UNIVERSITY OF PITTSBURGH PROCEDURE 03-01-01
CATEGORY: DEVELOPMENT
SECTION: Gifts and Grants
SUBJECT: Noncash Donated Gifts
EFFECTIVE DATE: January 7, 1994
PAGE(S): 4
I. PURPOSE
To delineate the process for evaluating offers of noncash donations to the University and
for recording accepted donations in the University's financial records, Asset Management
System (AMS) and Alumni Donor and Development System (ADDS).
II. SCOPE
This procedure applies to donations of noncash assets received by the University. This
procedure does not apply to cash donations or to vendor discounts on assets purchased
by the University, which are recorded as educational discounts rather than donated
revenue.
III. ADMINISTRATIVE RESPONSIBILITIES
University schools and departments, prior to accepting the offer of any noncash donation,
are responsible for notifying the Office of Institutional Advancement for approval, and upon
receipt of an approved gift, for submitting Form 0091, Donated Assets Received,
to Institutional Advancement. Receiving departments are responsible for maintaining
donated assets and ensuring adherence to donor-imposed restrictions. They must inform
Institutional Advancement of any change to the status of donated assets, such as transfer,
retirement, sale or other disposal.
The Office of Institutional Advancement, through its Development Officers, provides the
donor with all necessary IRS and University forms; determines whether a gift offered
meets the definition of a noncash donation as established by Policy 03-01-01; evaluates,
in consultation with the appropriate University departments listed below, the needs, costs,
and implications of accepting or refusing the gift; authorizes acceptance of the gift;
records the gift in the Alumni Donor and Development System, reports activity of
donated assets to the appropriate University departments for financial recordkeeping and
insurance purposes; and informs the community of all donations received by newsletter
or other public notice. The Executive Director of Development is authorized to sign IRS
Form 8283, Noncash Charitable Contributions on behalf of the University and is
responsible for filing IRS FORM 8282, Donee Information Return when required by
federal regulations.
The University Art Committee (or designee) or the Library Chief Collections Management
Officer consults in the evaluation of gifts of fine art, historical treasures, and collection
items.
The Office of Facilities Management consults in the evaluation of gifts of real estate or
land.
The Office of Finance and the Office of Planned Giving consult in the evaluation of gifts
of publicly and nonpublicly traded securities, deferred gifts, and other similar assets.
The Office of General Accounting/Financial Reporting is responsible for recording activity
of donated assets in the University financial records.
The Office of Asset Management is responsible for recording capital donations in the
Asset Management System (AMS), assigning an asset number and tag to the asset, and
reporting activity of donated capital assets to the Office of General Accounting/Financial
Reporting and the Office of Risk Management on a quarterly basis.
The Office of Risk Management is responsible for scheduling insurance for gifts of fine
art, historical treasures, and collection items.
IV. DEFINITIONS
Noncash Donations are voluntary, nonreciprocal, and unconditional transfers of assets to
the University by another nonrelated entity or a settlement or cancellation of the liabilities
associated with the transfer of noncash assets by another nonrelated entity.
Nonreciprocal Transfers are transfers which are made by the donor without directly
receiving value in exchange for the donation.
Capital Assets are tangible property or equipment which are valued at $500 or more and
which have a useful life of two or more years. Capital assets, include but are not limited
to, land, real estate, personal computers, microcomputers, mainframes, software,
printers, plotters, data/telecommunications equipment, lab/science equipment, medical
equipment, office machinery, furniture and fixtures, books, manuscripts, vehicles,
audiovisual equipment, athletic equipment, machinery and tools, musical instruments,
appliances, and physician/dental equipment. Labor involved in the installation of a capital
asset which prepares it for use is considered part of the total value of the asset.
Noncapital Assets are property or equipment which are valued at less than $500 or
which have a useful life of less than two years, such as minor office supplies,
consumable supplies of paper, cleaning products, health care, or dental supplies.
Services, such as printing and copying services, are noncapital services. Noncapital
assets also include publicly and non-publicly traded securities, deferred gifts, and
similar items.
V. PROCEDURE
A. Evaluating Offers of Noncash Donations
Receiving
Department 1. Prior to accepting any donation, inform the Office
of Institutional Advancement Development Officer
that a noncash donation has been offered.
