Acceptance Of Gifts (Excluding Real Estate)
Contact the oversight unit listed below if you have questions or concerns regarding this policy.
|Attached form file:||VehicleDonationOct2017.docx|
|This policy has a related procedure. Click to view the procedure below.|
|This policy has a related guideline. Click to view the guideline below.|
To ensure that NMU staff understand and follow gift acceptance protocols.
Acceptance of Personal Property Gifts (Non-Real Estate)
Last reviewed: 2/26/2018
This procedure is for the acceptance of personal property. Other types of gifts may only be solicited or accepted through the NMU Foundation, including:
For ease of reading, as of 10/11/17 this procedure has been updated to show 13 functional steps for vehicle donations and 12 functional steps for non-vehicle donations, followed by a more detailed description of dollar amounts, forms, and participant responsibilities.
Titled vehicle donations are processed using these steps:
Noncash gifts under $5000 are processed using these steps:
Tangible personal property valued in excess of $5,000 may only be accepted by the NMU Foundation using the Personal Property Donation (in excess of $5,000) form. Property intended to be transferred to the university must be:
It is the current policy of the DeVos Art Museum to advise, assist, and collaborate with faculty and staff responsible for the other NMU collections to the extent possible. Art includes paintings, sculptures, watercolors, prints, drawings, ceramics, antiques, decorative arts, textiles, carpets, silver, rare manuscripts, historical memorabilia, and other similar objects. Therefore, if art is expected to be valued greater than $5,000, review the art acquisition policy and contact the DeVos for assistance.
Details in processing physical gifts through this policy:
Licensed personal property of any value and non-licensed personal property gifts valued less than $5,000 may be accepted by the University through the Purchasing department. To ensure compliance with IRS requirements, do NOT accept the physical gift until the gift form is complete.
Acceptance by Department Head: No property will be accepted under this procedure unless there is a purpose and use for the University. Normally, gifts are offered directly to specific departments. Purchasing will confirm that the department has a use and purpose for the gift.
In the event that a gift is offered without previous communication with a specific department, the Purchasing department will contact applicable department heads to confirm that there is a use for the proposed gift. If no department will accept the gift, the University will not accept it. To ensure that there are no damaged relationships because of this, Purchasing will contact the NMU Foundation office prior to contacting the proposed donor.
Licensed Personal Property: The University may accept donations of licensed personal property (cars, boats, and other licensed/titled vehicles) of any value when the property has an immediate value (use and purpose) for the University.
Licensed vehicles that are donated for parts are treated differently than vehicles that will not be used for parts. However, the same property donation form is used for both. These licensed or titled vehicles require special review by Purchasing to determine the actual value. No outside assessment is required for fair market value; a copy of a blue-book type assessment may be used to evidence the value. The exception is when the vehicle is donated through a manufacturer; in these cases, the value is not the blue-book value, but is the inventory value as determined by the manufacturer. Risk Management will be notified by Purchasing of the intent to gift. Risk Management will ensure proper title transfer, insurance coverage, and if applicable, licensing. The Personal Property Donation Form signature indicates that all required actions by Purchasing and Risk Management are complete. The gift is not considered accepted, and should not be physically accepted, until all signatures have been collected.
In addition, for vehicles sold within 30 days of donation the donor will be advised that the tax deduction value for the vehicle is limited to the gross proceeds for sale.
Non-Licensed Personal Property: Non-Licensed Personal Property valued less than $5,000 may be accepted by the University. Utilize the Non-vehicle Donation Form.
A Note About IRS Forms: IRS forms are required for certain types of donations. The donor fills some out and some are filled out by the University/donee. The forms referenced in this procedure can be downloaded and printed from the IRS forms and publication website at https://www.irs.gov/forms-pubs The forms referenced below are:
IRS Form 1098C Contribution of Motor Vehicles, Boats, and Airplanes: The University must file a 1098C when accepting a donation of a qualified motor vehicle, boat, or airplane with a claimed value over $500.
IRS Form W9 Request for Taxpayer Identification Number and Certification: This form is collected when we need to report information to the IRS. The donor provides a taxpayer identification number and attests that it is correct.
IRS Form 8283 Non-cash Charitable Contributions: For donations valued over $500, the donor must attach Form 8283 to their tax return to support the non-cash charitable deduction. NMU is only required to sign this form if the value is over $5000.
For donations valued over $5,000 NMU will complete Part IV of Section B, Form 8283. The Controller or a designate will sign the form (by regulation, the signer for NMU must be an official authorized to sign the NMU tax or information returns, or a person specifically authorized to sign by that official). The signature does not represent concurrence in the appraised value of the contributed property. A signed acknowledgement represents receipt of the property described on Form 8283 on the date specified on the form. The signature also indicates knowledge of the information reporting requirements on dispositions, as previously discussed. A copy of Form 8283 must be retained by NMU and will be retained in the Controller’s office in date order or attached to the original set of documents with the purchasing department.
Intent to resell: Contributions are generally not accepted with the intent to resell. When donations are accepted with the intent for resale, regardless of the sale date, the University Controller’s office must provide the initial 1098C within 30 days of the donation (with certain dollar thresholds). Therefore, the Controller’s office must be informed at the time of donation by the department head receiving the gift if it intends to resell the donated item. In addition, if the property is sold within the first year that the property is held by the University, a subsequent corrected 1098C must be provided with 30 days of the sale. Again, it is critical that the department initiating the sale notify the Controller’s department. The notice will include an attestation that sale was conducted as an arms-length transaction.
Donations that may contain safety or environmental hazards: All gifts and donations that may be potentially hazardous or contain hazardous material must be approved in advance by the Director of Public Safety and Police Services. Items must be evaluated for safety and environmental considerations and must adhere to MIOSHA standards if applicable.
Reason for Required Appraisal Summary
If a donor estimates the value of a household item or single item of clothing to be greater than $500 and less than $5,000, but does not want to obtain an appraisal, we can still accept the gift, but must not participate in the donor’s valuation. Therefore, NMU should write “no appraisal received” in the column of the form titled “value estimated by donor” on the personal property donation form.
When the donation exceeds $5000, the University is required to sign a section of Form 8283. Normally, gifts of this size flow through the NMU Foundation. This procedure allows a single exception to the $5000 rule – gifts of vehicles that are traded frequently and valued through a blue-book type publication. As stated above, the exception is when the vehicle is donated through a manufacturer; in these cases the value is not the blue-book value, but is the inventory value as determined by the manufacturer. If a gift is valued over $5,000 but is not a vehicle valued through a blue-book type publication, the gift must be processed through the NMU Foundation. NMU is never a qualified appraiser for the purpose of valuing the donated property.