1 oakland university development information services assistant dean / business manager training...

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Oakland UniversityOakland UniversityDevelopment Information ServicesDevelopment Information Services

Assistant Dean / Business Manager Training

Understanding Gift Accounting

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Training TopicsTraining Topics1) Banner Advancement – Part of SunGardHE2) Gift Accounting Department3) Banner Advancement Definitions4) Gift Designations

a) Reporting Datab) Finance Datac) Endowment Fund Data d) Financial Aid Data

5) Gift Types6) Feed-to-Finance Process7) Monthly Reconciliation8) The Link Back to Advancement9) Detail Gift and Pledge Data10) Summary Gift and Pledge Data

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Training Topics - continuedTraining Topics - continued11) Viewing Constituent Information12) Pledge Write-Offs13) Quid Pro Quo Contributions14) Games of Chance15) Gifts-In-Kind16) Corporate Sponsorships vs. Advertising17) Contributions vs. Contracts (Exchange Transactions)18) Scholarship Gifts19) Endowments20) Access to Banner Advancement / More Information

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We hope this training makes your job a little bit easier!

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Shared Data:-Name

-Address-Phone-E-mail

STUDENTSYSTEM

-Admissions-Registration

-Courses-Grades-Majors

-etc.

FINANCESYSTEM

-GL-Purchasing

-A/P-Budgets

-etc.

HRSYSTEM-Applicant

-Compensation-Payroll-Benefits

-etc.

FINANCIALAID

SYSTEM-Funds Management

-History and Transcripts-etc.

ADVANCEMENTSYSTEM

-Constituent /Organization

-Gift and Pledge-Membership

-Prospect-Event-etc.D

Banner

A-Tuition & feesB-Alumni dataC-Pledges/gifts/membership feesD-Scholarship recipients/amountsE-Scholarship amountsF-Payroll deduction giftsG-Payroll and benefit costs

A

BC

E

F

G

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Gift Accounting DepartmentGift Accounting Department Structure

– Reports to D.I.S. (Development Information Services)

– 2.75 Gift Accountants (Maria Cavallaro, Debbie Misztura, Dianne Brantley)

– 1 Manager (Theresa Allen) Responsibilities

– Gift, pledge and pledge payment processing – approx. 14,000 transactions annually

– OUAA membership processing - 2,000 transactions annually– Designation maintenance - over 600 active gift designations– Address changes– Name changes– Data maintenance

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Gift Accounting DepartmentGift Accounting Department Policy

– Gifts and pledges must be submitted to Gift Accounting the same day as received (Admin. policy 500).

Deliver to cashier’s office - take the completed gift register, check and any supporting documentation in an inter-office envelope addressed to Gift Accounting to the Cashier’s Office.

Or: Deliver to John Dodge House – take all of this information

personally to Gift Accounting in the John Dodge House.

– Supporting documents must accompany the gift used to determine if it is a gift how to properly code it in Banner helps alleviate calls from GAT

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Gift Entry / Receipt FormGift Entry / Receipt Form

-Owner of the asset-Address

OU employee contact info for possible questions

If CC info is on backup docs, no need to enter here.

-memo (soft) credit-in memory/honor of-extra data not in backup

-X030 is for gifts-need gift fund

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-Owner of the asset-Address

-X030 is for gifts-need gift fund

If CC info is on backup docs, no need to enter here.

-memo (soft) credit-in memory/honor of-extra data not in backup

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Banner Advancement DefinitionsBanner Advancement Definitions

Person– Someone with no fundraising relationships with OU (not a donor,

an alum, or a prospective donor). Non-Person

– A company with no fundraising relationships with OU (not a donor or a prospect).

Constituent (subset of “Person”)– Someone who has fundraising relationships with OU (a donor, an

alum, or a prospect). Organization (subset of “Non-Person”)

– A company with a fundraising relationships with OU (a donor or a prospect).

Prospect– A person or organization that is being cultivated to make a gift.

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Advancement Definitions-Advancement Definitions-continuedcontinued

Pledge– A donors promise to give (one time or in installments)

Gift– A 100% transfer of assets from the donor to OU with “no strings

attached” Pledge Payment

– A 100% transfer of assets from the donor to OU with “no strings attached” applied to a previous pledge

Soft Credit– Credit for gift recognition to another constituent.

