Gift/Pledge Processing

1. Gift/Pledge Processing Presented by Donna Steinmetz Director of Gift/Pledge Processing & Compliance

2. Topics of the Day • Gift/Pledge Processing – What we do • Entering CRR’s • How to request new gift accounts • MoCodes/PeopleSoft accounts

3. Gift/Pledge Processing • Gift Processing deposits all gift dollars into the appropriate accounts, sets up and maintains all pledges including payroll deductions, receipts all donors, along with maintaining the giving histories of all alumni and friends.

4. Gift/Pledge Processing Staff • Office Assistant: Rebekah Sanders 882-3703 • Reconciliation/Payroll Deductions/KBIA: • Courtney Bartels 882-0274 • Donor Relations: • Rick Ricketts 884-1646 • Major Donor: Brandi Phillips 882-5152 • Athletics/Credit Cards/Pledges: Crystal Rudloff 884-7709 • Mizzou Annual Fund/Collegiate License Plates: Angie Randolph 882-5154 Rebekah Sanders 882-3703 • Scanning/Linking/Daily Receipts: Jennifer Orman 882-0538 Erik Platner 882-2616

5. Statistics Transactions Processed

6. What is a Gift? • IRS defines a charitable contribution as a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get anything of equal value. • IRS Publication 526

7. Life of a Gift • Day 1 • Check & source document are received • Source document is date stamped. • Check and source document are gift numbered. • CRR (Cash Received Report) is prepared, depositing money to Development Clearing Account. • Donor ID and account code looked up and applied to source document. • Batch is created in Advance. • Gift recorded in Advance

8. Life of a Gift • Computer programs are run which do the following: • Produce reports showing deposit and advance entries balance. • JE’s (Journal Entries) are created, moving monies from clearing account (C4779) to designated fund. • Accounting system is updated, which shows monies deposited in specific accounts. • DDR’s (Daily Development Report’s) created. • Advance is updated. • Receipt file is built.

9. Life of a Gift • Day 2 • Deposit is sent to bank. • Receipt file is reviewed by Gift Processing and Donor Relations. • Day 3 • Receipts are printed, reviewed, folded, stuffed, and mailed. Total processing time is 48 hours.

10. Checks Received by the Department • Checks should be given to the department’s fiscal officer. The fiscal office will prepare an online Gift CRR and an online Advice of Gift. The Gift CRR, Advice of Gift and checks should be sent to cashiers office for verification and posting (all funds are to be deposited on the day they are received). • COPIES of the Gift CRR and Advice of Gift, COPIES of the check and correspondence are to be sent to: Gift Processing, Room 109 Reynolds Alumni Center • Gift Processing does not realize gift dollars are sitting in the Clearing Account waiting to be processed until notified by the department. It is at the time of recording that these dollars are moved from clearing to the designated accounts by Journal Entry.

11. Checks Brought Directly to Gift Processing • Checks brought directly to Gift Processing should be accompanied by appropriate Advice of Gift form: • Cash gifts of $1,000.00 or more use Advice of Gift form UM9. • Cash gifts under $1,000.00 use Advice of Gift form UM9a. • Gifts in kind use Advice of Gift form UM9

12. Non-Cash Gifts (Gifts-in-Kind) • What are they? • Gifts-in-Kind are gifts of tangible or intangible personal property (other than cash or securities) that are deductible by the donor under federal tax law. • The IRS uses different terminology • They only refer to these as “Property other than cash” (non-cash gifts)

13. Types of Non-Cash Gifts • Publicly Traded Securities • Closely Held Securities • Tangible Personal Property • Real Property • Intangible Personal Property • Motor Vehicles

14. Entering a CRR Cashier Deposit with Gift Money • If a department directly receives a gift and that department normally makes cashier deposits, select Cashier Deposit with Gift Money. The credit account will be a gift clearing account for the Columbia campus. The MoCode/PS Account combination is entered automatically. • Note: A CRR must be prepared in advance of depositing funds with the campus Cashier's Office.

15. Entering a CRR • On the CRR intro screen, choose Cashier Deposit with Gift Money • If you also have a non-gift deposit, you may either choose a template or choose Don't Use One. If you only have a gift deposit, choose Don't Use One. (If you do not have a personal template, you may go back and create one). • Enter the following information on the CRR form:

16. Enter the following information on the CRR form • Receipt Details • Currency - Enter Currency as count of TYPE of bills received, not by the total dollar amount. Enter by $100s, $50s, $20s, $10s, $5s, and $1s. • Coins - Enter Coins under each TYPE of coin received, not by the total coin amount. Enter by $1.00s, $.50s, $.25s, $.10s, $.05s, and $.01s. • Total Check Amount – Enter the sum of all checks in dollars and cents. • Number of Checks – Enter the count of the actual number of checks in the deposit. • Total Currency – Automatically calculated as currency is entered. • Total Coins – Automatically calculated as coins are entered. • Total Receipts – Automatically calculated sum of currency, coins, and checks

17. Enter the following information on the CRR form • Deposit Details • Dates - An optional field strictly for the department's use. If used it must be entered in mm/dd/yy format. For reports of sales to others (tickets, products, etc.), the date will normally be the latest business date for the sales. For other items, the date can be the date received or the date of the check. • Explanation/Source of Receipts – Automatically entered as "Gift Clearing Account". • MoCodes – Automatically entered based on the campus's gift clearing account. • PS Accounts – Automatically entered based on the campus's gift clearing account. • Amount – Enter the dollar amount for that portion of the deposit. • Total Deposit – Automatically calculated from the above Amount field(s). • Preparer's Comments – Enter the purpose of the CRR. This is mandatory and requires a minimum of 20 characters. (e.g. "Daily receipts from 5/20/02").

