Gift Administration Terminology

This reference is provided to outline the definitions of, and differences between commonly used Gift Administration terminology.

  • What is meant by Private Support?

Private support is a Council For Advancement & Support For Education (CASE) management reporting standard that includes all gifts and private grants provided by private (i.e., non-governmental) entities in support of the institution’s missions.

 

  • What is the difference between a gift and a private grant?

A gift is a conveyance or transfer of an asset, including cash and cash equivalents, real estate, securities, gifts-in-kind and intangible property, given with charitable intent and without consideration; the donor does not impose contractual requirements, and funds are award irrevocably. Processing and accounting for gifts is through UCSF University Development & Alumni Relations (UDAR) Gift Processing and Gift & Endowment accounting, respectively.

A private grant is a financial award by a non-governmental entity to a UCSF investigator in support of proposed research, training or other activity. Sponsor may specify conditions or requirements for a specified period of performance, including reports on expenditures, guidelines for audits, technical reports, etc. Unspent funds may be returned to the sponsor at the end of the work. Private grants are subject to The Regents' overhead charges of varying levels, depending on contractual arrangements. Processing and accounting for Private Grants is through UCSF Sponsored Research and Controller’s Office Contracts & Grants Accounting, respectively.

The decision as to whether a particular award should be considered a gift or a private grant cannot be made based upon the presence or absence of a single characteristic or criterion. Rather, one must look at the award in total in order to make a judgment as to its proper classification.

Regardless of the designation of an award for research as a gift or grant, it will be subject to the research review process as well as to the administrative rules and procedures which apply to all University Funds. Indirect costs will not be applied to a gift; a grant will include the application of indirect costs in accordance with University policy.

 

  • How is a contract different from a private grant?

A contract is a binding agreement between two or more parties that is enforceable at law. In the context of research, a contract is generally an agreement under which a sponsor provides funding for a proposed program in return for some product, such as services, report, or other deliverables. A fixed-price contract arises when the sponsor and University agree in advance on the price of the work to be done. A cost reimbursement contract requires the sponsor to reimburse the University for the cost of conducting the research.

 

  • What is meant by a gift in kind?

Gifts in kind, also referred to as in-kind donations, is a kind of charitable giving in which, instead of giving money to buy needed goods and services, the goods and services themselves are given. Gifts in kind are distinguished from gifts of cash or stock, and may include a contribution of equipment, supplies or other property.

 

  • What is intangible property?

Intangible property refers to gifts of property with no intrinsic value but which are evidence of value (e.g., copyrights, patents, royalties).

 

  • What is a deferred gift?

A deferred gift is a commitment or gift established legally during the donors lifetime, in which principal benefits usually do not accrue to the charitable recipient until some future time, often after the donor's death. The term is usually applied to any arrangement whereby money or property is irrevocably allocated for future receipt by an organization. Frequently, income is paid to the donor and/or someone else for a period of time. Annuities, trusts, gifts of insurance, and will commitments are generally referred to as deferred gifts.

 

  • What is a bequest?

A bequest is a transfer, by means of a will, of personal property (e.g., cash securities) or other tangible property.

 

  • What is an endowment?

An endowment is a transfer of money or property with the stipulation that it be invested, and the principal remain intact. This allows for the donation to have a much greater impact than if the gift were spent all at once. Endowments and Funds Functioning As Endowments (FFE’s) must meet the same definition criteria as gifts. True Endowment Funds are derived from gifts that stipulate the principal must remain intact and that only income may be expended. FFE’s may be created by the University when a donor does not explicitly instruct state the fund type, i.e., current or endowment.