We've had this challenge in the past as well, but have mostly overcome it
if we include a statement from the beneficiary fund's signature authority
expressing their intent/plan to spend the entire donation in question
within the current fiscal year (or other appropriate timeframe).
_______________________________________________
Amber R. Gichard | Director of Fund & Gift Services
University of Alaska Foundation
Phone: 907.786.1016
Hours: Monday - Friday, 7:30 a.m. - 4:00 p.m.
http://www.alaska.edu/foundation
*The University of Alaska Foundation seeks, secures and stewards
philanthropic support to build excellence at the University of Alaska. *
On Sun, May 26, 2019 at 7:43 AM Bob Swanson <
rswanso@bgsu.edu> wrote:
> ASU 2018-08 will change the accounting approach.
>
>
>
> ASU 2018-08 looks at whether a grant is conditional or not and two
> conditions must be met for it to be conditional and not an outright gift.
>
>
>
> A grant is determined to be conditional if there is a right of return
> *and* if there is a barrier or hurdle to be overcome in order to be
> entitled to the resources. The barrier or hurdle exists without regard to
> its remoteness or likelihood to happen. The existence of a right of return
> is not offset by any likelihood that the right would not be enforced.
>
>
>
> This means that that the grants that have both elements are not
> contributions from an accounting perspective with immediate recognition, it
> defers recognition until barriers are overcome.
>
>
>
> From an operating perspective this may lead to those grants being shifted
> over to your institution rather than being housed at the foundation but you
> would still count them by CASE rules. Just another reconciling item between
> the two.
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
> Bob Swanson, CPA
>
> Controller
>
> Bowling Green State University
>
> 1851 N. Research Drive
>
> Bowling Green, Ohio 43403
>
>
>
>
rswanso@bgsu.edu
>
> w 419.372.8597
>
>
>
>
>
>
>
> *From:* Advancement Services Discussion List <
>
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> *On Behalf Of *John Taylor
> *Sent:* Friday, May 24, 2019 7:49 PM
> *To:*
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
> *Subject:* [EXTERNAL] Re: [FUNDSVCS] Foundation grants w/repayment
> conditions
>
>
>
> This IS a contribution from a gift counting perspective. But in theory,
> you cannot count any funds until they are irrevocably yours - meaning they
> must have been spent (in these cases) without any requirement to return
> spent funds in the future.
>
>
>
> How your Business Office chooses to recognize the transaction on the
> general ledger is up to them. In the fundraising database, it remains
> acceptable to record and count those funds you have no potential obligation
> to return.
>
>
>
> John
>
>
>
> John H. Taylor
>
> Principal, John H. Taylor Consulting
>
> 2604 Sevier St.
>
> Durham, NC 27705
>
>
johntaylorconsulting@gmail.com
>
> 919.816.5903 (cell/text)
>
>
>
> Serving the Advancement Community Since 1987
>
>
>
>
>
> On Fri, May 24, 2019 at 7:30 PM Donna Koopman <
donna.koopman@colostate.edu>
> wrote:
>
> Hi Alan, et. al,
>
> We often receive foundation gift agreements that include stipulations to
> repay the full amount of the grant if certain highly unlikely conditions
> occur within a specific time frame. Conditions such as... ceasing to be a
> 501(c)(3), failing to comply with terms and conditions of the grant,
> merging with another organization, etc.
>
> In the past these stipulations did not negate our ability to accept the
> funding as a gift because the likelihood of these things happening were
> determined to be negligible.
>
> We're now being told by our business office that we cannot accept this
> funding as a gift AT ALL. I'm told this is due to a recent FASB
> clarification (2018-08.) I have read the fine-print of this looong
> document and it seems to me (not an accountant) there might be a
> misunderstanding... is FASB saying it's NOT a contribution, OR are they
> telling our business office to record it as deferred liability or
> refundable advance instead of contribution revenue? (until the stipulated
> time period has passed, when they can then change it over to contribution
> revenue?)
>
> Any thoughts on this? Any one else hear similar from their
> accounting/business offices? Does it matter how long the period is, i.e.
> is one year okay, but if the foundation is stipulating five years, that's
> too long?
>
> Feel free to reach out to me directly with any insight. thank you in
> advance!
