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Unregistered 01:55 PM 06-11-2015
Our local child care resource and referral approved grants for registered providers in our area earlier this year. I was given cots, cribs, shelving, and toys in this grant. I was also given a tax form to file on my taxes. Our situation will be changing as my husband was offered a job out of state. My child care resource and referral advocate says I have to give these back, regardless if I plan to use them for my new daycare out of state, because the grant was only intended for local providers. Is this right??? I have never heard of such a thing...to be granted items...and then get them repossessed, and still have to pay taxes on them?
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Blackcat31 02:00 PM 06-11-2015
Originally Posted by Unregistered:
Our local child care resource and referral approved grants for registered providers in our area earlier this year. I was given cots, cribs, shelving, and toys in this grant. I was also given a tax form to file on my taxes. Our situation will be changing as my husband was offered a job out of state. My child care resource and referral advocate says I have to give these back, regardless if I plan to use them for my new daycare out of state, because the grant was only intended for local providers. Is this right??? I have never heard of such a thing...to be granted items...and then get them repossessed, and still have to pay taxes on them?
What state are you in?

I am on the grant review committee for my area Child Care Resource & Referral and there are no rules about having to return money or give back items purchased with that money.

I would check the grant application you filled out when you applied and see what it says on there.... our state's is pretty specific and clear about rules and expectations.
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AmyKidsCo 02:02 PM 06-11-2015
Is there a clause about having to stay in business for a certain amount of time? We have a scholarship program here and one of the requirements is to stay in our current program for 6 mos after the scholarship ends. I don't know what happens if you leave before 6 mos but I assume you'd have to repay the money.
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Unregistered 02:04 PM 06-11-2015
I am in Iowa. There was nothing on the grant form that I signed. Just had to write how these items would make my business better.
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Blackcat31 02:32 PM 06-11-2015
Originally Posted by Unregistered:
I am in Iowa. There was nothing on the grant form that I signed. Just had to write how these items would make my business better.
I would request that they show you where you agreed to returning items/money if circumstances change.

If it's a policy then I would think that recipients of this money would not only have to agree with it but sign something stating you were aware and agreed to it.
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Thriftylady 03:11 PM 06-11-2015
Yes, it depends on how the grant was written, and what you signed. I would ask for more information in writing.
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Unregistered 04:24 PM 10-30-2015
I am an in home provider in Iowa and I have never heard of this. Are you talking about the "Reach for the Stars" Grant?
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MarinaVanessa 05:02 PM 10-30-2015
Definitely start communicating with them in writing from this point on. I would send an email summarizing that you got the grant, mentioned that you were moving, were told by (name of person) that you had to return the items, will still be required to pay the taxes for these items even if you have to return them and that you were not aware that you had to return them if you moved. Then I'd ask them to mail OR email you a copy of the application that you signed as well as any policy with YOUR SIGNATURE ATTACHED that mentions the part where you have to return the items if you move.

If they have a policy somewhere buried in some document of their own that says that if a provider moves then they have to return the items but they did not have this info in the documents that you signed then their point is moot and too bad, so sad for them.

I would also prepare for the situation where you could have possibly missed this information on accident and this was a part of your agreement by mentioning that since you are returning the items that you want something in writing from them that states what you returned (an itemized list with retail prices and a total amount that equals the grant amount) and that they will be paying the taxes on the items, not you, since you are being forced to return the items and therefore will not be paying the taxes on items that they are confiscating.

Definitely get everything in writing! Don't take someone's word if you speak to them over the phone. If they call you instead of emailing you or sending you letters then I would email them back after each phone call with a summary of all of the information discussed including date, time of day, who you talked to (full name), that person's title etc. Hopefully when they see that you're going to keep a log of everything for liability purposes they'll drop it.
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Tags:grant - ia, grant - wi, grant money, grants, supplies
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