GIFT DELIVERY

Donors can donate to Utah State University in a variety of ways. Based on the form of the gift, steps for delivery will vary. Below are instructions for each form.

4.a. Cash or Checks

Gifts of cash or checks are credited to the donor's giving record at face value. Cash handling policy and procedures are covered in the Advancement external cash handling procedures.

To facilitate a gift by check:

Donors should be informed to make checks payable to Utah State University and mail, along with instructions regarding the gift designation to:

Utah State University
Office of Advancement Services
1590 Old Main Hill
Logan, UT 84322-1590

4.b. Wire Transfer

Wire transfer is a system for moving money from one bank account directly to another electronically.

To facilitate a gift using a wire transfer:

Donors should be informed to contact the Office of Advancement Services for wire instructions. Donor will be asked to provide name, the bank that will transfer the money, and instructions relating to the use of the gift.

4.c. Credit Cards

The University accepts the following credit cards: Discover, Visa, MasterCard and American Express. A credit card fee is charged to the unit receiving the gift to cover some of the costs for processing the credit card. Currently, the fee is set at 2.45% of the amount of the gift and is charged back to the department with a daily automated feed in Banner.

Credit card donations made through the mail must follow University processes required by PCI standards. Any direct mail donor solicitation that requests credit card information must be pre-approved by the Senior Director of Advancement Services, and the return addressee must be the Office of Advancement Services.

To facilitate a gift by credit card:

Phone:
Donor should be informed to contact the gift processing staff to provide credit card information securely, to ensure PCI compliance.

Online:
Donor should be informed to make a secure donation online at the main University giving site:
give.usu.edu

OR

Departments may accept donations through a secure giving widgets. Departments may request a customized, secure giving widget at usu.edu/advancement/report-request.

Mail:
If credit card information is received anywhere outside the Office of Advancement Services, the receiving unit shall forward the donor's contact information to the Senior Director of Advancement Services and then immediately shred the document. The Office of Advancement Services will contact the donor for processing.

4.d. University Payroll Deductions

University faculty and staff can support the University through payroll deduction using this form.

  • Forms submitted after the 15th of the current month will not take effect until the following month's paycheck.
  • Payroll deduction donors will receive their charitable tax receipts in January.
  • Please note that payroll deductions must be ≥ $3.00 per fund to support and must continue for minimum of three months.

To facilitate a gift by payroll deduction:

Donors should be instructed to fill out the USU Payroll Deduction Form
Or
Send a detailed email to advgifts@usu.edu with the following information:

  • Name
  • A#
  • Gift designation
  • Deduction amount
  • Duration of deduction

4.e. Electronic Funds Transfer ("EFT") or Automated Clearing House ("ACH")

EFT or ACH is a system for moving money from one bank account directly to another electronically on an ongoing basis.

To facilitate a gift by EFT or ACH:

Donors should be informed to complete the USU EFT Form and send it to:

Utah State University
Office of Advancement Services
1590 Old Main Hill
Logan, UT 84322-1590

4.f. Publicly Traded Securities and Mutual Funds

Donors may use marketable stocks, bonds, or other securities traded on national exchanges to make outright gifts, pay pledges, or establish charitable gift annuities. Gifts of mutual fund shares are also acceptable; however, transfers of this type may take longer to complete. Many mutual funds are not DTC transferable, and each company sets its requirements regarding transferring these shares to a charitable organization. Brokerage fees and expenses are charged to the receiving unit.

Development officer shall confirm whether the donor wishes to make a transfer from a brokerage account or retirement account. Except for qualified charitable distributions any gift from a retirement plan will create tax consequences for the donor.

Immediate Sale Required

USU Policy 517 4.3 Donated Securities requires,

Securities received by gift, devise or bequest, whether outright or in trust, shall be sold as soon as practicable in accordance with the Rules of the Money Management Council, and Utah State Board of Regents Policy R541, Management, and Reporting of Institutional Investments unless:

  • Restrictions specified by the donor through a written instrument contain directions as to the investment thereof. The funds embodied within the gift shall be invested in accordance with those directions, therein. The University will periodically review donor's written directions to determine if any donated securities being held can be sold or if they should be written off if the value is deemed immaterial.
  • Such securities are restricted from sale because they are not registered with the Securities and Exchange Commission and lack a written instrument as per the intentions of the donor. In such cases, they may be retained as a qualified investment. When the terms of the restrictions are no longer applicable, the securities shall be sold or written off in accordance with this section.

Holding such securities as noted above are deemed to comply with the Rules of the State Money Management Council, and Utah State Board of Regents Policy R541, Management, and Reporting of Institutional Investments.

Unidentified Donor

If a securities donation arrives without indicating a donor name, the following steps shall be taken:

  1. The Office of Advancement Services shall make every reasonable effort to trace the transfer.
  2. If the transfer is untraceable, the Assistant Director of Gift Management will solicit further information from development officers.
  3. If the donor remains unidentified after 10 business days, the gift will be credited to the Unidentified Donor record and held until identification is possible.

To facilitate a gift of securities:

Publicly Traded Stock

Development Officer shall:

  1. Provide the donor with the stock donation procedures that contains the information the donor will need to provide to their broker.
  2. Notify the Office of Advancement Services that a stock gift is being made and communicate donor name, securities type, and fund name/index.
  3. Follow up with Office of Advancement Services to ensure the gift has been received.

Mutual Fund Shares

Development Officer shall:

  1. Advise the donor to allow four to six weeks to complete a mutual fund transfer since shares cannot be electronically transferred via the standard DTC instructions.
  2. Contact the Senior Director of Advancement Services to help facilitate the transfer.

