Gifts of personal property Personal property donated to UH System
include items such as art work, rare books,
jewelry, antiques, collections, etc. is
valued in the following manner:
Personal property gifts with fair market
values of more than $5,000 are counted at
the values placed on them by qualified
independent appraisers, as required by the
IRS for valuing non-cash charitable
contributions.
Personal property gifts of $5,000 and less
are reported at the value declared by the
donor or a qualified expert on the faculty
or staff of the institution.
Gifts-in-kind – Gifts-in-kind might include
such items as equipment, software, printed
materials, food or other items used for
hosting dinners, etc. These are non-cash
donations of materials or long-lived assets
that have usefulness to the UH System and
the values are determined and reported as
follows:
Gifts of materials or long-lived assets
that serve the purpose of the institution
are reported at the face (fair market)
value.
Items such as equipment and software are
reported at the educational discount value,
such as the value the institution would have
paid had it purchased the item outright from
the vendor.
Gifts of copyrights and ownership of gas
or oil wells are reported 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 are valued in the Advance
database system at the full fair market
value, regardless of the value the donor is
able to take as a charitable deduction.
However, gift receipts 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.
To accurately record gifts of personal
property and gifts-in-kind, the Financial
Assistant should use the following
guidelines:
Artwork, rare books, jewelry, antiques,
collections, etc.
Value is based on a qualified independent
appraisal. If no such appraisal is
available, the gift is valued at $1.00 or an
amount, if under $5,000, determined by a
reasonable faculty/staff estimate.
Computers, software, tools, other
equipment and furniture
"New" items are valued based on the
educational discount price (what it would
cost UHS to purchase). Documentation is
needed from the vendor stating the price
that the item(s) would be sold to UHS. The
UHS Donor and Alumni Records department may
question such documentation if it appears
unreasonable; therefore, each development
officer has the responsibility to ensure the
values submitted are fair and accurate.
"Used" items are 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
to ensure 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,
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. For example, 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.
Gifts of pro bono work and discounts or
waivers of rental fees are not recognized by
the IRS as tax deductible. Nor are they
included in gift reporting. They are,
however, included in extramural reporting.
Additional UH System valuing guidelines – UH
System provides additional guidelines that
the DAR department follows when recording
gifts of personal property or gifts-in-kind.
A donor or their financial advisor, such
as a lawyer or accountant, does not qualify
as an independent appraiser.
Any gift-in-kind should have usefulness to
the UH System. For example, a ten-year old
computer that cannot be used by the
university is not an acceptable as a gift
and is not processed in the Advance database
system.
The signature of a Development Officer is
required on all Gift Transmittal Forms for
gifts of personal property and gifts-in-kind
to assume responsibility for submitting
supporting valuation documentation.
All receipts for gifts of personal
property and gifts-in-kind include a
description of the donated item but no
stated value, even when there is a qualified
independent appraisal.
The DAR Manager issues a monthly report of
personal property and gifts-in-kind that
have been received to the UHS Property
Manager who determines if the property is to
be entered into the UHS inventory.
