Employee Charitable Contributions (IA7)

Employee Charitable Contributions (IA7)

SUBJECT:
Employee Charitable Contributions

PURPOSE:
To ensure employee charitable contributions are compliant with IRS regulations.

Policy:
A. Transactions that qualify for a charitable tax deduction under IRS regulations (reference Publication 526 rev. Dec 2000) must meet the following requirements:

1. The contribution must be made to a qualified organization such as Graceland University.

2. The contribution cannot be set aside for use by a specific person.

3. If the donor receives a benefit as a result of making a contribution, the only amount deductible is the amount which is more than the value of the benefit received. For the excess amount to qualify, it must be paid with the intent to make a charitable contribution.

4. The gift can be cash or non-cash.

5. Out-of-Pocket Expenses in giving services to Graceland qualify as long as they are not reimbursed, are directly connected with the service provided, an expense the donor had as a result of the services given, and not the donor’s personal, living or family expenses.

6. The donor must relinquish control of the charitable gift to Graceland University.

B. Contributions which will not be considered deductible according to IRS guidelines include:

A contribution to a specific individual,
The part of a contribution from which the donor received a benefit,
The value of time or services,
Personal expenses,
Appraisal fees, and
Certain contributions of partial interests in property.

C. Graceland’s implementation of IRS guidelines include:

1. A charitable donation will be declined if the restriction placed on the gift violates IRS regulations.
2. A gift may be restricted to the department in which the donor is employed, as long it is not restricted for use by a specific person or position.
3. Restricted gifts must be used to further the department's objectives.
4. Restricted gifts must not provide personal benefit to any employee.
5. Gifts are university funds, and therefore, must be expended with the same care to exercise discretion and good judgment to further Graceland’s mission as all other university funds.
6. All gift account expenditures will require primary and secondary budget authority signatures. If the primary budget authority is the donor, his/her supervisor’s signature will also be required (three signatures).