What's in a Name? Whether 'tis Nobler to be a Gift, Grant, or Contract

1. What's in a Name? Whether 'tis Nobler to be a Gift, Grant, or Contract Csilla M. Csaplár Department Manager, Geophysics Stanford University Linda W. Patton Director, Extramural Funding Opportunities California State University, Fullerton

2. Agenda • Definitions of Selected Award Instruments • Gifts • Grants • Cooperative Agreements • Contracts • Subcontracts and Subawards • Key Differences/Characteristics • Resources • Sample Scenarios • Q&A NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

3. Gifts Purpose: Funds may be used for “general” departmental or research support, or “specific/restrictive purpose” e.g., endowed professorship, student research scholarship in a specific discipline, capital projects. Funding is contributed to the institution with no expected benefit to the contributor/donor. Sponsor Type: Typically private, non-governmental types e.g., private foundations, corporations, professional societies or associations, individuals) Who Manages it?: Typically advancement/development office or institution’s philanthropic foundation, rather than sponsored programs Sponsor involvement: Minimal NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

4. Gifts, continued Characteristics: • Short award letter, typically only 1-2 pages • No contractual obligation, e.g., deliverables • Involves no exchange transaction other than recognition of donor, unless donor requests anonymity • The term “gift” is frequently used interchangeably with “grant” – be careful! • Given voluntarily, a gift is an irrevocable transfer of funds, services, or property, with no expectation of benefit, goods, or services from the recipient • No specified funding period • No required fiscal or performance reporting, however attentive stewardship is highly recommended • Unrestricted use of funds (no unallowable costs) • Institution owns all rights, if applicable • Does not include consideration for legal accountability, e.g., indemnification • Recognized by IRS as a charitable contribution NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

5. Grants Purpose: Monetary assistance award to fulfill a specified institutional or public need • Proposes specific scope of work • Project often supports furtherance of knowledge in a specific area or field of interest • Typically derived from a Request For Proposal (RFP) solicitation (or sometimes an unsolicited proposal with specified expectations) to satisfy identified grantor needs Sponsor Type: Government agency, foundation, private organization Sponsor Involvement: Generally period specific reports regarding financial and programmatic accomplishments; minimal, if any, role in the performance of grant activities NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

6. Grants, continued Characteristics of a grant award: • General research terms and conditions, usually flexible • Typically required quarterly, annual or summary reporting –technical/programmatic & financial • No final deliverables except final report of research/project findings and results or achievement of programmatic outcomes • Sponsor usually allows for rebudgeting • Includes accountability under the terms of A-21 and A-110 • Deviation from the approved plan of operation and/or budget typically requires sponsor’s prior approval • Funds may be provided upfront or on a cost-reimbursable basis • Sponsor may require unexpended funds to be returned or grant a no-cost extension • Institution (Awardee) usually owns all rights NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

7. Grants, continued Principal Investigator’s (PI) or Project Director’s/Manager’s (PD/PM) Role on behalf of the University (official awardee): • Is responsible for overall day to day project direction and oversight in the conduct of program/project performance • defines scope of work, period of performance, and budget, in consultation with Sponsor • Is responsible for adhering to all award terms and conditions NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

8. Cooperative Agreements Purpose: Assistance award, but usually to fulfill a public purpose (rather than institutional) Sponsor Type: Government agency, foundation, private organization Sponsor involvement: Sponsor is significantly involved in award terms and research direction NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

9. Cooperative Agreements, cont. Institution is usually solicited by sponsor, and then institution submits application to sponsor for consideration. (RFA) PI develops the scope of work with input from the sponsor. Period of performance and budget are jointly developed by Sponsor and PI. PI is responsible for project direction and oversight, but Sponsor is substantially involved. NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

10. Cooperative Agreements What does the award look like? • Includes terms and conditions, and defines the responsibilities of both Sponsor and Institution • May require more frequent technical reporting, but financial reporting typically still annual or quarterly • Final deliverable typically final report of research/project findings, results, or outcomes • Sponsor sometimes allows for rebudgeting • Funds typically provided on a cost-reimbursable basis • Sponsor will likely require unexpended funds to be returned • Sponsor may want patentable rights; if applicable, negotiate rights prior to funding NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

11. Contracts Purpose: Procurement award, given to Institution so Sponsor can procure a specific service or product Sponsor: Typically government agency or private corporation Sponsor involvement: Sponsor provides project direction and oversight NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

