1304 PR.02 Distinguishing Between Gifts and Sponsored Awards

Gift

Sponsored Awards

Grant

Contract

Does the funding document require a deliverable in return for funding?

No, the donor/sponsor does not expect to receive specific deliverables.

Note: Many Gifts expect a narrative report of progress and a general (not detailed) financial report.

Gifts may be related to the research or academic interests of a donor, but do not directly benefit a donor, except insofar as the Gift promotes the donor’s personal philanthropic interests.  The donor receives no value, or only nominal value (e.g., recognition or tax deduction), in exchange for the support provided.

Yes, Grants can provide narrative and financial reports.

Grants differ from Gifts in that they entail specific reporting requirements and differ from Contracts in that they do not typically involve specific deliverables.

Yes, Yale is required to provide “deliverable(s)” (e.g., products, intellectual property rights, or periodic technical or progress reports).  A sponsor’s interest is fundamentally tied to the purpose and goals of a Contract. A Contract is typically intended to lead to the creation of specific knowledge in furtherance of a sponsor’s research agenda.

A detailed scope of work and accounting of Contract activity is generally provided to the sponsor throughout the project.

Is funding tied to a specific outcome?

Not likely, but it is possible, particularly for conditional Gifts.

Agreements or proposals may discuss goals and aims of the project or research.  The University should largely be responsible for defining the parameters.

All Gifts must align with the University’s mission.  Gifts and Gift conditions will not be accepted that interfere with the University’s decision-making autonomy, including in admissions, appointments and promotions, the conduct of research, the construction and use of facilities, curriculum development, or financial aid; or that otherwise infringe on a faculty member’s academic freedom in teaching, scholarship, research, or practice.

Possibly.

Agreements or detailed proposals may list required milestones, outcomes, outputs, or specified levels of service. The sponsor may be responsible for defining the parameters.

Yes.

Agreements or detailed proposals may list required milestones, outcomes, outputs, or specified levels of service. The sponsor may be responsible for defining the parameters.

Are results of the work transferred to the sponsor?

No.  But results may be shared with the sponsor.

No.  But results are likely shared with the sponsor.

Yes. Results are shared with the sponsor.

Does any intellectual property (“IP”) transfer to the sponsor by assignment or license?

No.

Generally, IP rights are not assigned to the Sponsor.

The University retains ownership of IP arising from the project.

Sponsor may negotiate non-exclusive or exclusive license rights to patents or other non-patent IPs.

Some grants may request or stipulate that results (including algorithms, software, and code) be shared in Open Source.  Yale Ventures should be consulted in these cases.

Generally, IP rights are not assigned to the Sponsor.

University retains ownership of IP arising from the project.

Contracts may have complex terms related to IP.

A Sponsor may negotiate non-exclusive or exclusive license rights to patents or other non-patent IP.

Some contracts may request or stipulate that results (including algorithms, software, and code) be shared in Open Source.  Yale Ventures should be consulted in these cases.

Is there a budget?

Yes, but in aggregate.  There is typically no line-item budget provided to the funder, nor any restriction on the use of funds (as long as the use is consistent with the donor’s original, accepted stipulations).

Typically, yes, and more detailed than a Gift. May include a line-item budget that identifies expenses by activity, function, or project period or stipulate that funds are used to support a student, trainee, faculty or staff member over a designated period.

Yes, and detailed. Award includes a line-item budget that identifies expenses by activity, function, staff, or project period.

Does this agreement specify criteria for spending or return of funds?

No, not typically present as the right to the funds is vested in the University.  A right to return funds (or a release from obligation to provide funding) for noncompliance could be present in a Gift agreement, if there are no other barriers to entitlement of the funding that would require internal approval.  (See Policy 2200 Gifts to the University, which addresses conditional Gifts).  By definition, conditional Gifts include one or more specific barriers and a right of return of funds if the barriers are not met.

Spending is in accordance with donor intent and in accordance with the University’s policies on financial oversight and expenditure control.

Yes, typically. A right to return funds/unexpended funds or release from obligation to provide funding may be specified.

Sponsor may require adherence to expense policies and guidelines or pay the University either upon timely completion of activities within the timeline detailed or on a cost reimbursement basis as work is completed.

Yes, typically. A right to return funds/unexpended funds or release from obligation to provide funding is typically specified.

Sponsor may require adherence to expense policies and guidelines or pay the University either upon timely completion of activities within the timeline detailed or on a cost reimbursement basis as work is completed.

Is a Request for Proposal (“RFP”) or Request for Application (“RFA”) required?

Generally, no, but the requirement of an RFP/(“RFA”) does not determine whether the award is a Gift or Sponsored Award.

Likely. The requirement of an RFP/(“RFA”) does not determine whether the award is a Gift or Sponsored Award.

Likely, but not always. The requirement of an RFP/(“RFA”) does not determine whether the award is a Gift or Sponsored Award.

Are there specifically defined outcomes?

No, but the donor/sponsor may request that the funding be designated to a specific purpose.

No, other than incurrence of costs. The Grant may outline a specific use of the funding and the donor/funder may request a report on progress.

Yes.

Is there a specific timeline for completion of the work?

Generally, no, but there may be for conditional Gifts.

Possibly.

A time may be specified during which activities are to be conducted and completed.  Sponsor approval may be needed for an extension of time.

Yes.

A time is specified during which activities are to be conducted and completed. Sponsor approval is needed for an extension of time.

Are there terms for acceptance or termination of the project?

No.

Generally, yes.

Yes.

Will the results of the work benefit the general public?

Possibly, depending on the purpose of the Gift.

Generally, yes, and the Grant will typically include terms for publication and dissemination.

Not directly, except, the Contract will contain terms for publication and dissemination.

Is there a barrier that must be met?

Conditional Gifts include both barriers and a right of return.  See Yale Policy 2200 Gifts to the University for further information.

N/A

N/A

Does the agreement include indemnification of the sponsor?

Generally, no. Indemnification terms are generally not accepted in Gift agreements, but with approval may be accepted in special cases.

Possibly.

Indemnification terms may be included for both the sponsor and Yale.

Yes.  Contracts generally include indemnification terms for both the sponsor and Yale.

Are payments received in advance?

Possibly. Funding may be paid over a period of time but is not tied to milestones.

Possibly. Payment may be made in advance or paid over a period but is not typically tied to milestones. 

Generally, no. Partial payments may be paid in advance, but payments may be tied to specific milestones.