8.12.2 Reviewing and Accepting Gifts

Last Revised Date
Friday, October 2, 2020 - 8:16 am
  1. The Central Gifts Office, Dean and/or responsible University employee discuss the potential gift to determine if there is a use for the gift and if the gift creates an obligation.
    1. If the gift creates no obligation, contact the Central Gifts Office. The gift can be approved through department level approval and the gift will be considered accepted by the University when it has posted to the development database. 
    2. Acceptance of a gift may be subject to Research Compliance review, including but not limited to: Conflict of Interest, Export Compliance, and Human Subjects.
    3. If the gift creates an obligation, notify the Central Gifts Office. There will be higher level approvals necessary for acceptance, dependent on the obligation, by the Dean, Senior Vice President or delegate as appropriate.
    4. If an in-kind gift contains hazardous materials or chemicals, consult Risk Management Services.

Determining the Donor

  1. In the vast majority of cases, the person or organizations whose name appears on the face of the check shall be considered the legal donor of a gift. For gifts of securities and real property, the person or organization in whose name that property was registered is considered the donor.
    1. Exceptions are cashier’s checks and money orders, which are provided by banks to their customers as a convenience. In this case, the person or organization on whose behalf the cashier’s check or money order is drawn is considered the donor.
  2. If you are uncertain about whom the proper donor is, please contact the Central Gifts Office for assistance.

Gift or Sponsored Award Determination Process

  1. Review the Gift Policy and Gift vs. Grant and make a routing determination.  Based on the determination, route the proposal through either Sponsored Projects and Contracting Services (SPCS) or Foundation Relations/GIFT Center. All proposals for external funding must be routed through either the University or Foundation prior to submission.
    1. The department/unit makes the initial routing determination and routes the proposal. Plan adequate time for review of your proposal. 
    2. The proposal recipient, either SPCS or Foundation Relations/GIFT Center, will review the proposal. Either office may require additional information on the routing determination. If the office concurs with the unit’s routing decision, no further action is taken, and the proposal will be reviewed.
    3. In cases where the initial decision is questioned, or it is more difficult to make the decision, SPCS and Foundation Relations/GIFT Center will review the information jointly, make a decision, and notify all parties of the resolution.
    4. In cases that are particularly difficult to resolve, the University Vice President for Research and the Foundation President will review the information jointly and make the final decision.
  2. In some circumstances, gifts presenting some of the grant indicators are otherwise defined as a gift due to a donor’s charitable intent. Donor preference is a primary defining attribute and should be addressed through the “Gift or Sponsored Project Determination Process” described above.
  3. The gift vs. grant indicators offer a general framework for determining appropriate routing for a proposal and/or an award. When proposal and/or award routing are uncertain, Foundation Relations/GIFT Center works closely with SPCS to determine what is best for the University for managing the award, preserving a positive donor relationship, and maintaining compliance. There are cases where an award requires SPCS oversight and Foundation development treatment; a sub-award from the Foundation to the University allows involvement of both offices for these situations.

Gifts of Real Estate

  1. As soon as a donor demonstrates an interest in gifting real estate to the Foundation or the University, the contact person, development officer or Dean should contact the Foundation Real Estate consultant. 

Gifts from University Employees

  1. While the University appreciates charitable financial support from its faculty members and staff, care must be taken to ensure that such support follows all restrictions and requirements of the University, the Arizona Board of Regents, the State of Arizona, and the Internal Revenue Service.
    1. Internal Revenue Code section 170 allows a donor to receive a tax deduction for charitable contributions (gifts) made during the year to qualified organizations such as the University or the Foundation. Deductibility is ascertained by donor intent.
    2. Generally, contributions made by University employees to the University or the Foundation are tax deductible if they are made with a “detached and disinterested” generosity. A faculty or staff member who wishes to contribute a gift in support of their department should contact the Central Gifts Office for instructions or refer to FAQ 4. Please note: University or Foundation employees, while in their official role at the University, are not allowed to act as tax consultants or provide tax advice.

In-Kind Gifts

  1. All gifts-in-kind are reviewed by the Foundation General Counsel (or designee) to determine whether the gift will be accepted.
    1. If the gift will not be accepted, the Central Gifts Office will notify the department.
    2. If the gift is accepted, it will be receipted. When applicable, the department should arrange for delivery or pickup of the property. If the University or Foundation disposes of a non-cash gift within three years, the University or Foundation Financial Services Office, as applicable, prepares IRS Form 8282 per IRS requirements.
  2. Gifts of equipment to the University that are accompanied by a contractual gift agreement, must have that agreement signed by Procurement and Contracting Services.
    1. The benefiting unit, department, or college cannot sign such an agreement on behalf of the University.
    2. Contractual provisions which require the University to indemnify or hold harmless the donor as a condition of gift acceptance are generally prohibited and will require deletion or modification to comply with state and Arizona Board of Regents requirements.
  3. To ensure that the University is not subjected to unreasonable risk or liability due to an environmental or health/safety hazard, prior to acceptance, Risk Management Services will review proposed gifts to the University for specific criteria and will recommend to the Central Gifts Office whether or not a gift should be accepted. This review includes but is not limited to:
    1. Real estate
    2. Aircraft (including drones)
    3. Hazardous materials and chemicals
       
    Additionally, when gifts are to be shipped or transported to the campus, it is important to document which party bears the risk of loss, until the property is received and inventoried. State insurance does not automatically cover the item until title is transferred to the University. If the item does not require a title to document the transfer of ownership, the posting of the gift into the development database signifies acceptance.