Policies & Procedures

Procedure 7.4.1: Gifts In-Kind Donations

Gifts in-kind will be reviewed, accepted, inventoried and recorded according to the following steps:

1. Prior to accepting gifts in-kind, the appropriate administrator(s) will deem the gift suitable for acceptance based on criteria included in ATC Policy 2.26. Prior to acceptance of the donation, the educational benefit gained by students from acceptance of the donated item will be documented. If the donation is to replace another piece of equipment, the plans for disposal of the replaced equipment will also be documented.

2. The Authorization for Gifts In-kind Form should be completed by the donor and department to receive the gift. Forward the completed form to the appropriate administrator for approval. If approved, the Authorization for Gifts In-kind Form will be forwarded to the President's office for a letter of acknowledgement of the gift. When gifts in-kind are valued at $50,000 or more by the donor and given directly to the college, an additional form, Minnesota State Procedure 7.7.1 Gifts and Grants Acceptance Reporting Form, must be completed. (This Minnesota State form is not required when gifts in-kind are given to the ATC Foundation.)

3. If the gift is not deemed suitable for acceptance, the appropriate administrator or his/her designee will contact the prospective donor to communicate the college's decision regarding acceptance of the gift.

4. A letter acknowledging receipt of the gift will be sent to the donor by the College President.

a. Copies of the letter will be forwarded to the College chief financial officer.

5. For income tax purposes, it is the responsibility of the donor to determine the fair market value of the gift. College personnel must not accept this role. Donors should be advised that they must complete IRS Form 8283 http://www.irs.gov/pub/irs-pdf/f8283.pdf if their total tax deductible gifts exceed $500 in a given year. The donor will also be advised that a "qualified appraisal" is required for a single non-cash gift over $5,000 in order to complete IRS Form 8283. The appropriate administrator will sign this IRS form acknowledging receipt (not value) of the gift.

6. If the gift is valued at more than $50,000 or is real property, the College President will report it to Minnesota State and for approval by the Minnesota State Board of Trustees.

7. In the event that the college sells the gift within two years of receipt, it must file an information return with the Internal Revenue Service naming the original donor and the sale price.

8. The College purchasing officer will inventory and complete accounting paperwork as appropriate.

9. The College President's office will maintain a list of gifts in-kind and report annually to the Minnesota State Board of Trustees. 

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History:

08.2017 Technical Change: MnSCU to Minnesota State