GiftsGifts jbarber32 Fri, 06/08/2012 - 16:24
Distinction Between Gifts and Sponsored ActivitiesDistinction Between Gifts and Sponsored Activities
Contributions to GIT must be distinguished from private support, which creates a contractual obligation on the part of the Institute. Generally, funds received for the benefit of the Institute may be classified as "Gifts", "Grants and Sponsored Agreements" or "Contracts" as described below.
Gifts represent contributions made for which the provider receives no direct benefit and requires nothing in exchange beyond a general assurance that the intent of the contribution be honored. Contributions which are considered "Gifts" should be made to Georgia Tech Foundation, Inc. and accepted and processed as provided for in this document. The following guidelines are to be used to determine if a proposal will result in a "Gift" to the Institute: Key indicators include:
- No contractual requirements are imposed
- The award is irrevocable
- No period of performance is specified
- No formal financial reporting to donor is required
- No requirement to return unexpended funds
- Funds are donative in nature and bestowed voluntarily without expectation
Grants and Sponsored Agreements
Grants and Sponsored Agreements Accepted by Georgia Tech Foundation
Grants and Sponsored Agreements represent awards that have a defined activity to be undertaken with the support provided, with an outcome that either directly benefits the provider or a public purpose. Grants and Sponsored Agreements, or contributions made for a specific project of the Institute, may be received and accepted by GTF if:
- the grant agreement names GTF as grantee, and
- the obligations of the Foundation under the grant agreement are limited to
- expenditure of the funds for the described purpose at the request of GIT, and
- reporting on the expenditure of funds to the donor, but not the status or progress of any project.
GIT procedures require that Grants and Sponsored Agreements awarded to GTF be administered by Grants and Contracts Accounting (or GTRI Accounting for awards to units of GTRI) in the same manner as other sponsored projects. GTF will not accept funds sponsored directly or indirectly by the Federal Government.
Grants and Sponsored Agreements Accepted by Georgia Institute of Technology
If the Grant or Sponsored Agreement is sponsored directly or indirectly by the Federal Government, requires cost-sharing, or requires support in excess of the grant amount, the Grant or Sponsored Agreement must be awarded to Georgia Institute of Technology (GIT) and administered by the Office of Contract Administration. The following guidelines will determine whether a proposal would result in a Grant or Sponsored Agreement to GIT:
- The award carries terms on the use of funds
- The sponsor may retain authority to withhold funds pending satisfactory completion of project objectives
- Unused funds must be returned to the grantor unless waived, in writing, by the sponsor
- Formal financial accounting may be required
- Periodic payments may be made by the sponsor
- Generally, subject to specific restrictions and contingencies
Contracts and Other Agreements with Special Term and conditions.
The acceptance of funds under circumstances which entitle the sponsor to deliverables and/or intellectual property rights, or under which anything of value is conveyed to the sponsor, will create a "Contract" which must be processed through the Office of Contract Administration. Contracts can not be processed through the Georgia Tech Foundation. The operating procedures of the Office of Contract Administration include features designed to address these requirements, and assure compliance with the terms of such agreements. All contracts must be made with the Georgia Tech Research Corporation (Georgia Tech Applied Research Corporation for GTRI contracts) and administered by the Office of Contract Administration. The following guidelines are suggested for determining whether a proposal will result in a "Contract" with the Institute:
- The award is subject to formal conditions outlined in a contractual instrument signed by both parties
- The sponsor often places more restrictions upon expenditures allowed in the pursuit of the activity
- Normally involves the generation of some tangible product or service
- Financing may be on a cost-reimbursable basis, advance funding, or lump-sum payments as work progresses
- Sponsor requires periodic progress reports and may include invention, royalty, financial or equipment inventory reports
- A closing audit is sometimes required
Facilities & Administrative Costs Associated with Account ManagementFacilities & Administrative Costs Associated with Account Management
Facilities & Administrative (Indirect) costs incurred to manage gifts to the Institute are supported by the Institute budget and are not charged to the gift accounts. In recognition of the additional support services required to manage sponsored projects and contracts managed through the Office of Contract Administration, Facilities & Administrative (Indirect) costs are charged to the project operating costs. In certain instances, requests to waive charges for Facilities & Administrative (Indirect) costs are considered by the Vice-Provost of Research according to OSP Policies & Procedures. Refer policy no 45 of this manual.
Gift ProcessingGift Processing
Gifts of Cash or Securities
All checks or securities intended as donations to Georgia Tech and payable to Georgia Tech Foundation, Inc. should be forwarded with the original letter from the donor and a completed GTF Gift Request Form, if applicable promptly to the Georgia Tech Foundation, Inc. All checks or securities payable to the Institute should also be forwarded to the Georgia Tech Foundation, Inc., which will then process them for deposit by the Institute. Contributions intended for the Foundation but made payable to the Institute or one of its units may be transferred to the Foundation on receipt of written documentation of the donor's intent. No attempt should be made to deposit a check to any entity other than the Payee. Under no circumstances should a check be modified to change the Payee.
