Gifts-in-kind are non-cash contributions such as real estate, equipment, and art. The USM Foundation accepts gifts-in-kind on a case-by-case basis, and the OIA at the USM institution that will benefit from the gift must contact the USM Foundation CFO or the General Counsel before agreeing to accept a gift-in-kind. Donors must determine the Fair Market Value (FMV) of the donated property at the time of the contribution. If the USM Foundation determines that a gift-in-kind other than real estate is acceptable, then the procedure to process the gift-in-kind is as follows:

 

  1. OIA or the Gift Processor at the USM Foundation Business Office enters the gift information in Advance.
  2. Forward the Batch Report and copies of the documentation related to each gift (i.e., appraisals, deed of gift, etc.) to the USM Foundation Business Office. Include an Inventory Control Form for all property where ownership is to be through the USM Foundation.
  3. The USM Foundation Gift Processor changes the GL code in the Batch Report, from a cash account to the appropriate asset account.

Note: Gifts with a value over $1,000 are recorded as assets. Gifts with a value under

$1,000 are expensed in the year they are received.


        4.    Donors who contribute non-cash gifts with a total value greater than $500 must file IRS Form 8283 with their tax             return (http://www.irs.gov/pub/irs-pdf/f8283.pdf ). If the donor cannot obtain the form, the USM Foundation Business             Office can provide a copy. The donor must complete the appropriate sections of the form, including the appraisal                    section, which details information regarding the value of the item(s) donated. The donor must forward the completed             form to the USM Foundation Business Office for review and signature.

  1. For those items with a value under $500, the donor's estimate is acceptable.
  2. For those items with a value between $500 and $5,000, an internal “expert” can value the property.

       c. For those items with a value of over $5,000, an independent qualified appraiser  must sign the form or provide the                  information on their letterhead. The IRS mandates qualified appraisals for noncash contributions valued over $5,000.              Qualified appraisals must be performed by a qualified appraiser within 60 days prior to the donation, and appraisers                must meet specific criteria to prove the contribution on Form 8283.

      d. The USM Foundation mails the form back to the donor after it is signed.


      5. The USM Foundation files IRS Form 8282 (http://www.irs.gov/pub/irs-pdf/f8282.pdf ) with the IRS if the property is                  sold within two years of the date of the gift.