Can non-profit employer base contributions on grants received from other sources?

[Guest mfchristopher]

Has anyone seen guidance on whether an employer can base contributions on grant money? Client has some researchers who are totally paid by grant, while others receive part stipend from institution and part grant. Are there problems with treating the grant money as if it comes from the institution, for either contributions or nondiscrimination purposes?

Thanks

[mbozek]

Is the grant money paid directly to the employees or is it paid to the c3 who then pays the ees?