September 12, 2008

We have a newly adopted Policy 4008 which in great detail outlines what is counted as a gift, what is counted as a grant and what is counted as both. I hope this addresses the concerns of the Faculty Senate and I (along with Diane Coppage and Mike Laskofski who are the designers of this policy) are happy to talk about this with the Faculty Senate.

In short, if a research grant is given by a non-government funder without any quid-pro-quo it can be counted as a grant and a gift. This is very important to both Mason and the funding source because often these foundation/corporations/funding sources see their contribution as much as a gift as sponsored research. Therefore, if we do not recognize their support as a gift and grant, we are not complying with their initial intent.

Last year the total amount raised in gift and pledges was $31,415,916. Of that total, approximately $2.6 million was faculty driven and counted by both OSP and Development.

Please let me/us know how we can work with you on this matter.

Marc Broderick, Vice President of University Development and Alumni Affairs
Diane Coppage, Director of Corporate and Foundation Relations
Mike Laskofski, Director, Sponsored Programs

Overview of Policy 4008 and Procedures
When applying for private support or accepting private support from corporations, foundations, or other private organizations, there are two primary avenues into and out of George Mason University (Mason). The first is through the George Mason University Foundation, Inc. (GMUF). The second is through the Mason Office of Sponsored Programs (OSP). Both offices work together to assist faculty and administrators who apply for and accept private support on behalf of the university.

The terms grant, contract, cooperative agreement, and gift are defined on page 1 of Policy 4008. If an award will be a grant, contract, or cooperative agreement, the award must be applied for and accepted by OSP. If the award will be a gift, the award must be applied for and accepted by GMUF. The way to tell the difference between a grant and a gift is to examine the indicators or “strings” attached to the award. Indicators for the different types of awards are listed in Attachment A, Guidelines for Determining Administrative Entity for Private Sector Projects.

Sometimes it is difficult to predict which indicators will be attached to an award. Often OSP or GMUF can help to determine which entity should apply for an award by looking at the funder’s guidelines and historical data about the funder’s past awards to the university.

In some cases, awards may be accepted by GMUF, and then the administration of all or part of the award transferred to OSP. For example, some foundations will only give to 501 (c) 3 organizations, which is the IRS classification of GMUF. But, the indicators attached to the award make it a grant. In this case, GMUF would accept the award, and then transfer the entire award to OSP for administration. In another example, a gift may be accepted by GMUF, but the budget includes payroll for an individual. Since GMUF is prohibited from administering state payroll, only the portion of the gift that is earmarked for payroll would be transferred to OSP for administration.

Both GMUF and OSP will report submissions and awards in their respective reports to the university and the community.

The details of how these processes work are outlined in Procedures for Acceptance and Administration of Private Sector and Foundation Funding to George Mason University and the George Mason University Foundation, Inc.

Questions about Policy 4008 and the procedures for applying for and administering private awards can be directed to either the Director of the Office of Sponsored Programs, or the Director of Corporate and Foundation Relations in the Office of University Development.

DATE: March 1, 2008