12. Contracts, continued Sponsor solicits responses, and then Institution submits bid or proposal to sponsor for consideration. (RFP, RFQ, BAA) Sponsor develops the scope of work, project direction, and period of performance. Institution proposed budget, methodology, expertise, and resources to achieve Sponsor’s scope of work. NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

13. Contracts, continued What does the award look like? • Detailed terms and conditions, includes regulations, required or negotiated clauses, and expectations for required deliverables • Requires frequent and detailed reporting (both technical and financial, usually also requires patent and property) • Institution is required to provide a product or service as final deliverable • Sponsor requires prior approval for rebudgeting • Funds typically provided upon completion of milestones • Sponsor will likely retain most or all rights • Sponsor may require prior review or approval of publications NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

14. Contracts, continued Contract terms are complex and rigorous – review carefully to ensure that your Institution and PI can comply. Institutions can request alternate clauses that apply specifically to their institution type or to Research & Development work (more aligned with the types of work that we do). NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

15. Subcontracts, Subgrants, Subagreements • Refers to agreements for funding to your Institution, where your Institution is not the primary award recipient. • Terminology: Depending on the prime award funding type, these agreements may be called “subcontracts,” “subagreements, “or “subgrants.” The terms and conditions outlined in the agreement determine the institution’s responsibilities. “When an institution provides project funding to outside entities to accomplish a portion of the scope of work, it takes on the role and responsibility of the sponsoring agency in terms of oversight given to the subrecipient.” Research Administration and Management, pg. 52, Kulakowski & Chronister. NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

16. Subcontracts, continued Each Institution has its own PI who is responsible for the scope and direction of work being conducted at his/her institution. Usually easy to work with like institutions (e.g., university to university). Can be more difficult when working with other types of institutions (e.g., for-profit to university). NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

17. Subcontracts, continued Flexibility of project direction and terms and conditions are determined by the type of prime award. When the prime award is a grant, subcontract terms are generally flexible and collegial. When the prime award is a contract, subcontract terms are often far more restrictive (often including the flowdown of contracts regulations & duties from the Federal Acquisition Regulations, aka FAR). NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

18. Subawards Subawards are initiated when your Institution receives an award, and a portion of the scope of work needs to be accomplished by another entity. The other entity (the subrecipient) is participating in a research scope, but is not the primary award recipient. DOD (sponsor) Portland State (prime recipient)  Stanford (subrecipient) As a subrecipient, your Institution is also subject to the terms and conditions of the prime award. The prime award recipient is responsible for flowing down appropriate terms. NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

19. Subawards, continued Prime Recipient is responsible for: • Ensuring the Subrecipient’s scope of work (SOW) is completed according to agreement terms • Monitoring Subrecipient’s compliance with the flowdownprovisions • Ensuring Subrecipient is not debarred or suspended SubrecipientPI is responsible for: • Technical direction of Subrecipient’s scope of work • Meeting compliance requirements • Spending funding within the limits of the award • Submitting timely, accurate invoices • Keeping accurate accounting/documentation NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

20. Other Agreements • Clinical Trial agreements • Vendor agreements • Master agreements • Data Use agreements • Material Transfer agreements • Consulting agreements All of the above agreement types are typically funded as contracts. NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

21. What is it? Consider this scenario… Dr. Voltaic received $25,000 for solar cell research from the GreenRoof Foundation. There are no terms and conditions attached. Dr. Voltaic needs to provide the GreenRoof Foundation a programmatic progress report every six months. • Is this a gift or grant? • What considerations need to be made if a gift requires periodic progress and financial reports? NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

22. What is it? Consider this scenario…. Your new VP for Advancement announces at a Deans’ and Directors’ meeting that he has a commitment for a $25M Gift-Grant to endow a research lab which would exclusively conduct research on the disease that is threatening the life of his recently diagnosed granddaughter. NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

23. Resources Stanford’s Research Policy Handbook guidance on types of funding: http://rph.stanford.edu/3-2.html Research.gov: http://www.research.gov (check out the policy library!) FDP Templates for Subawards: http://sites.nationalacademies.org/PGA/fdp/PGA_063626 NIH Guide for Grants and Contracts: http://grants.nih.gov/grants/guide/index.html NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

24. Resources, continued Gift vs. Grant Checklist Check out Stanford’s determination form… NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

25. Resources, continued Vendor vs. Subaward Determination NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC

26. Questions? For further questions, please feel free to contact us: CsillaM. Csaplár (650) 498-6877 csaplar@stanford.edu Linda W. Patton (657) 278-3160 lpatton@fullerton.edu NCURA 54th Annual Meeting * November 4-7, 2012 * Washington, DC