130.1 Acceptance of Gift in Kind Procedure

Acceptance of Gift in Kind Procedure
Procedure # 130.1
Rev.: 0
Effective Date: December 12, 2017

Download 130 .1 Acceptance of Gift in Kind Procedure (pdf)

Related Policy: Gift In Kind Policy
Functional Owner: Financial Information Management, Business Services
Contact: Gift Management Accountant, Gift Management Mailbox: giftmgt@bussvc.wisc.edu


Contents

I. Procedure Statement
II. Who is Affected by this Procedure
III. Procedure
IV. Contact Roles and Responsibilities
V. Definitions
VI. Related References
VII. Revisions


I. Procedure Statement

Gift in Kind (GIK) refers to a non-monetary donation received by the University, including tangible items, goods, and/or services. Examples of a GIK include, but are not limited to the following: vehicles, equipment, gift cards, supplies, artwork, books, etc.

It is the responsibility of UW-Madison Colleges, Schools, and Divisions/Departments to complete the Gift in Kind Routing Form, obtain approval from the Dean/Director/Divisional Business office, and send the form along with supporting documentation to the Division of Business Services, Accounting Services, Gift Management department prior to taking custody of the donation. After the form has been received, reviewed and approved by Gift Management, the Gift in Kind is reported to the University of Wisconsin System Board of Regents.

If the donor is interested in establishing the estimated value of the gift for tax donation reporting purposes, support for an estimated value of the item must be included with the Gift in Kind Routing Form. If valuation has not been sufficiently established, Gift Management may advise the recipient of further procedures to be followed when accepting the donated gift. For Gift in Kind donations that are valued at $5,000 or more, acceptable source documentation includes an appraisal of the item(s), inventory list, invoice, or a print out of a catalog or website page of the item.


II. Who is Affected by this Procedure

All UW-Madison employees accepting and/or receiving a Gift in Kind.


III. Procedure

The following steps represent the overall process of accepting a Gift in Kind. If the Gift in Kind is real property, please contact WFAA development personnel prior to beginning with step 1.

  1. A Gift in Kind Routing Form is to be completed by the department receiving the Gift in Kind prior to taking custody of the donation. Follow these steps when filling out the form:
    1. Enter Contact Information: This is the information for the employee completing the Gift in Kind Routing Form.
      1. Use the “Search/Change Contact” button to find and select your name. This information will auto-fill the Contact Information boxes.
    2. Enter Donor Information: This is the information about the Donor.
      1. Enter the Donor’s Name, City and State.
    3. Enter Gift Information: Provide details regarding the Gift in Kind.
      1. Description of Gift in Kind: Please provide a detailed description of the Gift in Kind item. This is the information that will be provided to the University of Wisconsin System Board of Regents.
      2. If the Gift in Kind is a vehicle or equipment and its estimated value is $5,000 or more, select the “yes” button and provide the following information, which will be shared with Property Control. If more than one piece of equipment is being included on the form, attach a list that includes all of the following for each piece:
        1. Name of Manufacturer
        2. Serial number
        3. Model number
        4. Building number (or location if NA) where the equipment will be located/stored
        5. Room where the equipment will be located/stored
        6. Estimated Value: This is the measurable and determinable fair market value at the anticipated receipt date of the Gift in Kind.
        7. Source of estimated value: Provide a copy of supporting documentation explaining how the value was derived. An acceptable form of supporting documentation is one of the following:
          • Third Party Appraisal
          • Itemized Inventory List
          • Invoice
          • Published Value of Gift (i.e. catalog or website print out)
    4. Enter Recipient Information: Identify who is responsible for receiving the Gift in Kind.
      1. Select the type of individual receiving the Gift in Kind (e.g. Faculty, Director, Chair or Dean) and permanent versus limited employment status.
      2. Enter the Name, Employee ID, email, phone number, and Department ID (the unit name will automatically populate based on the Department ID)
      3. Select the program code
      4. Enter the anticipated receipt date
    5. Answer questions related to informational clearances. Informational clearances consider the following:
      1. Action involving space, remodel, or construction.
        1. If answer is “yes,” Gift Management will provide the information to the Director of Financial Information Management. The information will be used for financial reporting requirements.
      2. Potential environmental impacts, which require review under the Wisconsin Environmental Policy Act.
        1. Visit the Wisconsin Environmental Policy website and consider the environmental impacts of the Gift in Kind.
      3. Funding primarily dedicated to building, renovations, or equipment.
        1. If answer is “yes,” Gift Management will provide the information to the Director of Financial Information Management. The information will be used for Financial Reporting requirements.
      4. Protocols for biosafety, use of human subject, use of vertebrate animals, or pluripotent stem cell.
        1. If the answer is “yes,” attach the applicable protocol approval documentation.
    6. Select “Print” and the Gift in Kind Routing Form will be created as a PDF.
  2. Obtain the required signatures on the Gift in Kind Routing Form.
    1. Recipient, Department, and Dean/Director/Divisional Business Office acknowledge that the gift has been reviewed for the considerations listed in the Gift in Kind policy.
  3. The department routes all supporting documentation with the Gift in Kind Routing Form to Gift Management. Supporting documentation should include the following:
    1. A completed Gift in Kind Routing Form with required signatures.
    2. A copy of the Donor Intent Letter or similar document.
    3. Documentation supporting the valuation of the Gift in Kind if the estimated value of the item is $5,000 or more. (e.g. Third party appraisal, invoice, inventory list, catalog or website print out)
    4. A copy of Tax Form 8283 if the Donor wishes to report the donation for tax purposes.
  4. Gift Management reviews all Gift in Kind Routing Forms and supporting documentation for compliance. Gift Management will contact the department and recipient if valuation has not been sufficiently established or documented. Additionally, Gift Management will advise if further procedures are necessary in accepting the Gift in Kind.
    1. If a Tax Form 8283 is provided with the Gift in Kind documentation, Gift Management will provide a copy of the form to the Tax Compliance Manager for review.
  5. Gift Management obtains remaining approvals as necessary:
    1. For a Gift in Kind under $5,000:
      1. Accounting Services, Director of Financial Information Management confirms the donation is compliant with the Gift in Kind policy.
    2. For a Gift in Kind $5,000 or greater (see the related Capital Equipment procedure 110.2 Gift in Kind):
      1. When necessary, Gift Management will request the Director of Risk Management to review the Gift in Kind to determine proper insurance protection and inventory control.
      2. When necessary, Gift Management will request assistance from the Office of Legal Affairs to review any terms and conditions of a Gift in Kind agreement required in accepting the donation.
      3. Accounting Services, Director of Financial Information Management confirms that the donation is compliant with the Gift in Kind policy.
  6. Gift Management notifies the department contact, recipient and Dean’s office via email that the Gift in Kind and supporting documentation complies with the policy and that the donation can be accepted. This applies to all Gift in Kind donations, no matter what the estimated value.
  7. The department takes physical custody of the Gift in Kind and sends a Gift in Kind Acknowledgement letter.
  8. The Department notifies Gift Management after the Gift in Kind is received and sends a copy of the Donor Acknowledgement letter to Gift Management.
  9. Gift Management records the Gift in Kind and generates a UW System Board of Regents Notice.
  10. Gift Management sends the Gift in Kind supporting documentation to the Wisconsin Foundation and Alumni Association (WFAA) for informational purposes and Donor tracking.

V. Definitions


VI. Related References


VII. Revisions

Procedure Number

130.1

Date Approved

December 12, 2017

Revision Dates