Contributions of securities should also be made to the Georgia Tech Foundation, Inc., either by transfer via DTC (Depository Trust Co.) or transfer of the actual stock certificates to the Georgia Tech Foundation, Inc. Transfer via DTC is the most efficient and preferred method of handling transfers of securities. Questions pertaining to the transfer of securities should be directed to the Georgia Tech Foundation Accounting Office.
In-Kind Gifts of Equipment & other In-Kind Contributions
Gifts of equipment and in-kind contributions are more effectively handled by the Institute. Such gifts include donations of: (a) instructional and research equipment and (b) books and other library materials. The Office of Development’s Gift Accounting Office should receive all documents regarding gifts of equipment and in-kind contributions, including the original letter of transmittal, as well as tax forms and other documents requiring signatures.
The Board of Regents (BOR) has delegated the acceptance of gifts of property (equipment and in-kind contributions) to the President of the Institute who has in turn delegated that responsibility to the Executive Vice President for Administration and Finance.
Donations of in-kind gifts, such as instructional and research equipment, library books, and other library materials, should be made to the Georgia Institute of Technology. The department receiving the gift is responsible for forwarding the gift information to Office of Development’s Gift Accounting Office using the In-kind Gift Report Form.
The Office of Development’s Gift Accounting Office will record the gift information in their database, acknowledge the gift and forward the gift information to the Business Office and the Capital Asset Accounting Services for recording in their database. The department/campus unit receiving the gift is responsible for ensuring that the entire gift pledged is actually received. If, for some reason, a portion of the gift is not received, the department should notify Office of Development’s Gift Accounting Office and Accounting Services so that inventory valuation records may be updated reflecting the revised value of the gift. Accounting Services will notify the President's Office, Administration and Finance.
NOTE: Gifts of Visual Art are governed by Policy No. xxxxxx (# to be assigned, when policy written)
Gifts of Real Estate
Gifts of real estate should generally be made to GT Foundation. The Real Estate Committee of the Foundation will examine any proposed gift of real estate to determine whether there are any conditions that may adversely affect the Foundation's ability to market the property. The Committee usually requires an environmental audit (including inspections for soil and water contamination, asbestos and other hazardous materials or substances) and a title examination to be conducted prior to acceptance of the gift. For more information about accepting a donation of real estate, contact Gift Planning in the Office of Development at (404) 894-8812.
Federal income tax regulations require that a donor obtain a written appraisal to substantiate gifts of property worth $5,000 or more. Gifts of property will generally be valued based on the donor's appraisal.
Solicitation of GiftsSolicitation of Gifts
Philanthropic support from private sources, i.e. individuals, corporations, foundations, and other organizations, is becoming increasingly important to the continuation of the quality instruction, research, and service functions that are a trademark of the Georgia Institute of Technology. The Office of Development is charged to secure private support to meet the Institute’s strategic goals and objectives.
All Vice Presidents, Deans, School Chairs, Department Directors, faculty, and staff initiating efforts to obtain gifts or private, non-contractual grants must coordinate their efforts with the Office of Development through their respective assigned Development Officer or, where none is assigned, through the Office of the Vice President for Development. Such coordination must begin before making formal contact with a new funding source and will continue on a regular basis after initial contact is made.
Prior to the formal submission of written proposals to private funding sources, the submission should be cleared through the Office of Development.
The Office of Development is responsible to ensure proper acceptance of gifts to the Institute and its affiliated organizations that receive private gifts for the benefit of Georgia Tech, including the Georgia Tech Foundation, Inc. and the Alexander-Tharpe Fund. Private gifts include gifts of equipment and other property as well as cash and securities. Acceptance of most gifts will be routine; however, gifts which may obligate the Institute beyond the approved budget or program of a College, School, or Department should be discussed in advance with the Vice President for Development. The following are NOT considered charitable gifts and are not to be accepted as such.
- Advertising revenue;
- Contract revenues;
- Contributed services;
- Gifts of intellectual property rights;
- Governmental funds, whether local, state (including state matching grants), federal or foreign;
- Investment earnings on gifts, even if accrued during the reporting period;
- Sale of merchandise;
- Software licenses where the Institute is exempted from paying annual license or maintenance fees;
- Tuition payments.
All gifts to Georgia Tech and its affiliated organizations will be acknowledged by the Vice President for Development or his designee. Other acknowledgments are strongly encouraged. Copies of receipts/acknowledgments will be posted in the Donor Database System.
It has been the policy to encourage donors to make gifts designated for academic purposes, excluding gifts of equipment and in-kind contributions, to the Georgia Tech Foundation, Inc., rather than to the Institute proper. Therefore, anyone soliciting support for the programs at the Institute should request that the donation be made to Georgia Tech Foundation, Inc. rather than to the Institute. Gifts of equipment and in-kind contributions are more effectively handled by the Institute. Such gifts include donations of: (a) instructional and research equipment; and (b) books and other library materials. The Gift Accounting Office in the Office of Development should receive all documents regarding gifts of equipment and in-kind contributions, including the original letter of transmittal, as well as tax forms and other documents requiring signatures. In addition, the Gift Accounting Office in the Office of Development should be informed when a GT unit accepts a software license for stewardship and reporting purposes, even when the software license does not qualify as a gift under IRS regulations or CASE (Council for the Advancement and Support of Educations) standards.