Guideline FNG01 FLOW AND ACCOUNTABILITY OF GIFTS AND GRANTS FROM NON-GOVERNMENTAL SOURCES

Policy Steward:  Office of the Corporate Controller

Contents:

  • Purpose
  • Cash and Checks
  • ..I - Research Office
  • ..II - Office of University Development
  • ....A. At Office of Donor Services- University Park
  • ........Office of Donor Services Staff
  • ....B. At University Park (other than Penn State Public Broadcasting, WPSU TV and FM
  • ........University Personnel Responsible for Development Activities
  • ........Financial Officer
  • ........Office of Donor Services at University Park
  • ....C. At Campuses Other Than University Park
  • ........University Personnel Responsible for Development Activities
  • ........Financial Officer
  • ........Office of Donor Services at University Park
  • ....D. At Penn State Public Broadcasting, WPSU TV and FM
  • ........University Personnel Responsible for Development Activities
  • .........Office of Donor Services at University Park
  • ....E. At the College of Medicine / Hershey Medical Center
  • ........Person Responsible for Development Activities
  • Securities
  • ..I - University Personnel Responsible for Development Activities (all locations)
  • ..II - Office of Gift Planning
  • ..III - Office of Investment Management
  • ..IV - Office of Donor Services at University Park
  • Gifts-In-Kind
  • ..I - Personnel Responsible for Development Activities (all locations)
  • ..II - Office of Donor Services at University Park
  • ..III - Assistant Treasurer
  • ..IV - Property Inventory Department
  • Gifts of Real Estate
  • ..I - Personnel Responsible for Development Activities (all locations)
  • Further Information
  • Cross References

  • PURPOSE:

    To expand Policy FN03 for the flow and accountability of cash, checks, securities, and gifts of real and personal property to the University.

    CASH AND CHECKS:

    Regardless of the area accepting the monies, it is imperative that all cash and checks reach the office responsible for handling or the local depositories as quickly as possible.

    GIFTS THAT REQUIRE SPECIAL HANDLING - Gifts of cash or checks received by the University that are to be used to fund a gift annuity, pooled income fund addition, charitable remainder trust, or charitable lead trust, and cash or checks that are direct distributions from a donor’s IRA, distributions from an estate, or are life insurance premium payments should not be deposited or processed by the college, campus or unit but instead should be delivered directly to the Office of Gift Planning because these types of gifts require special handling. Upon receipt of this type of gift, the college, campus, or unit should immediately contact the Office of Gift Planning for further instructions.

    I - Research Office

    Acceptance of cash and checks for "Special Acceptance Situations" (as defined in Policy FN03) must be taken immediately to the appropriate college/campus/administrative Research Office (or designated area) for processing, as specified in Policy FN03.

    II - Office of University Development

    Cash and checks accepted by the Office of University Development (as defined in Policy FN03; see "General Acceptance Practices") must be taken to the Development Officer at the college/administrative area/campus immediately upon receipt.

    The respective Development Office staff, depending upon the college/administrative area/campus, will take the following steps to assure compliance with this Policy:

    A. At Office of Donor Services- University Park

    NOTES :All cash and checks received in the Office of Donor Services are to be deposited within 48 hours of receipt. (This is a specific exception to University Policy FN01 requiring daily deposit if $100 or more is received.)

    Where special handling problems occur in the Office of Donor Services requiring more than 48 hours, all checks in the amount of $1,000 or more will be stripped from the supporting documents and deposited within the 48-hour period. All remaining checks must be deposited within one week of receipt. (This is also an exception to Policy FN01.)

    Office of Donor Services Staff
    1. Verify accuracy of checks: payee (The Pennsylvania State University), date, amount, and signature. Also match checks to supporting documents (donor card, letter, notes, etc.). Restrictively endorse checks "For Deposit Only," plus name of bank, Penn State's account number with the depository bank and Fund number (06800). (See procedure CR2005, "Depositing Cash Revenues.") Prepare a Gift Reporting and Transmittal (GRT) form for all gifts that require this information, per instructions in GURU. The "Purpose" statement of the instructions specifies the situations where this form must be completed.Codify checks, donor cards, letter, corporate matching gift form, or document of original data entry. For batch control, prepare adding machine tapes for data entry of batches to the Alumni/Development data base. Prepare Report of Cash Receipts (IBIS form "ROCR" ), identifying batches. Credit Fund 06800. Deposit cash and checks to an appropriate University depository per existing procedures.Enter and verify batch input data. Acknowledge all gifts and grants, as appropriate. Provide electronic file containing gift data to Mailing Services, for preparation and mailing of gifts receipts to donors. Provide daily electronic reports (via eDDS) of gifts processed to the areas designated to receive the funds.
    2. The Office of Donor Services is also responsible for routing copies of GRT forms and any other relevant information to other University Offices that require it. For information intended for the Office of Sponsored Programs, this forwarding must be done within two days of receipt by the Office of Donor Services.

