Gifts to IU
|Capital Asset Management
|To provide guidelines concerning the depositing, recording and acknowledgement of all capital gifts received on behalf of Indiana University. Policy FIN-ACC-40 states “When a gift has been received for Indiana University, the Indiana University Foundation (IU Foundation) Gift Administration Office must be notified.”
Capital Asset Management recognizes and capitalizes donated gifts from IU Foundation purchases and from Gift-in-Kind forms.
Indiana University Foundation (IUF) receives cash contributions. Those cash contributions are distributed, according to donor intent, into IUF departmental accounts. These contributions are used to purchase items by IU departments through IUF departmental accounts. By the 10th of each month IUF Accounts Payable prepares and sends to Capital Asset Management a gift spreadsheet of purchases made through Foundation departmental accounts.
The gift spreadsheet describes the purchased items and includes the following information:
The Add Asset Document will be routed to the account Fiscal Officer or Account Delegate for approval. If the account number or other information is incorrect, the Fiscal Officer or Account Delegate needs to disapprove the document and enter the correct information in the notes. According to the notes, CAMS will recreate the asset.
The Gift Administration Office forwards copies of the Gift-in-Kind Transmittal forms to the University Capital Asset Office. IUF will only require the donor to provide an appraisal, per IRS guidelines, if the amount is greater than $5,000. However, the university will only capitalize these gifts if substantiation of value (appraisal) is provided.
The information presented on the Gift-in-Kind Transmittal form is used in creating the asset on an Add Asset Document. The account number presented on the Gift-in-Kind form will be used to create the asset. CAMS will not contact the department to verify this account number. Therefore, it is important for the Fiscal Officer or Account Delegate to confirm that the account number is correct before approving the Add Asset Document. The date received on the form indicates the date of physical delivery to IU and will be used as the assets' create date. The Gift-in-Kind Transmittal form will be scanned and attached in the notes section of the Add Asset document after redacting donor information.
Gift-in-kind assets could include the following:
Gift-in-Kind forms contain donor information. When CAMS creates the asset from the Gift-in-Kind form, donor information will not be used to protect the privacy of the donor.
The type of gift will determine what object code should be used in the payment record on the Add Asset document. Below is a listing of the appropriate object codes that Capital Asset Management will use to create the gift asset:
Line one indicates the type of gift from the object code table above and generates the capitalization entries to object code 86xx and fund balance 9899. The 86xx and 9899 will appear on the balance sheet on the plant fund account according to the account organizational hierarchy. Income to 1175 will appear on the income statement on the operating account and will remain in income until fiscal year end at which time income closes to fund balance.
The Add Asset Document will route to the Fiscal Officer or Account Delegate for approval. Once the Add Asset Document is approved the gift asset will begin depreciating according to the university's depreciable life.
IU must report information to the IRS about dispositions of charitable deduction property made within three years after the donor contributed the property. Each quarter Capital Asset Management will run an asset retirement analysis. Any gift assets retired within three years will be reported to IUF Gift Administration. Upon notification, IUF will complete the IRS Form 8282, send a copy to the IRS and to the donor. The 8282, Donee Information Return can be obtained and viewed from the IRS web site at the following URL http://www.irs.gov/ .
If an organization receives a gift directly, IU requires the organization to contact IU Foundation Gift Administration to request a Gift-in-Kind Transmittal form or submit the form directly at the following URL: https://iufservices.iu.edu/IQ/Edocs/GiftInKind.aspx .
Equipment- The term “equipment” includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.
- Non-monetary items of tangible personal property such as art, collectibles, books, equipment, automobiles, other assets or materials which represent value to the University and the Foundation.
CSOP 1.0 Capitalization Rules
Policy FIN-ACC-40 Charitable Gifts to Indiana University
Policy FIN-ACC-45 Donor Intent Responsibilities
|Organizations that receive gifts.