Gifts-in-kind are non-cash contributions such as real estate, equipment, and art. Gifts of this nature are usually processed by the OIA or the USM institution that will benefit from the gift, with the exception of USM Foundation and UMCES, whose gifts in this form are processed by the USM Foundation Business Office. Only contributions that are of direct benefit to an institutional program or to the USM Foundation, or which can be immediately sold will be accepted. The procedure to process gifts-in-kind is as follows:
- OIA or the Gift Processor at the USM Foundation Business Office enters the gift information in Advance.
- Forward the Batch Report and copies of the documentation related to each gift (i.e., appraisals, deed of gift, etc.) to the USM Foundation Business Office. Include an Inventory Control Form for all property where ownership is to be through the USM Foundation.
- The USM Foundation Gift Processor changes the GL code in the Batch Report, from a cash account to the appropriate asset account.
- Note: Gifts with a value over $1,000 are recorded as assets. Gifts with a value under $1,000 are expended in the year they are received.
- For those items with a value under $500, the donor's estimate is acceptable.
- For those items with a value between $500 and $5,000, an internal "expert" can value the property.
- For those items with a value of over $5,000, an independent qualified appraiser must sign the form or provide the information on their letterhead.
- The USM Foundation mails the form back to the donor after it is signed.
- The USM Foundation files IRS Form 8282 with the IRS if the property is sold within two years of the date of the gift.