Cash Gifts
Cash gift procedures:
- Gifts in the form of cash and checks shall be accepted regardless of amount unless there is a question as to whether the donor has sufficient title to the assets or is mentally competent to legally transfer the funds as a gift to UGAF.
- All checks must be made payable to UGAF and shall in no event be made payable to an employee, agent, or volunteer who is soliciting on behalf of UGAF.
- The donor should clearly indicate, in writing, how the gift is to be designated. This designation can be done in the memo portion of the check or in other documentation that accompanies the check.
Credit Card Gifts
Credit card gift procedures:
- UGAF currently accepts American Express, Discover, Master Card, and Visa for credit card contributions. A donor who wishes to make a gift in this manner must provide Gift Accounting with a valid account number, expiration date, and the name and address of the cardholder. Also, to ensure proper crediting, the donor should indicate the dollar amount and designation of the gift.
- The same credit cards identified above may also be used to make a gift online by taking the following steps:
- Follow this link
- Select a school or college, other area, or a cause
- Identify a designation
- Choose one of the suggested gift amounts or choose "other," and enter the appropriate amount for your gift.
- Click "add gift."
- To complete your gift, click on "continue." You will be asked to provide your credit card number and expiration date.
Electronic Funds Transfer (EFT) Gifts
UGAF currently accepts Electronic Fund Transfer (EFT) contributions for recurring gifts. A donor who wishes to make a monthly or quarterly recurring gift in this manner must provide Gift Accounting with a valid routing number, account number, name of the account holder, and payment amount. To ensure proper crediting, the donor should indicate the designation of the gift.
Stock Overview
It is the policy of the Foundation to sell all securities as soon as practical after the securities have been received by the Foundation. To expedite this process, the Foundation has established an account with Merrill Lynch to handle these transactions. The preferred method of transfer is for the securities to be transferred by the Depository Trust Company (DTC). An alternative means of transfer is for the actual certificate to be transferred to the Foundation and registered in the name of the Foundation, but this method is much slower. After Merrill Lynch has received the securities, they will immediately sell the securities and forward the proceeds to or for the benefit of the Foundation as designated by the donor. The instructions for both methods are at the end of this section. For all gifts of marketable securities, Gift Accounting will obtain a high and low price for the date the gift officially transferred into the name of the Foundation. The valuation is based on the average of the high and low prices quoted for that date. The average price sets the price per share for gift valuation.
In many cases, there is a period between the date of the gift and the date of the sale. It is common that a gain or loss may be recognized on the sale of the stock. The gain/loss will be booked to the fund receiving the gift. The gift valuation for the donor is not adjusted. For split gifts of donated stock (designated to benefit more than one fund), all gains/losses will be split according to the original gift designation unless otherwise requested in writing by the donor.
In certain circumstances, the donor(s) may request that another broker be used to receive and sell the securities on behalf of the Foundation. In this situation, to be done on an exceptional basis, the broker will establish an account with his/her firm in the name of the Foundation. The broker will work with Gift Accounting to obtain the necessary corporate information to open the account.
After the account has been opened and the securities transferred to the account, the broker will sell the security and send the proceeds, the net of commissions, to the Foundation.
Gifts of Stock Certificate Instructions
When stock certificates are in the donor’s name:
- Do not sign the certificate(s).
- Please sign one (1) Stock Power for each stock issue. Please make extra copies as necessary. Sign your name on the form exactly as indicated on the stock certificate.
- Please mail stock certificate(s) to the University of Georgia Foundation unsigned and in a separate envelope from the Stock Power(s).
- Lastly, please mail the Stock Power(s) to the University of Georgia Foundation. The address is:
Gift Accounting
UGA Foundation
1 Press Place, Suite 101
Athens, Georgia 30601
When the stock certificates are in the name of the Foundation:
- Simply have the donor mail or deliver the certificates(s) to the Foundation.
- The Foundation’s Gift Accounting team will handle the remaining details.
Please call (706) 542-4438 with questions.
Electronic Transfer of Securities Instructions (DTC)
Please contact Gift Accounting at (706) 542-4438 upon hearing of a potential stock gift. Try to have the following information (or as much as possible):
- Donor Name
- Designation – if split then supply % to each account
- Expected gift amount
- Type of Security
- Number of shares
While DTC allows speedy delivery of securities, it does not provide a great deal of information in ours. Often, we do not receive a donor name and must send out mass emails to identify the donor. Please let the donor know to have his or her broker attach his or her name to the DTC instructions.
Personal Property
Tangible personal property can only be accepted by the Gift Acceptance Committee or other people authorized to do so by the Gift Acceptance Committee. A gift of tangible personal property may be accepted provided that:
- Such a gift is consistent with the mission of the University.
