Gifts vs contracts Wil B. Emmert 08 Dec 1994 09:42 EST
Linda Schwarz pointed out an interesting quagmire. Development officers get raises based on dollars brought in, where as research officers get (in theory anyway) raises based on services provided to faculty. Consequently you can guess who fights to count every nickel brought in. I recently donated to a Public Radio station and got a beautiful mug. In the course of a discussion with an IRS agent (married to a relative so I had to talk to him), he pointed out that I could only deduct the portion of the donation that exceed the value of the prize. Carrying that logic one step further, when a company gets some research conducted in return for the "gift" don't they have to assign some value to their prize. Another question (ain't the IRS wonderful) if I donate a gift to the University, I must have at least the appearance of losing control of the money. I can donate to the Math Department but get into trouble if I control the expenditure of the funds. Doesn't the same thing apply to companies if they control the research which their "gift" funds?