Chapter 17. Michigan Tech Fund
Section 17.1. Receipt and Acknowledgment of Gifts

17.1.2. Gifts-in-Kind

Gifts-in-Kind: Contributions that are not cash, legal tender, stock, securities, and/or mutual funds. Gifts-in-Kind include, but are not limited to: supplies, equipment, machinery, services, etc. (Real estate gifts require more comprehensive handling and are dealt with in the following section.) A gift-in-kind which requires changes to existing University facilities will be referred to as "equipment and machinery" for the purpose of this procedure, since its acceptance is handled differently than other gifts-in-kind.

While the University encourages gifts-in-kind, it also recognizes its responsibility to accept only those gifts which will benefit the overall educational objectives. Departments and other units are urged to carefully evaluate the benefit of proposed gifts-in-kind, before making a final decision of accepting it.

Gifts of equipment and machinery that require changes to existing University facilities, and gifts that require any obligation of the University for maintenance and support, must be approved by the vice president for finance and administration before acceptance. Any gifts that require a change in space use, must be reviewed and approved by Occupational Safety and Health Services and Facilities Management. As a general rule, any gifts-in-kind of any significant size and value, must be approved by the vice president for finance and administration before acceptance.

The Fund is authorized to accept and dispose of gifts-in-kind that are intended to be sold for gift purposes, or be used for a specific purpose as to benefit the entire University. The Fund does not require prior approval from the University in accepting these types of gifts-in-kind, unless there is an expected obligation on the part of the University. If that is the case, the University's vice president for finance and administration must give approval before acceptance.

If the donor requests a receipt for IRS purposes, the gift-in-kind must be accompanied by a certified appraisal determining its fair market value. Official receipts for gifts-in-kind to be used for tax deductions, must be issued by the Fund. The Fund also shall be responsible for certifying gifts for IRS purposes.

Prior to receiving gifts-in-kind, do the following:

1. Discuss the appropriateness of the gift and its potential value to the receiving department/division with the donor.



2. Send a memo to the department chair, director, dean, and vice president requesting approval for acceptance of the gift. The memo should describe the gift and potential value to the department/division. If the gift-in-kind is of sufficient size or value, the vice president for finance and administration must also be notified and provide approval.


NOTE: Any gift-in-kind that requires a change in space use, must be reviewed and approved by Occupational Safety and Health Services and Facilities Management prior to approval by the vice president for finance and administration.


3. Determine any financial responsibility for obtaining the gift and for shipping/freight charges to its final destination, before acceptance is made.


NOTE: If the University is expected to provide financial support for obtaining the gift, justification for the cost must be made and formal approval must be given by the department/division chair, director, and dean or vice president.


4. Arrange with Central Receiving and Facilities Operations, if necessary, for transfer of the gift to its proper location.



5. Notify the Fund, by either sending e-mail to <jjsmigow@mtu.edu>, calling 7-2627, or sending a memo to the Fund, if the donor is an individual and expects to receive recognition of the gift-in-kind as a contribution to the University. Notify Corporate Services if the donor is a corporation and expects to receive recognition.


NOTE: The Fund provides the appropriate documentation regarding the gift and its purpose. The Fund shall send a letter to the donor acknowledging the gifts.


6. If the donor expects credit for the gift for tax purposes, and the gift has a value exceeding $5,000, it is the donor's obligation to obtain a certified appraisal stating the fair market value of the gift and provide that appraisal to the Fund. For gifts-in-kind valued under $5,000 where the donor wants tax credit, it is the donor's responsibility, working with the receiving department and/or the Fund, to obtain a fair market value from a recognized expert. Provide the Fund with the fair market value in writing.


NOTE: For all gifts-in-kind where the donor expects credit for tax purposes, original documents shall be kept on file with the Fund. Copies shall be forwarded to the receiving department/division and the vice president for finance and administration.

When receiving gifts-in-kind that require a change to the University's facilities, or require a significant and/or ongoing financial obligation of the University, do the following:

1. Submit a request to accept the gifts-in-kind to the respective department/ division head for submission to the vice president for finance and administration, prior to acceptance, which includes:


NOTE: Any gift-in-kind that requires a change in space use, must be reviewed and approved by Occupational Safety and Health Services and Facilities Management prior to approval by the vice president for finance and administration.


1. Drawings, operating instructions, and pictures of the gifts when possible.



2. The functional and/or descriptive name of the unit and its intended use or purpose.



3. The manufacturer's name, address, and contact person.



4. The proposed installation location listing University building, floor and room number, and the position within the room (include drawings when necessary).



5. Department name and person with whom contact was made for the gift.



6. Utility requirements such as electric power, steam, gas, air, and water.



7. The overall installed size, length, width, height and weight of the unit, disassembled or knocked down weights and sizes, and equipment support design with manufacturer's specifications and drawings.



8. Special requirements for operation, lighting, ventilation, elimination of toxic gases, etc.



9. Date on which the item could be made available to the University.



10. Method by which it could be transported to the University.



11. Method of funding its delivery, complete installation, and reassembly.



12. The required installation date.




2. Upon notification from the vice president for finance and administration of rejection of the gift, send an explanatory letter to the donor if the gift is not accepted.



3. Upon notification from the vice president for finance and administration of acceptance of the gift, arrange for the delivery of the item with the donor, Central Receiving, and Facilities Operations.



4. Submit a Campus Work Order request to Facilities Operations to move, assemble, or install the equipment if required.



5. Notify the Fund, by either sending e-mail to <jjsmigow@mtu.edu>, calling 7-2627, or sending a memo to the Fund, if the donor is an individual and expects to receive recognition of the gift-in-kind as a contribution to the University. Notify Corporate Services, in writing, if the donor is a corporation and expects to receive recognition.


NOTE: The Fund provides the appropriate documentation regarding the gift and its purpose. The Fund shall send a letter to the donor acknowledging the gifts.


6. If the donor expects credit for the gift for tax purposes and the gift has a value exceeding $5,000, it is the donor's obligation to obtain a certified appraisal stating the fair market value of the gift and provide that appraisal to the Fund. For gifts-in-kind valued under $5,000 where the donor wants tax credit, it is the donor's responsibility, working with the receiving department and/or the Fund, to obtain a fair market value from a recognized expert. Provide the Fund with the fair market value in writing.


NOTE: For all gifts-in-kind where the donor expects credit for tax purposes, original documents shall be kept on file with the Fund. Copies shall be forwarded to the receiving department and the vice president for finance and administration.