SECTION VI. GRANTS AND CONTRACTS

Adapted and used by permission of Augusta State University

 Section 1

Proposal Development

1.1 Proposal Development

The procedures below exist to expedite, not impede proposal submission by guiding project directors through the application process.

Outline of Steps to Follow in Proposal Development

1. Obtain preliminary, informal approval of your project from your department head and dean.

2. Obtain, from the Academic Affairs website or the Vice President for Academic Affairs, the routing form and grants resource information.

3. Write a draft of the proposal, carefully following the guidelines of the funding agency’s Request for Proposal (RFP). It is a good idea to read the guidelines before beginning to write a proposal. Some agencies have stringent requirements on format and length, and proposals that do not conform to these requirements are frequently relegated to the pile of rejections. Have a colleague review and comment.

4. Keep in mind the deadline for receipt of your proposal at the sponsoring agency and plan your work to accommodate the time necessary to complete the total proposal process.

5. Begin work on the budget.

6. Fill out the Georgia Southwestern State University Approval to Submit Proposal for External Funding Form (Routing form). Your signature on the back of the form will indicate your compliance with various federal regulations. Attach a copy of your complete proposal if it is finished. If the proposal is not finished, approval may be obtained by routing the completed routing form, final budget and budget narrative, proposal draft, any signature and compliance pages, and an abstract. You will be asked for more information if it is needed.

Obtain the signatures of your department head and dean and send the proposal to the Vice President of Academic Affairs. The form will be routed next to the Vice President of Business and Finance for the final approval signature. Once it is signed, the Office of Business and Finance will send the proposal to the President for signatures.

(For more information, refer to the Institutional Approval Procedure in Section 2.4 of this manual.)

Under NO circumstances should a proposal, including an electronic submission, leave campus without all of the appropriate signatures and approval. All proposals require review and approval by your Department Head and Dean, Vice President of Academic Affairs and Vice President for Business and Finance.

7. Make any multiple copies necessary for submission to the funding agency, a copy for yourself, copies for the Vice President for Academic Affairs, Vice President for Business and Finance and the Comptroller.

1.2 Finding Information about Grant Opportunities

As a rule of thumb, look for public funding first. Many private foundations will only consider your application after you show that you have exhausted all possible sources of federal and state funding.

1.3 What is Appropriate for Federal Support

The following is reprinted from a handout of the same title.

The Federal government, faced with the task of allocating its resources among an infinite number of competing demands, must focus in a few high priority areas that Congress and/or the executive branch determine to be worthy of national attention and support. In determining whether a project is appropriate for federal funding or is more likely to be supported by state, local or private sources, it is important to examine the project’s activities and expected results in light of the basic goals of federal grant programs.

Despite their number and diversity, virtually all of these programs are designed to advance national policy objects in one or more of the following areas:

Response to National Needs: activities that serve a major public policy purpose identified by Congress or the executive branch by contributing to the solution of a particular social, economic or public health problem.

Demonstration of New Approaches: experimental or demonstration projects to test new methods or techniques that, if successful in one setting, can be replicated elsewhere. Projects of this nature must represent unique or innovative approaches and include well-defined plans for evaluation and dissemination of project results.

Assistance to Underserved Populations: projects that serve certain groups or individuals -- members of minority groups, the handicapped or, in some instances, women -- who have special needs that have been neglected by federal, state or local governments in the past.

Advancement of Knowledge: support for research that will advance the state of knowledge in a particular discipline or yield applications that will help the funding agency to carry out its assigned mission.

Infrastructure Development: within this broad category, the government assists organizations or institutions that represent major national resources or contribute in some way to achieving important public purposes.

It is important to note that the government does not fund these organizations solely because of their intrinsic merit rather, their activities must be linked to the advancement of broad policy goals, such as increasing public exposure to the arts and/or expanding the base of trained scientific manpower. Projects that cannot be related in some way to at least one of these broad public purposes are not likely to qualify for support at the national level, regardless of their intrinsic merit.

Activities inappropriate for federal funding are those that:

• are primarily local in impact and likely to benefit a single institution or group (such as a project to enhance the skills of elementary school music teachers);

• provide services that an institution normally would be expected to offer as part of its regular operations (such as support for a language laboratory to provide instruction in commonly taught foreign languages);

• replicate long-established or well-tested practices (such as projects to introduce "writing across the curriculum"); or

• are commercially viable and thus capable of attracting private sponsorship (such as development of computer software or publication of textbooks likely to have a sizeable market).

Such projects are likely to be viewed as institutional or local concerns or commercial ventures, which should be funded from the university’s operating budget or supported by those who would directly benefit. Before concluding that the federal government is an appropriate sponsor, prospective applicants should think through their projects in relation to both these broad government goals and to the stated purposes and priorities of the specific grant programs that seem most appropriate to the activity.

A strong and clear link between government purposes and project activities will significantly enhance the competitiveness of a proposal. If this link is absent, proposers should explore state or local sources of support, if appropriate, or bring their projects to the early attention of the appropriate university administrators in the hope that they can be included in plans for the institution’s future development.

  

1.4 Travel Support

The following is adapted from a handout of the same title.

One of the most frequently asked questions facing a faculty is where to find funds for faculty travel. The answer varies depending on the specifics of the request. It is important to keep in mind that a federal agency will support travel only as it relates to the agency’s basic mission. In general, travel is supported because it contributes to an individual funded research project, because it helps to strengthen the national or international infrastructure of science, or because it furthers international understanding.

A number of factors limit the federal government’s ability to provide direct support for faculty travel: line items for travel support would be particularly susceptible to cuts in times of tight budgets and a large number of individual awards would be cumbersome and costly to administer. As a result, agencies generally support travel indirectly, either through a research project grant or through grants to sponsoring organizations, which in turn make awards to individuals.

Research

Travel related to a funded project (e.g. for fieldwork) is an allowable cost on most research grants. Agencies can easily justify the allocation of funds for travel in this context, since the project has been peer-reviewed and judged worthy of support.

Grants specifically for research in foreign countries are awarded by the Council for International Exchange of Scholars (with funds provided by the United States Information Agency) and by such organizations as the International Research and Exchanges Board and the Committee on Scholarly Communication with the People’s Republic of China. Certain agencies, notably the National Science Foundation and the National Institutes of Health, have programs that provide funding specifically for travel and other activities needed to develop collaborative projects with scientists in other countries.

A limited number of programs provide grants that support only the travel component of a research project, but with funding decisions based on the merit of the overall research proposed. Examples include the National Endowment for the Humanities’ Travel to Collections program and certain CIES programs. Grants-in-Aid from the American Council of Learned Societies may also be used for travel expenses related to a specific research project in progress.