- Acceptance of such a gift will not involve significant additional expense in its present or future use, display, maintenance, or administration; and
- No financial or other burdensome obligation or expense is or will be directly or indirectly incurred by UGAF as a result thereof.
The receipt and acceptance of gifts of tangible personal property by Vice Presidents, Deans, Directors, and other authorized officers shall be reported in detail promptly to UGAF for confirmation and formal acceptance. Unless otherwise specified as a condition of the gift, UGAF, in assuring that the donor’s intent for the gift is honored, is empowered to retain the gift of property, turn it over to the University, or liquidate it for the benefit of the UGAF.
What is Tangible Personal Property?
Examples of tangible assets include works of art, equipment, etc. Gift Accounting generally accepts the value provided by the donor for items valued at $5,000 or less. However, the donor must complete Part I of IRS Form 8283 for gifts values between $500 and $4,999 to qualify as a charitable contribution for Income Tax purposes. In addition, for gifts valued at greater than $5,000, the donor must also provide an appraisal or other third-party verification of the value. Regardless of value, the donor must complete a Deed of Gift form to irrevocably transfer ownership to UGAF. Upon receipt of the appropriate documentation, Gift Accounting issues a gift receipt describing the item(s) donated, and if the donor provided Form 8283, UGAF will return the signed form with the receipt. This receipt does not include a dollar value.
Real Property
UGAF welcomes and actively solicits gifts of real property. If the real property gift is intended to be used by a unit of UGA, not sold to fulfill its academic mission, then it is recommended the gift be made directly to UGA. The gift will then be considered state property and will qualify as state property for tax and insurance guidelines. The following policies have been adopted by UGAF relating to the acceptance, management, and liquidation of real property gifted to UGAF.
No gift of real property shall be accepted without prior approval of the Gift Acceptance Committee of UGAF. If certain conditions exist, gifts may require further review and approval as described in the Gift Acceptance and Gift Acceptance Committee policy.
Real property donated to UGAF will generally be disposed of immediately and the proceeds used as directed by the donor. Each college or unit benefiting from the gift must agree in writing to pay all expenses associated with keeping the property such as taxes, insurance, maintenance costs, and all other holding and carrying forward costs until the property is disposed.
Real property will be considered for acceptance only after meeting the following qualifications:
- Title will be transferred to UGAF by general warranty deed unless transfer is by a trustee, personal representative, or other fiduciary who will provide a deed appropriate to its capacity.
- The property must be appraised by a qualified appraiser.
- Property must appraise for a value equal to or more than $10,000.
- The appraisal may not be made more than 60 days prior to the date of the contribution.
- The appraisal cannot be a percentage of the property.
- The Foundation may not pay for the appraisal.
- The appraisal must be made by an “independent” appraiser.
- In the absence of an appraisal, the property will be valued at $1.00.
- The property must pass a qualified Environmental Audit.
No interest in real property, whether outright, in trust, by request, as a secured interest, or otherwise will be accepted by or on behalf of UGAF without first complying with the following procedures:
- An environmental review as described below will be performed on every potential real property asset prior to acceptance by UGAF.
Rural, or Agricultural: For real property located in a rural area, or an agricultural area, an Environmental Risk Assessment will be performed by an approved consultant.
Industrial: For real property located in a developed area where manufacturing or any class of industrial activity may have taken place, a Phase I audit will be performed by an approved consultant.
- If the environmental review indicates areas of significant concern, an additional investigation, including a Phase I, Phase II, or Phase III audit, as recommended, will be performed by an approved consultant prior to acceptance of the real property.
- If the above procedures disclose risk of liability, the real property will only be accepted with the written approval of the Executive Committee.
- All contracts for environmental audits will be prepared and reviewed by UGAF attorneys or its designee.
- The donor will be encouraged to pay for any assessments and audits.
- The property, if currently income is producing, must be able to substantiate the annual net income.
- The property must have a clear title that is substantiated through a title search.
All expenses related to the qualification process, including title search, surveys, appraisals and audits will be paid for by the donor.
Mortgaged Property
UGAF rarely accepts mortgaged property and never accepts mortgaged property into a charitable remainder unitrust. However, when real property is acquired subject to a mortgage, the mortgage will be current and assumable and will only be accepted following the Gift Acceptance Committee approval. Prior to its acceptance:
- A clearly established method for the payment of the debt will be determined.
- An MAI appraisal will be required; and
- Not more than 50 percent loan to value ratio will be met.
Leases
When real property is acquired subject to a lease, leases will not be in default and will be assignable by landlord. Commercial property acquired subject to a lease will only be accepted following Gift Acceptance Committee approval. Following these approvals, the leases will be assigned to UGAF and all deposits, advance rents, and other monies transferred to UGAF or otherwise accounted for as required by law.
Special Deed Clauses
The Gift Acceptance Committee must approve any special deed clauses.
