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

2. RESEARCH POLICY & COMPLIANCE Differentiating between Gifts and Grants or…

3. RESEARCH POLICY & COMPLIANCE  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 What Characterizes a Gift…

4. RESEARCH POLICY & COMPLIANCE … 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. RESEARCH POLICY & COMPLIANCE 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. RESEARCH POLICY & COMPLIANCE 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. RESEARCH POLICY & COMPLIANCE UC Policy  Defines characteristics of gifts and grants  Provides guidance for making distinctions  Indicates that decisions require judgment  http://www.ucop.edu/ucophome /coordrev/policy/7-08-80.html http://www.ucop.edu/ucophome /coordrev/policy/7-08-80.html July 8, 1980, Letter from UC President David Saxon

8. RESEARCH POLICY & COMPLIANCE UC Contract and Grant Manual  States need for judgment  Defines characteristics of gifts and grants  ttp://www.ucop.edu/raohome/c gmanual/chapt9final.pdf Chapter 9-500: Distinguishing Between Private Gifts and Grants for Research

9. RESEARCH POLICY & COMPLIANCE UC Policy  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 July 28, 1993, Letter from UC Budget Director Hershman and University Controller Pastrone

10. RESEARCH POLICY & COMPLIANCE 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. RESEARCH POLICY & COMPLIANCE UCLA Research Investment Committee (April 2004)  Priorities identified as:  Space  Departmental Administration  Core Services  Required Matching/Cost Sharing  Sponsored Projects Administration

12. RESEARCH POLICY & COMPLIANCE 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. RESEARCH POLICY & COMPLIANCE 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. RESEARCH POLICY & COMPLIANCE Grants Gifts

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

17. RESEARCH POLICY & COMPLIANCE Contact Information  Claudia Modlin, Coordinator, Research Policy and Compliance  x42642  cmodlin@research.ucla.edu cmodlin@research.ucla.edu