Fellowships for research at government laboratories and at various centers for advanced study may include travel to the lab or center as part of the award.

 

 

Educational and Cultural Exchanges

The Council for International Exchange of Scholars also awards grants for university lecturing in over 100 countries, while the U.S. Department of Education operates a number of programs for teachers who wish to enhance their familiarity with foreign cultures and improve their teaching ability by participating in seminars and other exchange programs.

Conferences

Travel to attend a scientific or disciplinary meeting is also an allowable cost on a research grant, if attendance at the meetings or conferences will enhance the investigator’s capability to perform the research, plan extensions of it or disseminate its results.

Support for conferences is generally provided through grants to a sponsoring organization for a particular meeting or for meetings in a particular field or discipline. These organizations may then make awards for travel support of meeting participants. In addition to this direct support for conferences, NEH also annually awards "regrant" funds to the American Council of Learned Societies for travel grants to humanists. Participants in humanities conferences should apply to ACLS for support. In a similar fashion, the National Science Foundation provides support to the NATO Institutes, which in turn provide travel support from the organization running the meeting, rather than directly from a federal agency.

No programs provide direct support for travel to a meeting by non-speakers, for fairly obvious reasons. Lacking sufficient criteria to weigh competing requests, agencies would find it difficult to assess who should be funded and program officers would be susceptible to criticisms of supporting their cronies.

Foundations

Private foundations face many of the same constraints mentioned above and are not generally a promising source of support for individual faculty travel requests, with the exception of those foundations that run specific international program competitions (for example, the Japan Foundation or the Pacific Cultural Foundation). Foundations with regional or local affiliations/interests might be more likely to contribute to an internal faculty development fund, which in turn could support individual faculty travel.

Suggestions

Please keep in mind that, like all programs, travel grant applications take six to nine months for processing and review and, in the case of bilateral programs, sometimes longer.

 

 Section 2

Application Procedures

2.1 Application Procedures

Application for financial support from sponsoring agencies is accomplished by the submission of a formal grant proposal which has passed through the internal review process. The proposal is the document on which the university and the sponsor base their commitments of funds, facilities, and services for the performance of the research or project. The written proposal may be the only contact that the funding agency’s evaluation committee has with the project. It is essential that the proposal be technically sound and well composed.

The proposal must address itself specifically to the requirements listed in the guidelines or request for proposal (RFP) and describe the project in the clearest possible terms. Funding agencies review and evaluate proposals with reference to four major considerations:

a) The possibility of significant results to be obtained from the research project;

b) The resources required to conduct the project are analyzed in terms of existing and projected commitments of the agency and the university;

c) The request for funds is evaluated in reference to cost effectiveness and efficiency;

d) The competency of the investigator to undertake the proposed research.

Most sponsors, particularly agencies of the Federal Government, furnish standard application forms, which must be used. In the absence of specified forms and proposal formats, the model below is suggested. The format offered below, with explanatory comments, covers all the major elements considered essential to a sound proposal. PI’s may consider other standard formats or devise one of their own.

SAMPLE FORMAT

1. Title Page

This page should include the following information:

a) short title that gives a clear indication of the essential nature of the project;

b) name and address of the agency to which the proposal is being submitted;

c) name, title, address, and telephone number of the PI;

d) name and address of the university;

e) date of project duration (the starting date being set no later than the date when the first formal commitment for equipment or personnel must be made);

f) total estimated cost of the project;

g) signature of the PI;

h) signature and title of GSW’s President.

2. Abstract

The abstract should be written in simple language (no jargon). All pertinent aspects of the sponsored activity, including a summary of the objectives and a description of the results to be expected, should be contained in the abstract. Most abstracts for grants purposes run fewer than 350 words and are limited to one double-spaced typed page.

3. Table of Contents

A separate page showing the major sections of the proposal, with referenced page numbers, is sufficient in most instances.

4. Introduction

The introduction should be a statement containing the objectives of the research and background information from the proposal.

5. Project Description

This section includes at least the following elements:

a) a statement of the problem and objectives;

b) a review of the literature and related research, in terms of present need for the project;

c) hypotheses to be tested or results expected;

d) research design, methodology, and evaluation.

(The Description section may vary considerably in its design, according to specific intentions of the proposal or the procedures and traditions of a particular discipline.)

6. Facilities

List such items as laboratory equipment and apparatus, laboratory space, field resources, library services, data processing capabilities, and other institutional services. Be sure to include an explanation of any equipment which you propose to buy with the funds of the grant you are seeking. Include only those university facilities to be utilized in conjunction with the project being proposed. If appropriate, discuss disability accessibility.

7. Personnel

Vitae and bibliographic information on the PI and other professionals is necessary in this section. Describe the number and academic level of any undergraduate assistants, as well as secretarial and clerical personnel who will work on the project. Frequently a short description will be appropriate here with a full vitae included for all personnel in an Appendix.

8. Project Period

Describe the entire length of the project from anticipated date of award through the final reporting period. Often the entire length of the project extends beyond the period for which initial funds are requested. Time lines, PERT charts, or other means of identifying time or utilities, are valuable in this section.

9. Budget

The budget must be a carefully considered, accurate cost statement, which is second in importance only to the central project idea. To assure conformity with university and sponsoring agency policies, the budget should be reviewed by the Budget Office prior to final typing.

10. Budget Explanation (Budget Narrative)

Often the budget page is accompanied by additional sheets (budget narratives) explaining the distribution of salaries and wages, nature of fringe benefits, prices of equipment, categories of travel expenditures, major supply items, and computation of indirect costs.

2.2 Sample Biographic Data Sheet

(Not all items listed below are appropriate or necessary for all proposals; make judicious choices.)

Name:

Title in the Project: (eg. Associate Director)

Academic Rank:

Institutional Address:

Telephone Number:

Education:

Institution Degree Field Date

Teaching Experience:

Institution Field Date

Previously Funded Projects:

Institution Funding Agency Project Period

Publications Related to this Project:

Papers Presented:

Other Work Related to this Proposal:

Professional Affiliations:

Honors and Awards:

University Service: (as appropriate)

2.3 Deadlines

It is the responsibility of the PI to know the deadlines for submission of the proposal and to allow adequate time for the institutional approval process. At least a week is normally required for the approval process. Time to review is essential to the completion of a competitive proposal.