Third Party Payments (TPP’s)– A TPP is when someone makes a payment on another

person/company’s pledge.

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Gift Designations / FundsGift Designations / Funds Fund - Banner Finance term Designation - Banner Advancement term Designations feed to Funds in the GL

– Gift Funds: The majority of all gift and endowment spending funds begin

with “3”. (some “5” and “7” funds) OU Endowment corpus funds begin with “6” Contributions from donors can only go to gift or endowment

funds.

– Creation of Gift Funds: Create new funds for things that will be ongoing or large dollar

amounts vs. one-time gifts for odd purposes. The “gift comment” feature in Banner, printed on your regular

reports, is used to notify you of a gift for a special purpose that has been deposited into a general gift fund.

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Gift Designations / FundsGift Designations / FundsBanner Designation Table (ADADESG)

– University Designations– Foundation Designations– College / Unit Association– Type

EN-EndowmentRE-RestrictedSC-ScholarshipUN-Unrestricted

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Gift Designations / FundsGift Designations / Funds

Designation Table cont. (ADADESG)– VSE Association (Voluntary Support of Education Survey)

– GroupEN-EndowmentOP-OperatingPP-Physical Plant

– Department within College / Unit– Finance Information for Automatic Feeds

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Gift Designations / FundsGift Designations / Funds Designation Table cont. (ADADESG)

– Designation ID’s Establishing Donor Annual Report Recipient

– Designation Comments (ADACOMT) Fund Purpose Spending Criteria Spending Fund

– Designation Attributes (ADADESG) A way to further “code” designations Query purposes – coding designations for stewarding

– Fund to be stewarded (STEW)– Steward when partially funded (STE1)– Inadequate data to steward (STE2)

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Designations AttributesDesignations Attributes

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ADADESG – Donor InformationADADESG – Donor InformationDesignation ID’s

When each of the people types below have Banner ID’s, they are linked to the designation– Donors

Establishing Donor (ESTA)Establishing Donor 2 (EST2)

– Fund Report Recipients (donors may be deceased)Annual Report Recipient (ENDR)Annual Report Recipient c.c. (ENDC)

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Designation ID’sDesignation ID’s

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ADADESG – Endowment InfoADADESG – Endowment Info Designation Comments and Subject Comment Codes

The way we describe detailed information about designations– GTVSUBJ – Subject Index Validation Table

This is a “general” or “shared” validation table to which we add special subject comment codes, link them to designations for descriptive purposes.

– Summary Information for Catalog (ENDCAT)to feed into the undergraduate catalog and scholarship website

– Fund Purpose (ENDPUR)– Award/Spending Criteria (ENDCRI)– Full Name of Fund (ENDFNM)– Spending Fund 1 (ENDSPF)– Spending Fund 2 (ENDSP2)– Endowment Corpus Fund (ENDCPF)– Miscellaneous Notes (ENDNOT)

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Subject Comment Codes - GTVSUBJSubject Comment Codes - GTVSUBJ

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Designation Comments - ADACOMTDesignation Comments - ADACOMT

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Subject Comment Codes for this DesignationSubject Comment Codes for this DesignationClicking the “down arrow” gets you this box

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Fund Purpose CommentFund Purpose Comment

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Award / Spending Criteria CommentAward / Spending Criteria Comment

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Miscellaneous Notes CommentMiscellaneous Notes Comment

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Spending Fund CommentSpending Fund Comment

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ADADESG – Financial Aid InformationADADESG – Financial Aid Information Financial Aid Funds

A link between the endowment funds in Advancement and the student receiving the award/scholarship

Designation Financial Aid Query (ADIAWRD)A form showing by student, by term, based on the “link” above:– Award amount

– Amount accepted

– Amount paid Need to work closely with FA staff

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Financial Aid Fund CodeFinancial Aid Fund Code

•We want a one-to-one relationship between spending/endowment funds and FA funds

•Reduces awarding from “general funds”

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Getting to Financial Aid Award InformationGetting to Financial Aid Award Information

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Actual Financial Aid Award Information (ADIAWRD)Actual Financial Aid Award Information (ADIAWRD)

An award could be offered and not accepted or could be offered, accepted and not paid (yet or ever).

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Gift TypesGift TypesGIFT

CODE DESCRIPTION

RULE CLASS CODE

DOES ADVANCEMENT

FEED IMPACT GL?