>
> dk
>
>
> ==================================
> Donna K. Koopman, Managing Director
> Constituent & Gift Information
> University Advancement | Colorado State University
> 970-491-3416
>
>
>
>
>
> On Wed, 22 Aug 2018 20:59:40 +0000, Hejnal, Alan <
HejnalA@SI.EDU> wrote:
>
> >Since I’m not sure I’ve seen it mentioned here, the Financial Accounting
> Standards Board has a recent accounting standards update, Accounting
> Standards Update 2018-08<
>
https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176170810258>,
> that addresses distinguishing contributions from exchange transactions, and
> also identifying and handling conditional gifts.
> >
> >I have to run, but it might be worth a look, if you haven’t seen it
> already.
> >
> >My US$0.02 worth; the usual disclaimers apply.
> >
> >Good luck!
> >
> >Alan
> >
> >Alan S. Hejnal
> >Data Quality Manager
> >Smithsonian Institution - Office of Advancement
> >600 Maryland Avenue SW, Suite 600E
> >P.O. Box 37012, MRC 527
> >Washington, DC 20013-7012
> >•: 202-633-8754 | •:
HejnalA@si.edu<mailto:
HejnalA@si.edu>
> >[SNAGHTML5cbfa34]<https://www.si.edu/>
> [AASP_FundSvcs_LOGO-01(040pct)(mark)]
> >
> >
> >From: Advancement Services Discussion List <
>
FUNDSVCS@LISTSERV.FUNDSVCS.ORG> On Behalf Of Greenbaum, Josh S
> >Sent: Wednesday, August 22, 2018 9:41 AM
> >To:
FUNDSVCS@LISTSERV.FUNDSVCS.ORG
> >Subject: Re: [FUNDSVCS] Gifts/Grants in Sponsored Research
> >
> >
> >The clawback language doesn't negate the charitable nature of the
> transaction. Technically it is legally required to be in award letters
> (although that isn't always the case). Unless they are saying they can take
> back more than just unexpended funds, you are fine to count it.
> >
> >
> >
> >_____________________
> >
> >Joshua S. Greenbaum 09B, Executive Director Development & Alumni
> Information Services Emory University, Development & Alumni Relations
> >
> >1762 Clifton Road, Office 1456, Atlanta, GA 30322
> >
> >Office: (404) 712-2020, Fax: (404) 727-4876
josh.greenbaum@emory.edu
> <mailto:
josh.greenbaum@emory.edu>
> >
> >
> >
> >This email (including any attachments) and/or report is proprietary and
> confidential information belonging to Emory University and should be shared
> or discussed with, or disseminated to, only those Emory University
> personnel, contractors, consultants, or volunteers who are authorized to
> have access to the information for Emory University business. Any data in
> this email (including any attachments) and/or report should be handled in
> accordance with Development and Alumni Relations' Policy on Reporting.
> >
> >
> >
> >
> >
> >
> >
> >
Original Message-----
> >
> >From: Advancement Services Discussion List <
> FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>> On
> Behalf Of Lisbeth Fernandez
> >
> >Sent: Wednesday, August 22, 2018 9:08 AM
> >
> >To: FUNDSVCS@LISTSERV.FUNDSVCS.ORG<mailto:FUNDSVCS@LISTSERV.FUNDSVCS.ORG>
> >
> >Subject: Re: [FUNDSVCS] Gifts/Grants in Sponsored Research
> >
> >
> >
> >Thanks everyone for your feedback. Many of the grants we receive that
> have been counted in the past have a clause indicating any unused funds
> should be returned to the donor. it is my understanding this disqualifies
> the grant from being charitable. Also as we are a hospital/research center,
> many of the grants are to support clinical trials. The grantor does not
> receive any benefits or patents/IPs. Any thoughts on these?
> >
> >
> >
> >Aaron, that report sounds amazing! Congrats!
> >
> >
> >
> >Thank you!
> >
> >Lisbeth Fernandez
> >
> >Director, Advancement Services
> >
> >Moffitt Cancer Center
> >
> >
> >
> >________________________________
> >
> >
> >
> >This e-mail message (including any attachments) is for the sole use of
> the intended recipient(s) and may contain confidential and privileged
> information. If the reader of this message is not the intended recipient,
> you are hereby notified that any dissemination, distribution or copying of
> this message (including any attachments) is strictly prohibited.
> >
> >
> >
> >If you have received this message in error, please contact the sender by
> reply e-mail message and destroy all copies of the original message
> (including attachments).
>
>