Unsolicited Deeds
Unsolicited deeds will not be accepted. Upon the receipt of unsolicited deeds, the Real Estate Staff will immediately notify the grantor (in writing) that the real property has not been accepted and will not be accepted until the requirements of this policy are met.
In the rare case where a warranty deed is signed over to the Foundation without clearing the Foundation’s gift acceptance policies, the property may subsequently be considered for acceptance.
Helpful Information
The following information, if available, would be very helpful to assist with the acceptance of real property by UGAF:
- Deed, including legal description, showing ownership of the donor
- Prior appraisal
- Prior survey
- Prior title policies or abstracts
- Prior environmental assessments
- Tax parcel identification number
- Copy of most recent tax bill
IRS Reporting Requirement
The donor must submit Form 8283 to Gift Accounting. The signature of the CFO of the Foundation will be obtained, and the form will be returned to the donor along with the gift receipt. The form also must be signed by the appraiser for gifts more than $5,000.
IRS Form 8283
The donor must submit IRS Form 8283 with his or her federal income tax return to obtain the tax deduction
Selling of Property Within Three Years of Gift Date
If contributed property subject to the appraisal summary rules is sold, exchanged, or otherwise disposed of within three years of the date of the gift, the Foundation must file Form 8282, an information return, with the IRS (and the donor) within 90 days of the disposition. Serious penalties may be assessed against the Foundation for failure to comply with the requirements.
For procedures for the acquisition or purchase of real property, see Policy Purchase of Property or Facility policy.
Works of Art Overview
Gifts of works of art may be accepted by UGAF. In addition to the noted policies on gifts of tangible personal property, UGAF, in accepting works of art, will adhere to the following two-tier approach.
- Works of high quality, individually or in whole collections, will be given to UGAF for, and accessioned by, the Georgia Museum of Art, the official collector and keeper of important works of art for the University. “Accessioned” refers to the Museum’s commitment to care for and to use the work for Museum purposes. Art accepted by the Museum must meet the following conditions:
- It must not be encumbered by any restrictions such as use, attribution, exhibition, and disposal. The Museum will, however, honor the donor’s wishes regarding gift recognition.
- It must be approved by the Museum Director prior to acceptance and, if appropriate, the Museum’s Advisory Committee on Collections. The principal criteria for acceptance, besides quality, are condition, authenticity, and relatedness to the purpose and collections of the Museum.
- Works of art must also be accompanied by a bill of sale or other proof of ownership and a complete provenance (the work’s history of ownership).
- A work of art will not ordinarily be accepted with the provision that it be kept permanently.
- A work of art will not ordinarily be accepted with the provision that it be exhibited permanently.
- A collection of works of art will not ordinarily be accepted with the provision that it be kept intact.
- Works not meeting Museum standards may still be of value to units of the University for decorative, instructional, or resale purposes. However used, title to these works remains with UGAF and decisions regarding disposition rest with the title.
- It is recommended that proof of ownership be a condition of acceptance for any artwork because of the increasing problems of repatriation lawsuits for certain ethnic and cultural categories.
- For further guidance for giving works of art, consult the Georgia Museum of Art’s policies.
Gifts of works of art must be recorded by Gift Accounting. A Gift Transmittal Form should be completed by the receiving unit. The transmittal form requires complete donor information and the gift’s value to be stated. If the value of the gift is not stated and the donor is not receiving a charitable tax deduction from the gift, then it is the responsibility of the receiving department to request an appraisal for the object. For a list of appraisers, please contact the registrar at the Georgia Museum of Art. After receipt of the transmittal form, together with the appropriate documentation, the gift will be recorded and the donor notified of the charitable deduction, if applicable. Procedures for valuing gifts are outlined herein.
An Art Inventory Report Form should be completed by the receiving unit and forwarded to Property Control and a copy should be sent to the assistant registrar at the Georgia Museum of Art.
It is the responsibility of each unit that purchases a work of art to report on the purchase to Property Control, following the policies for Procurement established by Business Services, as outlined in the Administrative Policies and Procedures Manual. The insurance value should be determined by the purchase price of the object, unless there is an obvious need for an appraisal. If there is uncertainty about the value of an object or whether it needs an appraisal, please contact the registrar at the Georgia Museum of Art.
Guidelines for Valuation of Art
The guidelines for the valuation of gifts of works of art are established by the Internal Revenue Service and are applied to each donor who wishes to claim a charitable deduction. Copies of the IRS guidelines may be obtained from an IRS office or from a tax attorney or tax accountant.
Property worth $500 or less
The donor establishes the value of the gift based upon records he or she must maintain to support the charitable deduction for the gift. An appraisal is not required for gifts valued at less than $500.