1A One Life Annuity-Check ASCK Yes1S One Life Annuity-Stock ASLM Yes2A Two Life Annuity-Check ASCK YesAS Annuity Surrender ASLO NoBP Bequest-Previous Deposit ASLO NoBQ Bequest-Check ASCK YesCA Charitable Gift Annuity-Check ASCK YesCC Credit Card ASCC YesCK Check ASCK YesCL Charitable Remain Lead Trst-Ck ASCK YesCR Charitable Remainder Trust-Ck ASCK YesCS Cash ASCH YesDP Previous Deposit ASLO NoEF EFT/Wire Transfers ASEL No - JV is doneGA Appreciated Property-GIK ASLN Not yetGN Non-Tangible Gift-in-Kind ASLN Not yetGR Real Estate Gift-in-Kind ASLN Not yetGT Tangible Gift-in-Kind ASLN Not yetLC Life Ins-Cash Surrender Value ASLO NoLI Life Insurance Premimums-Check ASCK Yes

MC Matching Gift-Credit Card ASCC YesME Matching Gift-EFT ASEL No - JV is doneMG Matching Gift-Check ASCK YesOL OnLine Giving ASLO No - Deposit or JVPD Payroll Deduction-NOT USED ASLP No - JV is donePR Automated Payroll Deducts ASDE YesRO Recognition Only ASLO NoSE Securities ASLM Yes

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Feed to Finance ProcessFeed to Finance ProcessPledges, payments, and outright gifts are

processed and fed to Banner finance nightly.

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Feed to Finance ProcessFeed to Finance ProcessDESIGNATIONS

– Donors can designate their gift/pledge to almost any area of the university.

Designation Examples– 30085-FD SEHS Gift Fund (no longer used)

– 30085-OU SEHS Gift Fund

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OU Designation

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Feed to Finance ProcessFeed to Finance Process GIFTS

– When the transaction is processed (automatic feed nightly) Credit Entry

– Fund: 30085 (OU fund)– Acct: X030 (gift revenue)

Debit Entry– Fund: 30085 (OU fund)– Acct: 1001 (cash)

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Feed to Finance ProcessFeed to Finance Process PLEDGES


– Fund: 30085 (OU fund)– Acct: X028 (pledge revenue)

Debit Entry– Fund: 30085 (OU fund)– Acct: 1576 (pledges receivable)

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Feed to Finance ProcessFeed to Finance Process PAYMENTS ON PLEDGES


– Fund: 30085 (OU fund)– Acct: 1576 (pledges receivable)

Debit Entry– Fund: 30085 (OU fund)– Acct: 1001 (cash)

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Monthly ReconciliationMonthly Reconciliation Gift Accounting Manager:

– Generate MSAccess reports

– Compare Advancement activity with Finance activity for the month.

– Reconciliation is performed.

– Reports by Unit/Dept/Fund distributed Outright Gifts Pledge Payments Pledges

– Business Manager’s responsibility to share these reports with the appropriate areas in their unit.

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Monthly ReconciliationMonthly Reconciliation TPP’s (Third Party Payments)

– TPP’s are recorded as “gifts” in Banner Advancement on the record of the “hard credit” donor so they feed to finance as an X030, not 1576.

– During monthly pledge reconciliation, we identify any TPP’s processed for the month and do a manual JV to reduce the pledge on the Finance side.

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The Link Back to AdvancementThe Link Back to Advancement View data that was “fed”

– Gift Report– In FGITBAL

Get Document Reference # / Gift #– From gift report– FGIDOCR

Find Gift in Advancement– ADAGIFT

See Additional detail info if needed– AGCGIFTT

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DateInput Amount Donor Name/Gift Comment Gift Date

GiftType(a)

OAKLAND UNIVERSITY

Pledge#(b)

Transferred to GLFund#(c)

GLDoc. #

Gifts Made Directly to OU Units By Unit with Subtotals by Department and Designation7/1/05 to 7/31/05

Gift#

Department: Meadow Brook Hall

Finance & AdministrationUNIT:

30230-OU MBH Garden Club Gift Fund7/27/2005 $300.00 7/25/2005 CKLarsen-Becker, Brenda 0000000

SS0607825

F0015043302300323527

$300.00Designation Total

35122-OU Meadow Brook Hall Gifts and Donations7/15/2005 $1.00 7/14/2005 CSBrown, Thomas 0000000

