8.12, Gifts

8.12 Gifts

last updated: 03/09/2007

Purpose:	To provide guidelines for soliciting, reviewing, accepting, and acknowledging gifts.
Related Policies:	8.13, Endowment and Investment Policies 8.33, University Development Fund Policy
Policy Owner:	University of Arizona Development Office

Development Office - General Guidelines and Policies| Procedures for Soliciting Gifts
Reviewing and Accepting Gifts| Gift Types, Terms And Definitions
Reporting Gifts| Processing Gifts| Acknowledging Gifts

Development Office - General Guidelines and Policies

The Development Office was established in July 1978, to administer the University's fundraising activities and to accept and manage all gifts to the University. The University of Arizona Foundation, a private, nonprofit Arizona corporation, contracts annually with the University to manage the Development Office. The President of the University of Arizona Foundation fills the position of Director of the Development Office.
The Development Office is responsible for the relationships the University has with its donors. It initiates, coordinates, and sustains these relationships. It is in the context of maintaining donor relationships that the Development Office has the authority to approve all fundraising activities undertaken by and on behalf of the University. Final approval in this, and on all matters pertaining to the University of Arizona, remains with the President of the University.
The Development Office oversees fundraising programs and activities through its components as follows:
1. Annual Fund Office: Conducts various annual solicitations, including a telephone solicitation program, to benefit the University and its various colleges, departments and administrative units.
2. Corporate and Foundation Relations Office: This office coordinates all gift solicitations to corporations and foundations.
3. Development Officers: Fundraisers, titled Development Officers, are assigned to colleges or other selected administrative units. They collaborate with their respective college's or administrative unit's faculty members and administrators to cultivate donors, solicit gifts, prepare fundraising materials, conduct fundraising events and establish networks of private support.
4. Information Services: This group provides the foundational information required for effective fundraising and institutional advancement.
  
  The Alumni Records Office maintains accurate records concerning demographic information about former students of the University. This office also maintains historic information about student involvement while attending the University.
  The Development Research Office conducts information gathering largely from outside sources regarding the capacity and inclination of potential philanthropists. It maintains a library of philanthropy-related publications and periodicals.
  The Central Gifts Office records and receipts all gifts to the University. It maintains a historical database of all such gifts. The Central Gifts Office is also the primary contact for questions related to gift processing.
1. Planned Giving Office: This office maintains relationships with persons who have made gifts to the University through wills, living trusts, charitable gift annuities, charitable remainder trusts, charitable lead trusts, and life insurance policies. It collaborates with professional advisors of persons interested in making such gifts. It receipts all estate gifts whether to the University or the Foundation. It also administers charitable gift annuities and charitable trusts for the University of Arizona Foundation and administers gifts of life insurance policies.
2. Scholarship Development Office: Coordinates and assists in solicitation for existing scholarships and for the establishment of new scholarships and fellowships for the University.

The Development Office is not responsible for student-run fundraising events, sponsored projects, or contractual grants. Sponsored Project Services coordinates sponsored projects and contractual grants.
The Development Office has the responsibility for officially accepting and acknowledging all contributions offered to the University.
Procedures for Soliciting Gifts
These procedures have been designed to assure fair and orderly solicitation efforts on behalf of the University of Arizona. These procedures must be followed when soliciting or publicizing a contribution to or on behalf of the University or one of its components.

Before contacting a prospective donor, first consult with the dean or equivalent division administrator and the college or administrative unit development officer, if any. This will avoid conflicts with other development plans involving the donor. Do not contact the prospective donor before you obtain approval for the solicitation. Donor-initiated contact cannot, of course, be cleared ahead of time.
After obtaining approval by the college or administrative unit, notify: Office of the President, University of Arizona Foundation, PO Box 210109, Tucson, AZ 85721-0109. The memo must state the following:

Name of individual, corporation or foundation
Purpose of solicitation
Amount to be solicited
Approximate date of solicitation
Changing circumstances may result in the Development Office withdrawing or reassigning permission to solicit a particular donor.
Submit all development-related publications and solicitation materials at the first-draft stage to:
who will review the publication's content for compliance with requirements or restrictions imposed by the University of Arizona, the State of Arizona, and the Internal Revenue Service.
Coordinate all publicity about gifts and donors with the Communications and Public Affairs Office of the University of Arizona Foundation and with the University Office of Public Information.

