8.12.5 Gift Types

Public sale in connection with a fundraising event in which goods or property are sold to the highest bidder.

1. Contact the Foundation prior to setting up an auction.
2. Only the excess of the purchase price over the fair market value of the item may be counted as a gift.
3. In order to establish charitable intent, the donor must be able to show that he or she knew the value of the item being auctioned before the bidding begins. This can be achieved by publishing a catalog of items offered at the auction or posting the fair market value next to the item before bidding starts.
4. If the auction item has been donated, the item should be reported as a non-cash gift. The donor must establish a value for the donated item (see In-Kind Gifts).
5. Each purchaser of an auction item must fill out a Receipt for Auction Purchase. Attach the receipt to the Foundation's Gift Transmittal form and forward to the Central Gifts Office.

Bequests are gifts made through a donor's will, living trust, beneficiary designation or other estate planning vehicle. Life-income gifts are conveyed to the University or Foundation at some later date or in such a way that the donor receives lifetime income such as charitable gift annuities, charitable remainder trusts, etc.

1. Bequests and life-income gifts must be reported to Foundation Gift Planning Office as soon as notice of such a gift or the intent of such a gift is received, to ensure all applicable statutes, policies and regulations are followed.
2. Please see the Gift Planning Acceptance Policies.

Conferences and symposia are budgeted projects which would typically have all allowable business expenses related to the event covered by the University or one of its units.

A fund where the principal (corpus) is held for investment and the payout on the principal is available for spending as directed by the donor.

1. The only two authorized repositories for endowment gifts are the University and the Foundation.
2. Endowment gifts are subject to the provisions of 8.33 University Development Fund Policy and Procedure and 8.13 Endowments.

Resources that are neither in the possession of, nor under management of, the University or the Foundation, but are held and administered by a third-party for the benefit of the institution.

1. From time to time, funds held in this capacity make income distributions to the University and/or Foundation to support the institution per either donor or trustor stipulations.
2. Funds Held in Trust that make distributions will be subject to a gift fee as defined in policy 8.33 Development Fund Policy and Procedure.

Internships and externships are positions for students or trainees within the University, sometimes without pay, in order to provide work experience or to satisfy requirements for a qualification. Donor funds may supplement the costs incurred by the department for the intern\extern or provide payment to the intern\extern for work performed.

1. Internships\Externships are established from funds given to University academic departments by agencies, corporations or businesses to support student interns\externs.
2. When a donor and the University have agreed, the University will administer internship funds.

An honorarium is a nominal payment made in recognition or appreciation of acts or professional services provided where the amount is not determined by the person being paid. The individual paid does not bargain, set the cost, nor invoice for the honorarium for his or her services and the amount is reportable as income to the recipient for personal income tax purposes.

1. When an organization paying the honorarium makes the check payable to the University or one of its units, the honorarium still represents a payment for services rendered by the individual and is considered income to the speaker/consultant. The individual will not receive a gift receipt for a directed honorarium. It is preferred that the organization paying the honorarium make the check payable to the individual.
2. Faculty or staff members who receive honoraria are welcome to donate these payments to the University. However, to remain in compliance with IRS code and receive a gift receipt, the gift check must be from the faculty or staff member and not the organization issuing the honoraria.

Gifts of non-monetary assets or property such as: stocks and securities, real estate, and other items requiring more than nominal effort to convert into cash. Please note: gifts of services are not included in this protocol as they do not qualify as tax-deductible contributions.

There are two types of non-monetary gifts:

1. Related Use: In-kind gifts that are to be used as-is by the receiving department or unit. Related use gifts must be processed through the Central Gifts Office for the benefit of the University.
2. Unrelated Use:In-kind gifts that are given with the intention that the department, college, or unit will convert these items into cash, usually by selling the item. Unrelated use gifts must be processed through the Central Gifts Office for the benefit of the Foundation. Please contact the Foundation for more information on acceptance processes for these gift types.

All in-kind gifts are reviewed by the Foundation’s General Counsel Office (or designee) to determine whether the gift will be accepted. If the gift will not be accepted the Central Gifts Office will notify the department. If the gift is accepted, it will be receipted. When applicable, the department should arrange for delivery or pickup of the property. If either the University or Foundation disposes of a non-cash gift within three years, IRS Form 8282 must be prepared per IRS requirements.

Gifts of non-monetary assets or property such as: building supplies, raw materials or pre-fab items relating to an in-process University construction project.

1. Before contacting a prospective donor, first consult with the dean or equivalent division administrator and the college or administrative unit development officer, if any. This will avoid conflicts with other development plans involving the donor. Do not contact the prospective donor before obtaining approval for the solicitation. Donor-initiated contact cannot be cleared ahead of time.
2. After obtaining approval by the college or administrative unit, consult with the Associate VP of Planning, Design & Construction for general consideration of the project scope and applicability of the potential gift.
3. Note: All potential gifts will be evaluated for items not limited to:
   1. Project specifications
   2. Project timeline
   3. Chain of performance
   4. Warranty, bonding and insurance
   5. Procurement requirements
4. To assist in the process, it is requested that potential In-kind construction gifts be routed to the University.

Made in memory of a deceased person. The gift can be designated to a variety of purposes, including, but not limited to: scholarships, research and academic support.

1. A memorial gift may be restricted or unrestricted in nature.
2. Memorial gifts cannot be used to establish a named endowment unless the sum of gifts received reaches or exceeds $25,000. The Central Gifts Office will receipt these gifts, and the central Stewardship Office will send notifications to the deceased’s family, if contact information is provided, with donor names (but not amounts). The benefiting unit should acknowledge memorial gift donors because of the sensitive nature of these gifts.

A quid pro quo gift is one in which the donor's payment is made partly as a contribution, partly in payment of goods received.

The price of entering a raffle is a purchase and is not considered a gift.

1. All raffle tickets must state clearly on the ticket that this purchase is not a tax-deductible gift.
2. Raffles must conform to specific rules, so it is important that a department contact the Foundation Financial Services Office prior to holding a raffle.

Received with the donor's stipulation that the gift be used for a specific purpose, such as faculty recruitment, equipment purchases, student financial assistance or research other than for sponsored research.

1. Gifts may also be restricted to support the research performed by a specific individual. While the funds may be unrestricted to the researcher, from the University's point of view these funds are restricted since they can only be used to support the research performed by the specified researcher.
2. This type of gift is still considered a gift to the University or Foundation and not a gift to the individual (see Transfer of UA Gift Funds).

Support the education of students.

1. Scholarships are awarded through the Office of Scholarships & Financial Aid (OSFA) according to criteria approved by the OSFA, and/or the Foundation General Counsel office, and the donor(s).
2. A named endowment requires a minimum $50,000 gift. A named scholarship requires a commitment of $10,000 annually for a minimum of five years. Additional contributions of any amount may be added to an existing scholarship fund. Payments from individuals or organizations for scholarships to specific students are not gifts or tax-deductible according to IRS regulations.