FIN 303: Gift Deposits (Including Gift-in-Kind Donations) and Special Event Receipts with a Gift Component
To deposit gift receipts properly and to comply with federal tax regulations
Internal Revenue Service
Gifts to the university, including special event receipts with a gift component, must comply with applicable tax laws and be processed through the ASU Foundation (ASUF) (serving under contract as ASU Development Office).
All cash, checks, securities, insurance policies, letters, and legal documents for in-kind gifts to the university must be brought to the:
300 E. University Dr., Tempe
(No U.S. mail can be received at the street address.)
for crediting to the appropriate agency/org.
It is vital that the originals of all correspondence, including but not limited to, the postmarked envelope in which a gift is mailed, and all other relevant paperwork be brought to the ASUF along with the gift.
The preferred mailing address of the ASUF for any correspondence is:
P.O. Box 2260
Tempe, AZ 85287-2260
The ASUF oversees the financial management aspects of development at ASU and therefore is responsible for processing all gifts to ASU.
|Note:||Gifts donated directly to the university must be spent through
a university account for the intended purpose even though the gifts
must be processed by the ASUF, and may not be transferred
subsequently to an off-campus bank account or an organization
financially related to ASU, such as the ASUF (financially related
organizations are listed in FIN
301–02). University gift monies may, however, be used
All solicitation material for gifts must be preapproved, before printing, by the ASUF’s director of communication and marketing or his or her designee, to ensure that the following elements of the solicitation material comply with ASU policy and IRS requirements:
There are sometimes events where there is the desire for a portion of the event admission charge to be designated as a gift. The above-mentioned policy also applies to these special event situations.
Gifts are not to be used for purchases from the donor or the donor’s owned firm unless the purchase is pursuant to competitive bidding and approval is obtained from the director of Purchasing and vice president responsible for the area receiving the gift.
Pursuant to IRS regulations, special procedures apply to any gifts restricted for facilities that are funded wholly or partially from a tax-exempt interest financing (e.g., a tax-exempt bond financing). At the time of the tax-exempt financing, the size of the financing must be reduced by any gifts already received, either by ASU or a financially related organization (e.g., the ASUF). Also, as additional gifts are received, the gifts must be transferred by ASU to the bond trustee within six months of receipt and used to pay debt service.
In order to provide enhanced flexibility to ASU, it may be preferable for departments and development representatives to have donors consider restricting gifts for specific programs as opposed to a facility, especially a facility that will be or is tax-exempt financed. This approach allows the departments maximum flexibility.
Any department receiving gifts restricted for a facility that is tax-exempt financed needs to notify, in writing (or by e-mail), Financial Services of the gift receipts as they occur.
Any gift-in-kind donation, such as artwork, personal libraries, equipment, intellectual property, etc., to the university must be reported to the ASU Foundation (ASUF) (serving under contract as ASU Development Office) for the purposes of complying with applicable tax laws regarding the non-cash contributions, acknowledging the gift, and issuing an official ASU gift receipt.
If requested by the donor, and if supported by an appropriate independent valuation review as required by the IRS, the ASUF will acknowledge receipt of the non-cash charitable contribution on IRS Form 8283. Only the ASUF president, the chief finance officer, the ASU senior associate vice president for Finance and deputy treasurer, or the associate director for tax may sign Form 8283.
If the gifted property is sold or otherwise disposed of within three years of receipt, in addition to following Property Control policies and procedures, the department is responsible for notifying the Financial Services tax unit and the ASUF director of gift processing of the details of the property disposition so that the required IRS Form 8282 can be filed in a timely manner.
Non-cash contributions are recorded at fair market value at the date of the gift. Absent significant indications to the contrary, estimated fair market value is that claimed by the donor. An independent valuation review or appraisal as required by the IRS to substantiate a deduction for a charitable contribution must be furnished to the ASUF for non-cash donations claiming an estimated fair market value of $5,000 or more. “Independent” means that the party providing the valuation review or appraisal must not be related to the donor, ASU, or an ASU financially related organization.
The ASUF will neither furnish nor confirm an appraisal to the donor. Until the estimated fair market value of $5,000 or more is independently confirmed, the development officer or the area receiving the gift in kind will not receive gift credit for fund-raising goals. For gifts-in-kind with a donor provided appraisal of $1 million or more, the senior associate vice president for finance and deputy treasurer for ASU needs to be notified, and he or she may require that the department receiving the credit for the contribution obtain, at its expense, a second appraisal before the gift-in-kind is recorded on ASU’s financial records and credited for fund-raising goals. The ASU Capital Asset Management department also places a color-coded property control tag on donated property to assist the department with the donated equipment in verifying whether the property is being disposed of within three years. The property control department also notifies the Financial Services tax unit and the ASUF director of gift processing so that there is an internal check and balance within the system for proper notification and filing of the required IRS form.
For additional information, see the Property Control System Policies and Procedures Manual—PCS 206, “Acquisition of Gifts and Donations to the University.”
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