Defining a Grant or Contract Versus a Gift

It is not always easy to define funding. An award might not meet all of the characteristics in one area and some crossover may occur.

If any of the grant or contract characteristics apply, this is grant funding.

If all of the criteria fall only into the gift column, this may be a gift. Always contact a research program officer for verification.

Award Characteristic

Grant or Contract

Gift

Source of funds

Funding provided by governmental agency

 

Funding provided by private (for-profit or nonprofit) entity

Funding by an individual or an anonymous source

 

Process to apply for funds

Funds awarded in response to a formal request for proposal—RFP

 

Principal investigator-defined scope of work

Funder-defined scope of work

 

Funder’s intent with award

Charitable purpose

• 

Funding an endowment

 

Terms for use of funds

Funds are irrevocable

 

Funds are restricted for a detailed purpose

Funds are unrestricted

 

Formal terms and conditions

 

Use requires compliance office review (e.g., IRB, IACUC)

 

No specific period of performance

 

Facilities and administrative (indirect) costs

 

Outcomes generated from use of funds  

Intellectual property owned by WMU

Intellectual property owned by funder

 

Obligations to funder

Detailed financial and progress reporting

 

Minimal or no financial and progress reporting