Transmittal Training 101

1. Transmittal Training 101 Class Components • What is a gift? • What is not a gift? • What is a benefit? • Types of Gifts • What is the purpose of a Transmittal? • Hard and Soft Dollar Credit • Completing a transmittal • What is a D-Slip • Completing a D-Slip • Forms • Glossary of Terms • Contact Information

2. What is a Gift? A gift is a voluntary transfer of things of value, usually in the form of cash, checks, securities, real property, or personal property. Gifts may come from individuals, corporations, foundations, and other resources; PENN can use them for unrestricted and restricted purposes. The university makes no commitment of resources or services in return for gifts, other than agreeing to put the gift to use as the donor designates . * * Taylor, John H., Advancement Services Research and Technology Support for Fund Raising

3. What is not a Gift? • Some signs that a check may not be a gift: • There is an odd amount listed on the check (i.e. $2043.67) • On the check or in a letter attached to the check there is an indication that the funds are proceeds from the sale of stock. • It is a payment for a bill.

4. What is a Benefit ? **Under certain circumstances, when a donor receives a small item (such as a mug or T-shirt costing less that $7.20*) or benefit of token value, the entire amount of the contribution is fully deductible. However, if the fair market value of the goods or services (benefit) received is more that 2% of the payment or $72, whichever is less, the benefit is not tax deducible. * * Taylor, John H., Advancement Services Research and Technology Support for Fund Raising * These amounts are current for 1999 donations and are adjusted for inflation each year. Please contact Development gifts at 215-898-9210 or devgifts@ben.dev.upon.edu for specific information

5. Types of Gifts • Cash / Checks / Credit Card • Bankwire • Stock • Gifts of Services • Donor must perform professional service. (e.g. free written legal advice from a lawyer.) • Gifts In kind • Equipment, computers, artwork, animals • Assets Held in Trust • Matching Gifts

6. What is the purpose of a transmittal? • Transmittals are the primary source of tracking gifts given to the University. They serve as : • A paper trail for Auditing/IRS purposes. • An internal reference for information. • An assurance that donors wishes are carried out, gifts and pledges are allocated properly and the correct donors and alternate sources are recognized.

7. Hard Dollar Credit IRS Purposes Credit given for actual cash or assets received Automatically reduces hard dollar pledge Important for donor recognition (gifts, invitations, BFS credit, etc.) Soft Dollar Credit (alternate source credit) Internal purposes recognition for cash or assets given be another Pledge reduction needs to be manually input Important for recognizing a another individual or organization specified by hard dollar donor Hard and Soft Dollar Credit What to look for in IDB: 1G, 1T, 2G, 2T, 5G, 5T, 1M What to look for in IDB: 6M, 1C, 6C

8. Completing a transmittal Click Here to download Transmittal and Set-up instructions or visit DARINhttp://www.darin.dev.upenn.edu/policies/index.html Transmittal Originator Step 1:Input your School/Dept, Today's date, Name/Title, Phone, Address, Email, and Mailcode. Step 2:Input the total gifts (check/cash) attached . Step 3:Input the total benefits included. Step 4:Total Gifts + Total Benefit = Grand Total

9. Completing a transmittal Donor / Receipt Information Step 5:Enter the hard dollar donor name, address, school and year. Step 6:Should the donor receive a receipt? Step 7:Is the gift being given in memory of /in honor of? Mark the appropriate box and enter the name up to 30 characters. Step 8:If this is an anonymous gift you must note it here. Step 9:Enter the gift date if other than current date.

10. Completing a transmittal Donor Gift Information (part 1) Step 10:Enter Donor ID # and Source as it appears in IDB. Step 11:Enter the 6 digit Fund Number the gift will be allocated to. Step 12:Prog# and Cref#. Step 13:Enter Fund name that corresponds to the fund number entered in Step 11. Step 14:Enter Alternate Source ID #, Source and Name.

11. Completing a transmittal Donor Gift Information (part 2) Step 15:If this is a new pledge that has never been recorded on the gift system, enter the pledge amount here. Step 16:Is this a conditional pledge, Yes? or No? Step 17:Enter the amount here if this is a payment on an existing pledge. Step 18:Enter new gift amount.

12. Completing a transmittal Bill/Pay Schedule This information must be provided even if a bill will be manually produced. Step 21:Insert the expected month and year that the donor will completely pledge balance. Step 22:Should the system produce a bill, Yes? or No? Step 23:What date will the donor begin paying the pledge? Step 24:How frequently should the donor be billed? Step 25:How much should the donor be billed?

13. Completing a transmittal AcknowledgmentInformation Insert the name of the person who thanked the donor and the date the thank you was completed

14. Completing a transmittal Credit Card Information Step 1: The name of the credit card holder as it appears on the card. Step 2: The amount to be deducted from the card. Step 4: The account Number {Amex = 13 digits Visa/MC = 15 digits}. Step 5: Expiration Date. Step 3: Visa? Mater Card? American Express?

15. What is a D- Slip? D-slips are used to process gifts for which a potion of the gifts has a benefit value. The gift distributions are prepared for deposit using separate lines on a deposit slip (D-slip). For the benefit distribution use the OBJECT code assigned by your Business Administrator. For the gift distribution, use gift account and OBJECT code 1149.

