Just to complicate things...

Altieri, Joanne [VPRED] wrote:

> Actually, I have done some pretty in-depth research on this, and I think
> the line is not as clear between gift and grant as you say.  It can
> still be a charitable donation (gift) even if the donor specifies the
> intent of the money.  So a donor can give a gift of $20,000 to be used
> by Prof. X in his/her research related specifically to ABC.  They can
> even request a report that summarizes how the funds were spent and gives
> a general summary of the work that was accomplished as a result of the
> gift.  They can’t require something in return (no quid pro quo) and they
> can’t have unspent funds returned or enter into anything that resembles
> a cost-reimbursable agreement.  But the IRS is much more fuzzy about
> what can be considered a gift than you might think.  For tax purposes, a
> charitable donation gets the same tax breaks for gift as they do
> “grant.”   In other words, a “grant” can be a gift or a sponsored
> project depending on the terms of the grant.  If there is anything that
> goes beyond the general “gee, we’d like to know how your research
> progresses and how you used the funds” then it probably can’t be
> considered a gift.
>
>
>
> But you’re dreaming if you think that gifts don’t have ANY strings at
> all and that there are never any limits on how the gift funds can be
> spent.  Since the Sarbanes-Oxley Act of 2002 everyone is including some
> parameters on “gifts.”  The accepted definition of a gift is now is when
> you receive something that has value (including cash) and you are not
> required to deliver anything in return of economic value.  But a gift
> can include specifications that the funds must be dispersed according to
> the donor’s wishes.
>
>
>
> When I asked one of the larger foundations how we should handle their
> grants, (as gifts or sponsored projects) they said it didn’t matter at
> all to them, since it was a tax deduction either way.  It only depended
> on our policy.
>
>
>
> So I don’t think I could answer Lori’s original question so easily.
>
>
>
> Joanne K. Altieri, Director
>
> Office of Sponsored Programs Administration
>
> 1138 Pearson Hall
>
> Iowa State University
>
> Ames, IA 50011-2207
>
> Phone:  (515) 294-7723
>
> Fax:  (515) 294-8000
>
> Email:  xxxxxx@iastate.edu <mailto:xxxxxx@iastate.edu>
>
> ------------------------------------------------------------------------
>
> From: Research Administration List [mailto:xxxxxx@hrinet.org] On
> Behalf Of Jeffrey Ritchie
> Sent: Wednesday, August 13, 2008 2:25 PM
> To: xxxxxx@hrinet.org
> Subject: Re: [RESADM-L] IRS determination that grants over $5,000 are
> donations
>
>
>
>
> This is not correct.  To be deemed a donation (or gift), the eventual
> use of the funds would have to be at the complete discretion of the
> recipient.  As we all know, grant funds may only be spent for the
> purposes specified in the grant application and any deviation from that
> purposes must be approved in advance by the sponsor.
>
> Jeffrey Ritchie
> Grants Management Analyst
> Aurora Health Care
> 3033 S. 27th Street; Ste 100
> Milwaukee, WI 53215
> (414) 385-2883
>
> Lori Hulak <xxxxxx@JCHS.EDU>
> Sent by: Research Administration List <xxxxxx@hrinet.org>
>
> 08/13/2008 02:17 PM
>
> Please respond to
> Research Administration Discussion List <xxxxxx@hrinet.org>
>
>
>
> To
>
>
>
> xxxxxx@hrinet.org
>
> cc
>
>
>
>
>
> Subject
>
>
>
> [RESADM-L] IRS detemination that grants over $5,000 are donations
>
>
>
>
>
>
>
>
>
>
>
>
> Research Administrators -
>
> Does your institution report all grants and contracts over $5,000 as
> donations on their IRS reports?
>
> "In the IRS's eyes, grants are donations and must be reported."  - is
> this a true statement?
>
> Thanks,
>
> Lori
>
>
>
>
> Lori B. Hulak, BA, CRA
> Specialist, Grant Writer
> Jefferson College of Health Sciences
> 920 S. Jefferson Street
> Roanoke, VA 24031-3186
> Phone (540) 985-8206
> xxxxxx@jchs.edu
>
>
> ======================================================================
> 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")
> ======================================================================
>
> ======================================================================
> 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")
> ======================================================================
>

--

Let me know if you want to write a grant proposal.

Tracy Springberry
Associate for Grant Development and Communication
Eastern Washington University
SHW 210, 526 5th Street, Cheney, WA  99004
xxxxxx@ewu.edu
(509)359-4846
http://www.ewu.edu/grants

======================================================================
 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")
======================================================================