Overview
   January 1989

Development Policy and Administration Manual 
Chapter IV. Gift Administration Procedures      
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                                 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.