Gift Processing 101 for UMaine Employees

 

 

What is the function of Gift Processing?

  • Receive and process all gifts into the University’s fundraising database (Advance) and accounting system (MaineStreet).
  • Maintain and secure records of all gifts for University and IRS auditing.
  • Ensure University and Federal compliance in the handling and processing of gifts.
  • Issue tax receipts to donors for tax deduction purposes.

 

What is a gift?

A gift is a contribution received for either restricted or unrestricted purposes in support of the university’s mission for which the institution has made no commitment of resources or services other than, possibly, committing to use the gift as the donor specifies. [5]

Note: Quid Pro Quo – If goods or services, other than token items, are received as a result of making a contribution, only the amount of the contribution in excess of the benefit is considered a charitable donation. [6]

 

Note: Gift Processing issues all official tax receipts to donors from the University of Maine.
If you would like more information about gifts to the University, please contact Gift Processing.

 

What types of gifts are accepted by the University?

Coin – all American coins and foreign coins valued at less than $1.00

Cash – all American and all foreign

Check – all American and all foreign (To “UMaine Foundation” or “University of Maine Foundation”)

Money Order – all American and all foreign (To “UMaine Foundation” or “University of Maine Foundation”)

Credit Card – MasterCard, Visa, AmericanExpress and Discover. Use the online giving website to complete these transactions.

Gift-In-Kind – Non-cash donations of materials or long-lived assets that are directly related to the mission of the university or are convertible to cash in support of the university’s mission. This includes equipment, software, food, vehicles, collections of art, books, etc. [7]

Exception – The value of a person’s or organization’s time or service is not considered a charitable contribution, regardless of whether the individual assists as a volunteer or as a professional providing a specialized service (e.g., accounting, legal work, consulting or printing). [8]

Note: Ownership is to be transferred to the University of Maine.
Note: Because federal guidelines regarding gift-in-kind donations are complex, please contact Gift Processing when such donations are considered or initiated.

 

A Guide of Standards and Requirements regarding Gift-In-Kind donations may be accessed here.

Stock – Have the donor or broker contact Gift Processing for account information.

Note: Ownership is to be transferred to the University of Maine Foundation.

 

IRA Contributions – Have the donor or donor’s financial institution contact Gift Processing for account information.

Note: Ownership is to be transferred to the University of Maine Foundation.

Wire Transfers – Have the donor contact Gift Processing for account information.

Note: Ownership is to be transferred to the University of Maine Foundation.

Matching Gift – Donations made by an organization’s program to match a gift made by an individual donor. Donors must initiate the process to have their Matching Gift Companies match their donations. Only Gift Processing is authorized to complete the Matching Gift Form and verify matchable donations.

Volunteer Program Donations – Donations made by a company that makes donations based on an individual’s volunteer hours. Donors must initiate the process to have their Volunteer Program Companies make donations based on their work. Only Gift Processing is authorized to complete the Volunteer Program Paperwork and verify eligible matching.

 

How do I determine if money to be deposited is a gift?

In general, if the contribution meets the definition described in the What is a gift? section above, it can be processed by Gift Processing as a donation. However, if goods or services, other than token items, are received as a result of making a contribution, only the amount of the contribution in excess of the benefit is considered a charitable donation when receipting to the donor. [9]

Some portions of fundraising events may be tax-deductible. Campus Organizers of these events should contact Gift Processing in advance of the event to determine if this is permissible and for special handling instructions.
If you would like more information about gifts to the University, please contact Gift Processing.

 

Can part of one check be processed as a gift?

Yes. In order for this to be processed, recorded, and receipted accurately, the proper paperwork and documentation must be submitted to Gift Processing with the check to be deposited. Contact Gift Processing for clarification and/or instructions.

 

What are my gift handling responsibilities?

  • University Policies require that you deposit all gifts to Gift Processing within 24 hours of receiving them.

  • You must provide the appropriate and completed Gift Transmittal Form with all supporting documentation when making deposits to the Gift Processing Department.
  • Campus deposits to the Gift Processing Department must be delivered with the appropriate forms and documentation in a sealed envelope (a sealed inter-office envelope is sufficient). The envelope should be addressed to “Gift Processing” and delivered to Gift Processing in Buchanan Alumni House. As an alternative, deposits for Gift Processing may be left with the Bursar’s Office for Gift Processing.
  • University policies prohibit you from copying donor checks and credit card information or keeping record of donor banking information.
  • You may not alter or withhold information regarding contributions.
  • Matching Gift Forms may only be completed by Gift Processing. Please forward unaltered forms to Gift Processing.
  • You may NOT include a dollar value of donations or pledges in any of your correspondence with donors.
  • If you have questions about your gift handling responsibilities, please contact Gift Processing.

 

What should I include in my gift deposit to the Gift Processing Department?

  1. the appropriate and completed Gift Transmittal Form
  2. the donation/deposit
  3. all correspondence and/or forms received with the gift
  4. the envelope in which the gift was received
  5. a note from you to communicate additional information, when appropriate.
  6. If you have questions about preparing your deposit, please contact Gift Processing.
Note: For these reasons, it is best to have donors send their donations directly to Gift Processing with their designation intentions noted on or with the donation.

 

How do you determine the credit date for the gift?

