I.
References
A.
By-Laws and Standing Orders of The Regents 100.4
(dd)
B.
University of California Contract and Grant Manual,
Chapter 9
C.
Office of the President Policy on Review of Gifts/Grants
for Research, July 8, 1980
D.
Office of the President Guidelines on University-Industry
Relations, May 17, 1989
E.
UCSB Policy No. 3010 on Solicitation and Acceptance
of Gifts, September 1, 1992
F. Sponsors
of Research Exempted From University Non-Governmental
Entity Financial Disclosure Requirement
II.
Policy
A.
General Statement
UCSB
accepts financial support from private organizations,
both non-profit and for-profit, for a variety
of purposes, including the conduct of research.
Private funds awarded for general research support
are typically accepted by the University as gifts.
Private funds awarded for specific research projects
may be accepted as gifts, grants, or contracts,
depending on the particular characteristics of
each award. This policy provides guidance on
determining the appropriate classification of
private funds awarded for research.
B.
Characteristics of Private Gifts for Research
Private
gifts--sometimes called "unrestricted grants"--are
usually intended for general research support,
i.e., to be used at the discretion of the recipient
department or principal investigator. In general,
funds for the support of research are classified
as gifts when the following characteristics exist:
1.
The donor does not impose contractual requirements
in connection with acceptance or use of the
funds.
2.
The funds are awarded irrevocably.
Certain
requests may be made by donors of private gifts,
such as brief reports on how gift funds are used,
courtesy copies of publications, or acknowledgment
of the donor in publications. These requests
are appropriate if they are not imposed contractually
on the University, or do not otherwise impede
the University's use of the gift funds.
C.
Characteristics of Private Grants and Contracts
for Research
Grants
and contracts from private sponsors are usually
intended for the support of specific research
projects, i.e., to be used for the execution
of a particular research design in accordance
with a proposed budget of expenditures. In general,
funds for the support of research are classified
as grants or contracts when the following characteristics
exist:
1.
Provision is made for audits by or on behalf
of the grantor.
2.
The grantor is entitled to receive some consideration
in exchange for the funds, such as a detailed
technical report of research results, or a
detailed report of expenditures.
3.
The testing or evaluation of proprietary products
is involved.
4.
The research is directed to satisfying specific
grantor requirements, such as a precise statement
of work.
5.
A specified period of performance is prescribed,
or termination is at the discretion of the
grantor.
6.
Funds unexpended at the end of the period of
performance are to be returned to the grantor.
7.
Patent rights are requested by the grantor
in exchange for the funds.
In
most situations, not all of the above characteristics
will be evident. Likewise, other characteristics
not cited above may be evident. (For example,
many for-profit private sponsors name technical
representatives from their staff with whom regular
contacts may be required.) Overall, careful judgment
must be exercised to classify private funds appropriately
as gifts or grants and contracts. The decision
to classify a particular award as a gift instead
of a grant or contract cannot be made because
of the presence or absence of a single characteristic.
Rather, the award must be considered in toto before
making a judgment as to its proper classification.
As noted in the University's Guidelines on University-Industry
Relations, "The proper distinction between
gifts and grants, with the different obligations
in each case, is important to the integrity of
the University's sponsored research program."
III.
Procedure
A.
Processing of Private Funds for Research
Whether
a private award for research is classified as
a gift, or as a grant or contract, it is subject
to the research review process as well as to
the administrative rules and procedures that
apply to all University funds. Specifically:
1.
Principal investigators who anticipate receiving
either gift or grant and contract funds from
a for-profit or other non-exempt private donor
or grantor must file a Statement of Economic
Interests (Form 730-U). Positive disclosures
of economic interests will be reviewed by the
campus Independent Substantive Review Committee,
and must be approved by the Associate Vice
Chancellor-Research before the funds can be
accepted by the University.
2.
The processing of private gifts will not include
the application of indirect costs by the University
(i.e., those indirect costs calculated in accordance
with federal OMB Circular No. A-21, and approved
by the federal government). The processing
of grants or contracts from private sponsors
will include the application of indirect costs
in accordance with University policy.
B.
Responsibilities
The
Development Office is responsible for the acceptance
of gifts from private organizations. The Office
of Research is responsible for the acceptance
of grants and contracts.
Funds
received by campus departments or principal investigators
as gifts to The Regents should be submitted directly
to the Development Office for processing, accompanied
by a Gift/Private Grant Acceptance Report (Form
UDEV 100). If the Development Office believes
that further review of the classification of
the funds is necessary, it may consult with the
Office of Research for a determination under
this policy. If the funds are determined to be
either a grant or contract, the award shall be
processed through the Office of Research.
IV.
Attachments
A.
Principal Investigator's Statement of Economic
Interests (Form 730-U)
B.
Gift/Private Grant Acceptance Report (Form UDEV
100)
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