Gifts Versus Grants

What is a Gift?

A gift is a donation made with no expectation of anything tangible or intangible in return.

Key Characteristics of Gifts:

  • Motivated by philanthropy – The donor gives with charitable intent.
  • Can support a specific purpose (e.g., a research project), but:
    • Should not include a line-item budget or require detailed financial accountability to the donor.
  • Research gifts are subject to a 13% research administrative fee (effective 3/5/2025).
  • Approval & Management:
    • Research gift agreements are reviewed and approved by Fund Management in UDAR.
    • Fund Management may edit agreements to align with UC Berkeley policies.
    • Only UDAR can accept and sign gifts on behalf of UC Berkeley.
    • Learn more: Who can sign gift agreements?

What is a Grant?

A grant is funding provided with specific conditions, often requiring detailed scope, reporting, and deliverables.

Key Characteristics of Grants:

  • Can support specific research or operating expenses but typically include:
    • A detailed scope of work and timeline.
    • A line-item budget that must be followed.
    • Financial reporting back to the funder.
    • A requirement to return unspent funds if not used within the project timeline.
  • May require specific deliverables such as:
    • Intellectual property rights (e.g., patents, copyrights).
    • Technical reports, training, or materials for the funder.
  • Who provides grants?
    • Federal & state entities and non-profits provide grants.
    • Corporations do not give grants (corporate funding falls under different agreements).
  • Grant Management & Approval:
    • Grants are negotiated and managed by:
    • Only SPO & IAO can accept and sign grant agreements on behalf of Berkeley.

How Do I Distinguish Between a Gift or a Grant?