Previously, we discussed several different types of sponsored projects and a few of the mechanisms at play when performing work under their auspices. Next, we started a more in-depth examination of the award types with a look at the distinguishing characteristics of grants. Last Tuesday, we looked at cooperative agreements. Monday, we focused on contracts, and today we’ll finish up with a tour of perhaps the rarest of all awards: gifts.
Award Type: Gifts
Basic Purpose: Charitable in nature, award is donated for variety of reasons (e.g. endowment, purchase of equipment).
Sponsor Involvement: Very little, if any.
How Solicited: Offered by or solicited from donors.
Benefits: Sponsor doesn’t expect anything in return, save for recognition and the associated tax deduction.
Project Direction: Solely at the discretion of the recipient.
Selection Process: Provided at sole discretion of the donor.
Award Instrument: Generally a Letter of Agreement or Memorandum of Understanding that outlines the purpose of the award. Any instructions are given at the time of donation.
Period of Performance: Generally not defined by the donor.
Cost Principles: Generally Accepted Accounting Principles (GAAP)
Administrative Requirements: None.
Rebudgeting Capabilities: Very little, if any.
Technical Reporting Requirements: Generally, results are not formally required to be transmitted to the donor.
Renewals: Depends on the donor.
Final Deliverable(s): None.
Fulfillment of Award: Usually at the discretion of the recipient or as per the terms of the agreement at the time of the donation.