Corporate & Foundation Relations

Gifts and sponsored projects: definitions

Gifts

A gift is the voluntary contribution of external support to the University of Washington, without any expectation of economic or other tangible benefit in return beyond what any member of the general public would receive. The contributor of a gift is referred to as the “donor” and the donor’s intent must be philanthropic or charitable. The primary beneficiary of a gift is the general public and not the donor. Gifts are accepted and processed by Gift Services, University Advancement.

Sponsored projects (grants and contracts)

A sponsored project is a mutual exchange involving the University and an external organization. Sponsored projects are not a purchase or sale of goods or services or “work for hire” arrangements. Sponsors may provide funding, equipment or other tangible items, such as goods or services, for research, training, education programs, analytical services or other rights or goods.

The Office of Sponsored Programs (OSP) uses the term “sponsored project” to refer to grants and contracts. All sponsored projects require completion of an eGC1 in order to process the proposal and subsequent award.

GIM 34 describes the criteria used to classify an award as a a sponsored project. And OSP has a glossary of terms related to sponsored projects.

The difference between a grant and a contract

In general, sponsored projects for the benefit of the sponsor are classified by OSP as contracts. With few exceptions, clinical trials are classified as contracts. Awards made under a master agreement between the University and a company are always classified as contracts.

Some indications that an award is a contract include, but aren’t limited to:

  • The sponsor retains intellectual property.
  • The sponsor requests specific deliverables for exclusive use by the sponsors.
  • The sponsor restricts publication.

Because they are not considered philanthropic, contracts are not included in unit totals in the monthly Report of Contributions (ROC).

Who determines if funding is processed as a gift, a grant or a contract?

GIM 34 affects how an award is processed and whether it is considered a gift, grant or contract. The distinction may not be black and white. OSP, Advancement Services and Corporate & Foundation Relations review award agreements and submitted proposals to determine classification. In cases where an award is determined to be a sponsored project but an eGC1 was not completed prior to submission, the eGC1 must be completed before funding can be accepted.

The fact that a funder refers to an award as a grant does not make it a grant. And the philanthropic intent of the funder or an assumption made by the fundraiser does not make an award a gift. The classification can only be made upon review of the proposal and subsequent award agreement.

Just because the award is made to the UW Foundation does not make it a gift. The UW Foundation can accept both gifts and sponsored projects (grants and contracts).

Just because an award does not include indirect costs does not make it a gift. The University will waive payment of indirect costs for foundations that have a stated indirect cost policy that is lower than our federally approved rate.

Learn more
GIM 34: Classification of External Support
GIM 13: Facilities and Administrative Rates (for sponsored projects)
The Office of Sponsored Program’s glossary