When reporting charitable contributions, a differentiation must be made between private (non-government sources) gifts and grants. For management reporting purposes only private gifts/grants are to be reported. Private gifts/grants may be awarded on the basis of an unsolicited proposal. They may be based on line-item budgets submitted to the awarding agency and may involve the institution in at least the responsibility of periodic and final reports on the uses made of the funds. A private grant, like a gift, is bestowed voluntarily and without expectation of any tangible compensation; it is donative in nature.