Processing Proposals: Is it a Sponsored Project or a Gift?

Characteristics of a Sponsored Project

The Division of Research Development Administration (DRDA) and the Corporate and Foundation Relations (CFR) office have defined a sponsored project to be any externally funded research or scholarly activity that has a defined scope of work or set of objectives which provides a basis for sponsor expectations. The following lists of characteristics are provided as a means of further clarifying how external funds from non-governmental entities will be classified and processed. The existence of one factor alone may not be determinative. Multiple factors should be considered in order to decide whether a sponsored project exists and therefore must be processed through DRDA with a Proposal Approval Form (PAF).

Sponsored Projects:

Sponsor requires specific deliverables (e.g., final technical report, evaluation, technical assistance, training).
Sponsor requires return of unexpended funds.
Award designates a sponsor employee (agent) as project technical monitor, as opposed to designating a contact person to improve communications.
Award contains intellectual property rights provisions.
Award restricts or monitors publications or use of results.
Award payments are contingent upon programmatic or fiscal reporting (e.g., milestones, invoices).
Award includes "boilerplate" terms and conditions imposed by the project sponsor.
Award requires protection of sponsor and confidential information.
Award contains an itemized budget, which requires sponsor approval to modify.
Request for funding will be used to fulfill a matching or cost sharing commitment on another sponsored project or requires a matching, cost sharing or other financial commitment from the University.

DRDA and CFR will work together to determine a project's classification when it includes characteristics that taken alone will not determine a project's classification.

Proposal includes a defined period of performance.
Proposal includes an itemized budget.
Project involves the use of human subjects, vertebrate animals, radioisotopes on humans, radioactive materials, recombinant DNA, human body substances, etiologic agents or proprietary materials.
Proposal is submitted in response to a Request for Proposal (RFP). (Contact DRDA or CFR to ascertain whether there is a prior decision indicating proper handling of a particular RFP.)
Proposal/award is governed by sponsor guidelines (either explicit or implicit).
Federal award has also been granted to project.
The award was made in response to expectations of performance described by the requester in a proposal or other writing.

Not Considered Sponsored Projects

Award supports an unrestricted purpose or such activities as endowments (e.g., eminent scholars, endowed chairs, professorships), capital projects (e.g., construction or renovation, equipment), or general student support (e.g., scholarships, fellowships).
Award contains only minimal requirements, generally relating to required donor pledge payments and the University's commitment to effectuate the donor's intent.
Award requires only minimal reporting to the sponsor donor in the form of a general statement of how funds were used.
Awards are irrevocable.

November 9, 1998

Addendum to Memorandum of Understanding between DRDA and CFR, dated 10/20/97
See also: Definitions

Go to: Procedures for Processing A Proposal