Has your unit received donated goods or services from an external donor (also known as in-kind contributions or gifts in kind)? If so, here are a few key tips to keep in mind:
- In-kind contributions must be reported to the University of Illinois Foundation (UIF) on a timely basis (i.e., within the same accounting period and fiscal year that donated good or service was received) via a Gift-in-Kind Transmittal form.
- However, if the gifts in kind were simply pledged (and not yet received), then those pledges do not need to be reported. Reporting to UIF should only take place once the in-kind contribution has been received.
- Finally, if you do not have an operational need for the gift in kind, it is allowable to sell it (e.g., as a part of a charitable auction). If you choose this path, keep the following in mind:
- Once the sale is made, it needs to be reported to the UIF on a gift transmittal form.
- The gift transmittal form must identify the gift and non-gift values of the donated good or service that was sold. For example, if a donated item with a fair market value (FMV) of $100 sells at a charitable auction for $500, then the gift transmittal form should reflect $100 as a non-gift (as that represents the FMV of the donated item that was sold) and $400 as a gift.
- Finally, as stated in a tip from earlier in the year regarding sales tax requirements, selling donated items may create sales tax implications. However, donated items sold through live, silent, or online auctions are typically exempt from sales tax requirements.
Contact
For further details, contact the applicable subject matter experts listed in the Who to Ask list by searching on “Gift Funds”.
In addition, the administrative staff at UIF can also assist with questions on this topic. They can be reached at (217) 333-0675 or email at giftadmin@uif.uillinois.edu.