2.4 Institutional Approval Procedure

It is important to realize that the institutional approval process is a necessary step which must be taken before mailing your proposal to the granting agency. Completion of a two-page form entitled "Approval to Submit Proposal for External Funding" is required by the University. Submit the original completed and signed form, along with copies of the abstract, face page, final budget and budget narrative, certification and signature pages, and evidence of approval if F&A costs (indirects) are not being recouped, to the President before you mail the proposal.

Appropriate signatures must be obtained before the proposal is sent to the potential sponsor. These signatures show that your proposal is not at odds with university/college goals or departmental goals, that any university/college or departmental cost-sharing is approved and that you haven’t committed more than 100% of your time without an approved overload. The approval procedure is designed to ensure that the individual grant-writer does not make commitments, financial or otherwise, which cannot be honored by the University. The Vice President for Academic Affairs is required to keep a copy of all grant proposals on file, as well as a copy of any award notification.

Under no circumstances should a proposal be mailed without first being approved. Changes to the proposal after the approval process is complete will mean that the proposal will need to be rerouted.

The internal review process has been streamlined as much as possible. For instance, the approval form also serves to document your compliance, or lack thereof, with certain federal regulations, thus making a separate memo for each assurance unnecessary. Please remember that, with the exception of fellowships, every grant you receive as an employee of this university will be a grant to the university, not to you as an individual. The recipient of a grant may have certain intellectual property responsibilities to the university and should discuss those issues with the Vice President of Academic Affairs.

2.5 Sponsor’s Evaluation

Sponsors usually outline the criteria used to evaluate proposals. An applicant has a better probability of receiving an award if the agencies’ criteria are considered in the preparation of a proposal. In most cases, the prospective sponsor considers:

a) Significance. The project should focus on problems of major importance. The anticipated outcome of the project should produce communicable results of potential value to others. There should be a clear prospect of accomplishing the proposed project. The PI should either be concerned with the development of new knowledge applicable to the problem or testing previous assumptions or conclusions.

b) Design or Operational Plan. The problem to be dealt with should be well defined. The purpose and value of the project, its plan of development, method of approach, expected outcome, and need for implementation should be clear. The proposal should reflect a familiarity with the historical background of the problem, an awareness of similar projects that have been previously undertaken, and an adequate knowledge of other related activities. The questions to be answered and hypotheses to be tested should be well formulated and clearly stated. The proposal should fully outline the procedure to be followed and include information on applicable points such as sampling techniques, controls, types of data to be gathered, and statistical analyses to be completed.

c) Personnel and Facilities. The role of all professional personnel involved in the project should be clearly stated. The applicant should have facilities available which are adequate for carrying out the project. The PI should have a history of professional experience in the project area or a clearly demonstrated competence for conducting work in that area.

d) Economic Efficiency. The proposal should be reasonable in terms of overall costs, with emphasis given to the favorable relationship between probable results and total expenditures. The period of time required for efficient production should be clearly stated and a general timetable provided. Any parallel requests for support from other agencies for the same project should be indicated. Many agencies require matching funds. The ratio of requested or matching (in-kind or otherwise) contributions must be addressed in the budget and budget narrative.

e) Evaluation Plan. The plan to evaluate the degree to which the program is successful is an extremely important part of any proposal. Both public and private funders, are placing increasing emphasis on the evaluation component of the proposals they review. Procedures should be clearly stated and related to each stated activity goal.

2.6 Proposal Rejections

It is usually helpful to request a critique of any proposal not accepted for funding. Reviews provide valuable information for investigators and for Georgia Southwestern State University in any subsequent proposals which the university might submit to the same agency. Please provide the Vice President for Academic Affairs with a copy of any critique you receive. They will be filed with the original grant proposal for future reference.

Besides a sponsor’s lack of funds for project support, the most common reasons for proposal rejections are:

a) Guidelines were not followed.

b) The project did not respond directly to the sponsor’s priorities or mission.

c) The research plan and objectives were not clear.

d) The proposal contained poor methodology or research design.

e) The applicant displayed a lack of knowledge or did previous work in the field which duplicates the proposal.

f) The applicant’s qualifications and experience were not sufficient or appropriate to the planned activity.

g) The budget request was unreasonable in terms of the projected outcomes or proposed timetable.

h) The project could not reasonably be completed in the time proposed.

2.7 Deciding to Resubmit

It is important to keep in mind that rejections are far more common than awards and are often not a reflection of a poor proposal or a bad project idea. Rejections are often simply the result of insufficient funds. It is important to consider resubmitting. After analyzing reviewer’s comments, the principal investigator needs to decide whether or not to resubmit. If your analysis leads to the decision that the idea is not significant or is too problematic, a fresh start may be warranted. However, if problems identified by reviewers and program officials are minimal, it is appropriate to prepare the proposal for resubmission.

In many cases, since the proposal has already been approved in its initial form, the institutional approval process will be faster. Try requesting copies of winning proposals before rewriting your own. If you ask, many PI’s from other institutions are willing to share copies of their winning proposals. These will give you valuable insight into what the agency will fund and help stimulate your new ideas. If you decide to resubmit to another agency there are several points to remember:

• Submission requirements between agencies often vary widely, and a proposal written to conform to the standards of one agency may need major revision to fit the guidelines of another agency.

• The funds available from an alternate agency may differ from those offered by the original agency.

• Some revision to the overall plan of your project and its budget may be necessary in order to meet funding limits of a different agency.

 

Section 3

Fiscal Considerations

3.1 Fiscal Considerations: Budget Preparation

The budget of a grant proposal is second in importance only to the description of the principal ideas of the project. While the budget preparation requires much special consideration to comply with the various policies of the university and the funding agency, the budget statement is not a document impossible to construct.

If the funding agency provides a specific budget form, it must be used. In most cases, any special forms will be included by the agency as part of the application package. The PI is required to complete the GSW Budget Sheet attached to routing form. This breakdown will help you to plan in detail for the financial support required for the various components of your project, to calculate personnel time and costs for the project staff, and to calculate indirect costs. It will be valuable in the university’s internal review process. Moreover, it will help in determining the university’s contributions (matching or cost sharing on a cash or in-kind basis), if these are required by the agency.

3.2 Outline Steps to Follow in Budget Preparation

a) Review the rules and regulations for the budget, as provided in your copy of the agency’s guidelines or RFP.

b) Decide on the amount of time that you and other professionals involved in the project will have to contribute.

c) Figure the time required for assistants and secretarial or clerical help, for consultants, honoraria, travel, lodging, subsistence.

d) Estimate the costs of equipment, supplies, printing, duplication, media services, staff services, postage, telephone, data processing time, etc.

e) The finalized budget is included with the narrative portion of the application and processed through institutional review.

