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FISCAL MANAGEMENT OPERATIONS GUIDE

Gift Receipt and Processing-Cash and Non-Cash

Gifts in the Form of Cash and Checks

Departments receiving gifts should deliver the cash, checks and appropriate supporting information to the Development Office for acceptance, account verification, recording and depositing according to established University and depository procedures. At the end of each business day processed gifts are brought to the Bursar's Office for deposit. In the event gifts are not fully processed and it is necessary to hold them in the office overnight, they are secured in a locked safe. All checks of $5,000 or more are photocopied immediately for processing purposes and the original check brought to the Bursar for deposit.

Non-Cash Gifts

This topic sets forth specific procedures applicable to the acceptance and administration of property, equipment, and gifts in kind received from outside donors or sponsors to support instructional, research, public service, or other recognized University functions or objectives.

Specific procedures are necessary to establish proper values of the gifts, maintain adequate control of such gifts, and acknowledge acceptance to the donor.

Securities

All gifts of stock must be processed through the University of Texas Office of Estates and Trusts. Stocks are sold immediately and funds secured are deposited into a restricted account for the benefit of UTSA or the appropriate department of unit.

The value of the stock gift is determined by taking the average of the high and low sale prices of the stock on the day it is received by the Office of Estates and Trusts.

Gifts In Kind

Only the Development Office may accept gifts and gifts in kind to be used by the University. In the case of gifts in kind, agreement to accept the gift must be at the departmental level, with approval from the appropriate dean, but they must be reported to the Development Office for acknowledgment and gift recording purposes. To report these gifts properly, the department should complete and process a Gift Processing Form. Gift Processing Forms may be obtained by contacting the Office of Development at 458-5161. Any gift that will require University expenditures for maintenance, upkeep and repair must be approved in writing by the appropriate dean, department head or director except as noted below.

Gifts of land or buildings may only be accepted with prior written approval from the University of Texas System Office of Real Estate.

It is important for the donor of a noneducational gift in kind to the University to understand the item may be sold as soon as possible, and the University will file with the Internal Revenue Service any report required by law to be submitted in regard to the sale (gifts valued over $5,000).

Determination of Value

Amounts reported for gifts should be determined without regard to the donor's personal estimate of the gift's value. Gifts of real and personal property should be reported at fair market value. Guidelines for determining and reporting this value are as follows:

1. Small gifts of personal property with a value of $5,000 or less can be valued by a staff member of the University with expertise in establishing proper market value. A signed written document establishing the value must be approved by the department head and attached to the Gift Processing Form.
2. Real and personal property greater than $5,000, must have its value established using the following criteria:
   1. Gifts in kind are normally given to the University with the consideration of taking a deduction on a federal or state tax return. If a tax deduction is to be taken and a value is to be acknowledged to the donor, it is the responsibility of the donor to obtain an independent third party appraisal of the gift. Before a gift in kind can be accepted by the University and the value of the gift recorded, a signed IRS form 8283 must be completed by a registered appraiser and signed by a University Institutional Advancement Officer. For gifts to the University to qualify for a tax deduction, the gift must be for the exclusive use of and under the control of the University.
   2. In some instances, gifts with a market value exceeding $5,000 are given to the University with no intent of taking a deduction on a federal or state income tax return. It will then be the responsibility of a staff member of the University with some expertise in establishing a proper market value to determine the fair market value. Before the gift in kind will be recorded by the Development Office, approval of the value by the Vice President for Business Affairs, or their designee will be required. The value established should be for internal purposes only. Acknowledgment to the donor should not include an estimated value.

Recording of Gifts In Kind

The Development Office should be notified immediately upon learning that a gift in kind to the University or an area of the University is being considered by a donor.

After the value of the gift has been properly established and recorded on the donors gift record, the Development Office will forward the established value of the gift to the Office of Accounting and to the appropriate department. The Office of Accounting will record the gift in kind in DEFINE.

All entries of gifts in kind meeting the University equipment definition will be recorded in the Property Inventory System at the value recorded on the DEFINE System.