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B-183442 1 (1975-10-21)

handle is hein.gao/gaobadcub0001 and id is 1 raw text is: 
                            THE   COMPTRbLLER GENERAL
DECISIN      OF THE UNITED STATES
                             WASHINGTON. D. C. 20548


, e2  1975


DATE:


FILE:  B-183442


MATTER


DIGEST:


OF:  National Endowment for the Humanities - Legality
     of matching pledge with Federal funds.

Pledge of money to National Endowment for the Humanities
(NER) from Curriculum Development Associates (CDA)
restricted to support of Educational Development Center
(EDC), and treated by CDA as reduction of accrued liability
in fulfillment of contractual obligation to EDC for services
rendered to CDA is not donation and, hence, may not be
matched by NEH with Federal funds and paid over to EDC,
since statutory language and legislative history indicate
that only gifts may be matched and payment in satisfaction
of debt may not be considered gift. Moreover, if pledge
is considered to come from EDC from monies owed it, it is
not eligible for matching since EDC would merely be gene ating
additional funds for itself in contravention of the at utory
scheme and NEH guidelines.


     This is in recponse to a letter of July 14, 1975, from Ronald S.
Berman, Chairman, National Endowment for the Humanities (NEH1) wherein
he requests our decision as to whether NEH nay lawfully accept a
$30,000 pledge made by John N. Gentry, Executive Director of Curriculum
Development Associates, Inc. (CDA) which is restricted to the support
of the People and Technology project of the Educational Development
Center, Inc. (EDC), and match it with an equal amount of Federal funds
pursuant to the National Foundation on the Arts and the Humanities
Act of 1965, as amended, Pub. L. No. 89-209, §§ 10(a)(2), 11(b),
79 Stat. 845, 852-853, 20 U.S.C. H§ 959(a)(2), 960(a)(2) (Supp. III,
1973).

     From the Chairman's letter and other information available to us,
it appears that EDC is a nonprofit Delaware corporation based in
Newton and Cambridge, Massachusetts, engaged in the development of
educational materials. Through a series of grants from the National
Science Foundation (NSF), EDC developed a fifth grade course entitled
Man: A Course of Study (MACOS).

     After completing development of the course, EDC entered into a
contract with CDA for the purpose of its dissemination. In accordance
with the NSF grant agreement, the publication contract provided that


9-79(0'2--

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