Gift Submission & Processing Workshop

1. Gift Submission & Processing Workshop Presented by Shalonda Martin & Charmaine Sance April 6th 2010

2. Introduction • Welcome to the Gift Submission & Processing Workshop. This workshop is designed for newcomers and experienced staff responsible for processing and submitting gift paperwork. • Our goal is to provide information you need to know about submitting giftpaperwork to ensure timelyand accurate gift processing,donor acknowledgement, and fund distribution.

3. The UC Regents Current expenditure gifts (one-time only gifts) Memorial/honorarium gifts Grants or gifts with special requirements Major gifts Mineral Rights Inventions Student Loans Real Property (gifts of real estate not for immediate sale) Capital Plant (building funds) Securities Pledges Estates/Bequests Endowments UC Regents or UCLA Foundation? The following information will provide you with guidelines for directing gifts to either The UC Regents or The UCLA Foundation. The UCLA Foundation • Volume gifts (annual memberships / benefits / mass solicitations) • Capital/Plant (building funds) • Memorial/honorarium gifts • Major Gifts • Securities • Pledges • Estates/Bequests • Endowments • Planned/deferred gifts • Real Property (gifts of real estate for immediate sale)

4. Important Points to Remember • UCLA must use gifts in accordance with donor specifications. Instructions for submitting gifts to UCLA are on the Island2 website, https://island.fim.ucla.edu. If you have questions about where a gift should be directed - The UCLA Foundation or The UC Regents - please contact Gift Acceptance at x4-3395 for assistance. • All gifts, regardless of where they are directed, are assessed a 5% administration fee to offset the cost of doing business. At the date of gift, the fee is immediately assessed on current expenditure gifts of $100,000.00 or less.

5. The UCLA Foundation Contact Fund Management to establish a new fund Obtain a transmittal form at: https://island.fim.ucla.edu EA Business Services Menu Gift Services Gift Services Information UCLA Foundation Transmittal Send transmittal or pre-approved solicitation and check to Gift Acceptance (Original copy) Gift Acceptance deposits the check Keep a complete copy of paperwork Submitting Gifts to The UCLA Foundation Following the steps below will minimize the cycle time for processing gifts.

6. Submitting Gifts to The UCLA Foundation • General Information • Checks must be made payable to The UCLA Foundation. If a donor issues a check payable to an individual, faculty member, dean, Development Officer, etc., but the gift is clearly intended for a Foundation fund, the payee should endorse the back of the check for deposit to The UCLA Foundation. A check should never be endorsed bysignature only. Do not alter the donor’s check. Developmentofficers should return check to donors if: • Check is unsigned • Written and dollar amounts on the check do not match • Check date is more than six months old. It is important that all checks received by the University be processed immediately. Checks more than six months old are considered non-negotiable. Banks can legally refuse to honor non-negotiable checks. • Departments must complete a Principal Investigator’s Statement of Economic Interest form, 700U, for gifts of $250.00 or more from a Company, Foundation, or Trust for research purposes (see attachment 1).

7. Submitting Gifts to The UCLA Foundation • Gifts with Pre-Approved Solicitations • Gifts of checks to The UCLA Foundation are usually in response to a pre-approved solicitation. Gift checks received with approved solicitations do not require submission of a UCLA Foundation Transmittal Form. Simply forward checks and solicitations to Gift Acceptance, 10920 Wilshire Boulevard, 11th Floor, MC160348. • Pre-approved solicitations may include the option for donors to pay by credit card. The UCLA Foundation accepts Visa, MasterCard, American Express, Discover, and Diners Club. • Prepare separate transmittals for gifts < $1,000.00 and gifts $1,000.00+. • Prepare separate transmittals for gifts paid by check or credit card. • Gifts without Pre-Approved Solicitations • Gifts to The UCLA Foundation without a pre-approved solicitation require submission of a UCLA Foundation Transmittal Form (see attachment 2). You can type directly onto the form. Upon completing the form, print two copies – one for your records and one to submit with the check(s). You may place up to 10 gifts on a single transmittal, but all gifts on the form must be for the same purpose, department and fund. Prepare separate transmittals for gifts < $1,000.00 and gifts $1,000.00+.