3.3 Direct Costs

Direct costs include all items that can be categorically identified and charged directly to the specific project.

Most sponsors allow direct costs funding for the following categories:

a) Personnel. Calculate the percentage of time spent on the project for each individual and pro-rate the salary for the proposed implementation period of the grant. All salaries must be calculated as a percentage of your current year contract.

1. Principal investigator or project director.

2. Other on-campus professionals.

3. Student assistants. Undergraduate students also may be employed on sponsored research projects, but students on University Work-Study Program (CWSP) may not be paid from a second source of federal funds. PIs may contact Financial Aid for assistance in locating qualified student assistants. Although the PI is responsible for the selection and hiring of all such assistants, appointment forms must be processed through normal university channels. Pay scales should conform to those current within the university.

4. Technicians, etc.

5. Secretarial, clerical help may be charged as a direct cost in some cases. In others, they become part of your indirect pool. Check the regulations appropriate to the funding source. PIs should recognize that "classified" personnel hired on a sponsored program grant must receive comparable salary, duties, responsibilities, and benefits as those in a comparable position elsewhere in the university. The PI should consult with the Personnel Office concerning current or projected salaries for these positions. All personnel who are hired for the specific purpose of a grant must be informed by the PI that their employment period coincides with the award period and that the University cannot be assumed to continue their employment beyond the period for which grant funds are available.

b) Fringe Benefits. Fringe benefits accompanying salaries paid by the grant will be charged to the grant unless the Vice President of Business and Student Services agrees that the Institution will pay for it. Consultants are not eligible to receive fringe benefits.

Formulas for Calculating Salary and Wages

If you are on a 10-month salary:

One course reduction = 1/10 of

salary shown on your contract

One month = 1/9 of salary shown

on your contract

Calculation of Fringe Benefits

For a new full time position use 1.45% fica med, 6.2% fica, 10.03% retirement, $180 basic life, and $11,751 for maximum health

For Faculty additional pay use 1.45% fica med and 6.2% fica

For Part Time Faculty use 1.45% fica med

For Summer Faculty use 1.45% fica med and 6.2% fica and 10.03% retirement

For Graduate Assistants no fringe benefits are calculated

For Professional/Admin use 1.45% fica med and 6.2% fica

For Part Time Administrator (monthly employee) use 1.45% fica med

For overtime use 1.45% fica med and 6.2% fica

For Part Time Clerical Staff use 1.45% fica med

For Student Assistants no fringe benefits are calculated

Please contact the Business Office for assistance

c) Consultants. Outside consultants may be paid through grant funds. All honoraria, consultants’ fees, travel expenses, subsistence, and related expenses must conform to established University Procedure for reimbursement.

d) Subcontractors. Georgia Southwestern State University does not normally subcontract. If subcontracts are essential to the successful completion of a sponsored program advance arrangements must be made with the Business Office and institutional approval must be sought.

e) Travel. All travel paid from grant funds must conform to the university travel. Consult the Business Office for details of current travel policy. The GSW travel policy is posted on the Business Office web site http://www.gsw.edu/~baf/manual.htm.

f) Equipment. Equipment may be purchased or rented, according to the policies of the grantor. The equipment budget should reflect the price of freight, installation costs, and maintenance contracts, as appropriate. All equipment purchased with grant funds become the property of GSW.

g) Supplies and Materials. Supplies and consumable materials must be itemized on the budget explanation page. Spending must be approved by the grantor if it does not fall under state spending policy.

h) Other Direct Costs. These costs are items that can be identified and related to the project and not included in the indirect costs calculations:

1. Communications - costs of telephone and postage;

2. Publication charges - graphics and printing, duplication, media services, final report costs, etc. and;

3. Miscellaneous cost of project operation.

 

3.4 Indirect Costs (Facilities and Administrative Costs)

Indirect costs are those that have been incurred for common or joint objectives of the university and the sponsored program and which, therefore, cannot be identified specifically in reference to a particular project.

Indirect costs include items such as building operations and maintenance, laboratory space, library services, utilities, and administrative services. Indirect costs related to the conduct of a sponsored program are just as real as the direct costs and ultimately must be provided for either by the sponsor or by the university. Note that some federal agencies have specific rules regarding indirect cost rates. For example, the US Department of Education places an 8% cap on IDC recovery for training grants and disallows the use of unrecovered indirect costs to meet matching or cost-sharing requirements for training grants.

Check the rules provided in the agency’s guidelines or RFP. Show unrecovered indirect costs in the cost-share column of your budget. If you are not allowed to use these costs to meet your cost sharing requirement, make sure that the sum of the other costs in this column add up to the appropriate amount. Note that indirect cost funds, when awarded, are not available for use in the project itself. Costs of the project must be paid by direct costs as outlined in the original proposal budget.

3.4a Georgia Southwestern State University Procedure For Facilities And Administrative (Indirect) Cost Recovery

A-21, Cost Principles for Educational Institutions, was revised by OMB(Federal Office of Management and Budgets) as of May 8, 1996.

One of the revisions changed the term "indirect costs" to "facilities and administrative costs" (F & A Costs). Georgia Southwestern State University policy is to seek full reimbursement of F & A costs in connection with all externally supported programs. It is recognized, however, that some donors and grantors have fixed policies limiting the reimbursement of F & A costs. The University will consider sponsor-imposed conditions regarding the limitation or waiver of F & A costs if required by federal law or regulation, or if the sponsoring agency (foreign, domestic, private corporation, foundation, or other business entity) publishes a rate or policy that is consistently applied to all grants and contracts with educational institutions.

In addition, it must be demonstrated that the project is of significant importance to the university to warrant subsidizing the F & A costs from other programs. Gifts and grants for scholarships and fellowships are not subject to this Procedure. Requests for exceptions must be submitted to the Vice President of Academic Affairs and the Vice President for Business and Finance for approval.

Formula for Calculating Indirect Costs:

Up to a maximum of 46% of salary and wages depending on the funding source (do not include fringe benefits).

3.5 Proposal Negotiation 

It is the responsibility of the PI to negotiate with the funding agency for a particular proposal. Many times a proposal is considered eligible by the sponsor, but the funds requested exceed what the reviewers feel necessary or what the agency has available to support the project. A reduction in the budget would then become necessary. Negotiated budgets should be routed through the local review channels before the university accepts the negotiated proposal.

