Survival Guide

The UH System generally follows CASE guidelines for valuing gifts of personal property (i.e. art work, collections, etc.) and gifts-in-kind. These guidelines are as follows:

Gifts [of personal property] with fair market values of more than $5,000 should be counted at the values placed on them by qualified independent appraisers, as required by the IRS for valuing non-cash charitable contributions. Gifts of $5,000 and less may be reported at the value declared by the donor or determined by a qualified expert on the faculty or staff of the institution.

Gifts-in-kind are non-cash donations of materials or long-lived assets. Gifts of materials or long-lived assets that serve the purpose of the institution should be reported at the face (fair market) value. Gifts-in-kind might include such items as equipment, software, printed materials, food or other items used for hosting dinners, etc. For items such as equipment and software, report the educational discount value - that is, the value the institution would have paid had it purchased the item outright from the vendor.

Report gifts of copyrights and ownership of gas or oil wells at the readily determinable face (fair market) value. Alternatively, if the fair market value is not known and cannot be readily determined, report the asset in the year the value becomes known. For gifts of royalties from gas and oil wells not owned by the institution, report the amount received each year.

Such gifts will be valued in the donor database at the full fair market value, regardless of the value the donor may be able to take as a charitable deduction; however, gift receipts will include a description of the donated property but not a dollar value. It is the responsibility of the donor to substantiate the value a gift of property for tax deduction purposes.

The chief advancement services officer or his/her designee will work with development directors to determine the value of such gifts.

Specific UH System guidelines include the following:

· Items that do not have appropriate documentation shall be valued at $1.

· A donor or his/her advisor (lawyer, accountant, etc.) does not qualify as an independent appraiser.

· Ideally, documentation of the educational discount value of a donated item is an invoice from a reputable vendor stating the price at which the UH System would purchase such an item.

· If a donor contributes a "new" item and submits a purchase receipt for that item, then the purchase price may be used for valuation so long as it appears to be authentic and reasonable.

· Any gift-in-kind should have usefulness to UH System. For example, a ten-year old computer that cannot be used by the university should not be accepted as a gift and certainly not processed for the database.

· Development officers should sign all Gift Transmittal Forms for gifts of personal property and gifts-in-kind and assume responsibility for submitting documentation supporting its valuation.

· All receipts for gifts of personal property and gifts-in-kind will include a description of the donated item but no stated value, even when there is a qualified independent appraisal.

Following are common categories of property gifts and additional information relating to them.

Artwork, rare books, jewelry, antiques, collections, etc.
Value is based on a qualified independent appraisal. If no such appraisal is available then the gift will be valued at $1 or an amount, if under $5,000, determined by a reasonable faculty/staff estimate.

Computers, software, tools, other equipment and furniture
For "new" items, value is based on the educational discount price (what it would cost UHS to purchase). Documentation is needed from the vendor stating the price at which that the item(s) would be sold to UHS. The UHS gift records department may question such documentation if it appears unreasonable; therefore, each development officer has the responsibility of making sure that the values submitted are fair and accurate. "Used" items will be valued based on qualified independent appraisal. If no such appraisal is available then the gift will be valued at $1 or an amount, if under $5,000, determined by a reasonable faculty/staff estimate.

Printed materials, food & beverage, etc. (usually under $5,000)
Value is based on the educational discount price (what it would cost UHS to purchase). Documentation is needed from the vendor stating the price at which the item(s) would be sold to UHS. The UHS gift records department may question such documentation if it appears unreasonable; therefore, each development officer has the responsibility of making sure that the values submitted are fair and accurate. If no such documentation is available then the gift will be valued at $1 or an amount, if under $5,000, determined by a reasonable faculty/staff estimate.

Nominal items-usually less than $100 (gift certificates, small auction items, supplies, etc.)
Such items are generally discouraged from being reported for entry into the database; however, if this information is important for the donor's record or for other reason, then it will be booked at fair market value (using the educational discount price when available). Documentation of the value is required. Expert staff and faculty may estimate a value when official documentation is unavailable (i.e. an appropriate employee of the College of Hotel and Restaurant Management may estimate a price for a donated weekend for two at the Four Seasons Hotel).

Advertising, leases/rentals, business services, etc.