One of the most common questions about the accounting of charities I have, and one problem that arises in many charitable reviews, is whether any income will be collected in terms of grant or contract. Please note that some agreements or contracts do not offer funding, but facilitate research in other ways. For more information, please visit Legal Compliance. Example of contract: Suppose the Department of Health and Human Services (HHS) was tasked with managing an online administration initiative that allowed all federal authorities to publish scholarships on a website. In this way, citizens could find and apply for federal grants in one place, instead of locating them through different agency sites. As mentioned in SFU Research Policy R 10.01, a research contract is a legally binding agreement for university research, under the direction of a particular principal investigator, in which the promise to give results will be exchanged for funding. Contract agencies can be private industries, government agencies and non-profit organizations. Creditors such as fellows include binding relationships with the government – and they must meet market or financial assistance conditions. In the legal sense, financial aid and acquisition bonuses are types of contracts: at first I asked if it makes a difference, whether income is a subsidy or a contract, and in my next blog, I`ll look at some detailed examples that show that it can make a difference and that the numbers can be significant. The main difference between a grant and a contract is the expectation of the donor of the agreement. In a contract, you agree on certain results and results that your organization needs to achieve. If you can`t reach them, you may have consequences.
Contracts are generally used in the private sector when two parties reach an agreement on something that should be done. One party agrees to pay a certain amount and the other party agrees to take on the task. What is the difference between a federal grant and a federal contract? The government uses grants and cooperation agreements to help researchers develop research activities for the good of general delivery, while using contracts as a means of obtaining a service for the good of government. Subsidies are much more flexible than contracts. As a general rule, no changes can be made to federal contracts at the work or budget level, whereas these changes can generally be made to grants with the university`s approval. Non-compliance with a federal contract can have legal or financial consequences for all parties at the university, whereas in the case of a grant, a final report explaining the result is generally sufficient.