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Business and Financial Policies and Procedures

Section 11.3 - Campus Processing of Gifts

The University of Illinois Foundation (UIF or Foundation) exists for the purpose of assisting the University by providing fundraising services and other assistance to attract private gift funds to support University programs. Donors should be instructed to direct all gifts to the UIF.

Occasionally gifts are sent directly to a specific campus. These gifts may have been solicited through the UIF, or sent to the University by the donor, and in most cases, should be redirected to the UIF for processing according to these guidelines. Processing these gifts depends on whether they are monetary gifts (cash, checks, credit card transactions, or negotiable securities) or gifts-in-kind (equipment, machinery, art, etc.).

This section applies only to charitable contributions or proceeds from fundraising activities (such as raffles, auction receipts, special events, etc). It does not cover sponsored activities, (see Section 16 - Grants and Research Contracts) or other non-fundraising activities where no charitable tax deduction is generated by the transaction (i.e., registration fees for conferences and seminars held by the unit or sales of goods and services in self-supporting operations). For questions about processing or depositing money resulting from non-fundraising activities, see Section 10 - Cash Handling.

Depositing Monetary Gifts

All gift receipts should be forwarded to the appropriate campus Gift Processing and Stewardship Services Office (GPSSO) for deposit, along with any related supporting documentation (for example, letters/correspondence from the donor, copy of the check from the donor, etc.) and a completed Gift Transmittal Form. Also, it may be necessary to request a new Foundation and Banner gift fund if the gift receipt is for a new gift. See the table below for further details.

Processing Monetary Gifts (Cash, Checks, Credit Cards, and Negotiable Securities)

Responsibility

Timing

Action

College/Unit Same day as gift is received from donor Completes the report of gift received transmittal form (see the Report of Gift Received Transmittal Form)

Contacts the appropriate campus Gift Processing and Stewardship Services Office for further instructions on how to process gifts of negotiable securities.

If needed, requests a new fund and attaches required documentation to the report of gift received transmittal form. See the forms and instructions for requesting a new Banner gift fund at the OBFS Accounting and Financial Reporting Forms Web Site.

The form and instructions for requesting a new UIF gift fund can be found on the UIF Info Center Web Site for the form and instructions for requesting a new UIF gift fund.

Sends the report of gift received transmittal form, original correspondence, all attachments, including the original matching gift form, and gift and non-gift receipts to the appropriate campus Gift Processing and Stewardship Services Office.

Exception - at UIS, send all of these documents, along with the gift check, to the Bursar's office on the initial day of receipt, where the checks are recorded in the UIS Bursar's log book. The checks are then held until the Gift Processing and Stewardship Services Office picks them up for processing as described above.
Campus Gift Processing and Stewardship Services Office Same day as report of gift is received from college/unit UIS - Checks with the Bursar's Office for any gifts registered in the log book and obtains a money order for any cash gift signed into the Bursar's log book.

Reviews the report of gift received transmittal form and attachments. If any discrepancies exist, contact the initiating unit and correct the report. Returns a corrected copy to the initiating unit.

Scans and images all documents including the report of gift received transmittal form, checks, money orders and attachments.

Prepares bank deposits slips and deposit gifts in the appropriate bank account.

At UIS - prepares bank deposit slips and returns to the Bursar's Office for deposit in the appropriate bank account.

Transfers images to the Foundations' Gift Processing and Stewardship Services Office for processing.

Forwards all originals of report of gift received transmittal forms and matching gift forms, copies of checks, attachments and copies of bank deposit slips to the Foundations' Gift Processing and Stewardship Services Office.

For all stock or bond gifts, send the stock/bond powers in a separate envelope to the Foundations' Gift Processing and Stewardship Services Office. Do not send the powers and certificate in the same envelope. (For electronic transfers of stocks/bonds, contact the Foundation's Gift Processing and Stewardship Services Office for more information.)

Determines if new Banner or UIF gift fund is needed. If applicable, forwards the form to request a new fund to the Foundation's Gift Processing and Stewardship Services Office. (Links to Web pages to request these forms can be found earlier in this table.)

