1. Research Policy & Compliance
Ann Pollack
Assistant Vice Chancellor – Research
May 13, 2010

2. Differentiating between Gifts and Grants or…

3. What Characterizes a Gift…
Given in the spirit of “Disinterested Generosity” (IRS term)
No contractual obligations or deliverables (no language about disposition of intellectual property rights, data ownership detailed progress reports or auditable financial reports)
Awarded irrevocably

4. … versus a Grant? Grants usually include: Specified performance period
Obligation to return unobligated balance
Specific scope of work
Financial reports
Detailed technical/progress report or other work product
The right to audit
Other contractual obligations (e.g., patent rights)

5. Why is it sometimes Difficult to Tell the Difference?
Documents may not use clear or consistent language
Recipient’s expectations may not match award maker’s intentions
Award makers may think that if they are using funds budgeted for philanthropic purposes that they are giving gifts regardless of any restrictions

6. Making Distinctions Requires judgment Subtle distinctions
Not based on the existence of a single characteristic
Must look at the award “in toto”
Refer to UC guidance and UCLA Policy 921

7. July 8, 1980, Letter from UC President David Saxon
UC Policy
July 8, 1980, Letter from UC President David Saxon
Defines characteristics of gifts and grants
Provides guidance for making distinctions
Indicates that decisions require judgment

8. UC Contract and Grant Manual
Chapter 9-500: Distinguishing Between Private Gifts and Grants for Research
States need for judgment
Defines characteristics of gifts and grants
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9. UC Policy
July 28, 1993, Letter from UC Budget Director Hershman and University Controller Pastrone
Defines characteristics of gifts, grants, and contracts based on scope of research work
Defines characteristics of sales and service activities as the provision of standardized goods and services

10. UCLA Research Investment Committee (April 2004)
Committee of Deans, Vice Chancellors, senior level faculty and administrators
Chaired by Gerald Levey, M.D., then Dean and Vice Chancellor, Geffen School of Medicine
Asked to make recommendations about investments needed to ensure the success of the research infrastructure

11. UCLA Research Investment Committee (April 2004)
Priorities identified as:
Space
Departmental Administration
Core Services
Required Matching/Cost Sharing
Sponsored Projects Administration

12. UCLA Research Investment Committee (April 2004)
Recommendation 17:
“Establish concrete guidelines and policies for the definition of gifts and grants. There are clear examples of gifts intended for research that escape overhead, draining resources for departmental administration from the receiving school and department. Establishing these guidelines and implementing them consistently are important to minimize friction that develops between the recipient
and the School.”

13. Gift/Grant Sub-Committee
Established by the Vice Chancellor for Research and the Vice Chancellor for External Affairs
Found existing guidance provides ample and clear guidance for making most distinctions
Concluded that more guidance was needed for handling private monies that don’t fit cleanly into either the gift or grant categories

14. Gifts
Grants

15. Gift/Grant Sub-Committee
Recommended that the campus research community be advised that all requests for support for specific research studies should be treated by the campus as a contract or grant proposal
Recommended that requests for support for specific research studies prepared with appropriate F & A and submitted through OCGA or OIP-ISR (as appropriate)
Recommended that all awards for specific research studies should be classified as grants upon acceptance
Recommended that if any F+A waivers are granted, the applicable rate should be no less than the current gift administration fee
Led to revision of UCLA Policy 921

16. UCLA Policy
Policy 921: Accepting Support for Research from Nongovernmental Organizations
Defines gifts, grants and contracts, and MTAs
Provides criteria for differentiating among gifts, contracts or grants, and MTAs vs. sales and service activities

17. Contact Information
Claudia Modlin, Coordinator, Research Policy and Compliance
x42642