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

Differentiating between Gifts and Grants or…

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

… 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)

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

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

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 http://www.ucop.edu/ucophome/coordrev/policy/7-08-80.html

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 ttp://www.ucop.edu/raohome/cgmanual/chapt9final.pdf

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

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

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

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.”

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

Gifts Grants

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

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

Contact Information Claudia Modlin, Coordinator, Research Policy and Compliance x42642 cmodlin@research.ucla.edu