Whether external funds allow for or prohibit overhead does not affect the determination of whether those funds represent a gift or a sponsored award. All sponsored awards that prohibit overhead (and all gifts whose terms prohibit payment of the gift assessment) must meet the approval of the cognizant School before the University can accept them.

Moreover, the classification of funds as gifts or sponsored awards is dependent on the terms and conditions accompanying the funding. The amount of overhead or the amount to be set aside for gift assessment does not have any bearing on this classification. The determination should rest only on whether the various elements of the funding indicate that the funding is a gift or a sponsored award, according to University policy. Attempts to maximize funds available for research by minimizing the funds available for overhead or gift assessment are prohibited.