Stock Certificates the Donor Holds

(If delivering by mail)

Development Officer shall instruct the donor to:

  1. Send the unendorsed securities certificate by registered mail to:

    Utah State University
    Office of Advancement Services
    1590 Old Main Hill
    Logan, UT 84322-1590

  2. On the same date but in a separate mailing (for security) send the following to the same address (regular or registered mail):
    • A signed stock power form for each security certificate with the donor signature appearing exactly as the name on the security certificate. Each signature should be guaranteed by a bank or broker to satisfy transfer requirements.
    • Donor name, address, and phone number
    • University fund to be credited OR the purpose of the gift

(If delivering in person)

Development Officer shall instruct the donor to:

  1. Prepare a signed stock power form for each security certificate with the donor signature appearing exactly as the name on the security certificate. Each signature should be guaranteed by a bank or broker to satisfy transfer requirements.
  2. Deliver the prepared signed stock power forms and the unendorsed securities to the Senior Director of Advancement Services or Assistant Director of Gift Management.

4.g. Closely Held Stock

Under certain circumstances, the University will accept gifts of securities that are not traded on a public stock exchange. Shares may only be accepted upon Gift Acceptance Committee approval.

To facilitate a gift of closely held stock:

The Development Officer shall:

  1. Inform donor that the University's timeline for evaluating privately held stock donations is dependent on (a) the donor's ability to gather and deliver requested materials and (b) the present workload of multiple university employees. Generally, upon receipt of the materials, the University can have a resolution within a few weeks.
  2. Advise the prospective donor to obtain competent legal/tax advice.

Development Officer shall deliver to the Senior Director of Advancement Service:

  1. Contact information of the donor's legal/tax advisor.
  2. Type of corporation stock that will be donated. If the type is not C-corporation (i.e., partnership, S-corporation, limited liability company), then extensive due diligence will be needed to evaluate the gift opportunity.
  3. Copy of any documents that might inform the University of stock-related restrictions. Such restrictions may be found in the shareholder agreement, articles of incorporation, or bylaws.
  4. Recent appraisal of the stock. If the value exceeds $5000, then the IRS will require a declaration by a qualified appraiser. The donor is responsible for appraisal cost.
  5. If stock value exceeds $5000, IRS form 8283 Section B, Parts I, II, and III completed by the donor or his/her advisor. Section B, Part IV will be completed by the University once the stock has been received.
  6. Draft gift agreement using the current Advancement template that accurately memorializes the donor intent and expectations.
  7. Other relevant information (e.g., philanthropic history, capacity to give, recent contacts reports)

Upon delivery by the Development Officer, the Senior Director of Advancement Services shall prepare items for review. Gift Acceptance Committee shall evaluate the proposed gift of stock to ensure compliance with University practices. After committee review, the development officer shall inform donor of the committee's decision.

If gift is approved, the Office of Advancement Services will initiate the gift agreement signature process, and the Development Officer shall work with the donor to complete the transfer.

4.h. Cryptocurrency

Cryptocurrency also known as, virtual currency, is a digital representation of value that can function as a medium of exchange that can be used to pay for goods or services but that does not have legal tender status in any jurisdiction.

IRS Notice 2014-21: IRS Virtual Currency Guidance defines convertible virtual currency as having an equivalent value in real currency – or can act as a substitute for real currency and recognizes Bitcoin as a convertible virtual currency. For federal tax purposes, virtual currency is treated as property. The basis of virtual currency received as payment is the fair market value (FMV) of the virtual currency in US dollars as of the date of receipt. If a virtual currency is listed on an exchange and the exchange rate is established by market supply and demand, the FMV of the virtual currency is determined by converting the virtual currency into US dollars at the exchange rate, in a reasonable manner that is consistently applied. Treat the "convertible" gifts of virtual currency as gifts of publicly traded securities.

IRS 1771 requires charitable receipts to provide the "description (but not the value) of non-cash contribution." Cryptocurrency charitable receipts will include the description of the asset and the following statement:

For your tax purposes, please seek guidance from a tax professional in determining your deductible amount.

To facilitate a gift of cryptocurrency:

USU has partnered with NYDIG, an industry leader in providing Bitcoin technology and financial services, to accept donations of cryptocurrency with a minimum value of $10,000.

Eligible assets at this time include: Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litcoin (LTC).

The Development Officer shall contact the Senior Director of Advancement Services for specific instructions and questions.

4.i. Real Estate or Remainder Interests in Property

The University can accept real estate gifts subject to the following;

  • The Gift Acceptance Committee has approved the donation.
  • The title is in a form satisfactory to the University and a current (within 60 days) qualified appraisal has been received from the donor.
  • The donor confirms that no legal obligation to sell or otherwise convey the property to a third party exists.
  • The donor confirms that he/she knows of no leases, easements, encumbrances, or other restrictions that would decrease the value of the property.
  • No uses, conditions or circumstances suggest the existence of environmental or other risks that warrant further investigation, which may include a Phase I environmental impact study.
  • The donor has acknowledged and concurred regarding any holding or other administrative costs that may be deducted from the sale of the property before the net proceeds are distributed in accordance with donor restrictions.
  • Donated real property may be sold or otherwise conveyed at fair market value. Generally, the donated property will be sold at the first opportunity, which may take several months to be completed.

A donor requiring USU to hold property for a particular purpose must also provide for the purpose’s operations and the property’s maintenance through an endowment or other acceptable arrangement. Gifts of real estate are limited to the following:

  • Donated real property that may be sold or otherwise conveyed at fair market value.
  • Donated real property that generates an income stream to support the educational mission.
  • Donated real property used for programmatic purposes.

To facilitate a gift of Real Estate:

Development officer shall complete the USU Real Property Donation Screening Questionnaire and forward along with copies of any documentation relating to the donation to the Senior Director of Advancement Services to prepare for Gift Acceptance Committee approval to seek appraisal and environmental review.

If the Gift Acceptance Committee determines that the University should proceed:

  • The University shall conduct an environmental review that is paid for by the receiving unit. The environmental review will take approximately one month to complete.
  • The development officer shall notify the donor to obtain a qualified appraisal within 60 days of the property transfer. Appraisal expenses are the responsibility of the donor.

Final acceptance of the property will be contingent on a clear title and the results of the environmental review. Receiving unit shall also be responsible for any fees associated with closing and, if applicable, selling of the property.