BS0607812

F0014991351220323431

7/15/2005 $97.00 7/14/2005 CSANONYMOUS, General 0000000

BS0607812

F0014991351220323430

7/22/2005 $500.00 7/20/2005 CKComerica, Inc., 0000000

SS0607821

F0015027351220323489

7/28/2005 $2.00 7/27/2005 CSBrown, Thomas 0000000

BS0607826

F0015056351220323542

$600.00Designation Total

$900.00Department Total

Business Manager Report - GiftsBusiness Manager Report - Gifts

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View of FGITBALView of FGITBAL

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View of FGIDOCRView of FGIDOCR

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View of ADAGIFTView of ADAGIFT

Use F7 to put form in query mode then enter gift #. F8 to execute.

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View of AGCGIFTView of AGCGIFT

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Detailed Gift DataDetailed Gift DataAGCGIFT – List of all gifts for donor

– GIFTS FY Gift Date Amount Split (not used – does not mean split designation)

– Campaign / Designations Campaign Designation Payment Gift Type Gift Type Description Vehicle

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Detailed Gift DataDetailed Gift Data

AGCGIFT – continued– Gift Classes

Gift ClassGift Class 2Gift Class 3Memo AmountCollege

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Detailed Gift DataDetailed Gift DataAGCGIFT – continued

– Gift / Pledge Number Gift Number (same as document reference # in Finance)

– To view document feed # and feed date• Click on down arrow• Select “Gift Detail”• Select “Additional Gift Information” tab

Receipt Adjusted Pledge Number Session Solicitation Match

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Detailed Gift DataDetailed Gift DataAGCGIFT – continued

– Campaign / Designation TypeAcknowledgementCampaign TypeDesignation TypeDesignation VSEDesignation DepartmentAuxiliary AmountsAssociated ID’s

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TPP Postings-AGCGIFTTPP Postings-AGCGIFT

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TPP Postings-FGIDOCRTPP Postings-FGIDOCR

This is the posting from the actual gift.

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TPP Postings-FGIGLACTPP Postings-FGIGLAC

•This is the JV reducing the pledges receivable.•The other side of this entry reduces the pledge (X028)

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- TPP

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Payroll DeductionsPayroll Deductions Processed differently than most other pledge

payments:– Payroll Deducts used to be processed manually requiring

a JV to reduce pledge receivables

– Automatic Banner process initiated January 20071) A pledge is created in Advancement with monthly installments

(pledge code “PD”)

2) Pledge fed to the Payroll system for approval

3) At the month-end, Payroll process is run creating the GL postings below (a temporary holding spot):a. Credit fund 99603 (P/R AUFD Clearing), account 2074 (Employee

Deduction Liability)

b. Debit fund 99603 (P/R AUFD Clearing), account 1001 (Cash & Pooled Investment)

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Payroll DeductionsPayroll Deductions continued:

4) Advancement process is run creating the GL postings below (moving the posting from the temporary holding area to the fund designated by the donor):a. Credit “gift fund” (donor designated), account 1576 (Pledge

Receivable)

b. Debit “gift fund” (donor designated), account 1001 (Cash & Pooled Investment)

c. Debit 99603 (P/R AUFD Clearing), account 2074 (Employee Deduction Liability)

d. Credit 99603 (P/R AUFD Clearing), account 1001 (Cash & Pooled Investment)

– Each pledge payment directly impacts the General Ledger and is processed with a rule class code of “ASDE” and a gift type of “PR”.

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Payroll Deductions-FGIDOCRPayroll Deductions-FGIDOCR

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Detailed Pledge DataDetailed Pledge Data

AGCPLDG – list of all pledges for donor– Basically same data as AGCGIFT

Exceptions– Shows amount of pledge actually paid

– Feed date and document number in “Finance Feed” tab

– Pledge Number (same as document reference # in Finance)

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Summary Gift and Pledge DataSummary Gift and Pledge Data

Designation Gifts Form (ADAGIFT)

Designation Pledges Form (ADAPLDG)

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Viewing Viewing Constituent Constituent InformationInformation Constituent Summary (APASBIO)

– Address– Employment– Cross References– Children– Academic Information– Biographic Information– Comments (locations where they exist)– Navigation to other information– Activities Information– Constituent/Solicitor Information– Prospect Information– Membership Information– Gift Society Information– Constituent Categories

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View of APASBIOView of APASBIO

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Pledge Write-OffsPledge Write-Offs Pledges feed to the GL Most but not all pledges get completely paid All older uncollectible pledges will be written off

every between January and March. Pledge revenue and pledge receivables will be

reduced. Allowances for doubtful pledges are recorded in a

central fund however, if a pledge is written off, the departmental fund would see the entire write off in that year.

