This really combines two topics, the question about research foundations and
the question about development offices.

With respect to research grant money going into the institution's foundation
which was set up to handle gifts, I'm not a tax attorney, but I suspect that
there could be legal trouble if the foundation is being used for anything
other than what it was established to do.  That also points to the issue of
having a definition of sponsored program; I suspect you could put the awards
with no strings attached in the foundation, but anything else, especially
your state money, you couldn't.  I'm also not an A-21 specialist, but I
interpret A-21 to say you must have consistent policies regardless of source
of funds.

Now, the development offices.  When a campaign comes into view, everything
but the kitchen sink seems to get counted.  I did fuss here when they
started counting clinical trials, but our development office puts foundation
and voluntary health agency monies into their count.  I don't really see
anything wrong with that as long as your top administration knows there may
be some double counting going on.  But I do think that it is important to
have that definition of sponsored programs and to work with your development
office on when they should let you know what is going on.  I think it's okay
for them to do the acknowledgement letters, but if terms and conditions are
involved, maybe you should agree that you could review it first.

Just my two cents.

Jane Youngers
Office of Research and Project Administration
University of Rochester
xxxxxx@orpa.rochester.edu (new address)
xxxxxx@mvs.cc.rochester.edu (if new one doesn't work)