SECTION 315: Gifts, Grants or Contracts

1. Research projects should be developed consistent with the University's goals.
2. Sponsored research should be accepted only if appropriate time, space and facilities can be made available. Provisions should be made for continuity of support in order to stabilize required staff.
3. The University should retain the rights of first publication for its scholars.
4. The complete cost of the research should be determined. If grants or contracts are accepted which do not cover all of the direct and indirect costs, the department/college may be asked to provide the additional financial support with the full recognition that it is making a contribution to the cost of the work.
5. Research projects should conform to established University patent policy (see "Supplementary Statement Regarding Disposition of Patents" at end of section).

1. The proposal, which is generally developed in the department, should establish the terms and conditions for the provision of funds and the performance of research. Before the final draft of the proposal is completed, the budget should be reviewed by the Office of Contract and Grant Administration, for conformity with policies on such matters as allowable direct and indirect costs.
2. Direct costs involve expenditures that are directly related to a project such as salaries, supplies and services, and purchases of equipment. Indirect costs, also referred to as overhead or Facilities and Administrative costs (F&A), involve administrative services, maintenance and operation of physical facilities and other expenditures that cannot readily be related directly to the research project. Indirect costs are computed by multiplying a fixed percentage, which is negotiated with the federal government, times the total direct costs excluding equipment items, the tuition piece of graduate fringes, and the portion of each subcontract which exceeds $25,000. Only the Vice President for Finance and Operations can negotiate indirect cost rates on behalf of the University.
3. The proposal should not be submitted to an outside agency before it is approved by the unit administrator, dean, and Contract and Grant Administration.
4. If human subjects are involved in the proposed research, approval by the University Committee on Research Involving Human Subjects is required before an account number can be assigned.
5. If animals are to be used in the proposed research, approval by the Committee on Animal Facilities and Care is required before an account number can be assigned.
6. Proposals which call for use of radioactive isotopes, some forms of recombinant DNA, or hazardous organisms or chemicals require approval of the appropriate committee.
7. Proposals to do sponsored research or education projects overseas require approval by the Dean of International Studies and Programs.
8. Proposals involving new space, alterations, or renovations of existing space and/or facilities require approval of the Office of Facilities Planning and Space Management.
9. Proposals to foundations, including private foundations such as Rockefeller Foundation, W.K. Kellogg Foundation, etc., and corporate foundations such as the Ford Motor Company Fund, the Chrysler Fund, the General Motors Foundation, etc., requesting more than $20,000 must be cleared by the Office of Corporate and Foundation Relations.
10. One copy of the proposal should be prepared for each person signing the transmittal sheet in addition to those required by the sponsoring agency.
11. A "Transmittal Sheet for Request for Contract, Grant or Gift Support" (see exhibit, 315-A) should be completed and submitted with the proposal through appropriate channels as mentioned above, reaching Contract and Grant Administration after all other approvals have been obtained. A web version of the Transmittal (eTransmittal) is available at: www.cga.msu.edu
12. Sufficient time for processing within the University should be allowed so that Contract and Grant Administration has two days to review the proposal. Electronic proposals, such as Grants.gov, should be forwarded to CGA five (5) working days prior to the agency deadline to ensure CGA has time to submit, and if required resubmit the proposal after correction of various agency electronic validations.
13. Mailing of the proposal is the responsibility of the department.

1. It is sometimes advantageous to substitute a Cooperative Research Agreement in lieu of a more extensive contract or grant document. These forms are available from the Contract and Grant Administration internet site (355-5040), (see exhibit, 315-B).
2. Research activities utilizing the Cooperative Research Agreement should be processed for campus approvals the same as formal proposals. These agreements should be accompanied by a "Transmittal Sheet for Request for Contract, Grant or Gift Support," which requires unit administrator, college and University level approval before the agreement is completed.

Official award notifications should be sent to Contract and Grant Administration, who will notify the project leader, department and coordinate acceptance by the Board of Trustees.

1. All gifts are properly receipted and recorded.
2. Each donor receives a prompt and appropriate acknowledgment.
3. Members of the Board of Trustees, the administration, faculty and volunteer organizations are kept fully informed.
4. A central record is maintained on all gifts.

Gifts for research (non-Federal and non-State) of $1,000 or less should be sent directly to University Development for direct deposit in existing sponsored project accounts. Any correspondence from the donor should be attached. Please include a listing of the following information: account number, amount, AES project number (if applicable), name of researcher. Gifts for research of more than $1,000 should be routed through Contract and Grant Administration with appropriate forms attached (see procedures at beginning of section 315).

The Internal Revenue Service requires Form 8282 to be completed when the donated property over $500 has been sold, exchanged, consumed or disposed of within two years after the date the original donee received the property. The MSU Foundation must be notified of any disposition of noncash gifts within the first two years so that they may prepare the proper notification. NOTE: The donor receives a copy of this form. If the selling/disposal price is much lower than the gift value, the donor's charitable gift value could be challenged.

Departments and colleges are not permitted to deposit or cash checks.