Purpose

This policy was established to identify the process surrounding the acceptance of gifts-in-kind, and to ensure compliance with IRS regulations.

Scope

This policy applies to all in-kind gifts donated to Hofstra University.

Policy

Gifts-in-kind typically include artwork, furniture, books, paintings, or other property which a donor may give to the University.

Required Approvals

Gifts-in-kind must not be accepted unless they are authorized by the SVP for Development and Alumni Affairs in advance of delivery. The University requires a signed Hofstra University Deed of Gift form from the donor when accepting approved gifts-in-kind.

Gifts-in-kind of real estate or other gifts-in-kind with an estimated value of $10,000 or more must be approved by the Office of General Counsel. All gifts-in-kind requiring a written agreement with the University require approval of the Office of General Counsel.

Acknowledgements

In accordance with IRS regulations, the University may provide a written acknowledgement, which provides a description, but not the value, of non-cash contributions. The Office of Development is solely authorized to provide such an acknowledgement on behalf of the University.

Tax-Deductibility

The donor must file IRS Form 8283 with their tax return in order to deduct gifts-in-kind in excess of $500. For gifts-in-kind in excess of $5,000, the donor is required to complete Form 8283 with additional information and obtain the University’s signature acknowledging receipt of the gift. All such acknowledgements on Form 8283 must be signed by the AVP or SVP of Financial Affairs. The University may not provide or acknowledge a value associated with the gift; the University merely indicates receipt of the item.

The donor will be required by the IRS to secure an official appraisal for the fair market value (FMV) or to estimate the FMV of the item donated as detailed in IRS Publication 561, “Determining the Value of Donated Property.”

In the event the University sells the property within 3 years, the University is required to complete IRS Form 8282 and report the value received, which may impact the donor’s deduction.

Recording

Gifts-in-kind are not recorded on the University’s financial system; they are, however, noted in the Raiser’s Edge database by the Office for Development and Alumni Affairs.

Reporting

The Office for Development and Alumni Affairs shall circulate on a monthly basis a list of gifts-in-kind to the SVP for Financial Affairs and Treasurer, the SVP for Legal Affairs and General Counsel, the Controller, the Associate Controller, the Assistant Controller, and the SVP for Development and Alumni Affairs.

Related Policies and References

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