Upon final approval of the Gift Acceptance Committee, the Senior Director of Advancement Services and the receiving unit will coordinate with the Real Property Office to complete the property transfer.

The development officer shall coordinate with the receiving unit to deliver to the Office of Advancement Services:

  1. Copies of all documentation (e.g., letters, emails, certificates, patents, etc.) relating to the donation.
  2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.

Real Estate Bargain Sale

The University shall enter into a bargain sale or installment bargain sale only when the gift furthers the mission and purpose of the University. A bargain sale is when property is sold or exchanged for less than fair market value. A bargain sale is considered part sale and part gift.

A bargain sale also occurs when a donor transfers property to the University in exchange for like-kind property of lesser value or when a donor transfers property that is subject to a debt, thereby relieving the donor of the debt. Under IRS regulations, the property must be held for more than one year before its sale. For bargain sale gifts of real estate, the gift portion of a properties fair market value must be at least $50,000. Exceptions may be considered by the Vice President of Advancement.

An installment bargain sale is when the sale price is not paid by the University all at once but rather in installments over more than one year. The installments may be made to two or more persons and may be paid for any mutually agreed upon terms such as frequency, period, and interest rate. If real estate is the donated asset, the donor(s) may continue to live on or use the real property after the installment bargain sale has been established.

In addition to the requirement that a charitable deduction is produced under the Internal Revenue Code 170, bargain sale treatment is available only to transactions in which the donor documents his or her intention to make a charitable gift before the transaction (e.g., a letter, offer of sale, or other document that expresses the wish of the donor to sell the property to the University for less than its fair market value).

When real estate is the asset of the bargain sale, the gift acceptance policy regarding real estate gifts herein will be followed.

To facilitate a real estate bargain sale gift:

The Development officer shall contact the Office of Gift Planning for specific instructions. All proposed bargain sales shall be reviewed by the Gift Acceptance Committee. To determine appropriateness, the Committee may consider:

  • The results of an independent appraisal, obtained at the donor's expense, substantiating property value.
  • The assumption of debt with the property.
  • The marketability of the property (within 12 months of receipt), if intention is to sell.
  • The cost to carry the property, whether used or held for sale.

For Bargain Sales of real property, the Gift Acceptance Committee should, as part of its deliberation, seek and consider the recommendation of the Director of Real Property Administration.

4.j. Gifts-in-Kind

To qualify for acceptance, the receiving unit (typically a college, department, or program) shall be responsible for acceptance costs (including fees associated with transfer of the gift to the University) and gift administration (i.e., processing, cataloging, maintaining, preserving, and, if applicable, displaying). It is imperative, therefore, that a receiving unit carefully consider the value to the University and ongoing administration of a proposed in-kind donation.

Athletic Gifts-In-Kind

Proposed gifts-in-kind that will benefit the Athletic Department must first be vetted by the Athletic Director (or designee) to ensure NCAA and Title IX compliance. Upon approval, the signed Athletics Compliance Assurance Form shall be submitted to the Office of Advancement Services prior to gift-in-kind transmittal form processing.

Before accepting a gift-in-kind, please carefully consider the following:

  • Is the gift relevant to the work of the University? As a general rule, accept only gifts that further the work of departments or programs.
  • Does the donor's intent match the interests of the university?
  • Will accepting the gift jeopardize the reputation of the donor or the University?
  • What future costs will be incurred (e.g., maintenance, repair, preservation)?
  • What risks are associated with accepting the gift?
  • Are there any special conditions the donor may impose?
  • If a gift of property cannot be used for a university program, will the donor allow it to be sold? If the donor stipulates that it cannot be sold, the university should not accept the property.

In-kind gift categories:

  • Real estate (see Real Estate section for process)
  • Tangible personal property (e.g., works of art, scientific equipment, books, serials, manuscripts, records, personal papers, scrapbooks, correspondence, photographs, diaries, et al.)
  • Intangible personal property (e.g., an item of worth that is not physical such as a copyright, trademark, or intellectual property)
  • Inventory (e.g., property that an individual or entity offers for sale to customers in the ordinary course of trade or business)
  1. Related Use

    The University may accept a gift of personal property, and the Office of Advancement Services may issue a charitable receipt, whether a gift is related or unrelated to the charitable purpose of the University. A gift's relation to the charitable purpose of the University, however, can affect the allowable charitable deduction a donor may be permitted to claim under IRS regulations. There is a $10,000 penalty for falsely claiming related use.

    Related use: The gift-in-kind must be useful to the institution in fulfilling the purpose or mission for which the institution was granted tax-exempt status.

    Unrelated use: The gift-in-kind's use is unrelated to the University's exempt purposes or function. The sale of an item is considered unrelated, even if the sale raises money for the charity to use in its programs.

    Things to remember

    • The University no longer recognizes gifts of software as a charitable donation. The receiving unit should recognize the donation.
    • Gifts made in support of a patent (e.g., costs associated with holding the patent or performing additional research and development) receive hard credit at face value, and a receipt will be issued for the amount donated.
    • The date of gift for gift-in-kind property will be either (1) the date the property's ownership is completely assigned to the University via a deed of gift, even if physical possession will take place at a later date; or (2) the date a University employee or representative takes possession of the property.

  2. Valuation of Gifts-in-Kind

    It is the donor's responsibility to value and substantiate a gift-in-kind for tax purposes. It is the University's responsibility to acknowledge receipt.

    Donor Estimated Fair Market Value:

    The IRS defines fair market value as "the price a willing, knowledgeable buyer would pay a willing, knowledgeable seller when neither has to buy or sell."
    Support documentation shall include at least one of the following:

    • Paid bill of sale,
    • Invoice and proof of payment,
    • Valuation from a qualified expert, or
    • Verification from an online auction (eBay).

