A grant is an agreement to perform a specified activity within a certain amount of time, in other words, to conduct a program or perform a research project. There are few limiting conditions, but the grant is legally binding with regard to budgetary restrictions and agreements for cost-sharing. A contract, on the other hand, is a legally enforceable promise to deliver a product, usually goods or services, and requires the task to be completed by a certain date. It may or may not involve the exchange of funds. Contracts are often awarded after internal staff review only.
Contracts are subject to an extensive body of law and regulations.
Only certain university personnel have authority to sign a contract. The university accepts both grants and contracts on behalf of the project director. A gift of either money or equipment usually has fewer constraints than a sponsored program. While grants and contracts are handled through ORSP, gifts are administered through the University Advancement Office. While the written definitions of grants, contracts and gifts clearly differentiate between the three types of awards, in reality, the distinction is often blurred.