Units should never spend from pledge receivable balances, only from actual cash.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions

Work with your Development Officer

IRS Definition IRS Regulation Highlights Fair Market Value (FMV) at

Fundraising Events Fundraising Auctions

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Quid Pro Quo ContributionsQuid Pro Quo Contributions IRS Definition

– A payment made to OU from a donor partly as a contribution and partly in consideration for goods or services (e.g. fundraising dinner).

– The value of the benefits (premiums) the donor receives is a key factor in determining the amount of the actual gift.

– The actual gift is only the amount of the contribution that exceeds the value of the benefits received by the donor.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions IRS Regulation Highlights:

– The items must have a “substantial” value to be considered as benefits and therefore, to be subtracted from the donors contribution. Items that have insubstantial (token) value need not be subtracted from the contribution.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Token Value Benefits

– Small items of merchandise or other benefits (bookmarks, calendars, key chains, mugs, posters, tee shirts, etc.) offered when donors make a contribution. Token value in relation to the amount contributed Burdensome to inform each donor of the amount of

the payment that is deductible. Inconsequential or insubstantial so that the full

amount of the donor’s payment should be deductible as a contribution.

IRS has provided rules under which a donor may disregard the value of token benefits and deduct the full amount of a payment.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Token Benefit Rules (2010)

– A payment is fully deductible if: The fair market value of all the benefits received by the

donor is not more than $96 or 2% of the payment, whichever is less, or

The donor’s payment is $48 or more and the only benefits received are token items that bear OU’s name or logo and have an aggregate cost of no more than $9.60.

(DON’T WORRY – WE HAVE EXAMPLES !)

6666


1 Required PaymentDonor Benefits (premiums) Cost FMVMugKeychainT-shirt2 concert tickets(NOT token Lapel pin $0.25 $0.50Total $0.25 $0.50

2 FMV as % of Required Payment

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FMV of benefits is less than or equal to 2% of the required payment or $96, whichever is less. (yes or no)

4Required payment is $48 or more. (yes or no)

5Total cost of benefits is $9.60 or less. (yes or no)

6Donor was informed of the FMV of benefits?

7 Tax Deductible Amount

A payment is fully deductible if the answer in line #3 is "Yes" or if the answer in lines #4 and #5 is "Yes", otherwise the payment is partially or totally non-deductible.

$25.00

Yes

No

Yes

$25.00

2.0%

TOKEN BENEFIT EXAMPLES BASED ON IRS RULES FOR 2010

Yes

Example 1

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1 Required PaymentDonor Benefits (premiums) Cost FMV Cost FMVMugKeychain $1.00 $2.00T-shirt2 concert tickets(NOT token Lapel pin $0.25 $0.50Total $0.25 $0.50 $1.00 $2.00


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4Donors required payment $48 or more. (yes or no)


6Donor informed of the FMV of benefits. (yes or no)


Yes No

Example 1$25.00

2.0%

Yes

Example 2$50.00

4.0%



$25.00 $50.00

Yes Yes

No Yes

Yes

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1 Required PaymentDonor Benefits (premiums) Cost FMV Cost FMV Cost FMVMug $3.00 $5.00Keychain $1.00 $2.00 $1.00 $2.00T-shirt $8.00 $10.002 concert tickets(NOT token item)Lapel pin $0.25 $0.50Total $0.25 $0.50 $1.00 $2.00 $12.00 $17.00


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4Donors required payment is $48 or more. (yes or no)


6Donor informed of FMV of benefits. (yes or no)