    Things to remember

    • The value of donated vehicles is based on current Blue Book value.
    • Per IRS regulation, costs associated with conveying a gift (e.g., appraisals, sales tax, shipping and transportation) are not deductible and are not to be included in recorded value.
    • In rare cases, when the donor is not required to provide an appraisal (e.g., the donor is the creator of a piece of donated artwork, in which case the donor's deduction is limited to the cost of materials), the institution's appraisal amount obtained independently for insurance purposes will be used as the gift-in-kind value in Millennium.
    • If value is uncertain, the gift-in-kind is recorded in Millennium with a value of $1 to generate a receipt and recognize donor. The amount can be adjusted when the value becomes known, but must not include appreciation or increase in value
    • University staff may not act as appraisers for gift valuation purposes, to avoid potential conflicts of interest. Furthermore, the University generally does not recommend appraisers to potential donors. If there is no appraisal, the gift may need to be reviewed by the Gift Acceptance Committee.

    To facilitate a gift-in-kind donation:

    Gifts ≤ $500

    The receiving unit shall deliver the following to the Office of Advancement Services:

    1. Copies of all donation documentation (e.g., letters, email, certificates, tickets, etc.).
    2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.

    Gifts $501-$4,999:

    The charitable gift receipt will inform the donor that since the gift is estimated to be worth at least $500 but less than $5,000 the donor may need to file IRS form 8283, by completing section A with the donor's itemized tax return. The donor shall be encouraged to seek tax guidance with a financial advisor or accountant if the donor has questions regarding the form.

    The receiving unit shall deliver the following to the Office of Advancement Services:

    1. Copies of all donation documentation (e.g., letters, email, certificates, tickets, etc.).
    2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.

    Gifts ≥ $5,000:

    The charitable gift receipt will inform the donor that since the gift is estimated to be worth at least $5,000:

    • The donor may need to file an IRS form 8283, by completing Section B with the donor's itemized tax return and providing a "qualified appraisal," at the donor's expense. The appraisal should occur no earlier than 60 days before making the gift, or as late as the day before the tax return on which the gift is reported.
    • The donor should transmit IRS form 8283 and the appraisal to Office of Advancement Services, who will work with the Vice President of Business & Finance to sign and return form 8283 to the donor.
    • The donor shall be encouraged to seek tax guidance with a financial advisor or accountant if the donor has questions regarding the form.

    The receiving unit shall deliver the following to the Office of Advancement Services:

    1. Copies of all donation documentation (e.g., letters, email, certificates, tickets, etc.).
    2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.
    3. A completed Certification of Related Use. Incomplete form is not acceptable.

  3. Discounts on material and services

    If a company offers to sell a product to the University at a discount, the company should provide a bill of sale clearly indicating the retail (or educational/nonprofit discount) price, less the charitable contribution of the discounted amount, and a net cost.

    If the same discount applies to purchases made by the University on a regular basis and is not uniquely identified as a special reduction to be considered a donation, no gift exists. Discounts afforded to the University due to the nature of its business or because it is a major or frequent customer do not qualify as charitable gifts.

    Because some of the University's most generous donors are also likely to be University vendors, the Office of Advancement shall implement procedures that ensure fair and impartial bid/RFP processes, if a gift is to be included as part of the bid.

  4. Vehicle Gifts

    The IRS identifies a qualified vehicle as a motor vehicle manufactured primarily for use on public streets.

    To facilitate a gift of a qualified vehicle:

    1. The development officer, in collaboration with the receiving unit, shall deliver to the Office of Advancement Services.
      • Vehicle make, model, year, mileage, condition, photos of vehicle, and proof of title.
      • Completed Gift In Kind transmittal. Incomplete form is not acceptable.
      • If vehicle has a Fair Market Value over $5,000, a completed Certification of Related Use. Incomplete form is not acceptable.
    2. The Senior Director of Advancement Services shall review in consultation with the transportation department to determine whether vehicle is acceptable for use.
    3. Upon approval, the Development Officer shall coordinate with receiving unit and the donor to arrange for delivery of the vehicle to the campus and transfer of a signed, clear title to the University.
    4. The Development Officer shall deliver the signed, clear title to the Office of Advancement Services.
    5. The Office of Advancement Services shall issue a gift receipt to the donor with just the description of the donated item.
    6. The Office of Advancement Services shall provide details of the donation to the Controller's Office.
    7. The Controller's Office Equipment Manager shall coordinate with the receiving unit for licensing, inventory, and insurance.

    Vehicle Value ≥ $500:

    1. If the donor indicates that the vehicle is worth more than $500, the Office of Advancement Services shall file the required Form 1098-C with the IRS and provide a copy to the donor. How the University will use the vehicle determines when this form must be filed:
      • If the University plans to sell the vehicle, the donor must receive acknowledgment from the University (along with disclosure of any goods or services that were provided to the donor) within 30 days of the vehicle's sale indicating the amount of the gross proceeds.
      • If the University significantly uses or materially improves the vehicle, the University must certify its intended use on IRS Form 1098-C and provide a copy to the donor within 30 days of the donation (along with disclosure of any goods or services that were provided to the donor).

    2. If the University sells or disposes of the vehicle within three years of the donation, the IRS requires the University to file Form 8282. The Receiving Unit shall notify the Office of Advancement Services when this occurs. The Office of Advancement Services shall work with the Controller's Office to prepare the IRS Form 8282 and send to the donor.

      IRS forms and USU Forms Used in Vehicle Donations

  5. Gifts of Art/Collections

    Gifts of art that the donor stipulates must be held and publicly displayed by the University shall be reviewed by the Nora Eccles Harrison Museum of Art. The Museum shall provide its recommendation to the Gift Acceptance Committee.
    To facilitate a gift of art/collections:

    • The Development Officer, in collaboration with the receiving unit, shall deliver to the Office of Advancement Services support documentation about the art piece that also indicates the unit's case for use.
    • The Director of Advancement Services shall work with Nora Eccles Museum of Art staff to document a recommendation. The Director of Advancement Services shall forward the prepared recommendation to the Gift Acceptance Committee.

