Yes, and there are "unrestricted gifts" and directed gifts. An unrestricted gift can be used as needed. In comparison, a directed gift does have strings in that the funds are directed toward and must be used for a particular purpose. When an award is made and has all of the following characteristics I think of this award as a "sponsored project" not a gift. The funding mechanism can be a grant or a contract or a subaward etc. Funds are restricted to a particular purpose AND Funds must be expended during a specific period of time AND A financial report is required AND/OR Deliverables are required. Deliverables can range from a report on project success in achieving the objectives in the proposal to the creation of a product or the delivery of a service or some kind. -----Original Message----- From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Tracy Springberry Sent: Wednesday, August 13, 2008 2:49 PM To: xxxxxx@hrinet.org Subject: Re: [RESADM-L] IRS determination that grants over $5,000 are donations 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") ====================================================================== ====================================================================== 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") ======================================================================
