An evaluation of the capacity of Nova Southeastern University (NSU) in the area of externally sponsored funding was completed at the request of the university's executive vice president for administration. The director of the university's Office of Grants and Contracts used various data sources to examine the university's capacity for externally sponsored funding in the context of other institutions and to prepare recommendations for pursuing sponsored funding. The findings suggest that NSU has a diverse faculty with a wide array of professional interests. A number of faculty members have translated these interests into viable and fundable projects in support of research, teaching, and service. These projects have enabled the university to make substantive contributions to knowledge in many fields. NSU has the potential to do much more, especially if it continues to hire faculty with strong research and grant development backgrounds. NSU should provide motivators and decrease barriers to sponsored funding, and it should consider the staffing necessary to complete university-wide proposals. The university should continue its current initiatives and implement new initiatives, including considering internal award programs. One appendix contains an overview of pre- and post-award functions of the NSU Office of Grants and Contracts, and the other appendix contains an outline of the essential elements of research administration. (Contains 4 tables and 10 references.) (SLD)