Foundation Gift Processing and Stewardship Services Office Same day of receiving report of gift received transmittal form and attachments from respective campus Gift Processing and Stewardship Services Office

Prepares accounting entries to record deposit in the appropriate gift clearing fund.

Forwards the form to request a new Foundation or University fund to the appropriate college, department, or unit for fund create coordination.

Records gift in Foundation and Alumni Constituent Tracking System (FACTS). Sends a tax receipt to the donor on behalf of the University and Foundation.

Foundation Gift Processing and Stewardship Services Office Within two days of receiving new Foundation fund request





On a weekly basis






On a monthly basis

Creates new Foundation fund. Coordinates with OBFS, University Accounting and Financial Reporting (UAFR) to create a Banner gift fund. Assigns the appropriate set of donor intent codes to the unit's request for a new Banner gift fund.

Sweeps gift balances from Foundation to University.

Provides the college/unit with a weekly gift report from FACTS.


Provides the college/unit with a monthly Foundation accounting statement, including gift and non-gift totals for gift receipts.

UAFR, University Accounting Services Within two days of receiving new University fund request Creates new Banner gift fund ensuring the assigned NACUBO functions on the new gift fund are consistent with the donor intent codes assigned by the Foundation (see Section 11.10, Expenditure of Gift Funds for more information) and communicates the new gift fund name and number to the applicable unit. Coordinates with the Foundation Accounting and Stewardship Services Offices to link Foundation fund.
UAFR, University Accounting Services On a monthly basis Provides the college/unit with a monthly University accounting statement of transactions.
College/Unit

Within five days of receiving weekly gift report from UIF

 


 

 

On a weekly basis


 

On a monthly basis

Acknowledges receipt of gift. Sends thank you letter on behalf of the college/unit.

(This procedure is determined at the college/unit level. While not required, each college/unit is strongly encouraged to establish an acknowledgment policy based on the amount of the gift and the relationship with the donor.)


Reviews gifts received with the FACTS weekly gift report on a donor-by-donor basis.


Reconciles the monthly University and Foundation accounting statements from UI and UIF. If any discrepancies exist, contact UAFR, University Accounting Services or the Foundation's Gift Processing and Stewardship Services Office and correct the report.

Processing Gifts-In-Kind

Gifts-in-kind are non-monetary donations to the University. This includes donated services or tangible real and personal property. Examples of gifts-in-kind include but are not limited to professional services, labor, real estate, equipment, artwork, supplies, livestock, rare books, vehicles, food, and tickets to various types of events.

All accepted gifts-in-kind must support and further the mission of the University. Before a gift-in-kind is accepted, ongoing maintenance costs and/or a liquidation plan should also be considered.

Complete the Report of Gift Received Transmittal Form and forward it to the Gift Administration Office of the University of Illinois Foundation.

A reasonable estimate of the fair market value of gifts-in-kind received must be determined for financial reporting purposes, to track the donor's giving history, and for tax reporting purposes. Determining the value of a gift-in-kind is the sole responsibility of the donor, not the University. The University cannot value the gift-in-kind for the donor's tax purposes The following guidelines should be used to reasonably evaluate a fair market value estimate:

Use the donor's estimated fair market value if the gift-in-kind is $5,000 or less:

  • For any donors who wish to claim a tax deduction for their gift-in-kind, the donor may be required to file IRS Form 8283 with their tax return for any gifts-in-kind with a monetary value greater than $500. The form may not require appraisal information regarding the value of the item donated is $5,000 or less. However, if the donor obtains an independent qualified appraisal, a copy is typically provided with the gift-in-kind. The independent qualified appraisal provides additional documentation for University and Foundation records supporting the valuation of the gift-in-kind.

