Private Grant Funding for NC State

Written by Brooke Labashousky.

Foundations Accounting and Investments (FAI) has recently seen an increase in private grant funding requests for the university. We encourage department business offices and foundation business offices to work with their faculty in achieving these important funding opportunities. 

Many private companies that work with faculty in research grant funding do not realize NC State is able to accept these funds, even though the university is not technically a 501(c)(3). This is because NC State operates in a similar manner to a 501(c)(3). The Internal Revenue Code provides that the exempt purposes of state colleges and universities include all of the purposes and functions described in code Section 501(c)(3). Therefore, for the federal income tax purposes, the university may engage in charitable activities. More information on tax compliance can be found in the University Controller’s Office Unrelated Business Income Tax page.

FAI encourages faculty and staff to communicate this information to private companies to help ensure future funding and promote research initiatives for the university.

Foundations that are associated with the university are 501(c)(3)s and are designed to accept gifts and donations to support the university in its strategic initiatives. These gifts are different from a grant or research proposal. Traditionally, research grants require a deliverable or return of funds request, but an associated foundation cannot return funds or provide a designated deliverable. Check out the Knowledge Base to learn about the difference between gifts, grants and contracts. 

Need Help?

If you have questions regarding tax requirements, please contact the tax and compliance manager in the University Controller’s Office. As appropriate, if a true gift requires an application, please contact your foundation business office to lead and assist in the application process.