    B. At University Park (other than Penn State Public Broadcasting, WPSU TV and FM )

    University Personnel Responsible for Development Activities
    1. Verify accuracy of checks: payee (The Pennsylvania State University), date, amount, and signature. Match checks to supporting documents (donor card, letter, notes, etc.). Restrictively endorse checks "For deposit only," name of bank, Penn State's account number with the depository bank, and Fund number (06800). (See procedure CR2005, "Depositing Cash Revenues.") Either deliver endorsed checks and supporting documentation (donor card, letter, notes) to Donor Services, or proceed to #3. Prepare a Report of Cash Receipts per "ROCR" documentation. Credit Fund 06800 (or Office of Sponsored Programs budget/fund if appropriate), and include donor name, address and dollar amount.Prepare a Gift Reporting and Transmittal (GRT) form for all gifts that require this information, per instructions in GURU. The "Purpose" statement of the instructions specifies the situations where this form must be completed. The fifth carbon copy of the form (white copy) is retained locally with copies of other relevant information.Make photocopy of all checks. Assemble cash, checks, GRT sets (if required) and all other supporting information into a packet, place in an envelope, and deliver to the Financial Officer for deposit of the gift(s). Prepare acknowledgment of gift per established OUD guidelines.
    2. Forward to the Office of Donor Services at University Park:
      • the original and four copies of GRT form (if required) the document number of the ROCR involved with this deposit/transaction must also be indicated on any support documentation to assist in verification by the Office of Donor Services that the money was indeed deposited/credited to the correct budget and fund number copies of checks (per #5 above)
      • donor card, letter, notes, mailing envelopes, etc.
      • copies of non-routine acknowledgments (referencing specific names, items or events).
      • Corporate Matching Gift forms (when received).
    Financial Officer
    1. Upon receipt of the locked deposit bag from the Development Officer, the Financial Officer will deposit per Policy FN01. Once reviewed and determined to be in compliance, deposit cash/checks with the designated depository per existing procedures.
    2. Upon deposit, the GRT (with related ROCR # indicated) and any support documentation must be returned to the Development Officer for forwarding to the Office of Donor Services at University Park.
    The Office of Donor Services at University Park
    1. Codify check copy, donor card, letters, etc., for data input. Enter and verify data to Alumni/Development data base. Provide electronic file containing gift data to Mailing Services, for preparation and mailing of gifts receipts to donors. Provide daily electronic reports (via eDDS; i.e., batch control system reports and lists of gifts processed) to various units, as appropriate. The Office of Donor Services is also responsible for routing copies of GRT forms or any other relevant information to those University Offices that may require it. For information pertaining to the Office of Sponsored Programs, this must be done within two days of receipt at the Office of Donor Services.
    2. Per Policy FN03, the Office of Donor Services must inform the Office of the President of all gifts and contributions requiring acknowledgment by the President within five (5) working days of receipt by the University.

    C. At Campuses other than University Park

    University Personnel Responsible for Development Activities (Development Officer) will do the following, per FN01, on a daily basis:
    1. Verify accuracy of checks: payee (The Pennsylvania State University), date, amount, and signature. Also match checks to supporting documents (letter, donor card, notes, etc.) Restrictively endorse checks "For Deposit Only," plus bank name, Penn State's account number with the depository bank and Fund 06800. Prepare a Report of Cash Receipts per "ROCR" documentation. Credit Fund 06800 (or Office of Sponsored Programs budget/fund if appropriate), and include donor name, address and dollar amount. Prepare a Gift Reporting and Transmittal (GRT) form via the Lotus Notes application (electronically) for gifts made via cash or check ONLY. For gifts of securities or gifts-in-kind, follow the specific instructions found in subsequent sections of this Guideline.
    2. Deliver cash and/or check to the Financial Officer, in a locked deposit bag for deposit, in accordance with procedure CR2004, "Accountability for Transfer of Items of Value (Except Equipment)."Acknowledge receipt of all gifts per established OUD guidelines. Forward to the Office of Donor Services at University Park the following:
      • Corporate Matching Gift forms (when received).

      NOTE: Per Policy FN03, the Office of Donor Services must inform the Office of the President of all gifts and contributions requiring acknowledgment by the President within five (5) working days of receipt by the University.

    Financial Officer
    1. Upon receipt of the locked deposit bag from the Development Officer (per III. A.6.), the Financial Officer will make the deposit per Policy FN01.
    2. Upon deposit, the GRT (with related ROCR # indicated) and any support documentation must be returned to the Development Officer for forwarding to the Office of Donor Services at University Park.
    The Office of Donor Services at University Park
    1. Upon receipt of all information from campuses other than University Park,the Office of Donor Services is responsible for routing copies of GRT forms and all other relevant information to other University Offices that require it. For information pertaining to the Office of Sponsored Programs, this must be done within two days of receipt at the Office of Donor Services.
    2. Per Policy FN03, the Office of Donor Services must inform the Office of the President of all gifts and contributions requiring acknowledgment by the President within five (5) working days of receipt by the University.

