Gifts vs. Grants

Gifts vs. Grants

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Investigators working with new sponsors should attempt to clarify whether funding will be made available to them in the form of a gift or a grant. Gifts and grants are handled by two separate Harvard units, and each carry their own distinct sets of policies and procedures. The full policy on distinguishing gifts versus sponsored awards is available on the Office for Sponsored Programs website.

In some cases, the distinction between a gift and a sponsored award (grant or contract) is ambiguous and requires consideration of many factors. 
 

Is it a Gift or a Sponsored Project?

In some cases, the distinction between a gift and a sponsored award (grant or contract) is ambiguous and requires consideration of many factors. 

Gifts

The following factors are normally indicative of a gift:

  • Use of the funds is directly related to the University’s mission
  • The donor receives no value, or only nominal value, in exchange for the support provided
  • No detailed scope of work, budget, or period of performance is specified by the donor or promised by the University (the general area of work to be supported may be specified)
  • There is no line-item budget, nor any restriction on the use of funds provided the use is consistent with the donor’s original, accepted, stipulations
  • There is no requirement to return unexpended funds to the donor

Sponsored Project

The following factors are normally indicative of a sponsored project (“grant” or “award”):

  • The sponsor requires:
    • a line-item budget for the expenditure of funds for the project Activity
    • a detailed statement of the planned Activity or scope of work
    • a specified period of performance as a term and condition
  • There is a commitment by Harvard to provide “deliverables” (e.g., products, or periodic technical or progress reports)
  • The award terms mandate fiscal accountability, such as submission of financial reports, audit provisions, sponsor prior approval of or control over expenditures, and/or an obligation to return unexpended funds
  • There is an obligation to convey rights to tangible or intangible property resulting from the project (equipment, data, technical reports, copyrightable or patentable materials)

Additional Resources

In the FAS, the Office for Sponsored Programs (OSP), the Office of Technology Development (OTD), the University Development Office (UDO), the Office of the Recording Secretary (RSO), FAS officials, and the Office of the Provost are responsible, under the procedures and considering the factors specified above, for working in conjunction with one another to reach a determination as to whether the external funding is a gift or a sponsored award.

Please reach out to OSPProposalAssistance@harvard.edu as a first stop for questions on the proper classification of an award.

For more information regarding Gifts and Sponsored Awards, visit OSP's Gift vs. Sponsored Award Decision Matrix.