Major vendor contracts may contain a gift element. To protect the vendor's tax deduction and allow for proper coordination, clearance, acknowledgment and stewardship, vendor contracts require consultation with the Development Office before the contract can be officially accepted and signed by the University.
Solicitation for gifts intended to underwrite special events in excess of $5,000 must be coordinated through the Development Office to avoid jeopardizing future larger gifts.

Reviewing and Accepting Gifts

What is a gift: A gift is defined as a voluntary transfer of items of value from a person or organization where no material amount of goods or services are expected, implied or provided to the donor. Gifts normally take the form of cash, checks, securities, real property, or personal property and may be restricted or unrestricted to a general area of use that benefits the University or one of its components. Once the University has accepted the gift, it becomes University property, and the donor has no direct decision-making power regarding the gift.
A gift will generally exhibit the following criteria:
1. A gift is motivated by charitable intent.
2. Gifts are irrevocable, and the University is not expected to return all or part of the gift. In the event the University is unable to comply with donor intent, or if the gift was directed to the University in error, a return of the gift may be issued at the University's discretion. Approvals for such returns are made by the Assistant Vice President for Financial Services of the University or designee, in consultation with the University Director of Development.
3. Formal financial accounting is not required, though a gift agreement or best practices may require the recipient unit report on expended funds and balances as well as provide stewardship reports to the donor that share evaluation information about the project, explain how the gift was used, and/or describe the impact of the gift.

What is not a gift: A sponsored contract, sometimes called a grant or a contract, is not a gift. It is a payment to the University for a specific project that binds the University to a specific scope or area of work. There is always a signed, legally enforceable document involved.

If the document includes the following attributes, it is probably a contract and not a gift:

The source of the payment is a government agency.
Deliverables with substantial return benefit are defined and required by agreement. (Substantial return benefit is a quid pro quo, something of non-incidental monetary value provided in exchange for an award or payment. Examples of deliverables with substantial return benefit include a product, intellectual property rights, or a formal technical report or training program primarily benefiting the sponsor.)
Primary benefits are to the sponsor.
Patent rights or copyrights belong to the sponsor.
Punitive damages can be assessed.
A requirement for detailed financial and other record retention or a provision for an audit.
There is a limitation on the use or publication of project data beyond the donor simply wanting recognition for the gift.
A requirement for disposition of property, whether tangible or intangible that may result from the project (equipment, inventions, copyrights, etc.)
Authority over the project resides with the sponsor rather than with the University.
Unused funds must be returned.

Gift or Sponsored Project Indicators

In some cases, particularly where funding is provided by a non-profit entity, it may be difficult to distinguish between a gift and a sponsored project.

If, after reviewing definitions and considering the intent of the source of funding and nature of the agreement in question, there remains a question about the proper classification of an award, the following list of indicators may be helpful. This collection of indicators should be viewed as a continuum. Placement toward one side or the other, taken together with the analysis of the source of funds and the terms of the agreement, should help to classify questionable awards. Click here for Gift or Sponsored Project Indicator form that you can check off and print.