    D. At Penn State Public Broadcasting, WPSU TV and FM

    Personnel Responsible for Development Activities
    1. Verify accuracy of checks: payee (Penn State Public Broadcasting, or WPSU TV or WPSU FM), date, amount and signature. Also match checks to supporting documents (donor card, letter, notes, etc). Restrictively endorse checks "For Deposit Only," plus name of bank, Penn State's account number with the depository bank and Fund number (06800)." (See procedure #CR2005, "Depositing Cash Revenues"). Prepare a Report of Cash Receipts per "ROCR" documentation, crediting 06800. Deposit cash, checks and deposit slip with the designated depository bank or the Bursar, per Policy FN01. Enter the gift information into the appropriate Alumni/Development gift application. Forward all original support and non-routine acknowledgments to the Office of Donor Services at University Park.
    2. Forward Corporate Matching Gift forms (when received) to the Office of Donor Services at University Park.
    The Office of Donor Services at University Park
    1. Provide electronic file containing gift data to Mailing Services, for preparation and mailing of gifts receipts to donors.
    2. Per Policy FN03, the Office of Donor Services must inform the Office of the President of all gifts and contributions requiring acknowledgment by the President within five (5) working days of receipt by the University.

    E. At the College of Medicine / Hershey Medical Center

    Personnel Responsible for Development Activities
    1. Verify accuracy of checks: payee (The Pennsylvania State University), date, amount, and signature. Also match checks to supporting documents (donor card, letter, notes, etc.).
    2. Restrictively endorse checks under $5,000 "For Deposit Only," name of bank, Penn State's account number with the depository bank, and designated account and fund number. If check is in the amount of $5,000 or more, restrictively endorse it with “For Deposit Only,” name of bank, Penn State's account number with the depository bank, and fund number 06800.  Forward supporting documentation to Donor Services at University Park for recording of the gift. (See procedure CR2005, "Depositing Cash Revenues.")
    3. Checks will be deposited by the College of Medicine / Hershey Medical Center, as applicable.
    4. Prepare a Report of Cash Receipts per "ROCR" documentation. Credit the appropriate budget/fund, and include donor name and dollar amount.
    5. Enter the gift information in the Alumni/Development Information System in order to generate the receipt.

    SECURITIES:

    I. University Personnel Responsible for Development Activities

    The Office of Gift Planning coordinates the acceptance of all gifts of securities on behalf of the University.

    The mailing envelopes MUST BE SAVED and provided as proof of the date of gift for IRS regulations. Forward all materials (with the certificate and stock power in separate envelopes) to the Office of Gift Planning.

    If the donor hand delivers the certificate and stock power - Forward all materials (with the certificate and stock power in separate envelopes) to the Office of Gift Planning. Please also attach a signed memorandum confirming the date the certificate and signed stock power were hand delivered and include the donor name, donor ID, and gift purpose.

    At University Park - Hand deliver or forward all materials (with the certificate and stock power in separate envelopes) via Interoffice Mail to the Office of Gift Planning.

    At other campuses - Forward all materials (with the certificate and stock power in separate envelopes) via Overnight Mail (FedEx or UPS) to the Office of Gift Planning.

    The unendorsed stock certificate is not negotiable without the signed stock power, and the latter is worthless without the certificate.  The separate envelopes protect the donor against security theft. 

    For all gifts of securities the Office of Gift Planning will work with the Office of Investment Management to value all gifts. Gift Recording Transmittal Forms (GRTs) are prepared by the Office of Gift Planning for all security gifts and submitted to the Office of Donor Services for gift recording and acknowledgement.

    II - Office of Gift Planning

    III - Office of Investment Management

    1. Immediately approve valuation of the securities and notify Office of Gift Planning of approval.
    2. Unrestricted Securities:
      • When a check is received for liquidation proceeds, a Report of Cash Receipts (ROCR) is prepared and the deposit is made per Policy FN01. The credit will be to one of the following:
        1. 06800 (Gifts)
        2. to the known and established Budget/Fund Number.
      • On the same Report of Cash Receipts (ROCR), the difference between the securities’ valuation and the realized proceeds from liquidation are covered at this time. A copy of the ROCR is sent via fax to Donor Services and an email is sent to the Office of Gift Planning notifying them of the ROCR number and which security gifts were recorded on the ROCR.
    3. Restricted Securities:
      • In the event a gift of securities is restricted from sale by the donor or by securities regulations, the gift value of the securities will be credited via Journal Voucher to the appropriate fund. In the case of an endowed gift, the credit will be recorded to the principal of an endowed fund. In the case of a non-endowed gift, the credit will be recorded to the Securities Holding Fund 0759. In no case is a gift of restricted securities credited to 0680 (Gifts). The value of the securities (i.e., the credit), retains its initial (gift) value until the securities are sold. In addition, the recorded value of the securities cannot be expended. When the restricted securities become eligible for sale, only the proceeds are placed into the designated fund(s). Penn State will not make up the difference between the gift value and the actual proceeds for restricted securities. The sale is recorded via a Report of Cash Receipts (ROCR) per Policy FN01.

