Reporting of Gifts and Private Grants

450-12

This policy outlines the criteria used in determining gift or private grant status and relevant reporting requirements.

Bequest

A transfer, by means of a will, of personal property (cash, securities, or other tangible property).

Gift

Includes outright gifts, pledges, and bequests, but excludes grants from private sources as defined in the guidelines for review of gifts/grants for research dated July 8, 1980 (http://www.ucop.edu/ucophome/coordrev/policy/7-08-80.html)

Deferred Gift

A commitment or gift established legally during the donor's lifetime, but whose principal benefits usually do not accrue to the charitable recipient until some future time; often after the donor's death. Except for will commitments, the term is usually applied to any arrangement whereby money or property is irrevocably set aside for future receipt by an organization, and frequently by which income is paid to the donor and/or someone else for a period of time. Annuities, trusts, gifts of insurance, and will commitments are generally referred to as deferred gifts.

Gift-in-Kind

A contribution of equipment, supplies, or other property in lieu of money.

Intangible Property

Gift of property that does not have intrinsic value but is evidence of value, such as securities.

Private Grant

An award to UCSF in response to a proposal submitted to a private foundation, association, corporation or corporate foundation, or private trust that specifies reports on expenditures, guidelines for audits, consideration for the grantor, testing or evaluating, and/or satisfying specific conditions or requirements for a specified period of performance. Private grants are subject to The Regents' overhead charges of varying levels, depending on contractual arrangements.

A. It is UCSF's responsibility to establish appropriate controls to track the disposition of gifts of tangible property for two years from the date of receipt for purposes of meeting Internal Revenue Service reporting requirements.

B. As a matter of practice, and for insurance purposes, gifts-in-kind (i.e., nonmonetary gifts) to UCSF are accepted and reported only through The Regents, with the exception of securities endorsed to the UCSF Foundation.

C. Gifts of real property are reported at their fair market value as of the date of formal acceptance by The Regents or by the UCSF Foundation.

D. Bequests are reported after they have been distributed to the University. Anticipated bequests, based on notice that a donor has included the University in a will, are not reported since they are revocable.

E. Gifts of intangible property (e.g., copyrights, patents, royalties) are reported at their fair market value if available; if not available, they are valued at $1 equity. When a gift of intangible property results in royalties or other payments, such payments are treated as income and not reported as gifts.

F. Deferred gifts are reported at their full value on the date of receipt.

G. To report insurance policies as gifts, the University must be named both irrevocable owner and beneficiary. The value of the policy is its cash surrender value at the time of receipt, not its face value. Insurance policies are to be treated as securities for reporting purposes. After a life insurance policy is received as a gift, it may be surrendered for its cash value, or it may be maintained.

H. The full amount of all pledges and grant awards are reported for gift purposes when notification is received, regardless of whether they are accompanied by a payment.

I. The date securities are valued and reported is based on the following criteria:

1. if hand delivered, the date when the stock certificate is surrendered to a University representative and is negotiable by The Regents or the UCSF Foundation.

2. if mailed, the postmark;

3. if transferred through the donor's agent, the date the security is transferred into the name of The Regents or the UCSF Foundation.

Contact Office of Origin (see above) with any questions.