https://ras.mit.edu/grant-and-contract-administration/sponsored-programs-basics
A sponsored project is defined as an activity that is sponsored, or funded, by an external organization, such as a federal, state, or private organization or agency.
The characteristics of a sponsored project include:
Sponsored projects are classified into one of three categories of University functions; these categories affect the calculation of MIT’s Facilities and Administrative (F&A) Rate:
Sponsored awards may be made by using a variety of mechanisms, each with varying levels of expectation and involvement on the part of the sponsor.