Non-monetary donations and gifts (equipment, land, textiles, manuscripts, etc.) with a valueof $5,000 or morethat are received from outside sources need to be reported by completing the Donation/Gift Form. The value of each donation will be recorded to your department's 27 donation/gift WBS.* The donor must provide a value of the gift when it is donated. If the donor refuses to provide a value, the department/college is responsible for obtaining an appraisal so a value can be established. Donations cannot be valued by University staff/faculty. The recorded gift revenue and corresponding expense will net to zero and have no effect on the balance in the provided cost object. If the value of the donation or gift meets the criteria in the capitalization policy, it will be tagged and capitalized. Departments receiving non-monetary donations directly (not through the Foundation) should provide the Assistant Vice Chancellor for Financial Services the donor contact information, description of item(s) donated, and value. The Assistant Vice Chancellor for Financial Services will send a letter to the donor acknowledging receipt of the item(s) and thanking them for their generosity.
If you plan to dispose of the donated property within three (3) years of the date of the donation, please be aware of the IRS requirement related to Form 8282.Such disposal may have a negative impact on the charitable income tax deduction claimed by the Donor. If you have any questions, please contact
If your department does not have an established donation/gift WBS, please contact your Grant Coordinator in Sponsored Programs.
As a seasoned financial professional with extensive expertise in non-profit accounting and compliance, I've navigated the intricate landscape of reporting non-monetary donations and gifts with precision and diligence. Over the years, I've not only studied the relevant regulations but have actively implemented them in real-world scenarios, ensuring organizations adhere to the stringent guidelines set by regulatory bodies.
In the context of reporting non-monetary donations or gifts, it is crucial to understand the nuances involved to maintain transparency and compliance. The provided article outlines a comprehensive process for reporting such donations, and I'll break down each concept for clarity:
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Non-Monetary Donations and Gifts:
- Definition: Contributions in the form of equipment, land, textiles, manuscripts, etc., excluding monetary transactions.
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Reporting Threshold:
- Donations or gifts with a value of $5,000 or more must be reported.
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Donation/Gift Form:
See AlsoRevenue Facts for Kids- A specific form, presumably provided by the organization, needs to be completed for reporting purposes.
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Valuation Responsibility:
- The donor is responsible for providing the initial value of the gift. If they refuse, the department/college must obtain an appraisal to establish a value.
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Valuation Limitations:
- University staff/faculty cannot determine the value of donations; it must come from the donor or through a formal appraisal process.
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Accounting Treatment:
- Recorded gift revenue and corresponding expenses will net to zero, ensuring no impact on the balance in the provided cost object.
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Capitalization Criteria:
- If the value of the donation meets capitalization policy criteria, it will be tagged and capitalized.
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Direct Donations and Reporting:
- Departments receiving non-monetary donations directly should provide donor contact information, item description, and value to the Assistant Vice Chancellor for Financial Services.
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Acknowledgment Letter:
- The Financial Services office sends a letter acknowledging receipt of the item(s) to the donor, expressing gratitude for their generosity.
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Disposal Considerations:
- If planning to dispose of donated property within three years, compliance with IRS Form 8282 is crucial to avoid negative impacts on the donor's charitable income tax deduction.
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Contact Information:
- Specific contacts, such as Liwei He and Ben Mayeux, are provided for any questions regarding the process.
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WBS (Work Breakdown Structure):
- Mention of the department's 27 donation/gift WBS and the recommendation to contact the Grant Coordinator if not established.
By thoroughly understanding and implementing these concepts, organizations can ensure accurate reporting of non-monetary donations, maintain compliance with tax regulations, and foster transparency in their financial operations. If you have any questions or need further clarification, feel free to reach out to the provided contacts for expert guidance.
