Date: April 1, 2003
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     Located Inside: Research Policy Handbook

In some cases, particularly where funding is provided by a non-profit entity, it may be difficult to distinguish between a gift and a sponsored project. These terms are defined in Research Policy Handbook 3.2, Definitions and Categories of Sponsored Projects.

If, after reviewing definitions and considering the intent of the source of funding and nature of the agreement in question, there remains a question about the proper classification of an award, the following list of indicators may be helpful. This collection of indicators should be viewed as a continuum. Placement toward one side or the other, taken together with the analysis of the source of funds and the terms of the agreement, should help to classify questionable awards.

This analysis should be discussed with the Office of Sponsored Research (OSR), who will consult as necessary with other Stanford offices to make final determinations. (See Attachment A, Gift or Sponsored Project Determination Process and Checklist.)

For a general or specific purpose, e.g., endowment, capital projects, line of research, faculty support or student financial aid

For a specific statement of work, e.g., specified protocol, experiments, testing of hypotheses, particular line of inquiry

May be for any activity at the university, e.g., department, library, arts, scholarship, facilities, research/instruction activities, etc.

Usually for a specified research project but may be for instruction, other sponsored activity

Few, if any, deliverables (other than reports as noted below, and use of funds as requested and awarded)

Deliverables defined by agreement, e.g., reports, research results, IP rights, equipment, etc., and funds may be withheld pending delivery

Publication attribution may be encouraged or agreement may be silent on attribution

Publication attribution required, usually with credit to sponsor

Proposal may be informal, e.g., a letter proposal from an individual, a department, office or school

Sponsor requires formal and detailed proposal and/or contractual agreement. Requires an SU-42 form, must be submitted by Office of Sponsored Research or designated School office.

Often require only general stewardship and communication as a courtesy to donor, e.g., progress reports, reports of expended funds and balance

May require detailed financial and other reports , e.g., scientific reports, invention reports, financial reports on sponsor-specified format, may include the right of sponsor to audit

Typically no requirement for return of unexpended funds

Budgets and project period may lead to unexpended funds that must be returned if no approval to carry forward or extend project

No required pre-approvals for expenditures

Certain expenditures may require prior written approval by sponsor

Some gifts may be combined into one fund (if for the same purpose)

Must be separately budgeted and accounted for

Qualifies for tax treatment as charitable contribution by donor

May qualify for basic research tax credit for sponsor

No obligation or agreement to share data with donor; donor willing to sign gift agreement relinquishing intellectual property and data rights to University. Donor may request progress reports as noted above.

Donor expects access to data, primary records, or has ability to audit data collection