    The receiving unit shall deliver the following to the Office of Advancement Services:

  6. Liquidation of Donated Items

    Sale of a gift-in-kind

    The receiving unit shall immediately inform the Office of Advancement Services of provisions made at the time of donation to use funds from a gift's sale. The Senior Director of Advancement Services shall convene a committee to determine, on a case-by-case basis, the most appropriate procedures to effect liquidation.

    Members of the Gift Liquidation Committee:

    • Vice President of Advancement
    • Representative of the General Counsel's Office
    • University Controller or designee, who shall chair the committee.

    The committee shall determine (1) the item's fair market value at the proposed sale time, (2) the most advantageous method of sale (including but not limited to private sale, sealed bid, or public auction conducted by the university), (3) an acceptable sale price, and (4) eligible buyers (if private sale or sealed bid). The committee shall notify the Office of Advancement Services with its determinations.

    The Office of Advancement Services shall inform the receiving unit in writing of the committee's determination for the sale of the item.

    Disposing of a gift-in-kind that the receiving unit no longer needs

    A tangible gift of personal property should not be considered or disposed of as university surplus property unless it (1) has been used by a department and (2) is subject to disposal by Surplus Property Sales to assure that state guidelines are followed and property is disposed of properly.

    The following reporting requirements apply as soon as a gift-in-kind of personal property is disposed of.

    Gifts Valued <= $500:

    Gift disposal is made by Surplus Property Sales to ensure state compliance and proper disposal.

    Gifts Valued ≥ $500:

    Gift disposal is made by Surplus Property Sales to ensure state compliance and proper disposal.

    Receiving unit must notify the Office of Advancement Services with the liquidation date and amount. If the item was included on a Form 8283 signed by the University and was received less than three years prior, the Office of Advancement Services must file IRS Form 8282 (Donee Information Return) within 125 days after the date of disposal.

    If the item disposed of was equipment, the department must notify the Equipment Manager in the Controller's office with the liquidation date and amount.

4.k. Gifts of Service

Gifts-in-kind of services include, but are not limited to, such activities as printing of materials, appraisals, and hotel stays. The contribution of services, however valuable to the University, is not tax-deductible according to the IRS. Gifts-of-service are not included in fundraising totals.

To facilitate a gift of service:

The Development Officer shall coordinate with the receiving unit to deliver the following documentation to the Office of Advancement Services:

  1. Copies of all correspondence included as part of the donation.
  2. A completed Gift-in-Service transmittal form. Incomplete forms are not acceptable.

4.l. Honoraria and Awards

A University faculty member may receive a cash award or an honorarium for a speaking engagement. These payments, however, are taxable income to the faculty member, and the faculty member should receive an IRS 1099 Misc. from the organization that makes the payment. The faculty member may make a gift to the University of the honorarium or award by endorsing the check to Utah State University or writing a separate check to Utah State University in the same amount, and the University will issue a gift receipt to the donor. In most cases, this gift will allow the donor to deduct an amount equal to the taxable income, thus essentially eliminating or reducing the faculty member's liability for personal income taxes on the honorarium or award.

In certain circumstances, a faculty member may work with the sponsoring organization to waive the honorarium. The organization will write a check to Utah State University. The organization will receive hard credit for the gift, and the faculty member can receive soft credit although he or she does not receive the gift. The rules relating to honoraria apply equally to awards received by faculty members. University employees may make a gift of their salary to the University, but they must first accept the salary as personal income.

4.m. Matching Gifts

A matching gift may be received from a company or a company funded foundation that matches a gift to the University by an employee, retired employee, or a director of a company, foundation, or other organization.

  • Matching gifts will be credited according to the matching gift company's policy for fund allocation.
  • The donor's giving record receives soft credit for the value of the matching gift when received.
  • When the gift being matched is a stock gift, the value that will be matched is the internally calculated value on the gift date and not the net proceeds from the sale.
  • Potential matching gifts cannot be part of a pledge for future support since the donor neither controls nor is irrevocably entitled to the funds.
  • As of January 1, 2018, gifts made for the right to purchase preferred seating at an athletic event are no longer tax-deductible and, therefore, are no longer eligible to be matched.

To facilitate a matching gift:

After a donor has contributed to the University, the receiving unit shall instruct the donor to complete and deliver the company's matching gift form to the Office of Advancement Services.

The Office of Advancement Services shall substantiate the gift and sign and deliver the Matching Gift form to the designated matching company for processing.

4.n. IRA Qualified Charitable Distribution (Charitable Rollover)

A Qualified Charitable Distribution (QCD) is a gift directly from a traditional IRA to USU. A QCD does not generate a tax deduction but neither is it included in the donor's income. The donor must be at least age 70 ½ and may transfer up to $100,000 a year. A QCD may not be directed to a donor-advised fund, nor may it be used to create any life income gifts (i.e., charitable remainder trusts). Donors may not receive benefits in return for a QCD, (e.g., membership in donor societies or rights to purchase tickets).

To facilitate a QCD gift:

The Development Officer shall coordinate with the donor to complete and deliver to the Office of Gift Planning an IRA Distribution and Notification.

The Office of Advancement Services will send a charitable receipt to the donor.

4.o. Sponsorships of Events/Programs

Corporations and various organizations frequently provide financial support to sponsor activities, events, or projects, often receiving recognition in return, whether on campus, during the event, or in related publications. The important factor in determining whether the contribution qualifies as a charitable donation hinges on whether the recognition granted to the corporation constitutes advertising. Advertising, as defined, involves the display of competitive pricing or product information directly resulting from the donation. If the recognition fits the description of advertising, the sponsorship is regarded as an exchange transaction rather than a charitable gift. Simple name or logo placement is not advertising.

Given that the University is liable to pay Federal income tax on net income from advertising, it's important that the contribution is structured as a qualified sponsorship payment rather than a taxable advertisement.

To facilitate a sponsorship contribution:

  1. The Development Officer should coordinate with the receiving unit to complete the online Sponsorship Application.
  2. The Senior Director of Advancement Services will review and ensure compliance. Upon approval, the receiving unit will be notified via email.

