Gift Funds

The Division of Financial Services (DFS) and Alumni Affairs and Development (AA&D) are responsible for managing gifts given to the university. DFS's responsibilities include establishing new gift accounts, keeping records of the donor documentation, and ensuring that the financial activity in gift accounts is appropriate and recorded properly.

For more information, please refer to University Policy 3.1, Accepting University Gifts.

The Gift Fund area focuses on the following gift types:

• Restricted Gifts
• Unrestricted Gifts
• True Endowments
• Funds Functioning as Endowments
• Split-Interest Agreements

Types of Gifts

Cash

• Checks, credit card payments, wire transfers
• Securities (Stock)

Non-monetary Assets

• Gifts-in-kind examples:
  • Inventory
  • Real estate
  • Equipment

• Gifts-in-kind that can be used or sold should be measured at fair value
• Gifts-in-kind that cannot be used internally or sold have no value and should not be recognized as assets or contributions

Services

• Recognized when the service:
  • Requires specialized skills
  • Is provided by individuals who possess those skills
  • Typically, would need to be purchased, if not contributed

Pledges

• Promise to give that is an oral or written agreement by a donor to contribute cash or other assets to an entity
• Promises can be either
  • Unconditional, recognized at the fair value in the period the promise is received
  • Conditional, not recognized until the conditions are met

Note: Pledges are recorded at a high level on the university's financial statements.

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Opening Gift Accounts

When a new university gift account is needed, units must follow the instructions below for establishing a new general ledger account.

1. Collect all pertinent information:
   1. Letter signed by donor
   2. Fundraising brochure
   3. Memo from unit head or development person to document donor intent
2. Request new account using the Account e-doc in KFS. 
   
   Attach scanned electronic documentation to the request for the new account.
    
3. Departments can request restricted or unrestricted gift accounts only. Only DFS can set up invested fund accounts. Requests for gift accounts will be routed through KFS to DFS for review and approval.

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