GUIDELINES FOR COUNTING AND RECOGNIZING GIFTS TO WASHINGTON STATE UNIVERSITY AND THE WSU FOUNDATION
All gifts to Washington State University and to the Washington State University Foundation will be counted in accordance with the following guidelines.
1. Cash Payments: All outright gifts by cash or check will be credited at face value as of the date they are received by WSU.
· Quid Pro Quo Contributions will be credited for only the amount that exceeds the value of the benefits the donor receives from WSU in return for the gift. Donors may deduct 80 percent of contributions to WSU for which the donor is given the right to purchase preferred seating for athletic events.
· Matching Funds: Gifts received in cash from organizations or corporations to match gifts of cash or securities by individuals associated with that organization or corporation will be credited to the corporate donor's gift record and allocated to the same purpose as the donor's gift, unless corporate rules prevent such an allocation. The individual donor whose gift is matched will receive associate and recognition credit for the matching amount.
· Estate Distributions will be counted at face value in the year received.
· Trust Distributions will be counted at face value in the year received only if WSU has never previously recorded the funds donated to create the trust as deferred gifts.
2. Securities: Restrictions placed by the donor on the subsequent disposition of gift securities must receive specific approval of the Gift Acceptance Committee.
· Marketable securities will be counted at the average of the high and low quoted selling prices (or the average of the bid/ask in the case of certain securities) on the date the donor relinquished dominion and control of the assets in favor of the institution. If the security was not traded on that date, the date of the most recent sale will be used.
· Closely-Held stock exceeding $10,000 in value will be counted at the fair market value placed on them by a qualified independent appraiser. Gifts of this type valued at $10,000 or less will be valued at the per-share cash purchase price of the most recent transaction. Normally, this transaction is the redemption of the stock by the corporation. If no redemption is made during the reporting period, the will be credited at the value determined by a qualified independent appraiser. Such appraisals are the responsibility of the donor.
3. Real Estate: The fair market value of gifts of real estate will be determined by qualified independent appraisal obtained by the donor. Gifts of real estate must be approved by the Gift Acceptance Committee.
4. Non-cash Donations:
· Materials or long-lived assets will be credited at fair market value. Gifts with fair market values of more than $5,000 will be credited at the values placed on them by qualified independent appraisers, paid for by the donor. Gifts of $5,000 and less will be reported at the value declared by the donor or determined by a qualified expert on the WSU faculty or staff. Restrictions imposed by the donor regarding the sale, maintenance, administration, or display of such items are subject to review by the Gift Acceptance Committee. Normally, such gifts can be accepted only if the additional expenses engendered by such restrictions are underwritten by the donor.
· New equipment and software will be reported at the educational, corporate, or applicable volume discount value, that is, the price WSU would have paid had it purchased the item outright from the vendor. A letter on the donor's letterhead and other standard documentation such as a catalogue or published price list giving the value and description of the equipment or product, usually including product identification numbers, any terms of the donation, and a packing slip or other paperwork to verify receipt of the gift must accompany all gift transmittal forms.
· Used Equipment valued above $5,000.00 require a qualified independent appraisal paid for by the donor to determine the appropriate gift value. Gifts of $5,000 and less will be reported at the value declared by the donor or determined by a qualified expert on the WSU faculty or staff.
· New Equipment and other Products Purchased at Bargain Sale Price will be valued using the following formula: [(List price) minus (standard education, corporate, or volume discount) minus (purchase price) equals (gift value)]. A letter on the donor's letterhead or other standard documentation such as a catalogue or published price list giving the value and description of the equipment or product, usually including product identification numbers, any terms of the donation, and a packing slip or other paperwork to verify receipt of the gift must accompany all gift transmittal forms.
· Limited Partnerships, Mortgages and Notes, Patents and Copyrights: Acceptance of these types of gifts requires prior approval by the Gift Acceptance Committee and will be determined on a case-by-case basis. Such gifts will be credited at the readily determinable fair market value. If the fair market value is not known and cannot be readily determined, the asset will be reported in the year the value becomes known. Gifts of royalties will be reported in the year received.
5. Remainder interest in a Residence or Farm: A gift of a remainder interest in a personal residence or farm will be credited as deferred gifts at both the remainder (present) value recognized as an allowable deduction by the IRS and at the face (fair market) value.
6. Charitable Remainder Trusts and Pooled Income Funds: Gifts made to establish charitable remainder trusts (whether administered inside or outside WSU) where the remainder is not subject to change or revocation, and gifts made to pooled income funds, will be credited at face (fair market) value.
7. Charitable Gift Annuities: Gift annuities will be reported as deferred gifts will be reported at both the face (fair market) value and the amount allowable as a deduction by the IRS: the face value minus the present value.
8. Charitable Lead Trusts: The income received from a charitable lead trust during the period of operation of the trust will be reported as an outright gift in the year received.
9. Life Insurance: Gifts of life insurance policies can be considered a gift only if WSU has been named both owner and irrevocable beneficiary of the policy.
· Life insurance policies will be reported as an outright gift at the cash surrender value.
· Premium payments made by the donor directly to the insurer or to WSU, which in turn pays the premium to the insurer, on new or existing insurance policies, will be reported as outright gifts at the full value of the premiums paid.
· Realized death benefits will be reported as gift income only if WSU has never previously recorded the policy value or any donor-paid premiums as gift income and if WSU has not been paying the premiums.
· If WSU receives the proceeds of an insurance policy in which it was named beneficiary, but not owner, the full amount of the insurance company’s settlement at the death of the donor will be reported as a gift on the date the proceeds are received.
10. Exclusions: The following types of transactions will not be counted in reports of fundraising results.
· contributed services
· contributions from cities or regional governments
· investment earnings on gifts
· pledges
· testamentary commitments (bequest intentions)