Remember that a reduction in the budget may create changes in the scope of the work. To maintain credibility with the funding agency, the PI should consider a work reduction commensurate with any substantial budget reduction. Often personal and professional relationships develop between individual faculty members and agency staff personnel. ASU encourages the development and maintenance of good contacts and informal discussions with granting agencies. It is important, however, to remember that such informal discussions do not represent the agency or university commitments. It is important that all contracts entered into on behalf of the university be signed by an authorized institutional representative (Vice President for Business and Finance and the President).

 

Section 4

Post-Award Management

4.1 Post-award Project Management

Administering an award consists of the necessary actions for managing a grant award, from the initial authority to expend grant moneys through the fiscal close-out and final report of an expired grant. The post-award management of any grant is the responsibility of the Principal Investigator (PI) and the Business Office.

The post-award section of this manual contains information on the process of post-award management. In the preparation of this material, the general requirements of federal grants have been considered. However, it is important to understand that there has been no attempt to cover the specific regulations of all federal and non-federal agencies and their various programs. Principal Investigators are responsible for strict adherence to the regulations governing their awards, so it is imperative that they have complete knowledge of those regulations and the university’s regulations concerning expenditures of grant awards.

Award Notification and Establishing an Account

Upon receipt of grant award notification, the PI should examine the document for possible administrative errors or omissions. Next, the PI must send a copy of the award letter along with a departmental Peoplesoft contact to the Comptroller. The Comptroller is required to file the award letter with the proposal and routing forms.

No one receiving grant funds is permitted to establish separate bank accounts or is, in any way, allowed to execute financial transactions separate from university procedures. The Vice President for Business and Finance will forward the award information to the Business Office.  An account and budget will be set up according to the budget form completed by the PI.

Managing and Documenting Expenditures

The PI should consult the grant contract throughout the project concerning expenditures. All grant and contract expenditures are subject to purchasing, budgeting, personnel and other university policies and procedures. They must be approved by the department head.

Regardless of the funding source of any grant, all expenditures must comply not only with the guidelines of the sponsor but also with existing university, Board of Regents, and state policies. Any anticipated variances with the Procedure must be discussed with the Vice President for Business and Finance and formally approved.

Grant and Contract Record Retention Requirements

Grant and contract records are required to be kept for specific periods after completion of the project. There are different record retention requirements for different types of agreements.

For Federal grants and cooperative agreements, you should refer to Office of Management and Budget (OMB) Circular A-110, part __.53. In most cases, a three-year retention requirement from the date of submission of your final expenditure report is required. There are, however, exceptions for other types of records or litigation. Please note that the United States Department of Education has a statutory five year retention period.

For contracts, the provisions of the Federal Acquisitions Regulations (FAR) apply with varying times; six years is a good choice. Agreements with non-federal sponsors (state, foundations, etc.) may have record retention requirements which are different again.

Keeping grant and contract records for seven years from the date of project termination would seem to cover most requirements.

Remember, retention should be in accordance with project not budget period. OMB rules that record retention requirements also apply to technical data.

Responsibilities of the PI

Acceptance of a sponsored program fund by the university commits the university and the PI to conduct the program in a professional manner and in accordance with the policies of the funding agency. It is the responsibility of each PI to insure that the research effort or program is commensurate with the expectations of the grantor and with the highest ideals of professional inquiry. Although the PI is responsible to the funding agency for conducting a particular project, the normal supervisory relationship between the university and the PI is not altered. The ultimate accountability for any sponsored project rests with the university.

The PI should remember that the support of the various administrative units of the university is available during the conduct of the sponsored activity. Explanations of procedures and support are available from the Personnel department concerning the hiring of new personnel, and from the Business Office and Purchasing concerning appropriate expenditures of all types -- from equipment purchases to required telephone service.

Throughout the entire implementation of the project, the Principal Investigator should document all activities to ensure proper reporting of all activities and expenditures as required by the sponsor.

Helpful suggestions for the PI

• Make an appointment with the Comptroller as soon as you receive the award notification in order to set up your Peoplesoft account.

• Do not incur obligations under new or renewed projects until authority to expend has been received and an appropriate account number has been assigned.

• Read the award guidelines and budget carefully to insure proper management of the award.

• Do not purchase equipment during the last three months of a federal grant. The auditor may disallow the cost of the equipment purchased near the end of a grant.

• Under ordinary circumstances, PI’s should not order supplies during the last month of a grant.

• Verify all charges on the grant with the Business Office before such financial commitments are made. Common budget items and recurring expenses, such as salaries, may be verified when the account is established.

• Process all budgetary adjustments through the Budget Office to avoid audit disallowances.

• Each month monitor the grant expenses and encumbrances as a check on the remaining funds via your Peoplesoft account.

• Do not make expenditures on a terminated grant account while awaiting assignment of a new account number for a renewal grant.

• Do not incur obligations if you have any doubts as to whether they will be allowed. Always check with the agency contact for your award and with the Business Office.

• Make a point to submit required periodic and final reports on time.

• Remember that the Business Office has fiscal responsibility to insure that your award is administered in accordance with the regulations of the funding agency and the university.

• The PI cannot approve additional pay, salary or travel for him/herself.

 

4.2 Grant Close-Out Requirements

Finishing a grant project is just as important as starting one.  In many cases, the way in which close-out procedures are handled, such as timely submission of final reports and the quality of those reports, can have a direct impact on chances for future funding.

 

There are several areas of management that need particular attention at the close of the funding project:  budget, personnel, purchasing and grants files. 

 

Budget:  Make sure final budget revisions are on file and notify the staff and other appropriate personnel that the grant has expired and should not be used after the grant period has ended.

 

Personnel:  Please complete all termination paperwork for all staff.  If needed, transfer all payroll changes for staff to new cost centers or to the new assigned number for the "continuation grant".  If the grant has expired, it is imperative that all personnel is moved from the cost center associated with the "old" grant. 

 

Purchasing Activities:  Telephones must be transferred to other budgets or removed.  Bookstore charges should be checked and reconciled, and the bookstore notified that charges to the grant are no longer valid.

 

Grant Files:  Please review all files for grant documentation associated with personnel records, purchase orders/requisitions and budget records.  Include any necessary back up when changes occurred.  Keep in mind that an auditor may contact you regarding the records associated with your grant.  Your diligence in keeping and recording accurate files is essential for future funding.  It is important to "clean up" all files/records once at the end of a grant cycle.

