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  • 1.  Selling a GIK not documented yet and where to place the funds

    Posted 26 days ago
    Hi,

    This one is a little convoluted. 
    1st issue: I just learned that we received 3 trailers as a gift in kind last fiscal year. Paperwork was never received, it wasn't recorded as a gik. The donor gave them to our farm program and said he was okay if we decided to sell them (this is the only paperwork/agreement we have, from an email that roughly states he wants it to be in the farm program).
    2nd issue: I also just learned that we sold one of these trailers and the farm director wants the money to go to the farm to buy new equipment while our accounting office wants it to go back to the institution.

    Question: 
    1. Should I book the gift in kind dated now even though it was last fiscal year?
    2. Does the money received from the sale have to be restricted to donor intent? (even though the email with intent is not really an agreement and very loose)

    We do have a gift acceptance policy but it doesn't address either of these issues.

    Thank you,
    Kelly


    --
    Kelly Hallock
    Senior Director of Advancement Services
    Warren Wilson College
    CPO 6376 | PO Box 9000 | Asheville, NC 28815
    828-771-5807

    If you would like to make a gift to the College, please visit https://www.warren-wilson.edu/giving/make-a-gift/.


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  • 2.  RE: Selling a GIK not documented yet and where to place the funds

    Posted 26 days ago
    Personally, I never backdate anything. I'd record it as of "today" when you have all the required paperwork certifying the transfer and acceptance of the gift. On the gift comment line, you can indicate the date of gift acceptance.

    Depending on the value of the trailers, an 8283 might be required for the donor to claim a deduction. On that form, you would indicate the actual date you took possession of the asset.

    Gifts must always adhere to donor intent (that's in the Donor Bill of Rights). If the donor stated anything regarding the use of sale proceeds, it is implied that you would honor that request when you accepted the gift. However, if the donor gave the trailers and stated that the proceeds from the sale could be used in any manner you determined, that's fine. However, if the trailers were given specifically to "the farm" and not generally to the College, one can assume that the proceeds should only be used by the farm.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: Selling a GIK not documented yet and where to place the funds

    Posted 26 days ago
    Thank you so much John!




    Original Message


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