Is this a Gift or Grant?

1. Is this a Gift or Grant? Barbara Inderwiesche, Allison Ramos Sponsored Projects Administration

2. Definition: Gift • A gift is the irrevocable transfer of property or money… • to a qualified Organization - 501(c)3 • that has no donor-imposed Conditions or Controls. • It must be Voluntary • No Strings attached: It must be made without getting, or expecting to receive, anything of equal value. • Gifts and bequests are awards given with few or no conditions specified. Gifts may be provided to establish an endowment or to provide direct support for existing programs. Frequently, gifts are used to support developing programs for which other funding is not available.

3. What Gifts *do not* include • Principal Investigator defined work • Specific performance terms • Specifications on how the funds should be spent • Terms and conditions • Financial and technical reporting requirements • Period of performance • Detailed budget

4. Examples of Gifts • Cash and cash equivalents • Securities • Real estate • Trusts and other deferred gifts • Gifts-in-Kind (that further the University’s Mission!) • Works of art • Computer software/hardware • Equipment • Books and other types of collections • Any item that can be converted to cash

5. Definition: Grant • A type of financial assistance awarded to an organization for the conduct of research or other program as specified in an approved proposal. • Financial support provided for research study designed and proposed by the Principal Investigator(s).

6. Questions to consider… • Are grants and contracts voluntary? • Are they given without expecting something in return? • Are they free from terms and conditions? • Are the awards irrevocable? • NO!

7. The Role of Sponsored Projects • Review “gifts” to make determination on case-by-case basis • Consider donor’s intent • Exercise reasonable judgment • Cannot base judgment on presence or absence of a single characteristic or criterion • If not a gift, SPA notifies the faculty member and department administrator • Provides guidance for processing as grant/contract

8. Administrative Fees • Gifts received are subject to this campus’ Administrative Fee • UCI’s Administrative Fee is currently 5% www.policies.uci.edu/adm/pols/680-10.html Gifts Grants • Sponsored Projects awards are subject to UCI’s Federally negotiated F&A rate • http://www.research.uci.edu/ora/sp/faciladmincosts.htm

9. A note on Fellowships • An award of financial assistance to UCI to provide for the subsistence of a student during their research training • Stipend not salary (exempt from IDC base) • Allowance for supplies, materials and services (not exempt from IDC base) • Fellowships with terms and conditions processed by SPA as grants • Fellowships without conditions are processed by Advancement as gifts

10. Pop Quiz (Gift or Grant) • You give money to your child for their birthday • You give money to your child to pay for college tuition and books and ask for itemized receipts • A payment to an individual, including tuition • A payment that is conditional on a future event (eg. symposium, conference or art exhibition) and does not include any terms and conditions.

11. Case Study 1 e-Bucks, Inc. sends UCI a check for $100,000to support the research of Professor Perry Element in the Department of Chemistry. Professor Element tells you that the check arrived without a cover letter. The check stub memo states that the funds are for the professor’s “research project on thedynamics of state-to-state photodissociation….” What would you do? What kinds of questions would you ask?

12. Case Study 2 – Part I ABC, Inc. makes a donation to UCI to support Dr. Terry Sloan. The donor letter indicates that the funds are unrestricted for Dr. Sloan’s research on the immune system of fruit bats. The check provided by ABC indicates that the funds are the first quarterly payment for a study of immune system responses to a newly synthesized rDNA molecule. What would you do? What kinds of questions would you ask?

13. Case Study 2 – Part II Same fact pattern. Only now, you discover that three months earlier, Dr. Sloan submitted a proposal for this study to ABC, Inc. You inquire about the proposal with Dr. Sloan and she tells you that the proposal was denied. ABC, Inc. also provides an agreement to be signed with a clear period of performance and reporting requirements. How does this change the situation?

14. Questions to ask PI and Sponsor… • Was a proposal submitted for this money? • Does the sponsor have an agreement they want signed by UCI? • Is there a Period of Performance? • What does the sponsor want in return? Reports? Nothing?

15. Avoid Delays • Get the correct office involved • Ask several questions before determining Gift or Grant • Refer to Gift/Grant decision chart • Still unsure?Contact your Sponsored Projects Officer • Submit all necessary documentation and secure all required signatures • Remember the 700-U form (and addendum materials if applicable)

16. Gift / Grant / Contract Decision Chart

17. Gift/Grant/Contract Decision Chart http://www.research.uci.edu/ora/forms/sp/Job%20Aid%20-%20Is%20it%20a%20gift_2008.pdf

18. Who to contact • Office of Research Administration • Grace Park, COIOC & Gift Administrator • (949) 824-7218 • parkgj@uci.edu • Barbara Inderwiesche, Senior Contract and Grant Officer • (949) 824-7697 • Barbara.i@uci.edu • Allison Ramos, Principal Contract and Grant Officer • (949) 824-3428 • Acramos@uci.edu • Your Sponsored Projects Officer • University Advancement is the official Office of Record for gifts and pledges to UCI • Gift Administration • Laurel Brenner, Director of Advancement Services – brennerl@uci.edu, 949-824-5751 • Lacy Weishalla, Manager of Gift Administration – lweishal@uci.edu, 949-824-7631

19. QUESTIONS?