Types of Funding Support

There are different mechanisms which are used whereby two agencies can enter into an agreement to conduct research, training and/or other services. These include grants, contracts, subcontracts, cooperative agreements and gifts. Usually funding agencies will define the funding mechanism they will use in the proposal guidelines. Review the guidelines prior to considering your needs. The following definitions clarify the differences:

Grants

A grant is a unilateral award made on a competitive basis, whose principal purpose is the transfer of anything of value from a sponsor to the University. The objectives are usually defined by the University which is not required to produce specific results or services but may be restricted to use by the terms of the award agreement. The relationship between the sponsor and the University is one of assistance .

Contracts

A contract is a legally binding agreement between one or more sponsors and the University. The terms of the agreement outline very specific goals and requirements for goods and/or services to be provided by the University to the sponsor. It is routine for these goods or services to be provided on a specific schedule. The relationship between the sponsor and the University is one of procurement.

Subcontracts

A subcontract is a contract that assigns some of the obligations of a prior contract to another party. The terms of the obligations are outlined in the same manner as described under Contracts. Work conducted, on behalf of a primary sponsor, but with another institution may involve subcontracting out a portion of the project or entering into a Cooperative Agreement.

Cooperative Agreements

A cooperative agreement is basically a bilateral-lateral grant, used when substantial sponsor involvement is anticipated in the management and/or performance of the sponsored activity.

Gifts

A gift is a contribution or donation made on a non-competitive basis and does not obligate the University to produce specific results.

Restricted Gifts

A restricted gift is a unilateral award, similar in purpose to a grant, but which made on a non-competitive basis. While the University is not obligated to produce specific results, the sponsor may define the objectives of the award. The award may be restricted to use and/or purpose.

 Last Updated On: 11/7/05