Property worth over $500 but less than $5,000
The donor establishes the value of the gift based on the property’s cost or other basis. The donor must complete Part I of IRS Form 8283 to receive a charitable deduction for the gift. A qualified appraisal is not required for gifts valued between $500 and $4,999. The gift is accepted and recorded based upon the value substantiated by the donor from either receipts, a statement from an art dealer, or some other proof of value and a copy of IRS Form 8283.
Property worth over $5,000 but less than $20,000
The donor must comply with strict appraisal guidelines. The appraisal rules apply to single gifts of works of art or to the aggregate value of a group of similar items of art for which a charitable deduction is claimed.
The gift is accepted and recorded provided the donor meets the following substantiation requirements:
- Obtains a qualified appraisal for the property contributed, and
- Provides a copy of IRS Form 8283 on which the donor claims charitable deduction.
Property worth over $20,000
The donor must comply with strict appraisal guidelines and must include an 8 X 10-inch color photo, or a 4 x 5-inch color slide of each item donated (this data must be attached to the donor’s tax return.) The appraiser must sign part III of IRS Form 8283.
The gift is accepted and recorded provided the donor meets the following substantiation requirements:
- Obtains a qualified appraisal for the property contributed
- Attaches photographs of the subject works of art
- Provides a copy of IRS Form 8283 on which the donor claims the charitable deduction
Whenever possible, the receiving unit should request the transfer of the work of art to that unit by a Deed of Gift signed by the donor.
Guidelines for Appraisal of Works of Art
The term "qualified appraisal" means an appraisal by a professional appraiser no earlier than sixty days before the contribution of the appraised property, and no later than ninety days after the contribution date. To be independent of the donor, the qualified appraiser cannot be the donor or the done, a party to the transaction in which the donor acquired the property, a person employed by any of the foregoing parties, a person related to any of those parties or have any other financial interest in the works being appraised.
The appraisal must be signed and dated by an appraiser who charges an appraisal fee. An appraisal of a collection or a work of art must include the following:
- A detailed description of the object, including title, size, subject matter, medium, name of the artist, approximate date created, and interest transferred.
- The physical condition of the property.
- The date, or expected date, of the contribution, the date on which the property was valued, and the manner of acquisition.
- The terms of any agreement or understanding entered, or expected to be entered, by or on behalf of the donor, that relates to the use, sale, or other disposition of the property contributed.
- The name, address, and taxpayer identification number of the appraiser.
- A detailed description of the appraiser’s background and qualifications.
- A statement that the appraisal was prepared for income tax purposes.
- A history of the item, including proof of its authenticity and a record of any exhibitions at which the art object was displayed.
- A photograph of the subject, of a size and quality sufficient to identify the subject matter fully.
- A statement of the factors on which the appraisal was based. This statement should include:
- The specific basis for the valuation, such as any specific comparable sales transactions, particularly sales of other works by the same artist on or around the valuation date.
- Quoted prices in dealers’ catalogues of works by the artist or comparable artists.
- The appraised fair market value of the property and the method used to determine the fair market value, particularly with respect to the specific property.
- A statement as to the standing of the artist in the profession and in the particular school, time, or period in which the work was produced.
Guidelines for Requesting Transfer of Copyright for a Work of Art
Whenever possible, the receiving unit should request a transfer of the copyright to the work of art.
Under federal law, copyright protection is available to all works of authorship that have been fixed in a tangible medium (this includes pictorial, graphic, and sculptural works; photographs, prints, and art reproductions; maps, globes, charts, diagrams, models, technical, and architectural drawings).
Owners of copyright have the following exclusive rights: to reproduce the work, to prepare derivative works, to distribute copies to the public, and to perform/display the work publicly. These rights are divisible and may be conveyed separately or in entirety. Ownership of the copyright of a work of art is distinct from ownership of the material object. Ownership of copyright remains with the artist unless copyright was conveyed by written agreement.
Copyright protection for a work created after January 1, 1978, endures for the life of the artist, plus another fifty years. Works created prior to 1978 were granted two 28-year terms of protection, with renewal required after the first 28-year term. Once copyright protection has expired, the work falls into the public domain and can be used freely by anyone.
Works of art protected by copyright are available to anyone for “fair use,” such as for criticism, teaching, or research. “Fair use” is determined on a case-by-case basis, based upon four factors: the purpose and character of the proposed use, the nature of the copyrighted work, the amount and substantially of the portion used, and the effect of the proposed use upon the potential market for, or value of, the work.
Federal copyright law has a provision pertaining exclusively to visual artists. It grants the creator of a work of visual art a limited right to maintain control over the work even after it has been sold. The artist has the right to claim authorship of the work and the right to prevent any intentional distortion, mutilation, or other modification of the work. These rights belong to the artist, even if the artist is NOT the copyright holder. They extend for the life of the artist and cannot be transferred, although they can be waived.
All questions on the complex issues of copyright should be referred to the Office of the Executive Director for Legal Affairs.