Sponsored projects are typically awarded to Stanford in response to a detailed statement of work and commitment to a specified project plan. As described below, this statement of work is usually supported by both a project schedule and a line-item budget, both of which are essential to financial accountability. The statement of work and budget are usually described in a written proposal submitted by Stanford University to the sponsor for competitive review.

The sponsored project agreement includes detailed financial accountability, typically including such conditions as:

• a line-item budget related to the project plan. The terms of the agreement may specify allowable or unallowable costs, requirements for prior approvals for particular expenditures, etc.
• a specified period of performance, typically defined with "start" and "stop" dates
• a requirement to return any unexpended funds at the end of that period
• regular financial reporting and audit, including, for federal and state awards, accountability under the terms of OMB A-21, OMB-110 or the Uniform Guidance

A sponsored project budget will include the University's full negotiated F&A (indirect) cost rate, unless a waiver of those costs has been approved. 
These conditions generally define the level of financial accountability associated with a sponsored project. While not all of the above conditions are necessary to define a sponsored project, they are collectively indicative of the increased level of financial accountability associated with such projects.

Sponsored project agreements also usually include terms and conditions for the disposition of tangible properties (e.g., equipment, records, specified technical reports, theses, or dissertations) or intangible properties (e.g., rights in data, copyrights, inventions). The presence of such terms and conditions in the agreement indicate that the activity is a sponsored project.


Students may apply for external fellowships in their own name. The process for submitting proposals will vary, depending on whether an institutional endorsement of the application is required by the funding source.

1. Submissions requiring an institutional endorsement are submitted through the Office of Sponsored Research or, in the School of Medicine, through the Research Management Group Fellowship Office.

2. Submissions which do not require an institutional endorsement may be submitted directly by the student.

Where funds are given to Stanford University to support named undergraduate or graduate students, those funds are received and processed through the Financial Aid Office, which administers the distribution of funds. Stanford University classifies these funds as “Student Aid.”


Postdoctoral Scholars who wish to apply for external fellowship funding must submit their application through either the Office of Sponsored Research or, in the School of Medicine, through the Research Management Group Fellowship Office. Awarded funds are received and processed by the Office of Sponsored Research, which administers the distribution of funds.


Postdoctoral Fellowships are not normally defined as sponsored projects. However, because they typically provide support for the recipient’s research activities, applications are processed through the research administration offices of the University. This helps to assure appropriate internal controls as regards to research policy, as well as the inclusion of the funds in the appropriate base for the calculations of Stanford’s indirect cost rates and the appropriate classification of the research space.

1. Distinctions based on source of funds

   Any funding provided by U.S. Government agencies, at the federal, state, or local level, in support of Stanford activities is treated as sponsored project funding. Government funds are not treated as gifts.

   Funding from Voluntary Health Organizations or Associations, such as the American Cancer Society or American Heart Association, is usually treated as a sponsored project and not a gift.

2. Distinctions based on intent of donor/sponsor

   In remaining cases, e.g., where funding is being provided by corporations, foundations or others not specified above, the distinction between gifts and sponsored projects will be made based on the proposal, statement of work, and terms of the agreement, taking into consideration the intent of the donor/sponsor.

   Note that, in some situations, communication, including the proposal and award as well as conversations, makes it clear that the donor’s/ sponsor’s intent is to classify an award to Stanford as either a gift or a sponsored project. In these cases, the terms of the accompanying agreement may have to be adjusted in consultation with the donor/sponsor in order to clearly document the intent and avoid unintended classification. 

1. Decision-making in unclear situations

   In some cases, the distinction between gift and grant, i.e., between a gift and a sponsored project, can be difficult to draw. Donors may sometimes use the word "grant" when the donation qualifies as a "gift" or vice versa. When an individual is in doubt about the proper classification and handling of an award to Stanford, the Office of Sponsored Research and the Development Officer for the involved School will confer and resolve the question. This consultation will typically take place within the involved School, involving the School Dean's office as needed. In addition, staff from the Office of Sponsored Research and from Development should consult as needed with the Associate Vice Provost for Research, Foundation Relations and the Controller's Office.

   Attachment A to this policy, Checklist for Determining Whether Funding is a Gift or Support for a Sponsored Project, defines this process, offices to be consulted, and materials to be reviewed. As described in this checklist, when this determination is not initially clear, personnel should review appropriate documentation and consult with staff within their school representing both the research administration and development functions to determine the appropriate classification and handling of funds.

   In those cases where the determination is not initially clear, and where the final determination is to accept the funds as a gift, the completed Checklist is to be attached to the Gift Transmittal Form.

   Similarly, Attachment B to this policy, Checklist for Determining Whether Funding is a Postdoctoral Fellowship or a Sponsored Project, can assist in making the determination as to whether funding should be classified as a Fellowship or Scholarship (i.e., student aid) or not.

2. Donor/Sponsor Relations

   In resolving issues related to the classification of an award, Stanford personnel must maintain an appropriate balance between the interests and preferences of the donor/sponsor and the University's administrative policies and objectives. In the process of resolving these issues, in some cases it may be necessary to contact the donor/sponsor for clarification of intent and requirements, and/or to discuss the planned use of the funds. Such contacts are usually best handled by the faculty member and/or development officer who initiated the activity.

3. Account Set-Up

   Administrative Guide Memo 34.2: Activities/Accounts, specifies the procedure and responsibilities for establishing both sponsored project and gift accounts. Whenever a new account is requested, the responsible organization (Office of Sponsored Research in the case of sponsored projects, or Fund Accounting in the case of gift funding) verifies that the account being set up is proper, in accordance with the definitions in this policy. These offices are responsible for assuring that a proper determination of gift or grant status has been made.

4. Cost Sharing Implications

   Stanford policy and federal regulations define cost sharing as that portion of total project costs of a sponsored agreement borne by the University, rather than by the sponsor. See below in Related Items RPH: Cost Sharing Policy

   Committed cost sharing, i.e., that which a sponsor would otherwise pay, which Stanford offers in its proposal and is accepted by the sponsor, must be funded from a non-federal source and charged to a separate cost sharing account. Gift funds may be used to meet a cost sharing commitment on a sponsored project if the purpose of the gift so allows.

   Where a donor requires that their gift funds be leveraged with other resources, for example, matching gifts, there is no requirement to account for cost sharing. In these cases, the donor typically expects Stanford to use other gift funds to meet the requirement for matching or additional funding requirements.

   Fellowships and scholarships do not require cost sharing, and none is accounted for in conjunction with awards of student aid.

5. Facilities & Administrative (F&A), i.e., Indirect Cost, Implications

   Stanford's policy is to apply the University's full applicable F&A (indirect) cost rate to all sponsored projects. Gift funds will be assessed an infrastructure charge set by Stanford University, in accordance with the Infrastructure Charge Policy, Administrative Guide Memo3.3.1. See in Related Items below RPH Facilities and Administrative (Indirect Cost Waivers) for guidance relating to requesting waivers of F&A costs. Indirect costs are not charged on Fellowships, Scholarships or other student aid.