Gift vs. Grant
Some grant proposals being submitted to corporations or foundations can be considered “gifts” rather than “sponsored projects.” The Office of Corporate and Foundation Relations manages the process to make this determination.
If a proposal will result in a gift, the overhead rate is 5 percent. If a proposal will result in a sponsored project, the overhead rate varies. See the F&A rate table for overhead rate information.
The UI has established the following determination procedure for classifying a proposal as a gift or a sponsored project:
- The principal investigator or project director should complete the determination worksheet and email it to the Corporate and Foundation Relations Office along with a draft proposal, budget and the guidelines or link to the funder’s website.
- Corporate and Foundation Relations coordinates the process with the Office of Sponsored Programs and the director of the UI Foundation’s Gift Administration Office, who are authorized to make this determination.
- Corporate and Foundation Relations notifies you of the decision, usually within 24 hours, and provides the appropriate IRS 501(c)(3) letter.
- If the proposal is determined to be a gift, the PI submits it directly to the funder under the UI Foundation’s name and 501(c)(3) status. When the funding arrives, the UI Foundation deposits it into the appropriate gift account (N account).
- If it is determined to be a sponsored project, the PI enters the proposal in EIPRS under the University of Idaho’s name and 501(c)(3) status. When the check arrives, OSP deposits it into the appropriate budget (K account).
- Research proposals to corporations or foundations that require Institutional Review Board approval should be processed through EIPRS and do not need a determination.
- Governmental agency proposals must be processed through EIPRS.
- Scholarships disbursed through the Student Financial Aid Services process do not need a determination.
- Sponsorships that provide only name recognition benefits to the donor do not need a determination (for example: donor provides funds for new scoreboard and only wants the company’s name listed as a sponsor).