4.p. Gifts from a Donor Advised Fund or Community Foundation

A donor may make a contribution to a Donor Advised Fund ("DAF") or Community Foundation("CF") and receive a charitable income tax deduction in exchange. Subsequently the donor may recommend that the DAF/CF make a grant to the University.

Neither a DAF nor a CF may be used to fulfill a donor's pledge for future support since the donor neither owns nor controls these funds.

To facilitate a DAF/CF contribution:

  1. For outright gifts, the development officer shall instruct the donor to direct the DAF/CF manager to send the grant to the Office of Advancement Services. A charitable receipt will not be issued to the individual donor, but his/her giving record will receive soft credit in the Millennium database equal to the value of the grant noted that it was made by the DAF/CF.
  2. When the development officer determines that a donor plans to recommend a grant from a DAF/CF to create a named fund, a Memorandum of Intent shall be used instead of a Gift Agreement.

4.q. Mineral, Oil, and Gas, ("MOG") Interest

The University may accept oil, gas, and mineral property interests.

To facilitate a gift of MOG interests:

  1. The Development Officer should coordinate with the receiving unit to complete the online Gift Acceptance Review Form.
  2. Royalty interest can be accepted without Gift Acceptance Review. All other MOG interest, must be reviewed by the Gift Acceptance Committee which may involve University Counsel and external advisors in its decision process. Considerations include but are not limited to:
    • The proposed gift's minimum value and yearly income.
    • The history of the property and known occupants and a site inspection conducted by the Vice President of Business and Finance (or designee). The review must reveal no extended liabilities or other considerations that make receipt of the gift inappropriate.
    • The results of an environmental review of the property. The review must indicate that the University has no current or potential exposure to environmental liability. The cost of this review may be paid by the donor or the University, subject to negotiation at the time of gift review.
    • A clear knowledge of a proposed working interest. Though rarely accepted, a working interest may be favorable to the University if potential liability and tax consequences are minimal.

Upon approval, the Senior Director of Advancement Services in coordination with the receiving unit and the Real Estate office, will work with the Office of General Counsel to complete the property transfer.

The development officer shall coordinate with the receiving unit to deliver to the Office of Advancement Services:

  1. Copies of all documentation (e.g., letters, emails, certificates, deeds, etc.) relating to the donation.
  2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.

4.r. Auctions, Golf Tournaments, and Raffles

The Development Officer responsible for the organizing unit should coordinate with the Office of Stewardship and Donor Engagement to orchestrate the event and develop communications materials.

Raffles are illegal in the state of Utah according to Utah Code Title 76 Chapter 10. A drawing, if feasible, may serve as an acceptable alternative. Please coordinate with the Senior Director of Advancement should you wish to hold a drawing.

Golf tournament entry fees are not considered charitable contributions.

To facilitate auction gifts-in-kind and gifts of service:

Items received for an auction must be processed through the Office of Advancement Services. To count as a charitable contribution, the donated item must sell at the auction. After the auction, gift receipts will be issued only for items that were sold.

Gifts-in-kind sold at auction:

The Development Officer shall coordinate with the receiving unit to deliver to the Office of Advancement Services:

  1. Copies of all documentation (e.g., letters, emails, certificates, tickets, etc.) relating to the donation.
  2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.

Gifts of service sold at auction:

For all contributions recognized as either a service or partial interest, the Development Officer shall coordinate with the receiving unit to deliver to the Office of Advancement Services:

  1. Copies of all documentation and correspondence (e.g., letters, emails, certificates, tickets, etc.) relating to the donation.
  2. A completed Gift-of-Service Transmittal. Incomplete form is not acceptable.

To facilitate a charitable contribution for the buyer:

At the auction/event, each bid sheet/program and associated signage shall indicate the fair market value of each item to be auctioned. To claim a deduction, a victorious bidder must know the fair market value of the purchased item.

  1. The receiving unit shall send to the Office of Advancement Services the donor's name, address, item and price paid along with the bid sheets/program.
  2. Office of Advancement Services will issue a charitable receipt for items purchased that were above the fair market value.

4.s. Third Party Fundraising

Third party fundraising defines the fundraising activities of an individual or organization that benefit the University, but for which the University has no fiduciary responsibility and little to no staff involvement. The activities (events, promotions, etc.) must be in line with the mission and values of the University and must also maintain public goodwill and trust.

Activities shall comply with all state and federal laws and regulations. All promotions, agreements, contracts, and permits required by City Ordinances or the like are the responsibility of the sponsor.

To facilitate a third-party fundraising event:

Before the event is promoted or hosted, the receiving unit and development officer shall coordinate with the event sponsor to complete a Third Party Event Application at least 15 days before the proposed event.

The Senior Director of Advancement Services or Vice President of Advancement must approve the fundraising event and may involve the Gift Acceptance Committee to evaluate the application. After review, the receiving unit shall be informed in writing of the decision.

An activity is unlikely to be approved if it conflicts with a University-sponsored event, requires significant University staff involvement, involves the selling of tickets or merchandise by University staff, or involves businesses or individuals known to conduct themselves in a manner incompatible with the University's mission.

  1. Event use of USU Name/Logo

    Once a third-party fundraising event is approved, the receiving unit shall coordinate with the Office of Public Relations and Marketing for appropriate use of the University name and logo.

  2. Event Marketing and Promotion

    • The University shall not be named as an event sponsor or co-sponsor.
    • The University may be indicated as the event beneficiary with one of the following: "Proceeds from this event will go to Utah State University," "Your purchase helps support Utah State University," or "The [name of your event] will benefit Utah State University."
    • If only the net proceeds are submitted as a donation to the University, then promotions must indicate, "Net proceeds will benefit Utah State University."

  3. Event Finances and Tax Guidelines

    • The University assumes no liability for costs associated with the event/promotion (e.g., rentals, printing, postage, security, licensing, permits, fees, taxes).
    • The University's tax-exempt status cannot be used to purchase goods or services for the event.
    • The marketing and promotion should clearly communicate the percentage of gross income that will be delivered to the University.
    • The donations must be delivered to the Office of Advancement Services within 30 days of event.
    • To ensure the donor receives a charitable tax receipt, the receiving unit shall instruct the event organizer that all donations must be made out directly to Utah State University and that all cash donations must indicate the donor's full name, address, and donation amount.

