Revised: October 2020
Gifts-in-kind must be reviewed with special care by the unit to ensure that acceptance will not involve financial commitments in excess of budgeted items or other obligations disproportionate to the usefulness of the gift. Consideration should be given to the cost of maintenance, cataloging, delivery, insurance, display, and any space requirements for exhibition or storage. All gifts-in-kind to the University will be documented on the university inventory control system and will become the property of the University or Foundation.
Regulations regarding the acceptance of gifts are specified in the Board of Regents Handbook, Title 4, Chapter 10.
It is the responsibility of the Foundation to record all assets contributed for the benefit of the University, including non-monetary or gift-in-kind items and gifts of securities.
- The unit, the donor and assigned unit development director or a central DAR staff member collaborate on due diligence with other university units as necessary.
- A gift-in-kind of property (i.e., art objects, equipment, collections, books, real estate, etc.) should be reported to the Foundation by filling out the Foundation Gift-in-Kind Form. The form must be forwarded to the Foundation upon physical possession of the item so that the Foundation can fully inform the university units and donor of the steps to be followed in insuring the gift is made in proper form prior to its formal tender, formal acceptance, and in compliance with IRS regulations.
Gifts-in-kind will be handled as follows:
- All property gifts, except personal property gifts valued at less than $5,000, require Board of Regent’s approval with an independent appraisal evaluation.
- Items with a value estimated to be less than $5,000 will be receipted at a nominal value in order to record the items, but neither the acknowledgement letter nor printed receipts will indicate a value as stated in the paragraph below.
- Regulations regarding the acceptance of art are specified in the Board of Regents Handbook, Title 4, Chapter 10. Institution presidents may accept gifts of art with an estimated value of $50,000 or less but all other guidelines are still required.
- Items with a value estimated to be in excess of $5,000 must be handled as follows to comply with Internal Revenue Service and Board of Regents regulations:
- An independent appraisal must be either provided by the donor or obtained by the unit accepting the gift.
- A briefing paper must be drafted by DAR in collaboration with the Dean’s Office prior to gift acceptance and approved to move forward to the Board of Regents for acceptance. The donor(s) must provide the University or the Foundation with an IRS form 8283, Non-cash Charitable Contributions, complete with the following:
- Name(s) and taxpayer identification number (social security number) of the donor(s);
- Section B, Part II – Information on Donated Property; and
- Section B, Part III – Certification of Appraiser. (NOTE: The appraisal section may not be completed by the donor or by anyone affiliated with the University or Foundation. This section must be completed by a certified appraiser.) The form must be forwarded to the Foundation Accounting office for completion of Part 1 and signature by the Associate Vice President of Finance for Development & Alumni Relations or the Controller of the Foundation.
- The form must be forwarded to the Foundation Accounting office for completion of Part 1 and signature by the Associate Vice President of Finance for Development & Alumni Relations or the Controller of the Foundation.
- University representatives are prohibited from conveying value information to donors. Administrators, faculty, and staff working with potential donors should clearly convey the university’s position that valuation for tax deduction purposes by donors is a private matter between the donor and the taxing authorities. Correspondence external to the University, excluding insurance-related matters, and news releases issued should not cite specific valuation amounts in conjunction with specific donors.
- Donations of personal services are not allowed as tax deductions; therefore, gift receipts are not issued for the value of such services. Actual reimbursed, out-of-pocket costs associated with these services (i.e., postage, telephone, travel, meals, lodging, etc.) are allowed as contributions for tax purposes. Gift receipts will be issued for in-kind donations of property at no declared value.