This sets forth the processes governing the acceptance of gift in kind by the University.
The procedures used to process a gift in kind depend upon the following factors:
* Exception to Controller Review Requirement for Addition to Existing Collection. See note, below.
The organizational unit can accept this gift without consulting with the campus controller.
* Exception to Controller Review Requirement for Addition to Existing Collection GIK valued at less than $5,000 may add to an existing collection without review by the campus controller under the following circumstance: The existing collection has a goal of increasing the extent of curation so that the collection continues to add to an organizational unit's inventory, for purposes of research and specific collection development plans (e.g., improved specimen condition and collection content). In this case, determination of acceptance is the responsibility of the organizational unit's officer.
The organizational unit cannot accept this gift without the review and approval of the respective campus controller's office (see “Approval and Acceptance of Gift in Kind” procedures described in Section B, below). If the campus controller approves acceptance 1 of the gift in kind, the campus controller's office:
When disposing of a gift in kind, the campus controller is required to report to the University Treasurer all disposals (1) for which an IRS Form 8283 was issued, and, (2) that occur within three years of the donation date. The University Treasurer must complete any reporting required by the IRS (e.g., IRS Form 8282).
Gift in kind that (1) is valued at $5,000 or greater; or, (2) is valued at any amount and is an addition to an existing university collection (see exception note, above); or, (3) is valued at any amount and is attached to a written contract or agreement or subject to additional reporting requirements (such as NCAA reporting) must be processed according to the following procedures:
At the time the gift in kind is offered to the organizational unit and prior to taking custody, the organizational unit must complete the Gift in Kind Acceptance (GIK) form, and submit it, along with all donor correspondence, to the appropriate campus controller's office.
The University must determine the fair market value of the gift in kind via an objective and acceptable method. The appropriate campus controller must approve/select the valuation method. The most acceptable method is an appraisal provided by the donor. If the gift or grouping of gifts, such as a collection or equipment, is valued at greater than $100,000, approval of the campus controller's decision of a method other than donor-provided appraisal must be made by the University Controller. 2 If the donor is requesting an IRS Form 8283, the University will neither do, nor pay for, the appraisal.
The organizational unit must designate an employee 3 within the unit who is responsible for the ongoing custody and safeguarding of the gift in kind.
If the donor is requiring the gift in kind to be attached to a written contract or agreement, then the proposed written contract or agreement should be attached to the GIKform. If the contract or agreement is not available, then at a minimum an outline of the proposed conditions should be attached. Final approval of the acceptance of the gift in kind will depend upon final approval of the actual contract or agreement.
Upon receipt of the GIK form, the campus controller's office, in coordination with the campus sponsored project and other offices as appropriate, will determine if it is appropriate for the University to accept the offered gift in kind, given appropriate consideration of ongoing costs or risks to the University. Some gift in kind may not be accepted by the University.
If there is written contract or agreement attached to the gift in kind, then the campus controller's office will coordinate with campus employees authorized to sign such contracts The campus controller's office will further consult with legal counsel to ensure the contracts do not have clauses in violation of policies, laws, regulations, and rules (such as indemnification).
The following standards must be followed when an appraisal is required for gift in kind per Section B of this procedural statement.
The University will generally not do the appraisal nor will it pay for the appraisal. The University, as a recipient, is party to the gift in kind transaction and therefore is not qualified to appraise the property for the donor's tax purposes or to sign IRS Form 8283 as the appraiser. Further, the University will not pay for an appraisal used for the donor's tax purposes.
The appraisal must include the following information:
Note: If the donor is completing the IRS Form 8283, the IRS has set forth additional appraisal requirements. Donors should seek final authoritative guidance from a tax professional.
Unless approved by the Assistant Vice President/University Controller, there are no exceptions to this procedural statement.