GIFTS	SPONSORED PROJECTS
For a general or specific purpose, e.g., endowment, capital projects, line of research, faculty support or student financial aid		For a specific statement of work, e.g., specified protocol, experiments, testing of hypotheses, particular line of inquiry
May be for any activity at the university, e.g., department, library, arts, scholarship, facilities, research/instruction activities, etc		Usually for a specified research project but may be for instruction, other sponsored activity
The project does not include research risk items.*		Project scope of work includes research risk items that require compliance monitoring, including, but not limited to: human subjects, vertebrate animals, rDNA/microbial pathogens, conflict of interest, etc.
Few, if any, deliverables (other than reports as noted below, and use of funds as requested and awarded)		Deliverables defined by agreement, e.g., reports, research results, IP rights, equipment, etc., and funds may be withheld pending delivery
Publication attribution may be encouraged or agreement may be silent on attribution		Publication attribution required, usually with credit to sponsor
Proposal may be informal or formal and detailed		Sponsor requires formal and detailed proposal and/or contractual agreement
Often require only general stewardship and communication as a courtesy to donor, e.g., progress reports, reports of expended funds and balance		May require detailed financial and other reports, e.g., scientific reports, invention reports, financial reports on sponsor-specified format, may include the right of sponsor to audit
Typically no requirement for return of unexpended funds		Budgets and project period may lead to unexpended funds that must be returned if no approval to carry forward or extend project
No required pre-approvals for expenditures		Certain expenditures may require prior written approval by sponsor
Some gifts may be combined into one fund (if for the same purpose)		Must be separately budgeted and accounted for
Qualifies for tax treatment as charitable contribution by donor		May qualify for basic research tax credit for sponsor
No obligation or agreement to share data with donor; donor willing to sign gift agreement relinquishing intellectual property and data rights to University. Donor may request progress reports as noted above.		Donor expects access to data, primary records, or has ability to audit data collection

*Research Risks: If the agreement is determined to be a gift (by use of the provided Gift or Sponsored Project Indicators Chart or decision of the Department, Development Office, and Sponsored Projects Services), but contains research risk item(s), the faculty member and department are responsible for maintaining compliance in conjunction with institutional policies. Automatic notices for research risk items are not generated for gifts.

Who Can Accept A Gift: Only the President of the University, the Director of the Development Office or their designees, can accept a gift to the University of Arizona. The acceptance procedure is formalized by the presentation of an official gift receipt. Gifts not processed according to these procedures will not be construed as accepted by the University.
Gifts should not be accepted if any of the following circumstances exist:

The gift is in contravention of applicable Federal State laws, or Board of Regents or University policies.
The gift would obligate the University to undertake duties, financial or otherwise, which it may not be fully capable of meeting for a period required by the terms and conditions of the gifts.
The gift constitutes a request to the University to operate a commercial endeavor for the sole benefit of the donor.
The gift cannot be properly administered within the intended recipient's normal budget or resources (for example, in the case of the requirement for matching funds or resources).
The gift presents an unreasonable or unacceptable degree of risk due to environmental or health/safety issues.

The University Development Fund: Gifts made subsequent to June 30, 2005 are subject to the provisions articulated in the University Development Fund Policy.
Gift or Sponsored Project Determination Process: The following steps should be taken when making a determination of gift or sponsored project. Decision-makers will collaborate with each other, resulting in an objective determination .

Level One - The unit makes initial determination based on Gift or Sponsored Project Indicators Chart.

Level Two - The decision is reviewed by either Sponsored Projects Services or the Development Office, whichever is applicable based on the initial unit determination. Either office may require additional information. If the relevant office concurs with the initial decision, no further action is taken and the original decision stands.

Level Three - In those cases where the initial decision is questioned or it is more difficult to make the call, Sponsored Projects Services and the Development Office will review the information jointly, make a decision, and notify all parties of the resolution.

Level Four In cases that are particularly difficult to resolve, the Vice President for Research and the President of The University of Arizona Foundation will review the information jointly and make a decision.

Gift Types, Terms And Definitions

Auctions: Points to consider when holding an auction:
1. Only the difference between the fair market value of the item and the purchase price may be counted as a gift. For example, a piece of artwork valued at $100.00 is purchased for $250.00. The amount considered a gift would be $150.00.
2. If the auction item has been donated, the item needs to be reported as a non-cash gift, and the donor acknowledged (see Non-Cash Gifts).
3. Each purchaser of an auction item must fill out a Receipt For Auction Purchase form. Attach the receipt to the GRDDF and forward to the Central Gifts Office.

