Guidelines for Receiving Gifts of Equipment

1. The tax deductibility of equipment gifts:
When a company offers a gift of equipment, you may tell them that gifts of equipment valued at over $500 are recorded by the UNI Foundation, a 501(c)3 non-profit, tax-exempt organization. Such gifts may be tax deductible. For details, the donor company should check with its tax consultants.

2. Estimating the value of equipment gifts:
When a department accepts a gift of new equipment, it should ask the donor for documentation indicating the value of the equipment (catalog pages, price lists, etc.). If the company gives price discounts to educational institutions, the gift will be valued at the discounted price.

If the equipment is used, the department should estimate its value. If the used equipment is worth a great deal, the donor may want to hire a third party to place an estimate on its value. This estimate will be used in the Foundation's record. Obtaining a third-party estimate is really the responsibility of the donor (rather than the UNI department or the UNI Foundation), since the donor will receive tax benefits from it.

3. Thanking donors for equipment gifts:
When a department receives a gift of equipment of any size, the head (or another faculty member) should acknowledge it with a letter of thanks to the donor as soon as possible after the equipment is received. A copy of this letter should be sent to Ruth Ratliff, Director of Central Development, 0282.

One caution should be observed in writing this letter: the estimated value of the equipment should not be mentioned in the letter of thanks. This may sound a bit strange, but there is good reason for it. The donor company can claim whatever value it sees fit for the donation -- that's between the donor and the I.R.S. However, the University should not put itself in the position of appearing to provide the estimate for tax purposes.

Letters of thanks should point out the uses to which the equipment will be put and the contributions it will make to teaching and/or research.

The UNI Foundation will send an additional letter of thanks from the Vice President for Advancement or the President.

4. Recording equipment gifts:
A record of gifts of equipment worth $500 or more is kept by the UNI Foundation. We want to give donors the proper "credit" in our records for their gifts. This is especially important information to have when proposals are prepared for future requests. We will also arrange for a letter of thanks to the donor from the Vice President for Advancement or the President.

When a department receives an equipment gift worth $500 or more, it should send the following information about the gift to Ruth Ratliff, Office of Development, 0282.

- the name of each piece of equipment included in the gift
- the name and address of the donor firm
- the name and title of the contact person with the donor firm
- documentation (or, less desirably, an estimate) of the value of each piece of equipment received as part of the gift

Gifts of equipment worth $500 or more must be recorded on the University's equipment inventory. (The UNI Foundation does not keep the value of equipment gifts on its books.) Using the information the department has given, the Foundation will notify the Controller's Office of the equipment gift so that it can be added to the department's inventory.

5. The I.R.S. must be notified:
If, within 2 years of the time you receive equipment, you sell it or give it away. Please notify the UNI Foundation Accounting Office (37118) before disposing of the equipment.