In most cases, the gift credit date is determined by the date that the gift is received by the Gift Processing Department. The credit date is the date of the donation printed on the official tax receipt. Checks, cash, and money orders postmarked in December will receive that year’s credit date for the receipt, though the donation may not have reached the Gift Processing Department until January. Credit card gifts always receive the credit date that the funds are moved from the donor’s account.

Note: It is best to have donors send their donations directly to Gift Processing with their designations noted on or with the donation.

 

How can donors make a gift to the University?

Online – click on the “Give Now” button on the Foundation’s website. Donors may complete the online gift form and make a donation using their credit card information (credit card charge).

By Mail – mail donations to:

University of Maine Foundation
Buchanan Alumni House
Two Alumni Place
Orono, ME 04469-5792

 

Note: It is best that donors send their donations directly to Gift Processing’s address (see above). When donations are received by other areas of the University, employees are required to comply with university policies and procedures as outlined on this website.

 

Can donations be made in memory or honor of someone?

Yes. The university accepts memorial and honorary donations.
Donations should be sent directly from the donor to:

University of Maine Foundation
Buchanan Alumni House
Two Alumni Place
Orono, ME 04469-5792

 

A note on or accompanying the check stating “in memory of” or “in honor of” and the person’s name is enough to indicate that the donation is a memorial or honorary donation. Memorial and honorary donations may also be made using the Foundation’s online giving website. A field is provided to indicate the name of the person to be memorialized or honored.

The University of Maine Foundation is responsible for sending notices for all memorial and honorary donations. These notifications include the donors’ names, their mailing addresses, and the allocation in which each memorial or honorary donation was made. Because of privacy standards, donation values are never disclosed in these notifications.

If you are contacted regarding someone’s interest in suggesting memorial or honorary donations to the University in an obituary or posting, please direct the caller to contact Gift Processing.

 

How should University Departments, Organizations, and Groups go about developing and preparing fundraising projects (mailings/asks/calls)?

Contact Gift Processing directly to assist you in:

  • structuring your mailing to suit your goals and better serve the donors’ needs as well as ensure that the University’s standards are met
  • developing the card, form, or slip that is returned by the donor with the donation as well as the return envelope and/or mailing address
  • including your fundraising effort on the University’s online giving website for credit card donations
Note: Communicating your fundraising efforts directly to Gift Processing ensures that donations are efficiently processed and deposited to suit your needs, respects the donors’ wishes and intent, and allows for immediate assessment of donation responses to your fundraising effort.

Note: You should contact Gift Processing to discuss the development and preparation of your fundraising project before you have completed formatting your fundraiser.

 

How do I submit gifts that I’ve received to be processed?

Campus deposits to Gift Processing must be delivered with the appropriate forms and documentation in a sealed envelope (a sealed inter-office envelope is sufficient). The envelope should be addressed to “Gift Processing” and delivered to Gift Processing in Buchanan Alumni House. As an alternative, deposits for Gift Processing may be left with the Bursar’s Office for Gift Processing.
All deposits should be accompanied by the appropriate and completed Transmittal Form.
All gifts should be deposited with all forms and correspondence received and the envelope in which it was received.
Coin: should be rolled.
Cash: should be bundled.
Check and Money Order: stamped “Deposit Only” and “University of Maine”

Credit Card Charge Requests:
Credit card charge requests from donors are to be delivered with the completed Credit Card Gift Transmittal Form with all supporting documentation to Gift Processing.
When the University Employee receiving the credit card charge request has access to a compliant computer specifically for credit card charges, the University Employee should charge the donation via the online giving website.

Gift-In-Kind:
Complete the Gift In Kind Transmittal Form with all supporting documentation and correspondence.
Contact Gift Processing to discuss the details, acceptability, and requirements of prospective gift-in-kinds.
Specific IRS forms may be required of the donor and the University so that the donation may be considered a charitable deduction. See the Gift-In-Kind Donations Guide of Standards and Requirements for more details.

 

Why should I deposit monies to Gift Processing?

  • Only donations processed by Gift Processing generate a tax receipt to the donor.
  • Only donations processed by Gift Processing are recorded in the university’s fundraising database (Advance).
  • Gift Processing processes donations designated to all funds held by the University of Maine, the University of Maine Foundation, and the University of Maine Alumni Association.
  • Only donations processed by Gift Processing are reported to the University Board of Trustees.

Who do I call to find the balance of the University Fund?

Contact University Budget & Business Services at 207.581.1545

 

I want to create a new fund. How do I go about it?

Contact Holly Hatch at the Foundation to begin the process of creating a new account. (207.581.5100)
Contact Gift Processing to communicate that gifts may be received for a new fund while it is being created.

 

Should I keep a copy of the check or credit card information before I make my deposit to Gift Processing?

No. University Policies and Federal regulations prohibit you from copying donor checks and credit card information or keeping a record of donor banking information.

 

References:

 

5 CASE Reporting Standards and Management Guidelines, 4th edition

6 IRS Pub. 526

7 IRS Pub. 526, CASE Reporting Standards and Management Guidelines, 4th edition

8 IRS Pub. 526, CASE Reporting Standards and Management Guidelines, 4th edition

9 IRS Pub. 526

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None of the information on this website should be considered legal or financial advice. We encourage you to consult with your own legal counsel or financial/tax advisor before deciding whether or not to proceed with a gift or change to your estate plan.

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