Chapter 1: Grants, Contracts, and Gifts
1. Purpose:
Private sector support is critical to the University. Contributions from individuals, foundations, corporations, and other entities are vitally important to the fulfillment of the institution's mission and to the provision of high-quality educational opportunities. The purpose of these procedures is to clarify and facilitate the process for making gifts to the U. T. System and The University of Texas at El Paso.
1.1 Procedures for Accepting Grants, Contracts, and Gifts
1.1.1 The Rules and Regulations of the Board of Regents of The University of Texas System cite specific procedures for handling gifts (See Regents’ Rules and Regulations Series 60101 and 1.1.3.2 of this section below) and for accepting contracts and grants (See Regents’ Rules and Regulations Series 10501 and 1.1.3.1 of section below).
1.1.2 All proposals by University personnel requesting funding from outside funding sources must have advance institutional review and approval of the President or the President’s designee prior to submission to the potential donor, grantee, contractor, or other external funding agency and any resulting gift, contract, or grant must be formally accepted by the University, deposited in appropriate restricted University accounts, and administered by designated University personnel.
1.1.2.1 Proposals for grants or contracts must be forwarded to Research and Innovation for review and subsequent approval by the President, or the President's designee, prior to submission to any potential funding agency. Acceptance of any resulting grant or contract must be processed through Research and Innovation and will be administered by the designated Principal Investigator in restricted contract and grant accounts supervised by Research and Innovation and Office of Contract and Grant Accounting.
1.1.2.2 Proposals for gifts must be forwarded to the Office of Institutional Advancement for review and subsequent approval by the President, or the President’s designee, prior to submission to any potential donor. Acceptance of any resulting gift must be processed by through the Office of Institutional Advancement and will be administered by the appropriate University department, office, or program in restricted gift accounts as determined by the Office of Institutional Advancement.
1.1.3 In a university with strong development and research programs, there is occasional misunderstanding of whether funds coming to the institution are to be categorized as “contracts and grants,” or as “gifts". The following guidelines are provided to assist in making this distinction, but specific determinations may be obtained from the Research and Innovation or the Office of Institutional Advancement.
1.1.3.1 Grants and Contracts: Research and Innovation will handle and process all proposals and administer resultant income when the funding agency and the University establish a contractual relationship resulting in an obligation or requirement that specific products, activities, services, or information be provided to the funding agency. A contract or written agreement authorizing acceptance of these funds for these purposes must be processed by Research and Innovation and approved by the President or the President’s designee. Only the President or a specific designee of the President may execute a contract on behalf of the University. All activities with local, state or federal agencies, as well as foreign agencies, and some commercial firms and many foundations fall into this category.
1.1.3.2 Unrestricted or Restricted Gifts: A relationship may be established in which the funding agency causes a general or specific result that is meant to benefit primarily the University or one of its divisions. The funds may be directed to one or more objectives or activities of the University or one of its divisions (a restricted gift), or its use may be entirely discretionary (unrestricted gift). This kind of activity is usually identified with the Development program of the Office of Institutional Advancement, and funds for such purposes must be accepted, receipted, and acknowledged by that office. Funds from individuals, most commercial firms, and some foundations often fall into this category.
1.1.4 The following general guidelines assist in determining whether funds should be processed and administered through Research and Innovation or the Office of Institutional Advancement:
- Projects with specific research or service objectives are processed by Research and Innovation as grants and contracts. Funds specifically for unrestricted support (gift) of a research or service area, a broad departmental or College project planned or underway or, to accomplish the benevolent intent of a donor to see altruistic benefit are processed through the Office of Institutional Advancement.
- Projects with government sponsorship are handled by Research and Innovation, except for student financial aid.
- Projects based on any written agreement which requires the reporting of expenditures of funds or the reporting of results must be processed by Research and Innovation.
- Projects that will require a proposal to an outside funder that incorporates a budget (usually consisting of salaries and wages, travel, equipment, supplies, or computer time) that results in the funder awarding money to be spent by the University over a specific period of time and in direct response to the request presupposes a contractual arrangement and must be processed by Research and Innovation.
