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Business and Financial Policies and Procedures

Section 11.4 - Transfer of Gifts to Another Institution

University-owned assets consisting of cash or personal property originally received as gifts to support the scholarly activities of a designated staff member may be transferred to another institution with the related staff member (for example, if the related staff member is leaving the University to work at another institution) under certain conditions with appropriate approvals. Requests for such transfers may be initiated by either the staff member involved or the department head. See below for the applicable conditions which must be satisfied and the applicable procedures to follow to complete the transfers.

Conditions for Transferring Gifts

Only gifts to an organized function such as college department, laboratory or center may be released, provided the following conditions are met:

  • The gift was originally donated with the stipulation that it be applied to scholarly activity performed by a specific staff member. If the original gift was given to the college department or laboratory with no stipulation of applying the gift to a specific staff member, then that gift must stay with the University and cannot be transferred to another institution.
  • The donor stipulation is documented either by original donor documentation or written verification from the donor. If the donor explicitly stipulated that the research must be conducted at the University of Illinois, written donor verification allowing the gift to be transferred to another institution must always be obtained. All requests for written donor verification must have prior approval of the unit head, and must be obtained prior to the staff member's termination of employment at the University.
  • Authorization for the transfer may be given before the staff member moves to another institution of higher education. However, the actual transfer of the gift will not be made until the staff member has become employed by the accepting institution of higher education.
  • The recipient institution agrees in writing to accept the transfer, confirm receipt of the gift after transfer, and honor all original donor stipulations.
  • Only the unencumbered balance of cash gifts as confirmed by the unit may be transferred. Also, the transfer of any cash gifts cannot exceed the current balance of funds available in the applicable gift fund (i.e., the transfer of cash gifts cannot cause the related Banner gift fund to go into deficit).
  • Donor record should be adjusted for gift returned and/or transferred. Copies of any documentation received with original gift should accompany gift transferred

Transfers of equipment acquired with donor funds must also meet all requirements of Section 12 Property Accounting, Sponsored Project and Loaned Equipment.

Procedures for Transferring Gifts

When transferring gifts to another institution, the unit works with both the University of Illinois Foundation (UIF) and the OBFS, University Accounting and Financial Reporting (UAFR) to complete the transfer. Following is a guide for the steps in this process:

  1. The unit works with the UIF to confirm that the gift transfer to another institution is allowable according to the stipulated donor intent restrictions.
  2. If the transfer is allowable per donor intent, then the unit confirms that the applicable staff member has begun employment at the applicable institution. Once confirmed, the unit communicates this information to UAFR.
  3. The unit prepares a memorandum to send to the other institution confirming that: (1) the institution will accept the transfer of the gift money; (2) the institution will honor all original donor intent stipulations; (3) the applicable staff member is currently employed by their institution; and (4) the institution will confirm the receipt of the gift in writing. This memorandum is signed by the appropriate and authorized staff at the other institution and returned to the unit.
  4. Once the unit receives the signed document, they complete an invoice voucher payable to the other institution, using account code 142900 (UAFR will later transfer this to account code 308501). The unit attaches any supporting documentation to this invoice voucher, such as the signed memo from the other institution; a copy of the latest financial statement or Banner form for the applicable gift fund showing that there are sufficient funds available to cover the transfer; and any documentation or letters from the donor. Once this is complete, the unit sends this invoice voucher and the related documentation to UAFR.
  5. UAFR works with the OBFS, University Payables to issue a check to the other institution. UAFR sends a memorandum to the other institution along with the check and requests that the receiving institution sign the letter and return to the University as confirmation of receipt of the letter and the check. The other institution signs this memo and sends it back to UAFR.
  6. UAFR sends a copy of this memorandum signed by the receiving institution to the UIF and the unit that requested the transfer. They also transfer the transaction to account code 308501 (refund to sponsor) and post the related budget entries.
  7. If the gift fund is cleared out, the unit may request UAFR to terminate the gift fund.

For additional information on this process or questions, contact the UAFR Office at (217)333-4568.

 

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

Last Updated: March 17, 2008 | Approved: Senior Associate Vice President for Business and Finance | Effective: December 2006

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