Policy Number: 703

Policy: Defining Responsibility for Receipt and Administration of External Funding for Sponsored Projects and Charitable Giving

Date Adopted: 07/04

Revision Date:

References:

Approved By: Robert A. Duringer, Vice President for Administration & Finance


With the variety of mechanisms by which funding for sponsored projects and corporate and foundation charitable giving are received, it can be unclear to those involved in soliciting these funds whether responsibility for the administration of the awarded funds should rest with The University of Montana or with The University of Montana Foundation. The purpose of this policy is to delineate the distinction between charitable giving (gifts) and external funding for sponsored projects (grants) and to outline where responsibility lies for the administration of funds based on the category to which the funds belong.

Definitions

A grant, contract, cooperative agreement, sub grant, subcontract, consortium agreement, purchase order, or memorandum of understanding (hereafter collectively referred to as "grant") is an agreement formalizing the transfer of money or property from a sponsor in exchange for specified services (e.g., research and development), and may require specific deliverables including financial and/or technical reporting by the recipient. The agreement is enforceable by law, and performance is usually to be accomplished within a specified time frame, with payment subject to revocation. It may include provisions related to intellectual property and publication rights. Entities awarding these funds are referred to as sponsors. Grants are received and administered by the Office of Research and Sponsored Programs (ORSP) of The University of Montana.

A gift or donation (hereafter referred to as "gift") is a voluntary and irrevocable transfer of money, services, or property (including equipment, intellectual property) from a donor without any expectation of or receipt of direct economic benefit or provision of goods and services from the recipient. Entities awarding these funds are referred to as donors. A gift implies no responsibility to provide the donor with a product, service, technical or scientific report(s), or intellectual property. Gifts are received and administered by The University of Montana Foundation.

Government entities are always sponsors. Private-sector entities (private foundations, corporate foundations, corporations, private agencies, professional associations) may be either donors or sponsors depending on the terms and conditions imposed on the funds. NOTE: The non-payment of facilities and administrative costs (also called indirect costs or overhead) is not a factor in determining whether the award is a grant or a gift.

Types of Awards Accepted and Administered by ORSP

The presence of any one of the following conditions shall designate the award as a grant, and its administration shall be the responsibility of ORSP.

Solicitations for grants must be approved by ORSP prior to proposal submission. All grant agreements are negotiated by and awarded grants are administered by ORSP.

Types of Awards Accepted and Administered by The UM Foundation

The following are characteristics that usually designate funds as gifts to be managed by The University of Montana Foundation.

Solicitations for gifts must be approved by The UM Foundation prior to submission. Donated funds are managed by The University of Montana Foundation.

NOTE: While not a determinant of appropriate designation as a grant or gift, ANY activity involving the use of human subjects, laboratory animals, radioactive materials, recombinant DNA/RNA, biohazards, or other research risks must obtain the proper prior approvals from the appropriate university office.

Resolution of Special Cases

For projects that do not fit into any of the above categories, the Vice President for Research (or designee), the President of The UM Foundation (or designee), and the proposed project director will, in consultation with both organizations' fiscal managers (or designees) and the Director of Internal Audit (or designee), determine the most appropriate means of receiving and administering the funds. Unresolved cases will be referred to the President for final decision.

Coordination of Effort

When university faculty and staff members contact ORSP for assistance with proposals to non-governmental entities, ORSP staff will determine if the proposed project should be submitted by The University of Montana or The University of Montana Foundation. If the proposed project clearly falls within the purview of The UM Foundation, the faculty or staff member will be directed to the Foundation for assistance in proposal preparation and submission. Similarly, when university faculty and staff members contact The UM Foundation for assistance with proposals to non-governmental entities, Foundation staff will determine if the proposed project should be submitted by The University of Montana or The University of Montana Foundation. If the proposed project clearly falls within the purview of The University of Montana, the faculty or staff member will be directed to ORSP for assistance in proposal preparation and submission.

Order of Precedence

The definitions of terms in this policy take precedence over any terms used by the funding source. 

No Procedures Available