Institutional
Advancement 2. Provide the prospective donor with a Noncash
Donation Information letter requesting:
- Donor's name and address
- Description of the gift offered
- Special arrangements or restrictions on the use
or disposal of the gift
3. Upon receipt of the requested information from the
donor, determine whether the donation meets the
definition of a noncash donation.
4. If the donation meets the definition of a noncash
donation, evaluate, in consultation with the
appropriate University departments, the needs,
costs, and implications of accepting or refusing the
gift.
5. Inform the donor and the receiving department of
the decision to accept or reject the donation.
6. If a gift of property is accepted, provide the donor
with IRS Form 8283, Noncash Charitable
Contributions (Exhibit A) and inform the donor of a
possible need for an independent appraisal of the
property.
7. For gifts of fine art, historical treasures or collection
items, inform the Office of Risk Management that a
gift has been accepted for scheduling of insurance.
B. Receiving and Recording Noncash Donations
Receiving
Department 1. Upon notification of approval to accept the gift by
Institutional Advancement, arrange to take
possession of the property or transfer of ownership.
2. Complete FORM 0091, Donated Assets Received
(Exhibit B), as instructed in the attached Form
Instruction Guide.
3. Forward all four parts of the complete FORM 0091,
to the Office of Institutional Advancement.
Institutional
Advancement 4. Obtain a copy of the donor's completed IRS Form
8283, including an appraisal if applicable.
5. For capital gifts exceeding $500 with an expected
useful life of two or more years, approve FORM
0091 and forward all four parts, together with a
copy of IRS Form 8283 and the Noncash Donation
Information letter to the Office of Asset Management.
Asset
Management 6. Upon receipt of the original FORM 0091 for capital
assets, follow internal procedures for recording the
asset in the Asset Management System (AMS) and
tagging the asset. Note the value recorded in the
AMS on FORM 0091, and explain any difference
from the value stated on IRS Form 8283, or the
appraisal, if applicable.
7. Retain original white copy of FORM 0091 and return
remaining copies to the Office of Institutional
Advancement.
Institutional
Advancement 8. Upon receipt of FORM 0091 from Asset
Management, update the Alumni and Donor
Development System (ADDS) with the noncash
donation information received from the donor and
contained on FORM 0091.
9. Retain yellow copy of FORM 0091. Forward the
pink copy to the Development Officer of the
receiving department, and the gold copy to the
receiving department.
C. Reporting Changes to Donated Assets
Receiving
Department 1. Report any change in status of a donated asset by
completing and submitting FORM 0092, Asset
Transfer, FORM 0093, Asset Retirement, or FORM
0094, Asset Maintenance, to the Office of
Institutional Advancement for donor relations
purposes. See Procedure 05-10-01, Capitalization
of Fixed and Movable Assets, for form instruction
guides.
Institutional
Advancement 2. For capital assets, approve and forward FORM
0092, FORM 0093, or FORM 0094 to Asset
Management for recording in the AMS.
3. For certain donated assets specified by IRS
guidelines that are disposed of within two years of
the date contributed, complete and file IRS Form
8282, Donee Information Return (Exhibit C).
Provide a copy to the donor.
4. Reconcile asset additions and changes recorded
by Institutional Advancement with the information
recorded by Asset Management on a monthly
basis.
Asset
Management 5. Report all activity of donated capital assets to
General Accounting/Financial Reporting on a
quarterly basis.
6. Inform Risk Management of all activity recorded for
donated capital assets for insurance purposes on
a quarterly basis.
General Accounting/
Financial Reporting 7. Record activity of donated capital assets in the
general ledger from detail provided by Asset
Management on a quarterly basis.
VI. EXHIBITS
Exhibit A, Sample IRS Form 8283, Noncash Charitable Contributions
Exhibit B, FORM 0091, Donated Assets Received with Form Instruction Guide
FORM 0091 FORM INSTRUCTION GUIDE
Exhibit C, Sample IRS Form 8282, Donee Information Return
VII. REFERENCES
Policy 03-01-01, Noncash Donated Assets
Policy 05-10-01, Capitalization of Fixed and Movable Assets
Procedure 05-10-01, Capitalization of Fixed and Movable Assets