B.4. Gifts of Cash/Checks
     January 1989

Development Policy and Administration Manual 
Chapter IV. Gift Administration Procedures 
Section B. Documenting Gifts     
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                  GIFTS OF CASH/CHECKS


Cash includes currency, coin, checks, money orders, and bank
drafts.  Donors should be advised to make checks payable either
to The Regents of the University of California or to the Campus
Foundation, as appropriate.

Special precautions must be taken to safeguard cash.  For Univer-
sity regulations on handling cash, see Business and Finance
Bulletin BUS-49 Cashiering Responsibilities and Guidelines, and
the applicable section of the campus Policy and Procedures Manual
or Accounting Manual.  Cash, including checks, must be deposited
at a campus cashiering station on the day it is received, and the
miscellaneous receipt number entered in the appropriate box on
the Gift/Private Grant Acceptance Report Form (UDEV 100).  The
UDEV 100 should be completed as soon as possible, but do not hold
cash if there is a delay in completing the form.


Misdirected Checks 

Endorsement and direct deposit to Campus Foundation or Support
Group accounts of checks erroneously made payable to The Regents
or to any other University entity (e.g., "College of Engineer-
ing") is contrary to the Bylaws of The Regents.  The pertinent
Bylaws read as follows:

     21.4  Treasurer.

      (a)  The Treasurer, in the name of the Corporation, shall
           receive, either directly or from the President of the University
           all moneys of the Corporation subject to the control and
           direction of the Board.  All moneys received by the University,
           whether by the Treasurer or by the President, shall be deposited
           forthwith to the credit of the Corporation in depository bank
           accounts by the Committee on Finance.


                          *          *          *

      (1)  The Treasurer is authorized to endorse checks and warrants
           received by the Treasurer in the name of the
           Corporation, but only for deposit in depositary
           bank accounts of the Corporation.


In order to prevent misdirected checks, solicitation literature
should state clearly whether the payee should be The Regents, the
Campus Foundation, or an officially recognized Support Group with
an approved bank account.

If it can be documented that checks have been erroneously made
payable to the wrong entity, an exchange check may be issued by
the University.

The legal basis a transfer by exchange check is that the funds
have been received in response to a specific solicitation and
that the donors have misdirected their checks to The Regents
rather than as requested in the gift solicitation.  In such
limited circumstances, return of the funds is considered by the
University's legal counsel to be legally appropriate.  Because
these are considered as gifts for which the checks have been
misdirected by donors, they should be reported as gifts to the
Campus Foundation or Support Group.  The same procedures and
principles would apply for checks misdirected to a Campus Founda-
tion in response to a solicitation for gifts to The Regents.