Finance 202: Gifts and Donations

Purpose

To provide departments with guidelines for the appropriate accounting and processing of gifts and donations

Reference

Board of Regent's Policy 05.14.00
UAA Office of Development

Statewide Accounting Manual P-83, P-91

Definitions

Real Property: Land, buildings, other capital improvements, and fixtures and major equipment items affixed thereto.Tangible Personal Property: Moveable equipment, vehicles, furniture, artwork, etc.

Policy

Cash Gifts

All cash gifts made to the University of Alaska or for the benefit of the University of Alaska, unless expressly prohibited by the donor, will be accepted, held, and managed by the University of Alaska Foundation. Cash gifts must be routed to the Office of Development for processing. This requirement ensures that:
  • The deposit conforms to BOR policy.
  • The deposit is accounted for in conformance with the donor’s request.
  • Federal regulations applicable to cash donations may be observed.
  • Appropriate records are maintained for reporting and future development activity.
Submit cash donations to the Office of Development with a Cash Gift Transmittal Form.
  • Attach the correspondence or other supporting documentation that explains the nature and purpose of the gift.
  • Provide a fair-market estimate of the value of any goods or services given to the donor in exchange for the gift.
  • Identify the account or endowment name established to receive the gift. Consult with Office of Development if you have questions about the appropriate treatment for the gift.
  • Provide the donor’s name, address and telephone number.
Non-monetary Gifts
The acceptance of non-monetary gifts, such as real property and tangible personal property must be cleared through the Office of Development. Because of liability considerations, only the University President is authorized to accept gifts of real estate. After acceptance and receipt, a non-monetary gift, with a value of $2,500 or more, must be reported to the Accounting Services Manager so that the gift information may be transmitted to the Statewide Financial Accounting Manager for entry in the financial records. The Accounting Services Manager will arrange for equipment tagging, if applicable.

The following information must be provided to the Accounting Services Manager:
  • Description of the contribution.
  • Organization number where it should be recorded.
  • Documentation of the gift’s appraisal or estimated value. It is the responsibility of the department head to provide an estimate of value or have an appraisal performed. The valuation method, whether formal or informal, should be recommended for approval by the department head.
The Associate Vice Chancellor for Budget and Finance must approve the valuation method.

Note: Information relating to the valuation of contributed material, whether obtained from independent parties or internally produce is for internal university use only. University representatives are specifically prohibited from conveying valuation information to donors, public or press. However, as a basis for valuations, the university may use copies of independently prepared appraisals obtained and made available by donors.

Effective: 07/10/2005