Gifts vs. Grants (Sponsored Projects): How We Classify External Funding
Cal Poly Pomona receives external support through both gifts and grants/contracts (sponsored projects). Correct classification ensures that funds are accepted and managed appropriately and that the University complies with sponsor or donor requirements.
Classification is based on the terms and expectations in the award document, not the sponsor’s label.
The Key Distinction
A gift is a voluntary contribution without enforceable performance obligations.
A grant or contract is funding provided to carry out a defined project with specific expectations and accountability.
All funding from government agencies (federal, state, or local) is treated as a grant and processed through the Office of Research & Sponsored Programs (ORSP).
Gifts are processed through University Advancement.
Decision Tree: Gift or Grant?
Use this quick guide to help determine whether funding should be processed as a gift or as a sponsored project.
Is the funding from a government agency (federal, state, or local)?
- Yes → Grant (ORSP)
- No → Continue
Does the sponsor require a defined scope of work, milestones, deliverables, or outcomes?
- Yes → Grant (ORSP)
- No → Continue
Are any required updates limited to stewardship or use-of-funds summaries(e.g., brief narrative updates, list of students supported)?
- Yes → Gift (University Advancement)
- No or Unsure → Continue
Does the award include technical reporting, return of unspent funds, sponsor approval of scope changes, or IP/data rights terms?
- Yes → Grant (ORSP)
- No → Gift (University Advancement)
If still uncertain, contact ORSP and University Advancement for review prior to acceptance.
Gray Area Guidance
Some foundations provide both gifts and grants. When terms are mixed or unclear, ORSP and University Advancement will review the award documentation jointly before acceptance.
Rule of thumb:
If the sponsor could require repayment or claim nonperformance for failure to complete defined activities, the funding is likely a grant.
Who to Contact
Office of Research & Sponsored Programs (ORSP) – for grant/contract classification and sponsored project setup
University Advancement – for gift acceptance and stewardship