8. Submitting Gifts to The UCLA Foundation • Gifts with Benefits • For gifts to The UCLA Foundation in which the donor receives a benefit or item, such as, dinner, tickets, T-shirt, etc., thevalue of the item is not tax-deductible. The tax-deductible amount is the value of the gift after the fair market value (FMV) of the benefit is subtracted. For example, the department offersan event ticket worth $40.00. The donor sends ina check for $100.00. The FMV of the benefit (ticket) is $40.00 and the tax-deductible amount is $60.00. The donor will be receipted for the full amount; however only $60.00 will show as tax-deductible. • Gifts without a pre-approved solicitation require a UCLA Foundation Transmittal Form. It is important to state the fair market value of the benefit or item on the transmittal (see attachment 3). 

9. Submitting Gifts to The UCLA Foundation • Pledges and Pledge Payments • Pledges • Pledges to The UCLA Foundation are usually in response to a pre-approved solicitation. If a pledge is in response to a solicitation, forward the solicitation and all other documentation to Gift Acceptance at 10920 Wilshire Boulevard, 11th Floor, MC 160348. • If a pledge is received without a pre-approved solicitation, complete a UCLA Foundation Gift Transmittal Form and forward it to Gift Acceptance with any other related documents or correspondence. • To ensure the University will accept the pledge, please consult with your Development Officer who will provide instructions for the donor’s pledge agreement letter. • Gift Acceptance sends donor pledge reminders with mailing instructions. However, some departments have elected to send the reminders themselves with a customized letter. In these cases Gift Acceptance sends the reminders directly to the campus units. 

10. Submitting Gifts to The UCLA Foundation • Pledges and Pledge Payments • Pledge Payments • If a department receives a pledge reminder and payment, forward them to Gift Acceptance. • If a department receives a pledge payment without a reminder, a UCLA Foundation Transmittal Form must be completed prior to forwarding it and the paymentto Gift Acceptance. Indicate on theform that it is a pledge payment andinclude the fund number.

11. The UC Regents Deposit the check at one of the cashiers offices on campus Submit on-line form at: https://island.fim.ucla.edu EA Business Services Menu Gift Services Gift Services Information Regents Gifts Transmittal Send two copies of all gift paperwork to Gift Acceptance Corporate Accounting establishes new funds Keep a complete copy of the paperwork Submitting Gifts to The UC Regents Following the steps below will minimize the cycle time for processing gifts.

12. Submitting Gifts to The UC Regents • General Information • Checks must be made payable to The UC Regents. If a donor issues a check payable to an individual, faculty member, dean, Development Officer, etc., but the gift is clearly intended for a Regents fund, the payee should endorse the back of the checkfor deposit to The UC Regents. A check should never beendorsed by signature only. Do not alter the donor’s check.Development officers should return checks to donors if: • Check is unsigned • Written and dollar amounts on the check do not match • Check date is more than six months old. It is important that all checks received by the University be processed immediately. Checks more than six months old are considered non-negotiable. Banks can legally refuse to honor non-negotiable checks. • Departments must complete a Principal Investigator’s Statement of Economic Interest form, 700U for gifts of $250.00 or more from a Company, Foundation, or Trust for research purposes (see attachment 1).

13. Submitting Gifts to The UC Regents • Single Gifts • Gifts to The UC Regents are usually single gifts in response to a request by a department or Development Officer. All gifts to The UC Regents require submission of a Regents Gift Transmittal Form (see attachment 4). Unlike The UCLA Foundation Transmittal, The Regents form must be completed and submitted on-line. Upon submission, you will receive an email of the transmittal confirming the transaction. • The UC Regents also accepts gifts by credit card - Visa, MasterCard, and American Express. Gift payments by credit card require authorization in writing (signed letter) or must be on an official UCLA form indicating donor name, credit card name and number, expiration date, amount of the donation, and gift purpose. • Do not combine gifts by check and gifts by credit cards on the same transmittal form.

