UNIVERSITY OF CINCINNATI
Policy for Charitable Contributions

Procedures for establishing a new endowment or restricted gift fund:

A fund must be established if a gift is received with restrictions that are different than the restrictions of current funds already on the University's books. The procedures are:

1. The department or the Foundation (depending on where the gift was received) deposits the cash, check, or stock using the A-152 Advice of Gift Remittance Form. The funds will temporarily be deposited into an unassigned cash account until a new account is established.
2. The Foundation prepares an A-223, Endowment or Restricted Gift Fund Form, to establish the new fund. All correspondence and original documents received are forwarded to the Foundation to be attached to the A-223. The Foundation routes the form intact to the Treasurer's Office who in turn routes the form to the Dean or Administrative Office, Vice President, and General Counsel (in that order).
3. The Office of the General Counsel reviews to insure that any restrictions on the A-223 agree with those stated in the correspondence/documents.
4. The Office of the Treasurer assigns a fund number and retains the supporting documents.

Special Policies and Procedures:

Postmarked envelopes in which gifts are received are forwarded to the Foundation with the A-152, Advice of Gift Remittance Form. The purpose is to verify the date for the donor. The Internal Revenue Service will accept the postmark date for tax purposes.

The University will not allow or accept gift restrictions which are religious or which favor non-minority racial groups. If restrictions of race or gender are requested, there should also be language which would allow the University to administer the gift should these restrictions be legally void. The language should be similar to the following:

Should it become impossible for the University to restrict the use of this gift as directed for (specify restriction), donor directs that the unused portion of the gift be (specify action).

If works of art, antiques or other collectibles are donated through gift or bequest, an A-152, Advice of Gift Remittance Form, should be completed. ALL SUCH GIFTS OR BEQUESTS ACQUIRED ACCORDINGLY ARE PROPERTY OF THE UNIVERSITY OF CINCINNATI, NOT THE DEPARTMENT. Items received as restricted gifts are subject to the provisions of University Rule 3361: 10-21-01. The Foundation will provide to the Director, DAAP Galleries, information pertaining to these gifts or bequests. The Director, DAAP Galleries, will review all such items for acceptance or disposal. Items not accepted into the University Fine Arts collection remain the property of the University. This ensures the item will be catalogued, inventoried, and properly maintained.

Charitable deduction property is defined as property other than money or publicly traded securities received after December 31, 1985. If property valued at more than $5,000 is donated through gift or bequest, the donor should be sent an IRS Form 8283, Non-Cash Charitable Contributions Appraisal Summary by the vice president responsible for the receiving department. This form is an acknowledgment only and does not represent concurrence in the fair-market value of the gift. A copy of this form should be sent to the Office of the Treasurer. If such property is subsequently sold, traded, or exchanged within two years of receipt, the Office of the Treasurer should be notified and they will file IRS form 8282, Donee Information Return

Omnibus Budget Reconciliation Action of 1993 (OBRA)

When any goods or services are received in return for a donation, the donee must advise the donor that only a portion of the donation is deductible.

If any local fund raising project is planned that involves goods or services being provided to supporters, the Director of Stewardship at the Foundation should be contacted in order to insure that all notifications required by OBRA are provided to financial supporters of such projects. Failure to provide such coordination could jeopardize the tax deductibility of donations received and could result in donor's checks not being accepted by the Foundation.

Disclosure of Foreign Gifts & Contracts

The U.S. Department of Education requires that all gifts, grants and contracts exceeding $250,000 from a foreign source be reported to them semi-annually.

Foreign source means a foreign government, including an agency of a foreign government; a legal entity, governmental or otherwise; an individual who is not a citizen or a national of the United States, a trust territory or protectorate thereof; or an agent, including a subsidiary of an affiliate of a foreign legal entity, acting on behalf of a foreign source.

Departmental personnel should report known foreign gifts, grants or contracts to the Financial Reports Office (556-1151) to assist them in complying with this regulation.