Bequests or Deferred Gifts: Bequests are gifts made through a donor's will, living trust, or estate plan. Deferred gifts are gifts conveyed to the University of Arizona at some later date or in such a way that the donor receives lifetime income such as charitable gift annuities, life income, annuities or remainder trusts, etc. Bequests and deferred gifts must be reported to the University of Arizona Foundation Office of Planned Giving as soon as notice of such a gift or the intent of such a gift is received, to ensure all applicable statutes, policies and regulations are followed.
Conference Support Gifts: Generally, conferences and symposia are budgeted projects which would typically have all expenses related to the event covered by the University or one of its units. The University welcomes contributions from private sources to support such events with the following stipulations:
1. As with all gifts, the donor must have a charitable intent when donating to underwrite the activity. Sponsored Projects Services Office must be contacted if it appears that the donor is 'purchasing' the services of the University or is receiving benefits not commensurate with a charitable contribution.
2. If the donor (or in the case of organizations, the representative of the donor) is planning on attending the event, any applicable registration fees must be paid separately, in addition to the gift, or the amount of the gift must be reduced by the price of admission (see Quid Pro Quo Gifts).
3. It is the responsibility of the department sponsoring the event to ensure that the distinction is clearly explained to the donor.

Determining the Donor: Under the vast majority of cases, the person or organizations whose name appears on the face of the check shall be considered the legal donor of a gift. For gifts of securities and real property, the person or organization in whose name that property was registered is considered the donor. Exceptions are cashiers checks and money orders, which are provided by banks to their customers as a convenience. In this case, the person or organization on whose behalf the cashier's check or money order is drawn is considered the donor (see Honoraria as Gifts). If you are uncertain about whom the proper donor is, please contact the Central Gifts Office for assistance.
Common examples of when it may be difficult to determine the donor are listed below:
1. A donor maintains a fund with a community foundation (e.g., Community Foundation for Southern Arizona) or a charitable gift fund (e.g., Fidelity Charitable Gift Fund) directs the foundation or fund to issue a check to the University of Arizona or one of its units. The community foundation or charitable gift fund, not the individual, is the legal donor, although the individual may and probably should receive 'soft credit' for the gift. (see Soft Credit Donations). Please note: As per IRS regulations, funds distributed from a third-party charitable organization may not be used to satisfy a personal pledge obligation.
2. Several people pool their money, giving that money to a person who writes a check as a charitable contribution. In this case, the legal donor is the person who wrote the check, not the people who provided the money.
3. Someone gives money to an organization that collects money for dispersal to other charities, designating that the funds be given to the University or one of its divisions. The legal donor is the organization, not the individual, although 'soft credit' would also be called for in this instance.
4. A pledge is made under an individual's name, but the pledge payment is paid with a business check. The tax receipt will be issued in the name of the business, not the individual. Please note: This payment from the business may not legally be applied against the personal pledge obligation, unless the business is specifically a party to the original and accepted pledge.
5. Priority seating rights for athletic events are held by Mr. D., who allows his friend Mr. Y to pay attendance fees and contributions associated with priority seating charges. The tax receipt for the contribution portion will be sent to Mr. Y, who actually issued the check.

Donor Clubs: Donor clubs are defined as giving categories established at department, college or University level to recognize donors who contribute amounts within predetermined ranges. The giving level attained from any pledge or bequest will be determined or negotiated by the Director of the Development Office and communicated to the administrative unit and the Office of Student Financial Aid in the case of a scholarship to support the education of students.

Endowments: Simply stated, an endowment is a special fund whereby the principal is held for investment and the interest earned on the principal is spent as directed by the donor. There are only two authorized repositories for endowment gifts: the University of Arizona and the University of Arizona Foundation. Endowment gifts are subject to the provisions of the University Development Fund Policy and 8.13, Endowment and Investment Policies.

Types of Endowments:

Endowments are classified as permanent, quasi, or term endowments. Funds can be either restricted or unrestricted within each of these classifications. Restricted endowment funds are funds for which the donor specifies how the endowed income will be used. Unrestricted endowment funds are funds for which the annual earnings are used at the discretion of the President of the University.

Permanent (True) Endowments: Donor specifies principal is to be invested and maintained in perpetuity; only the income distributions may be expended.

Special classifications for permanent endowments include the following:

Position Minimum Funding Level Description

Endowed Chair $1,000,000
Pays all or part of chairholder's salary; research, equipment and publication expenses; fellowships and assistantships.

