General Accounting Donations Donation Procedures Section D Donation

General Accounting Donations

Donation Procedures: Section D – Donation, Chapter 5 The purpose is to set forth STC policies and procedures related to accepting and processing all gifts. South Texas College seeks to only accept those gifts that have a reasonable expectation of ultimately benefiting the mission of the College. Gifts are defined as follows: gratuitous transfers of any kind of property, real or personal, which may be contributed for any restricted or unrestricted purpose by donors. There are several types of donations that include: cash, land, furniture, equipment, historical treasures, works of art, collections, etc.

Policy #5910 Acceptance of Gifts and Bequests The College may accept gifts and bequests of land, facilities, items of personal property such as books, equipment, training aids, money, stocks and bonds which may be converted into money, materials, or other items of value which may aid in the accomplishments of the mission of the College. Items received must have a current or foreseeable future use. The operation and maintenance cost for the gifts must be within current budgeted funds.

Policy #5910 Acceptance of Gifts and Bequests (continued) The donor of gifts or bequests must specify the use for which the gift or bequest is intended. If the gift or bequest may be used at the discretion of the College for general purposes the donor should so state. Gifts or bequests of personal property such as books, equipment, training aids and livestock with unusual long term restrictions on their future use and ultimate disposition should not be accepted. The validity of donor restrictions will be determined at the lowest level of acceptance authority.

Policy #5910 Acceptance of Gifts and Bequests (continued) The President may accept money or negotiable instruments for the establishment of endowment, agency, loan or scholarship funds. A letter of conveyance from the donor must be obtained stating the purpose for which the donation is to be used and in the case of money or negotiable instruments state how the principal and or income from the funds will be used. If unrestricted, it should be so stated.

Policy #5910 Acceptance of Gifts and Bequests (continued) A copy of the donation agreement or letter will be forwarded to and be retained on file by the comptroller. Where money or negotiable instruments are donated, notification of such funds will be forwarded to the comptroller for investments and administration. A permanent reference file of all such agreements and conveyances will be maintained in the designated office.

Procedures for Accepting Donations 1. The following forms must be completed by the department accepting the donation(s) : BO-1500 Departmental Accounting Report of Donation Form BO-1500 A Donor’s Restrictions BO-3900 Donation Disclosure Statement Form Acknowledgment Letter (Thank-You Letter) to donor 2. BO-1500 is to be completed and approved prior to acceptance of the donated item(s) and/or property. The top section of the form requires the donor’s and recipient’s information such as: donor and recipient name, title, company name, address, telephone number, and department accepting the donation. The middle section requires the source, purpose and value of the gift. The bottom section requires the signatures of the financial manager receiving the donation and signature of the College’s President (and if applicable the Board of Trustees approval).

Procedures for Accepting Donations (continued) 3. Complete BO-1500 A Donor’s Restrictions form if donated item is valued at $5, 000 or more. This form specifies the restrictions on how to spend and/or use the donated item. 4. BO-3900 Donation Disclosure Statement must be completed for every individual item donated. This form describes the items donated. It does not include the dollar value of the item(s) donated. v The fair market value of the item(s) donated shall only be disclosed if there is an exchange transaction. 5. An Acknowledgement Letter (Thank-You Letter) shall be prepared, signed, and mailed by the Office of the President. The department receiving the donation may create and send an acknowledgement letter as well with the department’s letterhead. Only the description of the item(s) donated shall be disclosed in the letter.

Procedures for Accepting Donations (continued) 6. The original Report of Donations form (BO-1500) and Donor’s Restrictions form (BO -1500 A), along with copies of the Donation Disclosure Statement form (BO-3900) and acknowledgment letter are sent to the Business Office for recording. 7. Copies are to be maintained by department accepting donation and the Office of the President.

Additional Procedures for Donation of Real & Personal Property, Works of Art and Collections v The cost of any appraisals will be the responsibility of the donor. v Legal and ethical requirements prohibit the College from appraising gifts. This protects both the donor and the College. Such appraisals are to be conducted by certified, independent appraisers and the cost shall be the donor’s responsibility. v All appraisals of real and donated property contributed to the College shall be done in accordance with IRS Publication 561, “Determining the Value of Donated Property. ”

Posting & Reconciliation of Donation Transactions v Cash (currency) donations will be accepted only at the Cashier’s Office. v Payroll Deduction Donation set-up shall be handled by the Office of Human Resources. Ø Karina Garza, Benefits & Payroll Manager (956) 872 -3804 kgarza 36@southtexascollege. edu v Scholarship donations received for a particular student will be handled by the Business Office Accounts Receivable Department. These types of donations are considered third-party transactions. v Donation forms posting to general ledger and reconciliation responsibilities are: Ø Donated cash (checks & credit cards) is deposited and posted to GL by Cashier’s Office or GL Accounting Assistant. Ø Donated tangible gifts (equipment, vehicles) a journal entry is prepared by the GL Accounting Specialist.

Procedures for Tagging Donated Item(s) 1. The Business Office receives the Report of Donations Form (BO 1500) signed by both the Financial Manager and College President, along with backup documentation of the donated item. 2. Once the donation is reviewed and recorded in Banner (through a journal entry), the Business Office will submit a copy of Form BO-1500 and BO-1500 A along with backup documentation to Shipping and Receiving Department. Graciela Barajas, Distribution Services Specialist (956) 872 -2787 gbarajas@southtexascollege. edu 3. Shipping and Receiving will then schedule accordingly to tag the donated item. *Note: All capital items (value over $5, 000) will be tagged by Shipping & Receiving. Examples of Donated Items Tagged: • Furniture • Computers & Computer Equipment • Artwork • Vehicles & Related Equipment

Donation Forms Available Online The following donation forms can be located online in the Business Office webpage: 1. BO-1500 Departmental Accounting Report of Donations Form https: //finance. southtexascollege. edu/businessoffice/forms/BO-1500. pdf 2. BO-1500 A Donor’s Restriction Form https: //finance. southtexascollege. edu/businessoffice/forms/BO-1500 A. pdf 3. BO-3900 Donation Disclosure Statement Form https: //finance. southtexascollege. edu/businessoffice/forms/BO-3900. pdf

BO-1500 Departmental Accounting Report of Donations Form

BO-1500 A Donor’s Restrictions Form

BO-3900 Donation Disclosure Statement

Acknowledgement Letter

Contact Information: Alma Church, Accounting Group Manager Email: achurch@southtexascollege. edu Phone: (956) 872 -4616 Anabel Garza, Accounting Specialist Email: magarza 1@southtexascollege. edu Phone: (956) 872 -4662 Alex Cespedes, Accountant Email: acespedes_5228@southtexascollege. edu Phone: (956) 872 -4665 Questions? ?