Grants
A grant is the mechanism by which a not-for-profit entity seeks funds from an organization. Grants are written in response to specific guidelines set forth by a funding organization and constitute a contract between the organization and the recipient whereby the recipient (the University) agrees to perform some specific activity in exchange for grant payment, and reports back to the organization on a regular basis regarding the specific uses of the grant funds. This is in contrast to a gift whereby the recipient usually does not present a written proposal and the grantee does not usually stipulate specific conditions for use of the gift upon the recipient. (There are exceptions to this, especially when larger gift amounts are received.)
Additional characteristics of grants and gifts:
Grant:
- Intends to support a project with a specific set of objectives.
- Normally requires a formal written proposal, including total project budget.
- Requires periodic written reports to grantor of a descriptive, technical, and financial nature.
- Must be budgeted and accounted for separately from other awards.
- Must be made with assistance from the Business Office and University Advancement to assure compliance with University and agency policies.
Gift:
- Normally requires no formal proposal and no reporting of a descriptive, technical, or financial nature.
- Is made and accepted without consideration of project costs, but rather as project or institutional support.
- Can be combined with gifts of a similar nature for similar purposes and may not need separate accounts or budgets.
- May be for a specific project or unrestricted institutional purposes.
- Must be made with the assistance of Business Office and University Advancement to assure proper accounting treatment and acknowledgement of the gift.