Yes

Yes No

Example 2$50.00

4.0%

Yes

No

Yes

Example 1$25.00

2.0%


Example 3$50.00

34.0%


No

$25.00 $50.00 $33.00

Yes Yes

No Yes

Yes

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1 Required PaymentDonor Benefits (premiums) Cost FMV Cost FMV Cost FMV Cost FMVMug $3.00 $5.00 $3.00 $5.00Keychain $1.00 $2.00 $1.00 $2.00T-shirt $8.00 $10.00 $5.00 $10.002 concert tickets(NOT a token item) $0.00 $80.00Lapel pin $0.25 $0.50Total $0.25 $0.50 $1.00 $2.00 $12.00 $17.00 $8.00 $95.00


3FMV of benefits is less than or equal to 2% of the required payment or $96, whichever is less. (yes or no)

4Donors required payment $48 or more. (yes or no)


6Donor informed of FMV of benefits. (yes or no)


Example 2$50.00

4.0%

Yes No

Example 1$25.00

2.0%

Yes

No

Yes

No Yes

Yes Yes

Example 3$50.00

34.0%

No

$25.00 $50.00 $33.00

Yes Yes



Yes

Yes

Yes

$0.00

Example 4$75.00

126.7%

No

Notice the tickets did not cost OU anything

but they did cost somebody something and are NOT a token

item.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Fair Market Value (FMV): The value of

benefits received by the donor must be based on the FMV of the benefits (except for token items), not necessarily the cost of the items.

Raffles: No portion of a payment made resulting in an opportunity to win a prize (raffle tickets, door prizes, etc.) is a gift.

Preferential Seating: If a donor receives the right to purchase preferred seating for an athletic event in return for their gift, only 80% of their contribution is tax deductible.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Fundraising Events:

– The value of benefits received (round of golf, dinner, drinks, gifts, etc.) by the donor must be based on the FMV of the benefits determined through a “good faith” effort, not necessarily the cost of the item.

– OU has a procedure for determining FMV for goods and services provided to donors at fundraising events where something of value is exchanged for a payment.

– OU has an Excel template to help determine the FMV of the goods and services.

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– The following steps should occur for all fundraising events where something of value is exchanged for a payment: The annual giving department is to be notified by the event

organizer prior to event materials being created. The annual giving department will work in collaboration with the

event organizers to complete the fair market value (FMV) excel worksheet which will determine:– An estimated per person cost for the event– The payment amount to attend the event– The FMV of any and all goods and/or services provided to the payee in

return for their payment to attend the event. The annual giving department will provide the costs, payment

amount and FMV to the director of development information services for review and approval.

The vice president or associate vice president of university relations will receive the documents for final approval.

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– The FMV Calculation: Determine all the costs (direct and indirect) associated

with the goods and services received by the donor. Determine the average cost per person. The FMV is what the average person would pay for a

“like” event at a “like” venue, not necessarily the cost. Therefore, if the calculated cost per person is $100, but the average person would pay $75 for a “like” event at a “like” venue, the FMV would be $75.

The FMV must be communicated to the donor on marketing materials.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Donors Opting out of Receiving Goods

and Services:– Needs to be communicated to OU prior to the

event and prior to processing the payment.– We can’t give a donor an amended receipt with a

higher gift amount because they told us after the event that they were not able to attend.

– The IRS says even if a donor does not take advantage of the benefits, the benefits were still provided.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Fundraising Auctions:

– The bidder must know the FMV of the item being auctioned prior to bidding in order to claim they had charitable intent by bidding in excess of FMV, if not:

– No charitable donation was made by the winning bidder, because:

– The winning bid becomes the basis for the FMV as the transaction became a “purchase”.

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Quid Pro Quo ContributionsQuid Pro Quo Contributions Impact on You:

– Gift Registers: The amount received from the donor may not be entirely tax deductible. You will need to break out the gift amount vs. the quid pro quo amount on the gift register.

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and because it's always time to poke fun at the IRS...

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Games of ChanceGames of Chance OU Policy 435 – Games of Chance

– Types Bingo Millionaire parties Charity games Raffles

– Authorizing Officer Vice President for UR

– Application Form part of policy 435 on website Complete and return to VP’s office

– State Licenses Very important Timing

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Games of ChanceGames of Chance Raffles:

– You are conducting a raffle if you are charging people or requiring them to donate or provide something of value to participate in a drawing where a prize will be awarded. University Approval Keep separate from gift solicitations Withholding and Reporting Requirements Record Retention House Rules Misconception from Michigan Charitable Gaming

Commission Raffle Licenses

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Other GiftsOther Gifts Gifts-in-Kind

– Admin. Policy 500

– Donated assets and property such as art, books, equipment, automobiles, inventory, personal property, other physical assets.

