The factors below are all important considerations in determining whether incoming funds are gifts or grants. No single indicator is by itself a characterization of a gift versus a grant. Keep in mind the following overarching concepts:
- Grants are reciprocal in nature. Each party is giving and receiving something of relatively equal value in the transaction.
- A gift or contribution is an item given by a donor who expects nothing significant of value in return, other than recognition and disposition of the gift in accordance with the donor’s wishes
- U.S. Government (state or federal) money should always be treated as a grant.
If you still have any questions after reviewing the information below, please direct your inquiries to Suzanne Alstadt, Director of Office of Research and Sponsored Programs by phone at 501-686-8845 or by email at ACHam@uams.edu
| Category of Indicator | Factor Indicative of a “Gift” | Factor Indicative of a “Grant” |
|---|---|---|
| Funder Statement of Mechanism | Donor explicitly states that he or she intends the award to be a philanthropic gift. | Funding agency states in program announcement that the award is a grant. |
| Initiative for the Project | Initiative for the project comes from UAMS. | Initiative for the project comes from the funding agency through a request for proposals, program announcement, etc. |
| Deliverables | Deliverables do not benefit the funding agency. | Deliverables benefit the funding agency. |
| Technical or Scientific Data | The funder does not require technical or scientific data to be given to them as a condition of the award. | The funder requires technical or scientific data to be given to them as a condition of the award. |
| Intellectual Property | The funder makes no claim on the patents, copyrights, or other intellectual property rights resulting from the supported activities. | The funder makes a claim on the patents, copyrights, or other intellectual property rights resulting from the supported activities. |
| Restrictive Provisions | The funder may request information related to the use of funds, but the award does not include restrictive provisions, such as delays or reviews prior to publication of results or disposition of tangible property. | The award includes restrictive provisions, such as delays or reviews prior to publication of results or disposition of tangible property. |
| Equal Value Exchange | Funds are not received by UAMS in exchange for goods and services. There is NO equal value of exchange where the Funding Agency is getting deliverables roughly equal to the funds they are providing. No “quid pro quo” situation exists. | Funds are received by UAMS in exchange for goods and services. There is an equal value of exchange where the Funding Agency is getting deliverables roughly equal to the funds they are providing. A “quid pro quo” situation exists. |
| Performance Objectives | The funder does not establish a strict and non-negotiable set of performance objectives. There is no time period associated with the use of the gift. Note: A philanthropic gift may be restricted in nature, but it does not dictate how the work will be accomplished. | The funder establishes a strict and non-negotiable set of performance objectives. There is a specified time period associated with the use of the funds or items, i.e. a period of performance, including start and stop dates. |
| Penalties for Non-performance | UAMS will not be liable for punitive/economic penalties for failure to meet the terms of the agreement. Note: This does not include a conditional gift where funds are withdrawn or denied if certain conditions are not met. | UAMS will be liable for punitive/economic penalties for failure to meet the terms of the agreement. |
| Repayment of Unspent Funds | The funder does not require that funds remaining at the termination of the project be returned or require formal permission to spend outside of the defined budget period. | The funder require that funds remaining at the termination of the project be returned or require formal permission to spend outside of the defined budget period. |
| Unspecified Results | The funder allows unspecified results (outcomes). | The funder does not allow unspecified results (outcomes). |
| Research Compliance | The project does not require review and oversight from IRB/IACUC, biosafety, or radiation safety. A new Financial Conflict of Interest is not identified. Time and effort reporting are not affected. | The project requires review and oversight from IRB/IACUC, biosafety, or radiation safety. A new Financial Conflict of Interest is identified. Time and effort reporting are affected. |