14. Submitting Gifts to The UC Regents • Multiple Gifts (Various Donors) • Gifts received from various donors can be processed on a single form. However, each gift must be under $1,000.00 and for the same purpose, department, and fund. Follow the instructions for processing a single gift. Enter “Various” on the line for donor name and the total number of gifts in parenthesis (see attachment 5). Unlike gifts to The UCLA Foundation, gifts to The UC Regents of $1,000.00 or more must be processed on separate transmittal forms.

15. Submitting Gifts to The UC Regents • Pledges and Pledge Payments • Pledges • Pledges to The UC Regents are usually in responseto a request by a department or Development Officer. Pledges to The UC Regents must be in writing. To ensure the University will accept the pledge, please consult with your Development Officer who will provide instructions for the donor’s pledge agreement letter. Complete a Regents Gift Transmittal Form and forward it with any other documents to Gift Acceptance, 10920 Wilshire Boulevard, 11th Floor, MC 160348. • Gift Acceptance sends pledge reminders with mailing instructions. However, some departments have elected to send the reminders with a customized letter. In these cases Gift Acceptance sends the reminders directly to the campus units.

16. Submitting Gifts to The UC Regents • Pledges and Pledge Payments • Pledge Payments • If a department receives a pledge reminder and payment, deposit the payment with the Administrative Main Cashier Office (AMCO) or the Remittance Processing Center (RPC). Forward the pledge reminder and the department deposit form (DDF) (see attachment 6) to Gift Acceptance. If possible, also forward a copy of the original Regents Gift Transmittal Form along with copies of any additional paperwork. • If a department receives a pledge payment without a reminder, deposit the check and complete a UC Regents Gift Transmittal Form. Indicate on the form that this is a pledge payment. Remember to include the fund number. If possible, also forward a copy of the original Regents Gift Transmittal Form to Gift Acceptance with copies of any additional paperwork.

17. Submitting Gifts to The UC Regents • Gifts-in-Kind • A gift-in-kind is a gift of an asset that is non-monetary, for example books, paintings, equipment, etc. Donors use a Deed of Gift Form to transfer ownership of the asset to UCLA (see attachment 7). Most gifts-in-kind are given the The UC Regents. However, in very rare cases, gifts-in-kind are given to The UCLA Foundation. For instructions on gifts-in-kind to The UCLA Foundation, contact Gift Services, at x4-3434. • Follow instructions for submitting a single gift to The UC Regents. Enter 99999 in the account and fund information. The 5% administration fee is not immediately assessed to gifts-in-kind at the date of receipt. Please note: • The IRS requires a “qualified” appraisal and Form 8283 (see attachment 9) for giftsvalued at more than $5,000.00. • Do not alter the donor’s Deed of Gift. If the donor does not indicate the value, a valuefor UCLA’s purposes will be made by the Department Head or Gift Acceptance Director.In these cases the value should never be given to the donor. • Receipts for gifts-in-kind do not state the value, but do include the description of the item. • The IRS requires charities to file a Form 8282 if a non-monetary gift valued at $500.00 ormore is disposed of within two years of receipt. The donor should be provided with a copyof the 8282 stating the disposition of the gift and amount received.

18. Submitting Gifts to The UC Regents • Wire Transfers • Departments should contact General Accounting for instructions to provide donors wishing to make a gift to The UC Regents through a wire transfer. Gifts by wire transfer require a Regents Gift Transmittal Form be forwarded to Gift Acceptance at 10920 Wilshire, 11th Floor, 160348 along with confirmation that the funds have been wired to General Accounting.