For any gifts-in-kind with an estimated fair market value over $5,000:

  • If the donor is an individual, an independent qualified appraisal is typically required to claim a deduction. A copy of the appraisal is generally provided to the Foundation to accompany the gift documentation and support the fair market value recorded on the donor's record for the gift-in-kind.
  • If the donor is an external party (such as a corporation) who directly manufactures the gift-in-kind, then no independent qualified appraisal is required, as the manufacturer sets the market value for their own products and thus has the expertise to properly value the items which are being donated. Typically, the manufacturer will be asked to provide an invoice or estimated value to accompany the gift-in-kind documentation. Educational discounted value is recorded when available, rather than market retail value.
  • If the donor is not the manufacturer of the gift-in-kind, or if they are the manufacturer but do not have expertise in properly valuing the items which are being donated, the recipient unit can employ other methodologies to reasonably estimate or confirm the reasonableness of the fair market value depending on the gift-in-kind. For example, referring to an industry expert within the University, requesting the donor to provide receipts or other documentation which supports the estimated fair market value, comparing to other similar assets for sale on the open market, or obtaining an independent qualified appraisal would all be reasonable methodologies to employ in these types of scenarios.

Gifts-in-kind of equipment or other moveable property must follow the University's property accounting policies, including adding of the assets record into FABweb, if applicable. See Add Donated, Found, and Other Non-Cash Addition Equipment to FABweb for further guidance. 

The Illinois Department of Central Management Services (CMS) exempts applicable property control rules to allow the University to sell donated gifts-in-kind and retain all funds from the sale to support the missions of the University in accordance with the donor's intent. The University of Illinois Foundation will complete the applicable donee reporting as may be required by the Internal Revenue Service (IRS) and as requested by the donor, which would include completing the "Donee Acknowledgment" section of IRS Form 8283 (this form is filed by the donor at the time of the donation for gifts-in-kind over $5,000 and requires donee acknowledgment in Part IV), and filing IRS Form 8282 (this form is required to be filed for any gift-in-kind valued over $5,000 which was subsequently sold, exchanged, or disposed of within three years of the date of the initial donation and is completed by the UI Foundation).

Responsibility Timing Action
College/Unit/Gift Processing and Stewardship Services Office Before the gift is physically received
 



 

Same day as gift is received from donor

Communicates the nature of the gift to the college/unit head, and determines if the gift will benefit the University. The Foundation's Gift Administration Office must review all gifts of real estate or any item for which the Foundation becomes the owner of record before acceptance.

Completes the report of gift received transmittal form (see the Report of Gift Received Transmittal Form ).

If needed, requests a new Foundation or University fund and attaches required documentation to the report of gift received transmittal form. The new fund create form is available on the OBFS Accounting and Financial Reporting Forms Web Site.

Completes FABweb Non-Cash Additions record for all gifts of equipment and submits online.

Sends the report of gift received transmittal form, original correspondence and all attachments to the appropriate campus Gift Processing and Stewardship Services Office.

UIS - Takes the gift received and all documentation to the Bursar's office and signs the gift into the log book.
Gift Processing and Stewardship Services Offices Same day as report of gift is received from college/unit Receives and reviews the report of gift received transmittal form and attachments. If any discrepancies exist, contact the initiating unit and correct the report. Returns a corrected copy to the initiating unit.

Scans and images all documents including the report of gift received transmittal form and attachments for backup purposes.

Transmits images and forwards all originals of report of gift received transmittal forms and attachments to the Foundation's Gift Processing and Stewardship Services Office for processing.

Determines if new Banner or Foundation gift funds are needed. If applicable, forwards the form to request a new fund to the UIF. The form may be found at the OBFS Accounting and Financial Reporting Forms Web Site.

Foundation Gift Processing and Stewardship Services Offices





Foundation Gift Processing and Stewardship Services Office
Same day of receiving report of gift received transmittal form and attachments from the unit.

 

 

Within two days of receiving new fund request





On a weekly basis


On a monthly basis

Prepares accounting entries to record deposit in the appropriate gift clearing account. Forwards the form to request a new Foundation or Banner fund to the Foundation Gift Processing and Stewardship Services Offices for fund create coordination. Records gift in Foundation and Alumni Constituent Tracking System (FACTS). Sends a tax receipt to the donor on behalf of the University and the Foundation. Creates new Foundation gift fund. Coordinates with UAFR to create a new Banner gift fund.

