Sometimes charitable foundations are restricted, under their governing instruments, to making grants only to 501(c)3 organizations. This provision precludes these foundations from making grants to any part of the UT System as it is technically an agency of the State of Texas. However, since the Foundation is an independent 501(c)3 charitable organization, it is able to accept grants from these special foundations and deliver them to the part of the UT System designated by the donor.