The gift should meet the criteria of a capital asset:
- Useful life of one year or longer, and
- Estimated value of $5,000 or greater
Donor, private individual, a corporation, or some other entity should provide a statement in writing that:
- Expresses the donor's intent to make a gift,
- Describes the gift,
- Declares the irrevocability of the transfer,and
- Designates the purpose(s) for which the gift is to be used.
The department prepares a Gift/Private Grant Acceptance Report (UDEV 100) with the appraised or estimated fair market value shown in the appropriate box and sends the completed form to the Assistant Vice Chancellor - University Development and Alumni Relations (Development Office) for review and approval. Refer to Campus Administrative Policy #450-11 Acceptance and Acknowledgment of Gifts and Private Grants. When the gift is approved, the Development Office mails the donor a letter indicating acceptance including a description of the gift, the date of receipt, and the signature of the person authorized to accept gifts on behalf of the University. The department should also send Capital Asset Management (CAM) an Equipment Inventory Modification Request (EIMR) with the transaction documents described above (UDEV 100 and all letters). CAM processes the form, creates an asset record with a unique property number assigned, and issues the property tag.
- For gifts of works of art, the department should determine whether the donor owns the intangible rights (e.g., copyright, which include the right to reproduce or distribute copies of the work) and whether the gift is intended to include them. If so, the instrument of gift must expressly state that the transfer includes the related intangible property rights.
- Ensure that acceptance will not involve financial commitments in excess of funds available or other obligations disproportionate to the usefulness of the gift. It may be that the cost of fulfilling conditions specified by the donor including maintenance, cataloging, crating, delivery, insurance, or display costs, as well as the cost of space requirements for exhibition or storage may render acceptance of the gift impractical and unfeasible.
- Review original gift terms to determine whether the language, either expressly or by implication, prohibits disposition of the donated property. Three factors should be considered before disposing of donated property:
- Premature disposal can cause a reduction in the amount of the donor’s charitable tax deduction. Hence, Development Policy and Administration or General Counsel should be consulted whenever disposition of a gift of tangible property is being considered within two years after the date of gift.
- Consideration should be given to whether consultation with the donor is needed to insure that relations with them will not be adversely affected by the proposed disposition.
- The Tax Reform Act of 1984 requires the University to file a Donee Information Return (Form 8282) with the Internal Revenue Service whenever it disposes of gifts valued in excess of $5,000 within two years of its receipt.