19. Cash and Check Deposits All cash deposits, consisting of currency and coins should be sent to the Administrative Main Cashier Office (AMCO) in accordance with University policy for transporting cash. All check deposits directed to The UC Regents should be sent to the Remittance Processing Center (RPC) (see attachment 10). Departments accepting both payment types should prepare separate DDF’s and route them accordingly. Appendix

20. Estates and Trusts If you or your department receives documents or inquiries relating to estates, trusts, or probate matters, including notices of hearings, wills, documentary evidence of assets, etc., contact Gift Services at x4-3391 for assistance.All documents must be immediately sent to Gift Services. If a lawyer or an individual wishing to include UCLA in a will or trust contacts your department, please refer them to the Planned Giving Office at x4-2334. Life Insurance If a donor wishing to donate a life insurance policy contacts you, please contact the Planned Giving Office for assistance at x4-2334. Appendix

21. Real Property (Real Estate) Most gifts of real property (real estate) are typically given to The UC Regents. For inquiries regarding gifts of real property contact Gift Services at x4-3438 for assistance. Matching Gifts Many companies will match donations made by their employees to non-profit institutions and organizations. Departments should forward matching gift forms and the employee’s donation with the appropriate gift transmittalforms (if required) to Gift Acceptance. GiftAcceptance will complete the matchinggift form and return it to the company. Appendix

22. Appendix • Securities • If you or your department receives documents or inquiries relating to securities contact Gift Services at x4-3434 for assistance.

23. Appendix • Non-tax Deductible Gifts • If a donor receives a benefit in exchange for a donation, the donation must exceed the fair market value of the benefit for the donation to be processed as a gift. If the donation equals the value of the benefit received, the donation will be processed as a non-gift and will not be posted in the gift processing system.

24. Appendix • Gifts in Honor/Memory • If a gift is in memory or honor of an individual, please remember to include the name of the individual in the appropriate space on the Regents Gift Transmittal or UCLA Foundation Transmittal form. • Gifts for Research • Departments must complete a PrincipalInvestigator’s Statement of Economic Interest form, 700U, for gifts of$250.00 or more from a Company, Foundation, or Trust for research purposes (see attachment 1).

25. The UCLA Foundation The UCLA Foundation is a non-profit UCLA support group, organized and operated exclusively for the benefit of the University to solicit and accept gifts for educational and research purposes. Formerly known as the UCLA Progress Fund Inc., The UCLA Foundation was established October 10, 1949, and is exempt from federal tax as described in section 501 (c) (3) of the Internal Revenue Code. Copies of letters of UCLA Foundation’s tax exemption status can be found on the Island2 website. The Federal Tax I.D. number for The UCLA Foundation is 95-2250801. The UCLA Foundation is also registered with the California Board of Charitable Trusts and is recognized by the State Franchise Tax Board as an educational foundation. Gifts to The UCLA Foundation are deductible for federal and state tax purposes. Appendix Tax Information Upon request, donors may be provided with information about UCLA’s tax exemption status.

26. Appendix Tax Information • The UC Regents • The UC Regents is also tax exempt under section 101(6) of the Internal Revenue Code – see letter dated September 14, 1939. For confirmation of UC Regents tax exemption status see letter dated September 8, 1982, which confirms the 1939 exemption under the 501(c)(3) of the Internal Revenue code. The Federal Tax I.D. number for The UC Regents is95-6006143(W).

27. Appendix Foreign Checks • The University strongly encourages departments to request check donations in U.S. dollars, payable at a U.S. bank. Collection of foreign currency is time-consuming and expensive. The expense of sending foreign currency for collection can significantly reduce the anticipated income or even exceed the remittance.

28. Appendix Refunds and Transfers • Gifts to the University are irrevocable. Only under exceptional circumstances is a gift transferred to another charity or returned to the donor. All proposed transfers and returns must must be reviewed by the University’s legal counsel before a return is granted.