Distinguished Visiting Professorship $750,000
Serves as a salary supplement to draw distinguished visiting faculty in a particular field for one or more semesters.

Distinguished Professorship $500,000 Provides supplementary salary or program support for a faculty member; may also provide research funding or cover other expenses related to the professorship.

Distinguished Fellowship $300,000 Provides one or more fellowships or funding to support fellowship equipment, space or other related requirements.

Research Fellowship $150,000 Provides funding to support equipment, space or related expenses.

Quasi Endowments: Quasi endowment funds are funds functioning as an endowment that are established by the institution from either donor or institutional funds, and will be retained and invested rather than expended. The quasi endowment must retain the purpose and intent as specified by the donor or source of the original funds, and earnings may be expended only for those purposes. Since quasi endowments are established by the institution rather than by an external source, the principal may be expended as stipulated by the donor.
Term Endowments: Similar to permanent endowment funds except after the expiration of a stated period of time or occurrence of a specified event, all or part of the principal may be expended.

Fair Market Value: This is the value attached to any benefit given to a donor in exchange for his or her contribution. Any item representing more than a token fair market value, as defined by IRS policies, must be deducted from the total donor contribution to determine the tax deductible amount of the gift. An example would be a dinner for which attendance is priced at $50. If the value of the dinner were $15, the donor's tax deductible portion of the $50.00 attendance charge would be reduced by $15.00. Please note there is a distinct difference between the cost of an item and the fair market value (see Quid Pro Quo Gifts).
Fellowships: Fellowships may include stipends and awards for tuition, books and for research-related expenses usually for graduate students. Fellowships must be supported by an endowed fund of $150,000 to $300,000 or by commitments for annual donations totaling the required support level over a period of ten or more years.
Gifts made by University employees to the University: While the University of Arizona appreciates charitable financial support of its faculty members and staff, care must be taken to ensure that such support follows all restrictions and requirements of the University, the Arizona Board of Regents, the State of Arizona and the Internal Revenue Service. Internal Revenue Code section 170 allows a donor to receive a tax deduction for charitable contributions (gifts) made during the year to qualified organizations such as the University of Arizona. Deductibility is ascertained by donor intent. Generally, contributions made by University employees to the University are tax deductible if they are made with a "detached and disinterested" generosity. Permitting a donor to manage funds to which he or she has contributed increases the possibility of expenditures for personal gain, which might invalidate the qualified tax deduction of a charitable gift.
A faculty or staff member who wishes to contribute to a gift account from which they may benefit must submit a letter stating the following:
1. the gift account is for general purposes of the unit and is not specifically related to the donor's research or other work,
2. the funds from the gift account are dispensed impartially and the donor is not a signer on the account, and
3. the sum of the gifts from the donor, his or her immediate family and/or other related entities do not constitute the majority of funds in the account.
This letter must be signed and dated by the faculty or staff donor, approved, in writing, by the responsible Dean or Department Head, attached to the Gift Report and forwarded to the Central Gifts Office. The Central Gifts Office will forward the letter to the appropriate fund accountant at Sponsored Projects Services Office.
Honoraria as Gifts: Honoraria are defined under IRS policy as payments for services rendered by the speaker and/or consultant and are reportable as income to that speaker or consultant for personal income tax purposes. Whereas in many cases the organization paying the honorarium makes the check payable to the University of Arizona or one of its units, the honorarium still represents a payment for services rendered and is considered income to the speaker/consultant.
Faculty or staff members who receive honoraria are welcome to donate these payments to the University, and he or she will benefit from the charitable deduction as a result. In this special case only, the honorarium is appropriately recorded as a gift from the faculty/staff member, not the organization issuing the check.
