2. Council for Advancement and
Support of Education
CASE is an international association of educational institutions.
CASE also offers a variety of advancement products and services,
provides standards and an ethical framework for the profession,
and works with other organizations to respond to public issues of
concern while promoting the importance of education worldwide.
5. What Is A
Gift?
• Gifts & Grants are synonymous (for
CASE and CAE reporting purposes)
• A gift is the irrevocable transfer of
property or money to a qualified
organization and has no donor-‐imposed
restrictions, conditions, or control
– You cannot un-‐gift a gift!
– We are going to continue to promote the
term “Private Support” when we
reference the transactions
5
Kramer 7/2015
6. Let’s Talk
About
“Control”
• Once a gift always a gift
– Cannot give a gift back – 1099s
– Retain gift after a restricted program is
canceled
• Scholarship recipient selection
– Donor’s involvement
– Certainly cannot have a majority vote
– Control based on position/power
• Cannot require institution to take action
it otherwise would not take
• (Gift Agreement) Dan Richie
6
Kramer 7/2015
7. Common
Gift Myths
• Donation of time or service. While truly
a charitable act, only a volunteer’s
REQUIRED out-‐of-‐pocket expenses
(mileage, parking, supplies, etc.) may be
deducted.
– FASB/GASB may recognize as an asset
– Expressly forbidden as a charitable donation
per IRS Publication 526
– Donated advertising space is a “service” per
IRS Revenue Ruling 57-‐462
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Kramer 7/2015
8. Common
Gift Myths
• The use of a donor’s property by a
charitable organization (partial interest
– IRS Pub 526)
– Vacation home for charity auction
– Office space in lieu of rent
– One-‐time display of artwork (fractional gifts
are the exception – and are legal!)
– Use of software
• Basically, if the company gives your institution a software license, and the right to use it for a specific
period of time, then it isn’t a gift – it’s a partial interest and it can’t be counted or reported for
purposes of the VSE or CASE Campaign Survey. The donor would not receive hard credit. Instead,
the donor can be given soft/stewardship credit. On the other hand, if there is a complete transfer of
ownership in software – i.e., the underlying intellectual property, programming code, patent, etc. –
then it’s considered to be an irrevocable transfer of title to intellectual property and is an outright
gift.
– “RECOGNITION CREDIT”
8
Kramer 7/2015
9. Gift-in-
Kind,
What's it
Take?
• What’s the determining factor for
acceptance of a gift-‐in-‐kind?
– Related use: The GIK must be useful to the
institution in fulfilling the purpose or mission
for which the institution
– 3rd part appraisal, the University or the
Donor can not influence the value of the
“personal property”
– Organization must sign a 8283 form if the
donor is seeking a tax deduction
– *Gift Use Agreement for Personal Property
(much needed here at CU)
• Chancellor, CFO, Vice Chancellor of Advancement
Use, term, disposal
9
Kramer 7/2015
10. So What Is a
“Good”
Sponsorship?
• Any payment by any person engaged in
a trade or business with respect to
which there is no arrangement or
expectation that the person will receive
any substantial return benefit
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Kramer 7/2015
11. “Free”
Recognition
A Sponsor
Can Receive
• Mention of location, phone number,
website
• Value-‐neutral descriptions, including
displays or visual depictions, of the
sponsor’s product line or services
• Displays of brand or trade names and
product or service listings
• Logos or slogans that are an established
part of the sponsor’s identity
• Mere display or distribution (free or at a
cost) of the sponsor’s product at a
sponsored activity
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Kramer 7/2015
12. Recognition
Cannot
Include:
• Qualitative or comparative language
• Price information or other indications of
savings or value
• An endorsement or inducement to
purchase, sell, or use the sponsor’s
service, facility, or product
12
Kramer 7/2015
15. Most items
refer to
Campaign.
If you’re not
in a
Campaign,
you should
be planning
one!!!!!!