 

 

 Appendix A

Helpful Information

Vice President for Academic Affairs

Dr. Brian U. Adler

x1361

badler@gsw.edu

 

Vice President for Business and Finance

Mr. Cody King

X2066

wcking@gsw.edu

 

Comptroller

Mr. Shawn A. McGee

x2066

smcgee@gsw.edu

 

 

Appendix B

Commonly Encountered Acronyms

AAAS American Association for the Advancement of Science

AASCU American Association of State Colleges & Universities

AAU Association of American Universities

AAUW American Association of University Women Educational Foundation

ACF Administration on Children and Families (HHS)

ACYF Administration for Children, Youth and Families (ACF)

ADA Americans with Disabilities Act

ADD Administration on Developmental Disabilities (ACF)

AED Academy for Educational Development

AHCPR Agency for Health Care Policy and Research (HHS)

AHEC Area Health Education Centers (HRSA)

AID Agency for International Development --also USAID (IDCA)

AOA Administration on Aging (HHS)

AREA Academic Research Enhancement Award (NIH)

ARI Academic Research Infrastructure Program (NSF)

ARO Army Research Office (DOD)

ARS Agriculture Research Service (USDA)

ATP Advanced Technology Program

ATSDR Agency for Toxic Substances and Disease Registry (PHS)

BAA Broad Agency Announcement

BHRD Bureau of Health Resources Development (HRSA)

BLM Bureau of Land Management (DOI)

BLS Bureau of Labor Statistics (DOL)

BMCH Bureau of Maternal and Child Health (HRSA)

CAN Combined Application Notice (ED)

CBD Commerce Business Daily

CBO Congressional Budget Office

CCR Commission on Civil Rights

CDC Center for Disease Control and Prevention (HHS)

CFA Commission on Fine Arts

CFDA Catalog of Federal Domestic Assistance

CFR Code of Federal Regulations

CIES Council for the International Exchange of Scholars

CNCS The Corporation for National and Community Service

COGR Council on Governmental Relations

COI Conflict of Interest

CPB Corporation for Public Broadcasting

CSAP Center for Substance Abuse Prevention (SAMHSA)

CSAT Center for Substance Abuse Treatment (SAMHSA)

CSRS Cooperative State Research Service (USDA)

DEA Drug Enforcement Agency (DOJ)

DOC Department of Commerce

DOD Department of Defense

DOE Department of Energy

DOI Department of Interior

DOJ Department of Justice

DOL Department of Labor

DOS Department of State

DOT Department of Transportation

DUE Division of Undergraduate Education (NSF)

ED Department of Education -- also known as DOE

EDA Economic Development Administration (Commerce)

EDGAR Education Department General Administrative Regulations

EOP Executive Office of the President

EPA Environmental Protection Agency

EPSCoR Experimental Program to Stimulate Competitive Research

ETA Employment & Training Administration (DOL)

F&A Costs Facilities and Admininstative Costs (formerly Indirect Costs)

FAA Federal Aviation Administration (DOT)

FAR Federal Acquisition Regulation

FCC Federal Communications Commission

FDA Food and Drug Administration (HHS)

FDP Federal Demonstration Project

FERC Federal Energy Regulatory Commission (DOE)

FHA Federal Highway Administration (DOT)

FIE Fund for Innovation in Education (ED)

FIPSE Fund for the Improvement of Postsecondary Education (ED)

FR Federal Register

FTC Federal Trade Commission

FY Fiscal Year

GAANN Graduate Assistance in Areas of National Need (ED)

GAO General Accounting Office

GPG Grant Proposal Guide (NSF)

GPO Government Printing Office

GSA General Services Administration

HBCU Historically Black College or University

HCFA Health Care Financing Administration (HHS)

HHS Department of Health and Human Services

HRSA Health Resources and Services Administration (HHS)

HUD Department of Housing and Urban Development

IACUC Institutional Animal Care and Use Committee

IAF Inter-American Foundation

ICC Interstate Commerce Commission

IDC Indirect Costs

IDCA International Development Cooperation Agency

IDEA Individuals with Disabilities Education Act

IHE Institute of Higher Education

IIE Institute of International Education

IOM Institute of Medicine

IRB Institutional Review Board

IREX International Research and Exchanges Board

JOBS Jobs Opportunities and Basic Skills (HHS)

JTPA Job Training Partnership Act (DOL)

LSC Legal Services Corporation

MARFIN Marine Fisheries Initiative (NOAA)

MBDA Minority Business Development Agency (DOC)

MI Minority Institution

MSIP Minority Science Improvement Program (ED)

MTDC Modified Total Direct Costs

NAE National Academy of Engineering

NAEP National Assessment of Educational Programs (ED)

NARA National Archives and Records Administration

NAS National Academy of Sciences

NASA National Aeronautics and Space Administration

NASULGC National Association of State Universities and Land-Grant Colleges

NCD National Council on Disability

NCI National Cancer Institute (NIH)

NCLIS National Commission on Libraries and Information Science

NCRR National Center for Research Resources (NIH)

NCTR National Center for Toxicological Research (HHS)

NCURA National Council of University Research Administrators

NEA National Endowment for the Arts

NEH National Endowment for the Humanities

NFAH National Foundation on the Arts and Humanities

NHLBI National Heart, Lung & Blood Institute (NIH)

NIA National Institute on Aging (NIH)

NIAAA National Institute on Alcohol Abuse and Alcoholism (NIH)

NIAID National Institute of Allergy & Infectious Diseases (NIH)

NIAMSD National Institute of Arthritis & Musculoskeletal & Skin Diseases (NIH)

NIDA National Institute on Drug Abuse (NIH)

NIDCD National Institute on Deafness & Other Communication Disorders (NIH)

NIDR National Institute of Dental Research (NIH)

NIDRR National Institute on Disability & Rehabilitation Research (OSERS)

NIH National Institutes of Health (HHS)

NII National Information Infrastructure

NIJ National Institute of Justice (DOJ)

NIMH National Institute of Mental Health (NIH)

NINR National Institute of Nursing Research (NIH)

NIST National Institute of Standards and Technology (DOC)

NLM National Library of Medicine (NIH)

NMFS National Marine Fisheries Services (NOAA)

NOAA National Oceanic and Atmospheric Administration (DOC)

NPRM Notice of Proposed Rulemaking

NSA National Security Agency (DOD)

NSB National Science Board (NSF)

NSC National Security Council (EOP)

NSEP National Security Education Program (DOD)

NSF National Science Foundation

NTIS National Technical Information Service (DOC)

NTSB National Transportation Safety Board

OASH Office of the Assistant Secretary for Health

OBEMLA Office of Bilingual Education and Minority Language Affairs (ED)

OEIR Office of Educational Research and Improvement (ED)

OESE Office of Elementary and Secondary Education (also El-Sec) (ED)

OGE Office of Government Ethics

OICD Office of International Cooperation & Development (USDA)

OMB Office of Management & Budget (EOP)