– Donors must provide the value of the gift-in-kind.

– Gifts-in-kind with an apparent value of $5,000 or more, a qualified appraisal must accompany the gift.

– No value from donor, gift entered with a $1 value.

– No values for gifts-in-kind shall appear in acknowledgment letters or receipts. The university does not act as an appraiser of gifts-in-kind.

– Gift-in-Kind review form. Gifts of Services

– Not a countable or deductible gift.

– Pay the donor for their services and have them write you a check in return.

Blood – Not a tax deductible gift.

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Gift-in-Kind Gift-in-Kind Review Review FormForm(can be (can be

accessed from accessed from OU policy #500)OU policy #500)

OAKLAND UNIVERSITY GIFT-IN-KIND REVIEW FORM

FORM A-1

DEPARTMENT INFORMATION

Department___________________________Contact Person____________________________Phone______________

DONOR INFORMATION

Owner/Donor_______________________________________Contact (if applicable)___________________________

Address_________________________________________________________________Phone___________________

GIFT INFORMATION (FOR REAL ESTATE USE FORM A-2)

Gift Fund:___________________________________

Description: (include date, model, serial number, brand name, etc.)__________________________________________

_______________________________________________________________________________________________

_______________________________________________________________________________________________

New equipment? Yes □ No □ ● New software? Yes □ No □ ● Educational Discount Value________

Has Facilities Management, Environmental Health & Safety and Risk Management been consulted regarding the

housing of this equipment, possible safety issues to staff/students, etc? Yes □ No □

Has Oakland taken possession of this item? Yes □ No □ ● Date Received: ___________

Will this gift be retained by Oakland? Yes □ No □ If yes, will it appreciate in value? Yes □ No □

Purpose or intended use: ________________________________________________________________________

___________________________________________________________________________________________

Additional costs (installation, insurance, maintenance, etc.)____________________________________________

___________________________________________________________________________________________

Potential liability for university: __________________________________________________________________

Percent of ownership being donated: _____________________ (attach names and addresses of other owners).

Were goods or services provided by Oakland for the gift? Yes □ No □ If yes describe: ____________________ _____________________________________________________________________________________________

GIFT DOCUMENTATION

Donor's estimated value_______________________________

Check One: Donor provided: Receipt □ Invoice □ Appraisal □ No Documentation □ ●Appraisal date_________

Signature of employee completing form: _______________________________________Date________________

UPON COMPLETION, SEND TO GIFT ACCOUNTING, 102 JOHN DODGE HOUSE: A receipt describing the item(s) donated will be issued but no monetary value will be stated.

Contact Gift Accounting with any questions at 248-364-6110

Rev. 02/09

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Corporate Sponsorships vs. Corporate Sponsorships vs. AdvertisingAdvertising

Corporations often give money to sponsor activities, events, or projects and in return receive recognition on campus or at the event.

Most sponsorship dollars are gifts as long as the recognition received does not constitute advertising.

The IRS defines advertising as competitive pricing or product information displayed because of the donation.

The recognition for a sponsor should be limited to:– Sponsors location, telephone number, internet address– Value-neutral description of sponsor’s products or services– Sponsor’s brand/trade name or product/service listings

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Contributions vs. Contracts (Exchange Contributions vs. Contracts (Exchange Transactions)Transactions)

Some contracts may appear to be much like contributions therefore a careful assessment of the contract is needed to determine if OU has given up an asset or incurred a liability (of commensurate value).

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CContributions vs. Contracts (Exchange ontributions vs. Contracts (Exchange Transactions)Transactions)

Factors to aid in distinguishing between contributions and exchange transactions.

No one factor will provide sufficient information for appropriate classification.

From NACUBO (National Association of College / University Business Officers)

Factor / QuestionAnswer is Yes

Answer is No

Do funds provide goods/services for a program of the resource provider? ETDid the initiative for the project come from the organization providing the funds?

ET C

Do proprietary results belong to the funding organization, in whole or in part, after the work is completed?

ET C

Do the results of the work have specific commercial value for the resource provider?

ET C

Does the resource provider sponsor research and development activities and retain patents, copyrights, advance and exclusive knowledge of outcomes?

ET

Does payment support the direct/immediate need of government or organization that provides funding?

