PCS 206: Acceptance of Property, Gifts, and Donations to the University
To comply with federal tax regulations regarding noncash donations, and to properly acquire and record gifts and donations to the university
Internal Revenue Service
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.
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”).
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:
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 vice president for finance and deputy treasurer or designee. A photocopy of the independent valuation will be furnished to ASU Property Control and the ASUF director of gift processing.
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 vice president for finance and deputy treasurer or designee.
Gifts and grants for routine repair or alterations.
The ASU Foundation processes all gifts to ASU, whether paid in cash, in securities, or in-kind as tangible or intangible items (gifts-in-kind). Services provided include recording the gift in the donor system, acknowledging receipt of the gift, issuing an official gift receipt, and preparing the recipient-required tax forms.
Generally, gifts-in-kind are placed into service at ASU. These gifts are made directly to ASU, and often, the donor requires “acceptance” by the recipient via a specific donor form. These forms usually contain terms and provisions that can be accepted only by the office of Purchasing and Business Services. Therefore, when you receive knowledge of a donor wishing to make a contribution of real property (real estate), personal property, or intangible property, please perform the following steps to ensure a smooth, efficient process:
|Note:||Both ASU and ASU Foundation require written approval from the dean or center director confirming that they are willing to accept the gift-in-kind.|
Often, gifts in kind are accepted to be sold in silent auctions, for use as event door prizes, or for other fundraising purposes. These gifts are made directly to the ASU Foundation. Therefore, when you receive knowledge of a donor wishing to make a gift in kind under these circumstances, please perform the following steps to ensure a smooth, efficient process:
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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