs to be reviewed. below:
Gifts
Gifts can contribute to an endowment (chairs or
professorships), capital projects (construction, renovation, equipment),
general student support (scholarships, fellowships, funding for clubs
and/or activities, training), or research or curriculum initiatives.
Individuals or organizations that provide gifts are called donors. The key
to determining if the funds are a gift is to determine what the donor
expects in return. In order for the money to qualify as a gift, the donor
cannot receive a “tangible or direct economic benefit”. If the funds are
related to research, the donor cannot expect to receive any deliverables
from the research, including intellectual property, and has no rights
related to the prior review of publications. Gifts are processed through
the ISU Foundation and begin with a Cardinal Sheet.
Contracts
Contracts contribute to many areas, but most commonly are associated with
research activities. Contracts also involve funding from sources that
expect something in return. Individuals or organizations that provide
funding for contracts are called sponsors. Again, the key to determining
if the funds are a contract is to determine what the sponsor expects in
return. First, all federal, state or local government agency awards are
considered contracts. For all other sponsors, the following questions
should be asked. If the answer to any one of these is “YES”, the funding
falls under the category of contract and should be processed through the
Office of Sponsored Programs Administration (OSPA) using an eGoldSheet:
- Is the award a subcontract where the prime sponsor is a federal, state
or local government agency?
- Does the award contain provisions for intellectual property rights?
- Does the award restrict or monitor publications or use of results?
- Does the award require protection of the sponsor and confidential
information?
- Does the award contain a legally enforceable contract with
administrative terms and conditions for the use of the funds?
eGoldsheets can be accessed at www.ospa.iastate.edu/LO/loindex.htm.
Still Unsure?
OSPA and the ISU Foundation work together to
determine if funding should be considered a gift or a contract. Please
contact Thane Peterson, grants@iastate.edu, 294-5225 or Marika Jones,
mjones@foundation.iastate.edu, 294-9261 if you have any questions.
Additional Information
Additional Tip Sheets regarding confidentiality include
Volume 1:9 and Volume 2:9. A statement of ISU’s Principles and
Guidelines governing sponsored research and scholarly activities can be located
at http://www.ospa.iastate.edu/principles_and_guidelines.htm
If you have any questions about this tip sheet please contact:
Lisa Lorenzen, 2810 Beardshear, Phone: (515) 294-0926, Email:
llorenze@iastate.edu
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