Accounting

Capital Equipment

A grant to an organization may include the purchase of capital equipment, which generally includes such items as computers, office furniture and other like items. Books purchased to enhance a library may also be considered capital equipment. On the other hand, office supplies and other consumable items are not generally considered capital equipment. Books purchased for limited research purposes are not considered capital equipment.

The designation of grant funds for the purchase of capital equipment presents no additional requirement if the grantee organization is one for which the Foundation is not required to exercise expenditure responsibility. However, if the grant is to an expenditure responsibility grantee organization, the Foundation may be required to obtain additional reporting with respect to the use of the capital equipment.