OPSE Office of Postsecondary Education (or OPS) (ED)

OPM Office of Personnel Management

OPRR Office for Protection from Research Risks (NIH)

ORI Office of Research Integrity (OASH)

OSEP Office of Special Education Programs (OSERS)

OSERS Office of Special Education and Rehabilitative Services (ED)

OSP Office of Sponsored Programs (AASU)

OSR Office of Systemic Reform (NSF)

OSTP Office of Science & Technology Policy (EOP)

OTA Office of Technology Assessment

PHS Public Health Service (HHS)

PI/PD Principal Investigator/Project Director

PREP Pre-Freshman Enrichment Program (DOE)

PRH Patricia Robert Harris Program (ED)

RDA Rural Development Administration (USDA)

RFA Request for Applications

RFP Request for Proposals

SAMHSA Substance Abuse and Mental Health Services Administration (HHS)

SBA Small Business Administration

SBIRP Small Business Innovative Research Program

SCUP School, College, University Partnership Program (ED)

SEC Securities and Exchange Commission

SI Smithsonian Institution

SPRANS Special Projects of Regional & National Significance (HRSA)

STIS Science & Technology Information System (NSF)

STTR Small Business Technology Transfer Program

S&W Salaries & Wages

TDC Total Direct Costs

TMDC Total Modified Direct Costs

TRIO Division of Student Services Programs (ED)

USAID United States Agency for International Development (also AID) (IDCA)

USDA United States Department of Agriculture

USIA United States Information Agency

USIP United States Institute of Peace

 

Appendix C

Glossary Of Grant Related Terms

 

*Abstract: A short summary of a project or program including all pertinent aspects of the sponsored activity, a summary of the objectives and expected results. The abstract is usually less than 350 words and limited to one double spaced typed page.

Annual report: A voluntary report issued by a foundation or corporation that provides financial data and descriptions of its grantmaking activities. Annual reports vary in format from simple typewritten documents listing the year's grants to detailed publications that provide substantial information about the grantmaker's grantmaking programs.

Assets: The amount of capital or principal — money, stocks, bonds, real estate, or other resources — controlled by a foundation or corporate giving program. Generally, assets are invested and the resulting income is used to make grants.

Associates program: A fee-based membership program of the Foundation Center providing toll-free telephone reference, photocopy and fax service, and computer searches of Foundation Center databases.

Beneficiary: In philanthropic terms, the donee or grantee receiving funds from a foundation or corporate giving program is the beneficiary, although society benefits as well.

Bricks and Mortar: An informal term for grants for buildings or construction projects.

Capital support: Funds provided for endowment purposes, buildings, construction, or equipment, and including, for example, grants for "bricks and mortar."

CD-ROM: Acronym for Compact Disk-Read Only Memory. CD-ROMs are high-capacity computer disks that allow publishers and other information providers to distribute large amounts of information in a searchable format.

Challenge grant: A grant that is paid only if the donee organization is able to raise additional funds from other sources. Challenge grants are often used to stimulate giving from other donors. See also matching grant.

Community foundation: A 501(c)(3) organization that makes grants for charitable purposes in a specific community or region. The funds available to a community foundation are usually derived from many donors and held in an endowment that is independently administered; income earned by the endowment is then used to make grants. Although a community foundation may be classified by the IRS as a private foundation, most are classified as public charities and are thus eligible for maximum tax-deductible contributions from the general public. See also 501(c)(3); public charity.

Community fund: An organized community program which makes annual appeals to the general public for funds that are usually not retained in an endowment but are instead used for the ongoing operational support of local agencies. See also federated giving program.

Company-sponsored foundation (also referred to as a corporate foundation): A private foundation whose assets are derived primarily from the contributions of a for-profit business. While a company-sponsored foundation may maintain close ties with its parent company, it is an independent organization with its own endowment and as such is subject to the same rules and regulations as other private foundations. See also private foundation.

Cooperating Collection: A member of the Foundation Center's network of libraries, community foundations, and other nonprofit agencies that provides a core collection of Center publications in addition to a variety of supplementary materials and services in areas useful to grantseekers.

Cooperative venture: A joint effort between or among two or more grantmakers. Cooperative venture partners may share in funding responsibilities or contribute information and technical resources.

Corporate foundation: See company-sponsored foundation.

Corporate giving program: A grantmaking program established and administered within a for-profit corporation. Because corporate giving programs do not have separate endowments, their annual grant totals generally are directly related to company profits. Corporate giving programs are not subject to the same reporting requirements as corporate foundations.

*Cost sharing: see matching grant

DIALOG: An online database information service made available by Knight Ridder Information Services, Inc. The Foundation Center offers two large files on foundations and grants through DIALOG.

*Direct Costs: Includes all items that can be categorically identified and charged to the specific project, such as personnel, fringe benefits, consultants, subcontractors, travel, equipment, supplies and materials, communications, computer time, and publication charges.

Distribution committee: The committee responsible for making grant decisions. For community foundations, the distribution committee is intended to be broadly representative of the community served by the foundation.

Donee: The recipient of a grant. (Also known as the grantee or the beneficiary.)

Donor: An individual or organization that makes a grant or contribution to a donee. (Also known as the grantor.)

Employee matching grant: A contribution to a charitable organization by an employee that is matched by a similar contribution from his or her employer. Many corporations have employee matching-gift programs in higher education that encourage their employees to give to the college or university of their choice.

Endowment: Funds intended to be invested in perpetuity to provide income for continued support of a not-for-profit organization.

Expenditure responsibility: In general, when a private foundation makes a grant to an organization that is not classified by the IRS as a "public charity," the foundation is required by law to provide some assurance that the funds will be used for the intended charitable purposes. Special reports on such grants must be filed with the IRS. Most grantee organizations are public charities and many foundations do not make "expenditure responsibility" grants.

Family foundation: An independent private foundation whose funds are derived from members of a single family. Family members often serve as officers or board members of family foundations and have a significant role in their grantmaking decisions. See also operating foundation; private foundation; public charity.

Federated giving program: A joint fundraising effort usually administered by a nonprofit "umbrella" organization that in turn distributes the contributed funds to several nonprofit agencies. United Way and community chests or funds, the United Jewish Appeal and other religious appeals, the United Negro College Fund, and joint arts councils are examples of federated giving programs. See also community fund.

Field offices: The Washington, D.C., Atlanta, Cleveland, and San Francisco reference collections operated by the Foundation Center, all of which offer a wide variety of services and comprehensive collections of information on foundations and grants.

501(c)(3): The section of the tax code that defines nonprofit, charitable (as broadly defined), tax-exempt organizations; 501(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations. See also operating foundation; private foundation; public charity.