• Gift Types and Methods of Reporting
• Gift Types and Counting Criteria
• Planned/Deferred Gift
• Credit
• Counting and Reporting
• Outright Gifts
• Deferred Gift
• Donor Purposes
• CASE Management Guidelines
• Campaign Planning
• Handling Certain Gifts
15
Kramer 7/2015
16. Now, You
Too Can
Count
Bequest
Expectancies
• Irrevocability no longer required – too
difficult to manage (State laws varied),
and donor-‐unfriendly to request
• Pledged/Executed (not found) during
campaign
• Should consider age and variable
valuation:
– Under 50 -‐ $0
– 50-‐69 – Present value
– 70+ -‐ Face value
• Report separately from outright and
irrevocable deferred gifts
16
Kramer 7/2015
17. Back to the
Future for
Irrevocable
Deferred
Gifts
• May once again count at face value (3rd
edition went strictly present value)
• Separate goals should be created for
these as well –You can bring in more!
But more here does not mean less
“there”
• The issue of transparency suggests that
you still report the present value (IRS
deduction) of these, too, but face value
counts towards goal
– Only the present value counts for VSE
purposes
• Minimum ages should be considered
17
Kramer 7/2015
18. Conditional
Pledges
• Reasonable expectation that the
conditions will be met during the
campaign. Examples include
– Challenges – I’ll give you mine if you raise
the other
– Capital Commitments – If you build it I will
pay
• Appropriate documentation
• Pledge A, B, C
18
Kramer 7/2015
19. Counting
Government
Funds
• Actually, no change – you never count
government funding from any
government for any reason
• Acknowledgement that government
funds are helpful in achieving strategic
goals, can be leveraged to secure
private gifts, and recognize that some
fundraising staff help secure
19
Kramer 7/2015
20. Counting
Government
Funds
• Counting emphasis has always been on
raising charitable donations from the
private sector
• Impossible to level the playing field
when looking at large public research
universities compared to small private
colleges
• Securing government funds does not
qualify as a private philanthropic act,
however we most certainly can and
should recognize its value in achieving
institutional goals (UCCS)
20
Kramer 7/2015
21. REPORTING
OCG, OGC &
OSP
• Stay tuned
• Local control and
accountability
• Better data feed from
source
• Foundations/Corporations
• Partners
21
Kramer 7/2015
22. What
Doesn’t
Count*
• Advertising revenue
• Alumni membership dues/fees
• Appraisal costs and other expenses
associated with conveying a gift
• Contract revenues (including clinical
trial funds)
• Contributed services
• Partial interest
• Standard discounts on purchases (does
not include true bargain sales)
• Earned income transfer payments from
money earning programs/businesses
• Gifts or pledges counted before;
payments on pledges or bequests made
before
*Applies to Campaigns AND VSE
22
Kramer 7/2015
23. What
Doesn’t
Count*
• Gifts to social organizations
• Governmental funds – ALL kinds
• Oral pledges (except phone!)
• Written-‐off pledges
• Investment earnings on gifts – includes
gains/losses on sales of stock/other
property
• Funds from exclusive vendor
relationships: Affinity credit cards,
pouring rights, royalties, or other
contractual obligations
• Non-‐gift portion of QPQ transactions
• Surplus income from ticket-‐based
operations
*Applies to Campaigns AND VSE
23
Kramer 7/2015
24. Additional
Resources
– www.FundSvcs.org
• Association of Advancement Services
Professionals (AASP –Advserv.org)
• Advancement Services book
• CASE Reporting Standards &
Management Guidelines -‐ & 10/2011
Clarification
• IRS Publications 526, 561, & 1771
24
Kramer 7/2015
27. How Will
This
Benefit Us?
– Unrelated use: May still qualify as a gift-‐
in-‐kind (that you can count and the
donor can deduct – sort of), provided it
was given specifically to be sold (charity
auction)
– “the Treasury Regulations under section
170 provide that if a donor contributes
tangible personal property to a charity
that is put to an "unrelated use", the
donor's contribution is limited to the
donor's tax basis in the contributed
property”
– “The term "unrelated use" means a use
that is unrelated to the charity's exempt
purposes or function . . . The sale of an
item is considered unrelated, even if the
sale raises money for the charity to use
in its programs” 27
Kramer 7/2015
