Gift vs. Grant

Some grant proposals being submitted to corporations or foundations can be considered “gifts” rather than “sponsored projects.” The Office of Sponsored Programs manages the process to make this determination.

If a proposal will result in a gift, Corporate and Foundation Relations (CFR) or UI Foundation policy is to be followed. If a proposal will result in a sponsored project, the indirect cost rate varies. See the F&A rate page for F&A (indirect/overhead) rate information. 

The UI has established the following determination procedure for classifying a proposal as a gift or a sponsored project:

1. The principal investigator or project director should enter a Gift vs Grant service request (ticket) to TDNext in the Office of Sponsored Programs module and upload a draft proposal, budget and the guidelines or link to the funder’s website.
2. The Office of Sponsored Programs coordinates the process with Corporate and Foundation Relations office and the director of the UI Foundation’s Gift Administration Office, who are authorized to jointly make this determination.
3. You will be notified of the decision via TDNext. If this is a gift, CFR provides the appropriate IRS 501(c)(3) letter after the determination is made (and at your request).
   
   1. 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 financial designation.
   2. If it is determined to be a sponsored project, the PI enters the proposal in the ERA system under the University of Idaho’s name and 501(c)(3) status. When the check arrives, OSP processes it as sponsored project and the funds are allocated per university policy on sponsored project governance.

Exceptions:

• Governmental agency proposals must be processed as a sponsored project.
• Scholarships disbursed through the Student Financial Aid Services process do not need a determination.
• Sponsorships that provide only name recognition benefits may be classified as a gift, but a determination request should be submitted in TDNext to ensure all relevant information is captured.