- Contact the Foundation prior to setting up an auction.
- Only the excess of the purchase price over the fair market value of the item may be counted as a gift.
- 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.
- 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).
- 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.
Who should be contacted if a donor is gifting items and the College/Department intends to convert the items to cash via an auction?
Please contact the Foundation for guidance on gifts to be auctioned.
When can the University welcome contributions from private sources to support conferences and symposia?
- As with all gifts, the donor must have a charitable intent when donating to underwrite the activity. Sponsored Projects Services (SPS) must be contacted if it appears that the donor is "purchasing" the services of the University or is receiving benefits not commensurate with a charitable contribution.
- If the donor (or in the case of organizations, the representative of the donor) is planning on attending the event, any applicable registration fees must be paid separately, in addition to the gift, or the amount of the gift must be reduced by the fair value of admission or other benefit received (see Quid Pro Quo Gifts).
- It is the responsibility of the department sponsoring the event to ensure that the distinction is clearly explained to the donor.
- The only two authorized repositories for endowment gifts are the University and the Foundation.
- Endowment gifts are subject to the provisions of 8.33 University Development Fund Policy and Procedure and 8.13 Endowments.
- 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.
- 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\Externships are established from funds given to University academic departments by agencies, corporations or businesses to support student interns\externs.
- When a donor and the University have agreed, the University will administer internship funds.
- 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.
- 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:
- 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.
- 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.
Who can appraise the value of an in-kind gift?
With the exception of stocks and securities, and in accordance with IRS regulations, the donor is responsible for determining the value of in-kind gifts. Donors should establish the fair market value of the gift with a recognized independent appraiser. A "qualified appraisal" is required by the IRS to substantiate a donor's charitable deduction for in-kind gifts with an estimated value of $5,000 or greater. Neither University nor Foundation personnel are qualified appraisers, and federal regulations do not permit the University nor Foundation to give appraisals or estimates of value.
Is real estate an in-kind gift?
Real estate gifts of homes, ranches, and other real property are in-kind gifts. A debt-free property may be transferred to the Foundation with the donor receiving a charitable deduction for the appraised value. Contact the Foundation Real Estate consultant for more information.
- 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.
- 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.
- Note: All potential gifts will be evaluated for items not limited to:
- Project specifications
- Project timeline
- Chain of performance
- Warranty, bonding and insurance
- Procurement requirements
- To assist in the process, it is requested that potential In-kind construction gifts be routed to the University.
Who can appraise the value of an in-kind gift?
With the exception of stocks and securities, and in accordance with IRS regulations, the donor is responsible for determining the value of in-kind gifts. Donors should establish the fair market value of the gift with a recognized independent appraiser. A "qualified appraisal" is required by the IRS to substantiate a donor's charitable deduction for in-kind gifts with an estimated value of $5,000 or greater. Neither University nor Foundation personnel are qualified appraisers, and federal regulations do not permit the University or Foundation to give appraisals or estimates of value.
- A memorial gift may be restricted or unrestricted in nature.
- 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.
What is an example of a quid pro quo gift?
An example of a quid pro quo would be a contribution of $50 required to attend a dinner, $15 of which covers the value of the dinner (see Benefit Fair Market Value).
- All raffle tickets must state clearly on the ticket that this purchase is not a tax-deductible gift.
- Raffles must conform to specific rules, so it is important that a department contact the Foundation Financial Services Office prior to holding a raffle.
- 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.
- 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).
- 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).
- A named endowment requires a minimum $25,000 gift. A named scholarship requires a commitment of $5,000 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.