Internships: Internships are established from funds given to the University of Arizona academic departments by agencies, corporations or businesses to support student interns. When a donor and the University of Arizona have agreed, the University will administer internship funds.
Memorial Gifts: Memorial gifts are made in memory of an individual. The donation can be designated to a variety of purposes, including, but not limited to, scholarships, research and academic support. A memorial gift may also be unrestricted in nature. Memorial gifts cannot be used to establish a named endowment unless the sum total of gifts received reaches or exceeds $10,000.
Non-Cash and In-Kind Gifts:
1. Non-Cash gifts are non-monetary assets or property, where the donor has agreed that the asset should be converted to cash for the benefit of the University. They include: stocks and securities; real estate; and other items requiring more than nominal effort to convert into cash. With the exception of stocks and securities, and in accordance with IRS regulations, the donor is responsible for determining the value of non-cash gifts. Donors should establish the fair market value of the gift with a recognized independent appraiser. A qualified appraisal dated no more than 60 days prior to the date of the contribution is required by the IRS to substantiate a donor’s charitable deduction for non-cash gifts. University personnel are not qualified appraisers, and federal regulations do not permit the University to give appraisals or estimates of value (see Gifts Other Than Monies).
2. In-Kind Gifts: These gifts are a subset of non-cash gifts, where the offered asset or property shall be used as presented. Specifically these gifts could include computer hardware and software, analytical equipment, agricultural equipment, vehicles, library archive collections, musical instruments, and any material that the University would otherwise need to purchase. In-kind gifts allow donors to receive the benefit of a charitable deduction without drawing on their cash reserves or investments. The donor of an in-kind gift must also provide an independent appraisal as for non-cash gifts. Generally, the donor of an in-kind gift may claim a charitable deduction for the fair market value of the gift if it is accepted for the University’s exempt purposes. Donors should consult their own tax advisors when considering in-kind gifts (see Gifts Other Than Monies).
Official Receipt Date: The date of the gift is usually the day it is placed in the hands of an official University of Arizona representative or the date title or ownership interests transfer to the name of the University.
Pledges: A pledge is a donor's promise to give money or other property at some specific time in the future. Whenever possible, a pledge letter or form should be obtained which states the donor's promise to give. The pledge letter or completed Pledge Form should be forwarded to the Office of the President of the UA Foundation. The following information must be included to substantiate a pledge:
1. The amount of the pledge must be clearly stated.
2. There must be a defined payment schedule.
3. The evidence of the pledge should contain such language as "promise," "agree," "will," "binding," or "legal." It should not contain words such as "intend," "plan," "hope," or "may."
Quid Pro Quo Gifts:A quid pro quo donation is one in which the donor's payment is made partly as a contribution, partly in payment of goods received. An example would be a contribution of $50 required to attend a dinner, $15 of which covers the value of the dinner (see Fair Market Value).
Raffles: The price of entering a raffle is a purchase and is not considered a gift. All raffle tickets must state clearly on the ticket that this purchase is not tax-deductible to conform with IRS regulations.
Responsibilities For Gift Monies: Acceptance of any gift signifies the University of Arizona's willingness to administer gift funds in compliance with donor directions. Responsibility of initial acceptance lies with the Development Office. Responsibility of further monitoring of gift funds for compliance lies with the department or division head.
Restricted Gifts: Restricted gifts are received with the stipulation that the contribution be used for a specific purpose such as faculty recruitment, equipment purchases, student financial assistance or research other than for contract research purposes. Gifts may also be restricted to support the research of a specific individual. While the funds may be unrestricted to Dr. X, from the University's point of view these funds are restricted since they may only be used to support the research of Dr. X. This type of gift is still a gift to the University and not the property of the individual (see Transfer of UA Gift Funds).