Provides the college/unit with a weekly gift report from FACTS.

Provides the college/unit with a monthly Foundation accounting statement, including gift and non-gift totals for gift property. If applicable, sends a copy of the gift transmittal letter to UPAR.
UPAR Within five days of receiving notification from Gift Processing and Stewardship Services Office Determines if a FABweb record has been submitted. If not, contacts unit to solicit FABweb record. If required, once the FABweb Non-Cash Addition record has been submitted, assigns property control number if not already provided, and records in Banner Fixed Asset System.
University Accounting Services Creates new Banner gift fund Coordinates with Foundation's Gift Processing and Stewardship Services Office to create new Banner gift fund.
College/Unit Within five days of receiving weekly gift report from UIF
 

 



On a weekly basis



On a monthly basis

Acknowledges receipt of gift. Sends thank you letter on behalf of the college/unit.

(This procedure is determined at the college/unit level. While not required, each college/unit is strongly encouraged to establish an acknowledgment policy based on the amount of the gift and the relationship with the donor.)

Reviews gifts received directly at the campus with the FACTS weekly gift report on a donor-by-donor basis.

Reconciles the EDDIE report of month Fixed Asset activity by chart and organization. If any discrepancies exist, corrects the Banner Fixed Assets data by submitting a FABweb update.

For additional information contact the following offices:

Vice Chancellor for Research/Research Administration

Chicago Campus
Office of Research Services
310 Administrative Office Building - MC 672
1737 West Polk Street
Chicago, IL 60612
Phone: 312-996-2862
Fax: 312-006-9005
http://research.uic.edu/sponsored_programs/preparing-proposal

Springfield Campus

Office of Grants, Contracts, and Research Administration
University of Illinois Springfield
PAC 519, MS PAC 525
One University Plaza
Springfield, IL 62703
Phone: 217-206-7409
FAX: 217-206-7623
http://www.uis.edu/grants/

Urbana-Champaign Campus

Office of Vice Chancellor for Research
Fourth Floor, Swanlund Administration Building, MC-304
601 E. John Street, Champaign, IL 61820
Phone: 217-333-0030
http://www.research.illinois.edu/

OBFS University Accounting and Financial Reporting (includes University Accounting Services and University Property Accounting and Reporting)

All Campuses
University Accounting and Financial Reporting
111 E. Green Street
Champaign, Il. 61820
MC 597
University Accounting and Financial Reporting Web Site

Gift Processing and Stewardship Services

Chicago Campus
Gift Processing and Stewardship Services Office
2513 University Hall
601 S. Morgan
Chicago, IL 60607
MC - 102
312-413-4100

Springfield Campus

Associate Director for Business and Stewardship
One University Plaza, PAC591
Springfield, IL 62703-5407
217-206-7798

Urbana-Champaign Campus

Director of Stewardship Services
Harker Hall
1305 West Green Street
Urbana, IL 61801
MC - 386
217-333-0675

Processing Estates, Trusts, and Other Beneficiary Arrangements

Units who receive correspondence relating to estates, trusts, or other beneficiary arrangements must forward this information to the appropriate office as indicated below.

Estates or trusts naming the University or a University unit as the beneficiary, with no mention of the University of Illinois Foundation:

Office of University Counsel

  • Chicago: John Alsterda, Chicago Campus Counsel, 312-996-7762
  • Urbana-Champaign and Springfield: Starla Carpenter, Assistant University Counsel, 217-333-0560

Estates or trusts naming as beneficiary or mentioning the University of Illinois Foundation:

University of Illinois Foundation

  • All Campuses: Mary Millage, Associate Vice President for Trust Services, 217-244-9088

  

 

Please send questions regarding this policy manual to OBFSPolicies@uillinois.edu.

Last Updated: August 22, 2016 | Approved: Senior Associate Vice President for Business and Finance | Effective: May 2007

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