Overview January 1989 Development Policy and Administration Manual Chapter IV. Gift Administration Procedures ************************************************************* OVERVIEW Chapter IV is intended to provide information about procedures for administering gifts. The focus is therefore less on "what" can and can't be done with gift funds and more on "how" to handle various types of gifts once the gift has been made, although many of these considerations are obviously also valid when soliciting gifts. For example, Section B is intended to provide information about how to document gifts after they have been received; however, careful solicitation to ensure that checks are made payable to the proper entity (see B.4) or that the purpose is clearly stated by the donor (see B.1) will greatly reduce the amount of work that must be done once a gift has been made. Sections C and D cover the topic of noncash gifts, including securities, life insurance, real property, tangible property gifts, and intangible property gifts (e.g., royalty rights). Because there are so many questions that arise concerning the handling of noncash gifts, two Manual sections have been devoted to the subject. Section C provides General Information About Noncash Gifts; Section D provides Special Procedures for Various types of Noncash Gifts. Much of the material in these two sections arises from the Tax Reform Act of l984 and subsequent regulations issued by the Internal Revenue Service, which established tighter rules than before for substantiating deductions claimed for noncash gifts. The regulations apply to donations made to Campus Foundations and Support Groups, as well as those made to The Regents, and are intended to preclude donors from overvaluing charitable deduc- tions for such property. The regulations apply to gifts from individuals, closely held corporations, personal-service corpor- ations, partnerships, and S corporations. Section C, "General Information About Noncash Gifts", is intended to answer questions that are true of all noncash gifts, and the subsections are arranged to proceed from more donor-oriented issues (tax considerations, information about requirements to file Form 8283 to substantiate a charitable deduction, and appraisal requirements) to the issues that are mainly or entirely of interest only to the University (IRS reporting requirements for disposition of noncash gifts and University reporting requirements). The information in Section D, "Special Procedures for Various Types of Noncash Gifts", is intended to provide specific inform- ation unique to each type of noncash gift. Section E has grouped together the three categories of gifts that involve a significant time lag between the promise of a gift and receipt of assets: pledges; bequests and testamentary trusts; and deferred or planned gifts.