Scholarship Gifts: Scholarship gifts support the education of students. Scholarships are awarded through the Office of Student Financial Aid according to criteria approved by the OSFA and the donor(s). Some scholarships are endowed; others are supported by annual donations. Payments from individuals or organizations for scholarships to specific students are not gifts or tax-deductible according to IRS regulations. These transactions are known as “pass-through” scholarships as the student may elect to take this scholarship to any institution; the gift has not been made solely for the benefit of the University of Arizona.
"Soft Credit" Donations: Soft credit allows the University to acknowledge the efforts of persons other than the legal donor, who were instrumental in providing the gift, while not compromising the University's legal obligation to record and receipt the gift correctly. While these important people should be thanked, care must be taken to ensure the acknowledgment clearly states the legal donor (see Determining the Donor).
Student Loan Funds: Student loan funds are donor-established funds that are loaned to students and administered by the University. The funds are repaid to the University, or designated third party, by the students who accepted the loan. The Office of Student Financial Aid makes loan awards, as with scholarships. Since loan funds require collection efforts by the University of Arizona, the acceptance of such funds, including terms and conditions, require the approval of the Assistant Vice President for Financial Services of the University or his/her designee.
Transfers of UA Gift Funds: The University of Arizona will not normally initiate a transfer of UA gift funds to another institution. The UA considers all gifts to be irrevocable. The University accepts gifts for specific areas or departments, or to support specific research and/or projects under the direction of specific individuals, but does not accept gifts given to individuals.
Reporting Gifts
Prepare a Gift Report: All gifts to the University of cash, check, securities, insurance policies, letters, and legal documents must be reported to the Central Gifts Office. You must complete the online Gift Report/Distribution of Deposit form (GRDDF). The GRDDF combines the gift report (GR) and the distribution of deposit form (DDF) into one electronic form that must be printed and signed (see GRDDF Instructions). If the gift is greater than $5,000, you must choose a financing option (see University Development Fund Policy). Attach all documentation to the GRDDF pertaining to the gift and forward to the Central Gifts Office at 1111 N. Cherry, Room 100 for acknowledgement and processing. If the gift is for an affiliated entity, forward the gift immediately to that entity upon receipt. If the gift is for the University of Arizona Foundation, complete the online GRDDF.
Gifts of monies: Complete the online Gift Report/Distribution of Deposit form.
1. If the gift is a check, photocopy the front and back and stamp the check with a restrictive endorsement stamp for deposit only to the University of Arizona. If the FRS gift account is not known, contact the Central Gifts Office to obtain a gift clearing account number.
2. If the gift is cash, complete a Gift Report/Distribution of Deposit form and deposit the cash immediately in the Bursar's Office. If the FRS gift account is not known, contact the Central Gifts Office to obtain a gift clearing account number. The Bursar's Office has a night depository available 24 hours daily for depositing funds. If a department does not have the security required to maintain cash overnight, the funds must be deposited at the night depository. Please Note: The Central Gifts Office cannot accept cash.
3. The departmental development officer, or if the department does not have a development officer, another departmental employee should deliver the gift (for example, the check or stocks), six copies of the GRDDF (if the department deposited cash at the Bursars, attach the department copy of the DDF) and the originals of all supporting documentation to the Central Gifts Office. The Office will deposit the funds at the Bursar's Office.
  All gifts should be delivered to Central Gifts Office on the day received by the department's development officer or other department employee, as appropriate. Do not send checks or cash through campus mail.
4. Once the gift is accepted, it is acknowledged and receipted by the Central Gifts Office.

