We are currently in the midst of a grant-gifts controversy with regard to funds provided by private foundations and/or associations for the performance of proposed research projects.  One party on our campus, not Sponsored Programs, has claimed that regardless of the purpose of the funds, regardless of the awarding process, funds provided by private foundations and associations are gifts because: they are 501 c.3 organizations and, according to IRS rules, can only give gifts.
In other words, they are gifts because that is all that they can be.

I have not been able to find anything in the IRS codes that either supports or specifically counters this position.

We have the NACUBO literature and typology of the characteristics of grants and gifts.

However, I am wondering if any of you who have previously dealt with this on your campuses may have additional information, advice, or documentation.  Specifically, anything that shows that the IRS does not automatically require that funds provided by private foundations and associations be treated as gifts, as distinct from grants.

Thank you in advance.

John R. Baumann, Ph.D.
Director
Office of Sponsored Programs & Research Support
University of Missouri -- Kansas City
5100 Rockhill Road
Kansas City, MO 64110

816.235.1303 (v)
816.235.6532 (f)
xxxxxx@umkc.edu

location: 5211 Rockhill Road

======================================================================
 Instructions on how to use the RESADM-L Mailing List, including
 subscription information and a web-searchable archive, are available
 via our web site at http://www.hrinet.org (click on "Listserv Lists")
======================================================================