Property Control System Manual (PCS)

Effective: 3/1/1965

Revised: 7/1/2009

PCS 206: Acceptance of Property, Gifts, and Donations to the University

Purpose

To comply with federal tax regulations regarding noncash donations, and to properly acquire and record gifts and donations to the university

Sources

Internal Revenue Service

Property Control

ASU Foundation

Policy

Any gift or donation acquired by or given to the university must be reported to the ASU Foundation for the purposes of complying with applicable tax laws regarding noncash contributions, acknowledging the gift, and issuing an official gift receipt.

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Prohibited Gifts and Gratuities

University employees shall not accept or solicit, directly or indirectly, anything of economic value as a gift, gratuity, favor, entertainment, or loan that is or may appear to be designed to influence official conduct in any manner, particularly from a person who is seeking to obtain contractual or other business or financial arrangements with the university (e.g., a vendor who has interests that might be affected substantially by the performance or nonperformance of the employee’s duty).

Such persons include both present and potential suppliers and contractors to the university and agents working on behalf of suppliers and contractors (see the Purchasing and Business Services Policies and Procedures Manual—PUR 104, “Gifts and Gratuities”).

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Valuation Review

An independent valuation review must be furnished to the ASU Foundation for donated equipment having an estimated fair market value of $5,000 or more. Independent means that the party that provides the valuation, review, or appraisal must not be related to the donor, ASU, or any ASU financially related organization. The ASU Foundation neither furnishes nor confirms 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.

Donated equipment is recorded at fair market value at the date of the gift. In the absence of significant indications to the contrary, estimated fair market value is as stated by the donor.

Valuation methods are on a case-by-case basis depending upon the estimated fair market value and whether an independent appraisal is readily available. Valuation review methods include, but are not limited to, the following:

1. the net value of the equipment as stated by the donor (for new equipment)
2. a quotation obtained by Purchasing and Business Services (for donated equipment commonly sold through wholesalers)
3. an estimate by the director of Purchasing and Business Services based upon comparable items

   and

4. an estimate of knowledgeable persons employed by the university (for art objects and rare books).

All equipment contributions with a unit cost of $5,000 or more must have written indication that an independent valuation review has been obtained and accepted by the ASUF president, the chief financial officer, or the associate vice president for Finance and treasurer or designee. A photocopy of the independent valuation will be furnished to ASU Property Control and the ASUF director of gift processing.

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Real Property

The university may accept gifts of real property, provided that it will have full use and control of the property. Gifts and grants for the construction of capital projects must have prior approval from the Arizona Board of Regents (ABOR). Estimated annual operating costs of the facility must be submitted to ABOR for approval before accepting the gift. Submission to ABOR must be coordinated with the associate vice president for finance and treasurer or designee.

Exception

Gifts and grants for routine repair or alterations.

Procedures

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When Property Is Donated to ASU as a Gift-in-Kind

The department notifies the college development officer (if one exists) or the ASU Foundation director of gift processing and acquires all documentation transferring title of the equipment to the university or one of its financially related organizations.

The ASU Foundation:

1. obtains the signature of the director of purchasing, or designee, to accept the equipment on behalf of the university
2. prepares a Gift in Kind form with the value, description of the equipment, name of donor, and department receiving the gift
3. records the gift on the Official Gift Receipt form and sends a photocopy to Property Control
4. sends a letter of acknowledgment to the donor

   and

5. if requested by the donor and supported by an appropriate independent valuation review, acknowledges the receipt of the noncash charitable contribution on IRS form 8283. Only the president or chief financial officer of the ASU Foundation, the ASU associate vice president for finance and treasurer, or the associate director for tax may sign form 8283.

Property Control records the gift on the Advantage system.

Cross-References

For the university policy on gifts to university employees, see the Purchasing and Business Services Policies and Procedures Manual—PUR 104, “Gifts and Gratuities.”

For information on coordination between the Office for Research and Sponsored Projects Administration and the ASU Foundation concerning gifts, see the Research and Sponsored Projects Policies and Procedures Manual—RSP 601, “Coordination of Proposal Submissions to Foundation Sponsors by ORSPA and the ASU Foundation.”

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