Procedures for Accepting and Receipting Non-Cash Gift Contributions
Purpose: These procedures are designed to ensure that South Plains College complies with Internal Revenue Service rules and regulations governing the acceptance of non-cash gifts as charitable contributions and to provide the donor with the appropriate acceptance documentation necessary for them to claim the donation as a charitable contribution.
General Procedure for Non-Cash Gifts
A non-cash gift may be accepted for the benefit of South Plains College only if it has been determined by the appropriate College personnel that the gift has an educational benefit or use consistent with the purpose and mission of the College. The College may provide the donor, upon request, a charitable gift receipt for such contributions after the non-cash item has been approved for receipt by the appropriate College officials. The Office of Development is responsible for properly documenting and receipting all non-cash gifts accepted for College use.
Non-cash gifts may include equipment, vehicles, materials, supplies, commercial services, works of art, musical instruments, real property, or any tangible item that has been determined to be of value to the educational mission of the College. Donations of an individual’s volunteer time, expertise or services generally do not meet the IRS guidelines for a non-cash charitable contribution.
Documenting the Non-Cash Gift Contribution
The Non-Cash Gift Acceptance Form must be used to document the acceptance of a non-cash gift contribution. The Acceptance Form must be reviewed and approved by the Departmental Chairperson/Administrative Director, Instructional/Administrative Dean and the respective Vice President before the gift is accepted and is transported to College property.
The Non-Cash Gift Acceptance Form must include the following information:
- The name, mailing address and phone number of the Donor. An email address is also preferred, but is optional.
- The name of the SPC employee who is facilitating acceptance of the gift.
- A description of the gift, include make, model, serial number and year if the gift is a piece of equipment. If the gift is a vehicle, the form must include the vehicle identification number.
- Fair Market Value provided by the donor. A donor may indicate a $0.00 value.
- Expected use of the gift as an instructional tool or resource.
- Description of how the non-cash gift will be used in instruction, including the names of the classes where the gift will be used.
- Donor agreement to the conditions of acceptance by signature.
- Physical location of the non-cash gift upon receipt.
- Approval signatures by the Departmental Chairperson/Director, the Instructional/Administrative Dean and the respective Vice President.
Claimed Value of the Non-Cash Gift
If the Donor intends to claim the contribution as a charitable tax-deduction for income tax purposes, a value for the gift must be provided by the donor. The college employee facilitating acceptance of the gift may not assist the donor in determining a value.
Contemporaneous Written Acknowledgement
Upon approval and acceptance of the non-cash gift, the Office of Development will issue to the Donor a contemporaneous written acknowledgement, also known as a charitable contribution receipt, within 30 days of the date of the contribution. A copy of the completed Non-Cash Gift Acceptance Form will also be provided to the Donor.
Non-Cash Gifts valued at more than $5,000
If the value of the non-cash gift is more than $5,000, the donor must obtain a “qualified appraisal” in order to complete IRS Form 8283. The College must acknowledge receipt of the gift on Form 8283. The donor is responsible for the proper completion of these forms.
If South Plains College disposes of a non-cash contribution over $5,000, for example a piece of equipment, within three years of receipt, the Office of Development will complete and file IRS Form 8282 reporting the disposal and must provide a copy of Form 8282 to the donor.
Faculty or staff responsible for the use of the gift must inform the Office of Development of any decision to salvage or dispose of the gift during the first three years of its use.
Inventory of Non-Cash Gifts valued at more than $5,000
If a non-cash gift has a declared value more than $5,000, the Business Office must be notified so that the gift can be inventoried as an asset of the College.
Evaluation of a Vehicle as a Charitable Contribution
Before a vehicle can be considered for acceptance by the College as a charitable contribution, it must be evaluated against the following criteria.
1. The vehicle must have a legitimate instructional value and “significant intervening use.” There is a significant intervening use only if the organization actually uses the vehicle to substantially further the organization’s regularly conducted activities, and the use is significant, not incidental. Factors in determining whether a use is a significant intervening use include its nature, extent, frequency and duration. For this purpose, use includes significant use directly relating to training in vehicle repair. The duration of the use should also be significant and must exceed one year. If the vehicle is only going to be used occasionally for instruction in vehicle repair, then its use does not meet the standard for significant use and it should not be accepted.
The Program Coordinator, Departmental Chairperson and Instructional Dean must evaluate the use of the vehicle and determine if the donation will meet the significant use standards as an instructional tool for the program.
2. The vehicle must have clear title. A copy of the Motor Vehicle Title showing all liens on the vehicle have been released must be provided by the donor. Vehicles without clear titles will not be considered for acceptance by the College.
3. The Instructional Dean may establish additional criteria that must be considered prior to accepting a vehicle for instructional use.
4. Once accepted for instructional purposes, a vehicle may not be registered and driven on public streets for any purpose.
Contemporaneous Written Acknowledgement and IRS Form 1098-C for Vehicle Contributions
Upon approval and acceptance of the vehicle, the Office of Development will issue to the Donor a contemporaneous written acknowledgement, also known as a charitable contribution receipt within 30 days of the receipt of the contribution.
The Office of Development will file a separate IRS Form 1098-C, Contributions of Motor Vehicles, Boats and Airplanes, with the IRS for each contribution of a qualified vehicle that has a claimed value of more than $500.
In order to correctly file Form 1098-C, the Office of Development will request from the Donor completion of Form W-9 Request for Taxpayer Identification Number. Failure on the part of the Donor to provide a Tax Identification Number will require the Foundation to declare on Form 1098-C that the Donor may not claim more than $500 for the vehicle.
Copies B and C of Form 1098-C will be provided to the Donor within 30 days of the date of the contribution.
The Office of Development will file with the IRS Copy A of Form 1098-C for vehicles received in a single calendar year no later than February 1 of the following calendar. For example, vehicles accepted during calendar year 2012, file Copy A with the IRS by February 1, 2013. Form 1096 must accompany the filing of Form 1098-C.
Non-Cash Charitable Gifts Record Maintenance
All records of non-cash charitable gifts accepted and received by the College shall be kept and maintained in the Office of Development for a minimum of five years, after which the records may be disposed.
Policy and Procedure Questions
Questions regarding these policies and procedures should be directed to the Director of Development.
Date Issued: October 29, 2012
Approval: Executive Council