19. Enter the following information on the CRR form • Click Submit to submit the entry or Cancel to cancel the entry. • Click on Continue with Gift Processing to enter Advice of Gift.

20. Enter the following information on the CRR form • Enter the following information on Advice of Gift for EACH donor: • Donor’s Name – Enter donor’s full name • Donor’s Address – Enter donor’s full address • Date of Gift – Enter the date the gift was made • Amount – Enter the amount of the gift • Preferred MoCode – Enter the MoCode for the gift to be distributed • MoCode/Account Comments – Enter any comments about preferred MoCode and Account • Restrictions and/or Special Instructions – Enter any restrictions or special instructions that came with the gift

21. Enter the following information on the CRR form • Click Save to save the donor information. If there is another donor, enter the information and click Save again. • Click on Continue to return to initial CRR screen or on Render Printable PS CRR if you want to print a copy. • Detailed instructions can be found at http://www.umsystem.edu/ums/departments/fa/controller/applications/pscrr3.shtml

23. Acknowledgements • All donors receive an official University of Missouri receipt within five days of Gift Processing receiving the donation. • Year-end summaries have been discontinued.

25. Dean’s Letters • Criteria is established by the Dean • Excel file is electronically sent to the Dean’s office every Tuesday Morning. • Dean’s office prepares and mails letter’s from Excel file.

26. Matching Gift Forms • If a donor works for a company, which will match his/her gift, there will be a company matching gift form, which needs to be verified and completed by the University. • The University has ONE specified individual in Development who is authorized to sign these forms. That is the Director of Gift/Pledge Processing & Compliance. Send the form along with a copy of the CRR for processing to Gift Processing, 109 Reynolds Alumni Center • If the form is received after the gift, send to Gift Processing for completion.

27. Payroll Deductions • If a donor wants to contribute by payroll deduction, use form UM107 • Gift Processing notifies the Payroll Department • Individuals with payroll deductions do not receive mailed acknowledgements. The amount contributed is shown on each pay stub. They will however receive year-end tax receipts • Payroll Deductions forms are supplied by Gift Processing, 882-0274

29. Pledges • Pledges are commitments to make future gifts. Only the entity exercising legal control over the assets to be given can make a pledge. • Donor cannot commit funds from a donor advised fund or community foundation.

30. Pledge Documentation • Signed Pledge Form • GASB 33 Checklist • The checklist and documentation requirements do not apply to pledges under $1,000. For pledges $25,000 and under an e-mail from the donor’s home or business computer outlining the pledge agreement is acceptable documentation of the donor’s intent. The checklist is required for all pledges $1,000 and over. • If it is not possible to obtain signed documentation from the donor, the development officer must send a confirmation letter to the donor, outlining the amount of the pledge, payment period, payment frequency, payment amount, and designation of the funds. The letter should ask the donor to acknowledge the information contained in the letter by signing and returning in an enclosed envelope. • Electronic Pledge Form must be completed on line and after the information has been typed in, hit the submit button at the bottom of the screen and it is automatically sent to Gift Processing. • Electronic Pledge Form and Checklist can be found on the TISG Website. https://cf.iats.missouri.edu/gift_reports/index.cfm?CFID=2622264&CFTOKEN=73545478 • Hard copies of signed documentation should be routed to 109 Reynolds Alumni Center. If you need a pledge recorded immediately, you can fax the signed documentation to 884-3148.

33. Pledge Payments • When payments are received, the Advice of Gift form should indicate whether the gift should be applied to a pledge. • A pledge was sent over for ABC Company. When payments were received the Advice of Gift Form indicated a gift from Jane Doe, these payments were never applied to the pledge and therefore caused double counting.

34. Delinquent Pledges • A report of delinquent pledges is sent to the Development Officer each month. • The report should be reviewed and any changes or modifications should be sent to Gift Processing.

35. Request for New Non-Endowed Gift Account • New gift account requests for non-endowed funds should be submitted to MU ALUMNI, GiftAcctReq using the UM New Chartfield Request Form • How to Access Outlook Forms • In Outlook – Go to: File – New – Choose Form • Look in – Organizational Forms Library - highlight the form you need and click open • Fill out the form and send to your Fiscal Officer. Your Fiscal Officer must be the one to submit the form to the email address noted above. • It’s a good idea to include a copy for your record

36. Request for New Non-Endowed Gift Accounts • Be sure to include specifics as to what the funds will be used for • Indicate whether the University committed resources or services as a condition for the gifts • Whether the donor has requested an accounting of the use of the funds and of results of the programs or projects undertaken • Whether the donor retains any control over the gifts, i.e., selection of scholarship recipients, etc.

38. Request for New Endowed Gift Accounts • New endowed gift account requests should be submitted to the Office of Gift Planning & Endowments. • You should contact Paula Schlager to assist you with your requests. • All new endowed gift account requests must go through the Office of Gift Planning & Endowments.

39. References • CASE Reporting Standards & Management Guidelines For Educational Fundraising, 4th Edition • Charitable Contributions – IRS Pub. 526 http://www.irs.gov/pub/irs-pdf/p526.pdf • Charitable Contribution – IRS Pub. 1771 http://www.irs.gov/pub/irs-pdf/p1771.pdf • Updates on Disclosure and Substantiation Rules http://www.irs.ustreas.gov/pub/irs-tege/topic-g.pdf • Office of the Controller website http://www.umsystem.edu/ums/departments/fa/controller/applications/pscrr3.shtml • Accounting Services website http://accounting.missouri.edu/outlook_forms.html

40. Questions????