  4. Assistance

    University staff may provide event recommendations. The University, however, is unable to provide:

    • Contact lists of alumni, students, and donors.
    • Assistance with solicitations, mailings, meetings, or attendance.
    • Assistance with permits, clearance, or necessary insurance for the event.
    • Use of University tax-exempt number.
    • Expense reimbursements.
    • Guarantee staff/board member attendance.

4.t. Intellectual Property

Intellectual property is an intangible asset that refers to creations of the mind. While intellectual property may include trades secrets, royalty interests, and other intangible property, the most common forms of intellectual property are copyrights, patents, and trademarks.

The value of intellectual property is determined by the actual revenue generated. A qualified intellectual property contribution will receive a tax deduction equal to the value of the product when gifted and ongoing/subsequent tax deductions for any licensing or royalty advances the University may receive as a result of the gifted intellectual property.

To facilitate a gift of intellectual property:

  1. The Development Officer should coordinate with the receiving unit to complete the Gift Acceptance Review Form.
  2. The Senior Director of Advancement Services or Vice President of Advancement must approve the gift of intellectual property and may involve the Gift Acceptance Committee to evaluate the proposal. After review, the receiving unit shall be informed in writing of the decision. 
  3. Upon approval, the Senior Director of Advancement Services in coordination with the receiving unit, will work with the Office of General Counsel to complete the intellectual property transfer. 

The development officer shall coordinate with the receiving unit to deliver to the Office of Advancement Services:

  1. Copies of all documentation (e.g., letters, emails, certificates, patents, etc.) relating to the donation.
  2. A completed Gift-In-Kind Transmittal. Incomplete form is not acceptable.

4.u. Athletics Premium Seating Requirements

On January 1, 2018, the Tax Cuts and Jobs Act went into effect and as a result, repealed the tax-deduction for donations made for priority seating purposes to an athletic event. Tax-deductions for these types of donations previously fell under the IRS athletic seating 80/20 rule. For more information, development officers should encourage the donor to consult with their tax advisor.

4.v. Savings Bonds

An attempt to make a charitable transfer of savings bonds during life will result in instant tax realization of the accumulated interest income to the donor. Since savings bonds are usually held long-term, the accumulated taxable interest income may be substantial. However, a donor's charitable income tax deduction may offset some or all of the taxable interest income the donor realizes.

To facilitate a gift of savings bonds:

  1. Development officer informs the donor that the least complex way to give using savings bonds is to redeem them, pay income tax on the accumulated income, and contribute the net proceeds.
  2. The Gift Planning Office provides support and information related to the contemplated savings bond gift.

4.w. Planned or Deferred Gifts

The Gift Planning Office manages all gifts made through wills, trusts, annuities, life insurance, and beneficiary designations. The Gift Planning Office works with the Gift Acceptance Committee, which has authority to accept or decline any such gift. Once a gift has been accepted, the Gift Planning Office will work with the donor's representative to ensure that allocation aligns with donor intent, as documented.

The Planned Gift Counting Guidelines is used to determine value for fundraising and campaign progress.

The professional advisor assisting with the planning or fulfillment of the planned gift will be tracked as a solicitor in Millennium on the gift row.

When the University receives a planned gift without any pre-existing gift agreement or accompanying instructions from the donor's estate, the University President may allocate the proceeds to any University purpose. In such cases, the Vice President of Advancement may recommend to the University President that the planned gift be used to fund matching incentives for donors to establish new endowments.

  1. Charitable Bequest

    A charitable bequest is a gift to a charity at death through a will, trust, or beneficary designation. The University hopes that, during life, a donor will document his/her intent to make bequests to the University.
    To facilitate a charitable bequest donation:

    1. Gift Planning Office will provide sample bequest language to the development officer and donor wishing to make gifts to the entity of his/her choice.
    2. The development officer shall work with the donor to complete and deliver the USU Planned Gift Intent Form to the Gift Planning Office.
    3. A Bequest Expectancy (pledge) will be recorded in Millennium by the Office of Advancement Services, and the donor will receive hard credit at face value.

    After donor has died, the development officer should coordinate with the Gift Planning Office to facilitate the transfer. After the transfer is complete, the Office of Advancement Services shall issue an acknowledgment to the estate or trust. The amount received will be applied to the donor's bequest expectancy. Excess will be counted as a new gift; a shortfall will be written off. Credit for these gifts is typically not given to any person or entity other than the donor.

  2. Beneficiary Designation

    The University may be named as the beneficiary of life insurance policies, financial accounts, and retirement plan assets (e.g., IRA, 401(k), 403(b), SEP). Currently, no charitable deduction is available to the donor when a designation is made. A gift receipt will be issued when the University receives the proceeds.

  3. Life Insurance Policy Gift

    A donor may give a paid-up life insurance policy to the University or may pay for a new life insurance policy.

    To facilitate a paid-up life insurance policy donation:

    1. The development officer shall work with the donor to:
      • Complete and deliver the Planned Gift Intent Form to the Office of Advancement Services. Typically, the University surrenders a life insurance donation soon after a policy is transferred. Any exception must be approved by the Gift Acceptance Committee.
      • Inform donor that insurance companies may take several weeks to process a transfer request or issue a new policy. A life insurance donation is recorded as a gift transaction as of the date the University receives ownership confirmation from the donor's life insurance company.
      • Gift Planning Office will provide assistance to the development officer and donor wishing to make gifts to the entity of their choice.
      • The development officer shall work with the donor to complete and deliver the insurance company's Ownership Change Request form to the Senior Director of Advancement Services. The director will obtain and forward the authorized University's signature and documentation (i.e., signature authorization letter) to the donor's insurance company.
      • Once ownership change is confirmed, the development officer shall work with the receiving unit to complete and deliver the Gift-in-Kind form to the Office of Advancement Services. Legal gift date is established when the insurance company changes ownership and beneficiary information.
    2. The Office of Advancement Services shall:
      • Record the gift transaction (hard credit) in the amount of the cash surrender value on the date of transfer.
      • Work with the Business and Finance Office to facilitate the surrender of the policy.

