FundSvcs Community

Dear Colleagues,

Last fiscal year, a donor generously gifted our university a house, which we recorded in our database as a gift-in-kind based on the appraiser's valuation. The donor's intent was for the property to be sold, with proceeds supporting an endowed named scholarship. This year, the university sold the house at a price lower than the appraised value, and the funds are being directed into the endowment investment.

My question is: how should we record this transaction in our database so that it reflects the appropriate book value for future financial reports, while ensuring it does not appear as newly raised funds or cash for the current fiscal year? What is the best practice in such cases?

Thank you 

Farida Ahmed

Director, Gift Administration

The American University in Cairo

Dear Colleagues,

Last fiscal year, a donor generously gifted our university a house, which we recorded in our database as a gift-in-kind based on the appraiser's valuation. The donor's intent was for the property to be sold, with proceeds supporting an endowed named scholarship. This year, the university sold the house at a price lower than the appraised value, and the funds are being directed into the endowment investment.

My question is: how should we record this transaction in our database so that it reflects the appropriate book value for future financial reports, while ensuring it does not appear as newly raised funds or cash for the current fiscal year? What is the best practice in such cases?

Thank you 

Farida Ahmed

Director, Gift Administration

The American University in Cairo

Dear Colleagues,

Last fiscal year, a donor generously gifted our university a house, which we recorded in our database as a gift-in-kind based on the appraiser's valuation. The donor's intent was for the property to be sold, with proceeds supporting an endowed named scholarship. This year, the university sold the house at a price lower than the appraised value, and the funds are being directed into the endowment investment.

My question is: how should we record this transaction in our database so that it reflects the appropriate book value for future financial reports, while ensuring it does not appear as newly raised funds or cash for the current fiscal year? What is the best practice in such cases?

Thank you 

Farida Ahmed

Director, Gift Administration

The American University in Cairo

Dear Colleagues,

Last fiscal year, a donor generously gifted our university a house, which we recorded in our database as a gift-in-kind based on the appraiser's valuation. The donor's intent was for the property to be sold, with proceeds supporting an endowed named scholarship. This year, the university sold the house at a price lower than the appraised value, and the funds are being directed into the endowment investment.

My question is: how should we record this transaction in our database so that it reflects the appropriate book value for future financial reports, while ensuring it does not appear as newly raised funds or cash for the current fiscal year? What is the best practice in such cases?

Thank you 

Farida Ahmed

Director, Gift Administration

The American University in Cairo

I agree with you that we should not enter the amount received from the sale of the house as new money. However I wanted to know the best practice on how we should record the book value of the endowed fund created from the sale in our database-should we simply note the book value of the endowment as a comment within the newly established fund entry?

Dear Colleagues,

Last fiscal year, a donor generously gifted our university a house, which we recorded in our database as a gift-in-kind based on the appraiser's valuation. The donor's intent was for the property to be sold, with proceeds supporting an endowed named scholarship. This year, the university sold the house at a price lower than the appraised value, and the funds are being directed into the endowment investment.

My question is: how should we record this transaction in our database so that it reflects the appropriate book value for future financial reports, while ensuring it does not appear as newly raised funds or cash for the current fiscal year? What is the best practice in such cases?

Thank you 

Farida Ahmed

Director, Gift Administration

The American University in Cairo

I agree with you that we should not enter the amount received from the sale of the house as new money. However I wanted to know the best practice on how we should record the book value of the endowed fund created from the sale in our database-should we simply note the book value of the endowment as a comment within the newly established fund entry?

Dear Colleagues,

Last fiscal year, a donor generously gifted our university a house, which we recorded in our database as a gift-in-kind based on the appraiser's valuation. The donor's intent was for the property to be sold, with proceeds supporting an endowed named scholarship. This year, the university sold the house at a price lower than the appraised value, and the funds are being directed into the endowment investment.

My question is: how should we record this transaction in our database so that it reflects the appropriate book value for future financial reports, while ensuring it does not appear as newly raised funds or cash for the current fiscal year? What is the best practice in such cases?

Thank you 

Farida Ahmed

Director, Gift Administration

The American University in Cairo