Policy 3114 – Gift Acceptance Guidelines for Tangible Personal Property

Effective Date: 8/26/2000

Responsible Office: Vice President for University Advancement

Gifts of tangible personal property are accepted by the Louisiana Tech University
Foundation subject to the policies of the Foundation and the regulations of the Internal
Revenue Service of the United States of America.

  1. General
    1. The office of the Louisiana Tech University Foundation serves as the official agent
      in accepting, acknowledging, and maintaining records for all gifts of tangible personal
      property to the Foundation.
    2. Certain gifts may require a written appraisal which must be supplied by the donor.
      The appraisal must be from an independent, qualified appraiser mutually acceptable
      to both the donor and the Foundation.
  2. Acceptance and Handling of Gifts
    1. The Vice President for University Advancement, the Executive Director for University
      Advancement, and the Director of Development shall make recommendations to the Executive
      Committee of the Louisiana Tech University Foundation as to the acceptance of all
      proposed gifts. If a gift is unacceptable because of conditions the donor has attached
      to the gift (such as restrictions on its use, costs resulting from its acceptance,
      etc.), an effort will be made to persuade the donor to remove or modify the conditions.
      If the conditions are not removed or sufficiently modified so as to make the gift
      acceptable to the Foundation, the gift will be refused.
    2. A complete inventory of all gifts of real property or tangible personal property donated
      to the Foundation shall be kept by the Director of Business Affairs. Appropriate acknowledgement
      of gifts shall be made by the Foundation.
  3. Valuation of Gifts
    1. Donors shall be solely responsible for ascertaining the fair market value of gifts
      to the Foundation. Donors will be asked to submit a letter of appraisal, receipt,
      statement of value, or other evidence of fair market value for gifts with a value
      of more than $500 but less than $5,000. The appraisal requirements for gifts with
      a value of $5,000 or more are given in paragraph C.2. below. Foundation officials
      shall not give opinions concerning the fair market value of donated property.
    2. Effective January 1, 2000, individuals, partnerships, closely-held corporations and
      personal service corporations who desire income tax deductions for donations of property
      with a claimed value of $5,000 or more for any single item of property, or in the
      aggregate for similar items of property, must obtain a “qualified appraisal” (as defined
      in IRS regulations), unless the property donated is (a) non-publicly traded securities
      valued at less than $5,000, or (b) publicly traded securities. The donor must receive
      the appraisal not earlier than 60 days prior to the date the gift is made and before
      the due date of the Income Tax return on which the charitable contribution deduction
      is claimed. The appraiser must be a “qualified appraiser” (as defined in IRS regulations).
      The appraiser cannot be the donor, a party to the transaction in which the donor acquired
      the property, the University, the foundation, a person related to or regularly employed
      by any of the foregoing persons or organizations, or a person whose relationship to
      any of the foregoing persons or institutions would cause a reasonable person to question
      the independence of such appraiser. Furthermore, the appraiser cannot be anyone whose
      fee is based on a percentage of the appraised value. The staff of the Foundation may
      be able to suggest the names of independent appraisers who are qualified to value
      the type of property in question. The donor is asked to provide a copy of the appraisal
      to the Foundation.
    3. An “Appraisal Summary,” signed by the appraiser and acknowledged by an authorized
      representative of the Foundation, must be attached to the donor’s tax return. Appraisal
      Summaries may be acknowledged on the Foundation’s behalf by any officer or person
      so authorized by the Foundation’s Empowering Resolution. An Appraisal summary (but
      not an appraisal) is also required for gifts of non-publicly traded stock with a claimed
      value which does not exceed $10,000 but is greater than $5,000.
    4. The value of a publicly traded security donated to the Louisiana Tech University Foundation
      shall be determined by the average of the high and low prices of the security during
      trading on the day of the transfer of the security to the Louisiana Tech University
  4. Gifts Which May Require Special Attention

It is the donor’s sole responsibility to consult with his or her own tax advisor concerning
the tax consequences of a gift of tangible personal property. Nevertheless, University
and Foundation officials should be aware that charitable gifts of certain types of
property may be the object of special treatment under tax laws and regulations. It
is recommended that the Foundation’s Director of Business Affairs and, if necessary,
other financial and tax advisors, be involved in the acceptance of such gifts. Examples
of these types of gifts are:

  1. Gifts of partial interests or future interests.
  2. Gifts of property used in a trade or business, including gifts of appreciated inventory
    and gifts of research property.
  3. Gifts of appreciated property whose sale at the time of gift would have resulted in
    ordinary income or short-term capital gain.
  4. Sales of property to the Foundation for less than fair market value (“bargain sales).
  5. Gifts of property subject to liabilities which are to be assumed by the University,
    the Foundation, or a third party.