ET

Are benefits to the resource provider primary and public benefits are secondary?

ET

Does the resource provider define performance objectives such as a detailed report and a timetable for meeting objectives?

ET C

Is the time and place for delivery of results specified? ET CDoes the contract fulfill a service as prescribed by the resource provider? ETDid the recipient give up benefits of the research to the resource provider? ETWill the recipient pay economic/punitive penalties for failure to meet agreement?

ET

Does the resource provider receive commensurate value in return for support?

ET C

Does the recipient determine ownership of the products of the research? CDoes the recipient hold unconditional rights to receive the funds? CDoes the recipient retain control and ownership of any work completed after completion of the project?

C

Are the funds used to carry out an already existing program of the recipient organization?

C

Does the recipient participate actively in determining how the funds will be spent?

C

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Scholarship GiftsScholarship Gifts

No gift if a donor chooses the recipient. Discourage donors involvement in the selection

process (tax, FERPA, practical issues). OU will make final decision on all awards.

If OU chooses the student, it is a gift but the donor still should not list the student’s name on gift documents.

Need to keep track of recipients for stewardship purposes

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EndowmentsEndowments

Endowment Fund– Quarterly distributions to spending fund– Gift / pledges usually designated to endowment

Spending Fund– Receives income distributions from endowment– Expenses must be incurred out of spending fund vs.

a general fund followed up by a transfer JV

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Underwater Endowments– When the market value falls below the amount

donated (historical cost)– No distributions to spending

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Expense Explanation Report– A report template was developed

– assistant deans and/or business managers to summarize spending fund financial activity

– To be provided to university relations, along with deans, on a semi-annual basis

– Reviewed by the accounting office and by the Assistant Dean in CAS

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Expense Explanation Report - Contents– Summary explanation for expenditures from an

endowment’s spending fund

– Summary explanation for transfers into and out of an endowment’s spending fund

– Reasons why little or no expenses were incurred from an endowment’s spending fund

– Verification that expenses incurred were in line with the fund’s purpose

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Expense Explanation Report - Results– Enhanced Stewardship - Spreading reporting and reconciliation

responsibility to those with spending control over the funds

– Increase the timeliness of annual endowment letters to donors. Since units have to provide this information anyway, a more logical and effective way, with deadlines has been developed (see sample report).

– Allows units to stay on top of unspent funds - When done semi-anually (for December and June), this will allow the assistant deans and business managers to stay on top of unspent funds and to remember the need to transfer funds timely when dollars are spent from other funds on specific endowment purposes (although the best practice is to spend funds directly from the endowment’s spending fund and not do transfers)

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Expense Expense ExplanationExplanationReportReport

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Annual Annual EndowmentEndowmentReport for Report for DonorDonor

OAKLAND UNIVERSITY

Kurtis Kendall Memorial Scholarship Endowment Fund 2007-2008 Annual Endowment Report

Endowment Fund

Beginning Balance at July 1, 2007 $162,472.59 Gifts Received 0.00

Investment Income / (Loss) 604.15

Transfers 0.00

Distributions to Spending Fund (6,549.30)

Ending Balance at June 30, 2008 $156,527.44

Spending Fund

Beginning Balance at July 1, 2007 $3,334.72

Distributions from Endowment and Gifts 6,549.30

Transfers 0.00

Total Awards / Expenditures (6,750.00)

Ending Balance at June 30, 2008 3,134.02

Scholarship / Award Recipients Amount Jane Doe $1,500.00 John Smith 750.00 Bill Jones 1,500.00 Gail Smith 1,500.00 Joe Plumber 1,500.00

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Where to Get More InformationWhere to Get More InformationDIS Website - www.oakland.edu/dis

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Where to Get More InformationWhere to Get More Information((can link to these, and more, from DIS website)can link to these, and more, from DIS website)

Business Manager Training on Fundraising Issues

Banner Advancement Procedure ManualOU Administrative Policy 500 – Gifts, Pledges,

and GrantsContact Us Anytime

– Rob Saunders, Director DIS ext-6120

– Theresa Allen, Manager Gift Accounting ext-6115

– Gift Accounting main phone line - 6110

1 oakland university development information services assistant dean / business manager training...

Documents

gift types

summary gift

pledge data slide

completed gift register

gift fund t owner

information slide

backup slide

extra data