16. Completing a D-Slip Step One:Enter your name, Date, Department Name, Telephone Number, Address/Bldg Code, E-mail and Signature. For additional information contact Darlene Thompson at 8-1941 or email darlenet@pobox.upenn.edu

17. Completing a D-Slip Step Two:If the entire amount has a benefit, enter the 26 digit account string to which the money should be deposited always using object code 4920. Step Three: Write a detailed description, including donor name, ID # and Transmittal #. For additional information contact Darlene Thompson at 8-1941 or email darlenet@pobox.upenn.edu

18. Completing a D-Slip Step Four:If a portion of the amount is a gift and a portion has a benefit value - Complete a transmittal for gift portion - Complete a d-slip for the benefit portion using the benefit distribution OBJECT code assigned by your Business Administrator. For the gift distribution, use OBJECT code 1149. - Attach check and calculator tape. For additional information contact Darlene Thompson at 8-1941 or email darlenet@pobox.upenn.edu

19. Forms The following forms can be very useful during the gift giving process. These forms and their instructions can be obtained at on the Web at: http://www.finance.upenn.edu/treasurer/centralgifts/ • 501(c)(3) IRS letter : (obtained by contacting Central Gifts Processing at 215.898.9671) • Adjustment/Reallocation Form • New Fund Request Form • Form 8282 Form & Instructions • Gift Transmittal • Payroll Deduction Form – Gifts to Penn via payroll deduction • D-Slip (only available through the comptrollers office)

20. Glossary of Terms • Annual Giving Fund: An unrestricted find created to support the general operating expenses of the University. Certain gift funds, though restricted, are considered annual giving funds for the purpose of gift counting (these include reunion gift funds as well as others) • Benefit: specific privileges given to a donor in exchange to a gift. For example, membership, invitations, valued gifts of appreciation, etc. • Capital Fund: Restricted fund used to support specific programs, such as financial aid, faculty support, research, and capital projects. • Deferred Gift: A gift that is held for a stated time or until an event occurs. – e.g, the death of the donor. • Endowment: Donor has stipulated as a condition of the gift instrument that the principal is to be maintained inviolate and in perpetuity and invested for the purpose of producing present and future income.- e.g. Endowed professorship: permanent endowment for a specific academic program. • Fulfillment Date: The date on which a donor promises to complete his or her pledge. • Full Face Value: The total amount of a pledge or promised gift in today’s dollars, with no deductions made based on payment schedule or risk. • Fund Allocation: The account to which a gift has been credited.

21. Glossary of Terms Gift Date: The gifts date will always be the date that a gift is entered into the gifts system by Central Gifts Processing. The exception to this will occur at End of Year and Fiscal Year Closeouts. At these times, special instructions for the handling of these gifts are distributed. Any addition questions or requests regarding gift dates should be forwarded to Central Gifts Processing at penngifts@pobox.upenn.edu. Gift in Kind: Non-cash asset, such as painting, furniture, computers, and real property. Grant: For Development gift counting purposes, a contribution from a foundation, association, or corporation in support of the University or a particular program. Most grants received by Penn are in support of research, but grants may be given for any purpose. Hard Dollar Credit: Credit given for actual cash or assets received. For example, if a donor sends a check to the University and asks that his/her spouse also receive credit for the gift; the person who writes the check receives hard dollar credit while the spouse will receive soft dollar credit. If a check is sent to the University from John Smith’s Family Foundation, the foundation will receive hard dollar credit and the John Smith will receive soft dollar credit. The entity whose assets are actually given to the university is the person who receives hard dollar credit. Intangible Gift: A gift of services, rendered in a professional capacity: e.g., a legal opinion written by an attorney and given to the University at no charge. Matching Gift: A corporation’s gift in support of an employee/board member’s philanthropic gifts. The corporation would receive hard dollar credit for the gift; soft dollar credit would be given to the employee/board member. Matching Gift Forms: Forms, often times provided by the donor, to initiate a matching gift. Only the matching gifts office are authorized to sign off on these forms. They can be sent to Central Gifts Processing along with the gift or directly to the Franklin Building RM 409A. You may contact them directly at 215-898-5069 for more information.

22. Glossary of Terms Membership Fund: Memberships bestow certain privileges to donors, such as invitations to special events and discounted admissions fees. The Institute of Contemporary Art, the University of Pennsylvania Museum of Archaeology and Anthropology and the Morris Arboretum have membership funds Outright Gift: Cash, securities, credit card, or in-kind gift, given in its entirety. Not a payment that reduces the obligation on a existing pledge. Payment Schedule: Expected dates that a donor will make payments against a pledge. Pledge: A donor’s oral or written promise to make an immediate gift or gift in the future. Also called a subscription. A pledge may be either unconditional or conditional. Just as you can have a hard and soft dollar-credit, you can have a hard and soft pledge. The donor making the hard dollar pledge has to specify who receives soft dollar credit for the soft pledge. Securities: Stock or Bond certificates. Security gifts are processed by Trust Administration in the Treasurers Office. Soft Dollar Credit (Alternate source credit) : Recognition for a gift given by another individual (e.g. spouse) or organization (e.g. family foundation), or credit given for expenses involved in making the gift (e.g. wire transfer costs, foreign currency exchange costs). Subscription: A donor’s oral or written promise to make an immediate gift or a gift in the future. Also called a pledge.

23. Contact Information • Cash / Check/ Credit Card: for all questions, contact Central Gifts Processing at 8-9671 or email penngifts@pobox.upenn.edu • Bankwire: For donor instruction for sending a bankwire, or any other question regarding a bankwire received by the university, contact The Treasurer's Office at 8-7256 or email kmcmulle@pobox.upenn.edu. • Stock Gifts / Assets Held in Trust: Contact Trust Administration at 8-7254 or email gifts@pobox.upenn.edu • Matching Gifts: for all questions and inquiries contact, Abraham Cotto, Matching Gifts Coordinator at 8-2682 or email cotto2@ben.dev.upon.edu