Form 990-PF: The public record information return that all private foundations are required by law to submit annually to the Internal Revenue Service.

General/operating support: A grant made to further the general purpose or work of an organization, rather than for a specific purpose or project; also called an unrestricted grant.

General purpose foundation: An independent private foundation that awards grants in many different fields of interest. See also special purpose foundation.

Grantee financial report: A report detailing how grant funds were used by an organization. Many corporate grantmakers require this kind of report from grantees. A financial report generally includes a listing of all expenditures from grant funds as well as an overall organizational financial report covering revenue and expenses, assets and liabilities.

Grassroots fundraising: Efforts to raise money from individuals or groups from the local community on a broad basis. Usually an organization's own constituents — people who live in the neighborhood served or clients of the agency's services — are the sources of these funds. Grassroots fundraising activities include membership drives, raffles, auctions, benefits, and a range of other activities.

Guidelines: Procedures set forth by a funder that grantseekers should follow when approaching a grantmaker.

Independent foundation: A grantmaking organization usually classified by the IRS as a private foundation. Independent foundations may also be known as family foundations, general purpose foundations, special purpose foundations, or private non-operating foundations. The Foundation Center places independent foundations and company-sponsored foundations in separate categories; however, federal law normally classifies both as private, non-operating foundations subject to the same rules and requirements. See also private foundation.

*Indirect costs: Costs that have been incurred for common or joint objectives of the university and the sponsored program, and which, therefore, cannot be identified specifically in reference to a particular project, such as building operations and maintenance, laboratory space, library service, utilities, and administrative services.

In-kind contribution: A contribution of equipment, supplies, or other tangible resource, as distinguished from a monetary grant. Some organizations may also donate the use of space or staff time as an in-kind contribution.

Matching grant: A grant that is made to match funds provided by another donor. See also challenge grant; employee matching gift.

Microfiche: Flat strips of microfilm. The Foundation Center collects and makes available foundation 990-PFs on microfiche mounted on aperture cards by the IRS.

Operating foundation: A 501(c)(3) organization classified by the IRS as a private foundation whose primary purpose is to conduct research, social welfare, or other programs determined by its governing body or establishment charter. An operating foundation may make grants, but the sum generally is small relative to the funds used for the foundation's own programs. See also 501(c)(3).

Operating support grant: A grant to cover the regular personnel, administrative, and miscellaneous expenses of an existing program or project. See also general/operating support.

Orientation: An introduction to available resources and fundraising research strategies presented by Foundation Center library staff. Supervisors at Cooperating Collections may conduct orientation sessions as well.

Payout requirement: The minimum amount that private foundations are required to expend for charitable purposes (including grants and, within certain limits, the administrative cost of making grants). In general, a private foundation must meet or exceed an annual payout requirement of five percent of the average market value of its total assets.

Private foundation: A nongovernmental, nonprofit organization with funds (usually from a single source, such as an individual, family, or corporation) and program managed by its own trustees or directors. Private foundations are established to maintain or aid social, educational, religious, or other charitable activities serving the common welfare, primarily through the making of grants. See also 501(c)(3); public charity.

Program amount: Funds that are expended to support a particular program administered internally by a foundation or corporate giving program.

Program officer: A staff member of a foundation who reviews grant proposals and processes applications for the board of trustees. Only a small percentage of foundations have program officers.

Program-related investment (PRI): A loan or other investment (as distinguished from a grant) made by a foundation to another organization for a project related to the foundation's philanthropic purposes and interests.

Proposal: A written application, often accompanied by supporting documents, submitted to a foundation or corporate giving program in requesting a grant. Most foundations and corporations do not use printed application forms but instead require written proposals; others prefer preliminary letters of inquiry prior to a formal proposal. Consult published guidelines.

Public charity: A nonprofit organization that qualifies for tax-exempt status under section 501(c)(3) of the IRS code. Public charities are the recipients of most foundation and corporate grants. Some public charities also make grants. Public charities are eligible for maximum income tax-deductible contributions from the public and are not subject to the same rules and restrictions as private foundations. Some are also referred to as "public foundations" or "publicly supported organizations" and may use the term "foundation" in their names. See also 501(c)(3); private foundation.

Qualifying distributions: Expenditures of a private foundation made to satisfy its annual payout requirement. These can include grants, reasonable administrative expenses, set-asides, loans and program-related investments, and amounts paid to acquire assets used directly in carrying out tax-exempt purposes.

Query letter: A brief letter outlining an organization's activities and its request for funding that is sent to a potential grantmaker in order to determine whether it would be appropriate to submit a full grant proposal. Many grantmakers prefer to be contacted in this way before receiving a full proposal.

*Research: "The Code of Federal Regulations defines research as "...a systematic investigation, including research development, testing and evaluation, designed to develop or to contribute to generalized knowledge."

RFP: An acronym for Request for Proposal. When the government issues a new contract or grant program, it sends out RFPs to agencies that might be qualified to participate. The RFP lists project specifications and application procedures. While a few foundations occasionally use RFPs in specific fields, most prefer to consider proposals that are initiated by applicants.

*Scholarship: any activity "of critical, systematic investigation in one or more fields and the submission of one's findings for criticism by professional peers and the public through published writings, lectures, or other modes of presentation."

Seed money: A grant or contribution used to start a new project or organization. Seed grants may cover salaries and other operating expenses of a new project.

Set-asides: Funds set aside by a foundation for a specific purpose or project that are counted as qualifying distributions toward the foundation's annual payout requirement. Amounts for the project must be paid within five years of the first set-aside.

Special purpose foundation: A private foundation that focuses its grantmaking activities in one or a few areas of interest. See also general purpose foundation.

Sponsorship: Affiliation with an existing nonprofit organization for the purpose of receiving grants. Grantseekers may either apply for federal tax-exempt status or affiliate with a nonprofit sponsor.

Tax-exempt: Refers to organizations that do not have to pay taxes such as federal or state corporate tax or state sales tax. Individuals who make donations to such organizations may be able to deduct these contributions from their income tax.

Technical assistance: Operational or management assistance given to nonprofit organizations. It can include fundraising assistance, budgeting and financial planning, program planning, legal advice, marketing, and other aids to management. Assistance may be offered directly by the staff of a foundation or corporation, or it may be provided in the form of a grant to pay for the services of an outside consultant. See also in-kind contributions.

Trustee: A foundation board member or officer who helps make decisions about how grant monies are spent. Depending on whether the foundation has paid staff, trustees may take a more or less active role in running its affairs.