Procedure 2-8

Gifts to the University

Responsible Officer: Vice President for Business Affairs and Controller

Sponsoring Department: Accounting Services

Revision Date: 24 August 2015

Errors or changes to:

  1. Responsibility

    The Vice President for Development is delegated as the agent of the University to receive all gifts to the University. This includes the responsibility of maintaining all the gift records and acknowledging every gift we receive according to IRS, Board of Regents, UTS138, Gift Acceptance Procedures, and UTA regulations, policies and procedures. Therefore, all gifts received by the University - check, cash, credit card or non-cash gifts (called gift-in-kind) - must be processed through the Development Office.

  2. Processing

    Immediately upon receipt of a gift, the college/school/unit receiving the gift should complete a Gift Records Form (Form 20-1). For each gift, send the completed Gift Records Form (Form 20-1), the gift (cash, check, credit card or gift-in-kind documentation) and all other correspondence or document relating to the gift to the Development Office. In addition, "real cash" gifts require the blue copy of the cash receipt from the department; see Cash and Check Handling (Procedure 2-14). The Development Office will record the gift in the donor record, deposit the gift in the appropriate departmental cost center, and receipt the donor per IRS regulations. The documents are then filed and maintained by the Development Office.

  3. Supporting Documentation for Cash Type Gifts

    The department receiving the gift will copy the Gift Records Form (Form 20-1), the check and other documentation for their records. The Development Office will send a monthly report to the department to identify the deposit for reconciliation of the Cost Center Statement. No hard copies of documents will be returned to the departments.

  4. Special Instructions

    1. Gifts-in-kind
      • Gifts-in-kind are non-cash gifts that can be put to immediate use or immediately converted to cash. With the completed Gift Records Form (Form 20-1), send a document from the donor (letter, email, itemized list) detailing the gift and its value (fair market value). If multiple items are received, an itemized list with a value assigned to each item must also be included. If the value of the gift-in-kind exceeds $1,000 or if it is computer equipment valued at $500 or more, the Capital Asset Management Department will be notified.
      • Regarding the receipting of gifts-in-kind, The UT System's Gift Acceptance Procedures and IRS Publication 1771 advise that the recipient (UTA) should not send any acknowledgment indicating the dollar value of a gift-in-kind to the donor. This includes making monetary value statements in letters from the President and other thankful parties at UTA. It is the donor's responsibility to report accurately to the IRS, and UTA staff are not qualified to be appraisers of the many and varied items we receive each year. Therefore, all IRS receipts for gifts-in-kind will state the item given and not the amount at which the donor valued it.
      • A gift-in-kind will be associated with a department account number in the donor records but as no actual cash transaction takes place the statement of accounts will not reflect gifts-in-kind.
    2. Endowment Gifts

      Follow the above procedure for gifts donated as endowments and the additional instructions in Endowment Establishment and Management (Procedure 2-6), Endowment Funds.

  5. Stewardship of Gifts

    Proper stewardship of all gifts is essential to maintaining a relationship with donors. The Development Office coordinates the IRS receipts, and thank you letters from the President and the VP Development. Since the departments receiving the gifts often have the strongest relationship with donors, they are encouraged to acknowledge each gift in the form of appreciation and thanks.