    IV - The Office of Donor Services at University Park

    1. The Office of Donor Services will acknowledge the valuation of the securities, and issue a receipt to the donor. A copy of the Securities Transaction Summary Sheet is returned to the Office of Gift Planning.
    2. Per Policy FN03, the Office of Donor Services must inform the Office of the President of all gifts and contributions requiring acknowledgment by the President within five (5) working days of receipt by the University

    GIFTS-IN-KIND:

    I - Personnel Responsible for Development Activities (all colleges /administrative areas/ campuses)

    NOTE: The Office of Gift Planning should be contacted to determine the viability of a gift-in-kind before a unit accepts the gift on behalf of the University. Gifts-in-kind are non-monetary items of tangible personal property such as art, collectibles, books, equipment, inventory and other physical assets or materials that represent value to The Pennsylvania State University.

    1. Except for gifts of real estate (below), acknowledge receipt of the gift-in-kind and prepare a Gift Reporting and Transmittal (GRT) form per instructions in GURU. The special instructions for "gifts-in-kind" must be followed carefully. For gifts of livestock, artwork, or collections of books, a Deed of Gift should be submitted with the paperwork listed in #3 or #4 below. For gifts-in-kind valued at $5,000 or less, submit the GRT with the donor’s valuation and supporting documentation. For gifts-in-kind valued in excess of $5,000, attach an independent qualified appraisal and IRS Form 8283 to the GRT form set. This information is essential to both the donor and the University. Retain the originator's copy of the GRT, prepare photocopy and forward to the office initially receiving the gift.Forward the GRT set, the IRS form 8283 with independent qualified appraisal (when provided) and all supporting documentation to the Office of Gift Planning at University Park.
    2. At Hershey, forward a photocopy of the GRT to the Manager of Accounting.

    II - The Office of Donor Services at University Park

    1. Codify documents of original entry. Enter and verify all appropriate information from the GRT form and other documents to the Alumni/Development data base. The Office of Gift Planning will prepare an acknowledgement letter (with no dollar amount stated) for the donor. The Office of Donor Services will issue a receipt for all gifts-in-kind with a fair market value of $250 or more. Forward Assistant Treasurer's copy of GRT form, original IRS form 8283 (when attached), and copies of all supporting material to 408 Old Main. Forward the Property Inventory Department's copy of the GRT form to that office to initiate tagging of the gift.
    2. Per Policy FN03, the Office of Donor Services must inform the Office of the President of all gifts and contributions requiring acknowledgment by the President within five (5) working days of receipt by the University.

    III - Assistant Treasurer

    1. Sign the original IRS form 8283 and Deed of Gift (when received) to signify acceptance of the gift. Originals are then forwarded to the Office of Planned Giving, who then return copies of these documents to the donor for their tax records.

    IV - Property Inventory Department

    1. When a GRT form is received from the Office of Planned Giving, issue a tag and tag the gift per existing procedures.
    2. In each case where an IRS form 8283 is also received, enter all relevant information into the Property Data Base, appropriately identified for follow-up, to comply with IRS regulations if disposal occurs within the time period specified by IRS. A special tag is affixed to these gifts.

    GIFTS OF REAL ESTATE:

    I - Personnel Responsible for Development Activities (all colleges /administrative areas/ campuses)

    1. For all gifts of real estate, the Office of Gift Planning must be involved in any communication or negotiation with the donor. The Office of Gift Planning will coordinate the involvement of other University offices required in real estate transactions (OPP, Risk Management, Finance & Business, etc.) If the gift is acceptable to the University, the Office of Gift Planning will handle formal acceptance, as well as preparation of the GRT form.

    FURTHER INFORMATION:

    For questions, additional detail, or to request changes to this policy, please contact the Office of the Corporate Controller.

    CROSS REFERENCES:

    Other Policies in this Manual should also be referenced, especially :

    FN01 - Processing Cash Revenues

    FN03 - Substantiation, Disclosure, and Accountability for the Receipt of Contributions from Non-Governmental Sources


    Effective Date: February 23, 2009
    Date Approved: February 20, 2009
    Date Published: February 20, 2009 (Editorial changes- September 27, 2013)

    Most Recent Changes:

    Revision History (and effective dates):

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