    To facilitate an unpaid life insurance policy donation:

    The development officer shall:

    1. Work with the donor to complete and deliver the Planned Gift Intent Form to the Office of Advancement Services.
    2. Explain to the donor that he/she is responsible to send future premium payments to the University. These payments are charitable gifts to the University. If the donor decides to discontinue premium payment at any point, the receiving unit must either continue to pay premiums out of its budget or surrender the policy.
    3. Inform donor that his/her insurance company may take several weeks to process a transfer request or issue a new policy.

    The Office of Advancement Services shall record a gift transaction for the amount of the cash surrender value at the time of transfer.

  4. Charitable Remainder Trust

    A donor establishes a Charitable Remainder Trust ("CRT") by irrevocably transferring assets to a trust meeting the requirements of Internal Revenue Code § 664. During a measuring life or term of years, a fixed amount or percentage of the trust assets is paid at least annually to a non-charitable beneficiary. At the conclusion of the non-charitable interest, the remaining assets are distributed to charitable beneficiaries following the donor's directions. In a Charitable Remainder Annuity Trust ("CRAT"), the amount of each non-charitable payment is fixed at the trust's creation and may not change. In a Charitable Remainder Unitrust ("CRUT"), the amount of each non-charitable payment is based on annual valuation of trust assets. The University does not act as a CRT trustee.

    To facilitate a charitable remainder trust donation:

    1. The planned giving and development officers shall work together to provide donor support to establish, fund, administer, and terminate charitable remainder trust.
    2. The officers shall coordinate with the donor to complete and deliver the Planned Gift Intent to the Office of Advancement Services.
    3. The Office of Advancement Services will record the gift transaction (hard credit) according to the Planned Gift Counting Guidelines.

  5. Charitable Lead Trust ("CLT")

    A CLT provides an income for a specific period to the University. The University receives income from the trust and applies it according donor intent. At the termination of the trust, the remaining principal is returned to the donor or to designated beneficiaries.

    To facilitate a charitable lead trust donation:

    1. The planned giving and development officers shall work together to provide donor support to establish, fund, administer, and terminate charitable lead trust.
    2. The officers shall coordinate with the donor to complete and deliver the Planned Gift Intent to the Office of Advancement Services.
    3. The Office of Advancement Services will record the gift transaction (hard credit) according to the Planning Gift Counting Guidelines.

  6. Charitable Gift Annuity ("CGA")

    A CGA is a contract between the donor and the University whereby the donor transfers assets in exchange for guaranteed fixed payments to one or two beneficiaries. The donor specifies how the remainder of the annuity will be used by the University after its termination. The University requires the following to issue a CGA:

    • A minimum gift of $50,000 of cash or marketable securities. Gifts of real estate also may fund a CGA, upon approval of the Gift Acceptance Committee and the receiving unit.
    • A payment rate currently prescribed by the American Council on Gift Annuities ("ACGA"). The Gift Planning Office may authorize a rate below ACGA, but the Gift Acceptance Committee must approve any rate above ACGA.
    • A remainder purpose authorized by the University. Donor may designate a named endowment only if the projected remainder at the time of the gift meets the University's minimum named-endowment requirement.
    • Beneficiary residence in Utah or other approved state.

    To facilitate a charitable gift annuity donation:

    1. The planned giving and development officers shall work together to provide donor support to establish, fund, administer, and terminate charitable gift annuity. This includes providing the donor illustrations, calculations and disclosure statements they need to make an informed decision.
    2. The officers shall coordinate with the donor to complete and deliver the Planned Gift Intent to the Office of Advancement Services.
    3. The Office of Advancement Services will record the gift transaction (hard credit) according to the Planned Gift Counting Guidelines.
    4. The receiving unit shall make required annuity payments. The Gift Planning Office will provide calculations and payment reminders to the receiving unit.

  7. Deferred Charitable Gift Annuity ("DCGA")

    Payments under a deferred annuity may not begin for at least one year following the contract date. In all other aspects, the gift requirements and procedures are the same as that for the charitable gift annuity.

    To facilitate a deferred charitable gift annuity donation:

    1. The planned giving and development officers shall work together to provide donor support to establish, fund, administer, and terminate deferred charitable gift annuity.
    2. The officers shall coordinate with the donor to complete and deliver the Planned Gift Intent to the Office of Advancement Services.
    3. The Office of Advancement Services will record the gift transaction (hard credit) according to the Planned Gift Counting Guidelines.
    4. The receiving unit shall make required annuity payments. The Gift Planning Office will provide calculations and payment reminders to the receiving unit.

  8. Retained Life Estate

    A donor may give real estate (e.g., a residence, vacation home, or farm) worth at least $50,000 but retain rights to use, occupy, and enjoy the property until the end of a specified life or time period, when the University becomes the sole owner of the property.

    To facilitate a retained life estate donation:

    1. The planned giving and development officers shall work with Offices of General Counsel and the Real Estate to provide donor support to execute a deed with retained life estate and an agreement apportioning responsibilities for maintenance, insurance, and taxes.
    2. The officers shall coordinate with the donor to complete and deliver the Gift-in-Kind Transmittal to the Office of Advancement Services.
    3. The Office of Advancement Services will record the gift transaction (hard credit).

4.x. Donate Button from Offsite Fundraising Websites

Enabling donate buttons on places other than your website can look like a great way to capture people in places where they already engage or feel an emotional reaction to your cause. A downside to setting up a “donate now” button on websites that are not under USU control is that donors are not able to allocate their donation to a specific area. If USU has an opportunity to participate in this type of fundraising, donations will be for general University purposes and not for more restricted reasons.