As usual, Herbert is "on the money" (sorry). He mentioned GASB as the Government Accounting Standards Board and that there was an equivalent one for non-state institutions. That would be FASB (Financial Accounting Standards Board), for those of you keeping score. Greg Schmidt "Herbert B. Chermside" wrote: > This disagreement constantly raises its head. Recently I searched for an > authoritative published statement by some major entity, and did not find > one. If anyone out there has found one, please share it. > > The argument presented below is completely fallacious. A 501 C (3) may not > accrue profit to shareholders, etc. AND must conduct activities (presumably > with a benefit to society) in accordance with their charter. Their charter > may very well include making grants and contracts in order to benefit their > chartered goal, e.g., fund research with the goal of curing XXX disease. > > 1) For any institution, one part of the grant-gifts controversy has to do > with what the sponsor/giver's intent, as documented in the "award", is and > how the institution must account for it. > > If the intent is to relinquish to the recipient all title and interest, it > is a gift, and may go into a gift account. > > If the intent is that the institution must comply with specific > restrictions, e.g., do something specific with the funds (e.g., a project); > provide the sponsor something, e.g. a report, a financial accounting, etc.; > must return unused funds; etc. (some but not necessarily all of these), > then the institution must put the funds in a "restricted" account. The > accounting principles that apply to this are the standards set out by the > Governmental Accounting Standards Board (GASB) (for a state institution; > there's something equivalent for private ones) and the National Association > of College and University Business Officers (NACUBO) > > 2) Another part of the controversy is who assists university personnel in > the processes of getting the funds. Work that out any way you can, but be > sure the individual who accepts any sponsored program (I carefully avoid > "grant" because the work can legally mean a gift or a sponsored program > that's not a contract) has the legal authority to bind the institution. > > 3) Another part of the controversy is who gets credit for bringing the $ > in, and this is what makes it most "sticky", because the value and > productivity of an office may be judged by the $ volume. This is more > often a critical factor in judging "gift" off ice than sponsored program > offices. Of course it probably indicates poor management if an office is > judged on one criterion only, but it is certainly easier to point to an > objective factor like $ than to determine the factors, many of which are > not objectively measurable, that go into a good departmental "job review". > > Put the $ where you legally should and you won't have trouble with the > auditors. Work out the rest as best you can to serve your institution now > and in the future. > > Good Hunting!!!! > > Chuck > > At 01:01 PM 2/28/2002 -0600, you wrote: > >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") > >====================================================================== > > Herbert B. Chermside, CRA > Director, Sponsored Programs Administration > Virginia Commonwealth University > PO BOX 980568 > Richmond, VA 23298-0568 > Express Delivery Only: > Sanger Hall, Rm. 1-032A > 11th & Marshall Streets > Richmond, VA 23219 > Voice: 804-828-6772 > Fax 804-828-2521 > OFFICE e-mail xxxxxx@VCU.EDU > Personal e-mail xxxxxx@vcu.edu > http://views.vcu.edu/ospa/ > > ====================================================================== > 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") > ====================================================================== ====================================================================== 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") ======================================================================