Gifts Other than Monies: The following documentation must accompany the GRDDF.
1. A written offer of gift from the donor stating any restrictions.
2. The donor's address and phone number.
3. The donor's representation of value. The UA cannot and will not provide valuations of property gifts for donors; the donor is generally required to obtain an independent appraisal for items valued over $5,000 for income tax purposes (see Non-Cash Gifts).
  IMPORTANT: The estimate is for internal use only. Do not confirm this value in any acknowledgment to the donor.
4. A memo evaluating the departmental use of the property in educational or research functions may be substituted if it is impossible to obtain a written offer of gift from the donor. The memo should also provide a brief description of how the department obtained the gift.
Gifts of Stocks or Bonds: Before preparing a GRDDF, the department should do the following:
1. If the department receives security certificates directly from the donor, hand deliver the certificates to the Central Gifts Office immediately. The Central Gifts Office will hand deliver the certificates to the Investment Office for verification.
2. If the department receives inquiry from a donor about gifts of stocks or bonds, request that the donor have his or her broker contact the Investment Office, Financial Services Office, telephone: 520-621-9207, or fax: 520-621-3048, to expedite the transfer of the stocks or bonds.
3. The Investment Office will immediately provide the donor's broker with instructions on how to transfer the shares to the "Arizona Board of Regents on behalf of the University of Arizona's" trust or custodial account.
4. The Investment Office will notify the bank to expect and accept the gifted shares as a "free delivery."
5. Upon verification that the gifted shares were received in the "ABOR/UA" account, a copy of the verification will be forwarded by the Investment Office to the Central Gifts Office and to the department.
6. Once verification has been received, the department will prepare a GRDDF, attach documentation as outlined in Gifts Other than Monies and forward to the Central Gifts Office.
Gifts of equipment accompanied by a contractual gift agreement must have that agreement signed by the Contracting Office. Please Note: The benefiting unit, department, or college cannot sign such an agreement on behalf of the University. Examples of this type of gift include computer software, computer hardware, and machinery.
To ensure that the University is not subjected to unreasonable risk or liability due to an environmental or health/safety hazard, prior to acceptance, Risk Management will review and approve:
1. Real estate for the presence and condition of asbestos-containing materials, PCB containing electrical equipment, potential for exposure to radioactive materials, evidence of past chemical-related activities and associated contamination resulting from those activities and fire, structural or electrical hazard. Gifts of Real Estate must also be approved by Real Estate Administration and the Financial Services Office.
2. Collection items with a declared value greater than $5,000 (for example, art, photos, archeological), chemical products, compressed gases, reagents, building materials, heavy equipment, electrical equipment, transformers, capacitors, vehicles, aircraft, or watercraft for the presence of hazardous materials, controlled substances, and toxic chemicals.
Risk Management will review the proposed gift for specific criteria and will recommend to the Central Gifts Office whether or not the gift should be accepted.
All non-cash gifts are reviewed by the Director of the Development Office (or designee) to determine whether the gift will be accepted. If the gift will not be accepted, the Central Gifts Office will notify the department. If the gift is accepted, it will be acknowledged. When applicable, the department should arrange for delivery or pickup of the property. If the UA disposes of a non-cash gift within two years, the Financial Services Office prepares IRS Form 8282 per IRS requirements.
Processing Gifts
The Central Gifts Office will review the GRDDF and the accompanying documentation for:
1. Completeness of forms and documentation
2. Appropriate classification of the gift
3. Appropriateness of account number receiving the gift
4. Compliance with the Gift Policy
If, after reviewing the GRDDF and supporting documentation provided with the funds, the Central Gifts Office determines that the funds do not meet the requirements of the Gift Policy, the Central Gifts Office will:
1. Deposit the funds into a clearing account and forward the Gift Report and all supporting documentation to the Financial Services or Sponsored Projects Office, as appropriate, for resolution.
2. Inform the originating department and the department's development officer, if any, of how the funds will be handled.
3. Dispose of the funds in accordance with University policy.
Fund accountants review the Gift Report and the documentation received from the Central Gifts Office for correctness, create new accounts if necessary and notify the Central Gifts Office of the new account number. They also notify the Central Gifts Office and the department of any changes to the Gift Report and any other pertinent changes, corrections or adjustments to the gift information or documentation.
When the gift is accepted, the Central Gifts Office will stamp "RECEIVED - Central Gifts" on the GRDDF. Gifts are logged daily and reconciled to a deposit report provided by the Bursar's Office.

Acknowledging Gifts
All gifts must be acknowledged with a letter and/or an official gift receipt. The Central Gifts Office is the only University agency authorized to provide official gift receipts to donors.
The Central Gifts Office prepares the official gift receipt and, when applicable, an IRS Form 8283 and mails them to the donor.
All received gifts are posted to the Gift Income Web Page(GIWP), which is jointly administered by the Development and Financial Services Offices. Access to the GIWP is provided to authorized individuals who are typically development officers or business managers. It is strongly suggested that GIWP users also acknowledge gifts made to their units. The Development Office will work with units receiving gifts to develop appropriate acknowledgement letters, which abide by IRS and University procedures. For more information about the GIWP, contact the Office of Information Services at the UA Foundation, 621-9028.

FRS Departmental Manual ·FSO Homepage ·UAInfo ·8 Cash & Noncash Receipts
maintained by: Mike Treiber
last reviewed: 4/22/06