University Business Policies and Procedures Manual

7110
GIFTS OF TANGIBLE PERSONAL PROPERTY
Effective Date: December 1, 2001
Revised: 09/25/02. 08/01/06, 06/01/07
Subject to Change Without Notice 

Authorized by UNM Regents' Policy 7.13 "Receipt and Investment of Gifts to the University"

1. General

The University will accept gifts of tangible personal property from individuals or corporations in accordance with the procedures established in this policy. “Tangible personal property” is any object that is not real property, cash, or securities. It includes, but is not limited to, artwork, books, personal papers, or equipment or supplies used for research, instruction, patient care, or support services.

2. Approval Requirements

Subject to the exemptions in Section 8. herein, the University Development Office must approve any proposed gift to the University of tangible personal property. A University department that desires to accept a gift of tangible personal property must complete the “UNM Foundation Proposal and Checklist for Donations of Equipment and Other Tangible Personal Property” (Exhibit A.). The proposal should be returned to the Associate Vice President for the Development Office. In order to submit a completed proposal, the department proposing to accept the gift must obtain the approval of the appropriate University official as follows:

• If the proposed gift will have an annual operating cost of less than $25,000, approval by the dean or associate provost (for academic units) or vice-president (for non-academic units) is required.
  
  
• If the proposed gift will have an annual operating cost of $25,000 to $50,000, approval by the Provost/Executive Vice President for Academic Affairs (for academic units) or President (for non-academic units) is required. In addition, the UNM Board of Regents Finance and Facilities Committee must be advised of the gift.
  
  
• If the proposed gift will have an annual operating cost of more than $50,000, approval by the Board of Regents is required.
  
  
• If the proposed gift of tangible personal property is valued in excess of $5,000 and is not artwork, books, periodicals or personal papers; or equipment or supplies used for research, instruction, patient care or support services, then the Board of Regents must approve the gift.

“Annual operating cost” refers to the yearly operating, maintenance, and insurance expenses associated with the gift. In addition, if a one-time initial installation fee must be paid to make the gift useable, this expense should be included as part of the first year's operating cost for purposes of determining which University official must review and approve the gift.

3. Role of the Development Office and UNM Foundation

The Associate Vice President for Development, or designee, will review the completed proposal (Exhibit A.) and in most situations will approve or reject the proposed gift no later than three (3) working days from the date the proposal is received. The Development Office will review the proposal to ensure the gift does not violate University policy or present unresolved legal and/or financial issues. The Development Office will defer to the department on whether the gift fits within current or anticipated activities. In some cases, for example, where title to the gift is to pass to the UNM Foundation, the proposed gift will require review by the UNM Foundation Gift Acceptance Committee. The Committee will approve or reject the gift (or request additional information) at its next meeting. The department shall not accept delivery of the gift until the Associate Vice President for Development, or designee, has accepted the gift in writing.

4. Role of Other University Departments

A proposed gift that raises health, safety, or liability concerns will need to be evaluated by the University Safety and Risk Services Department. For example, any equipment with moving external parts or that uses a potentially hazardous substance requires evaluation. A substance is potentially hazardous if it is toxic, corrosive, an irritant, flammable, combustible, explosive, or radioactive. In addition, if the donor discloses the presence of hazardous substances, the Safety and Risk Services Department must review the gift. The department should obtain Safety and Risk Services' review before submitting the proposed gift to the Development Office, but if not done by the department, the Development Office must refer the proposed gift to the Safety and Risk Services Department. The Director of Safety and Risk Services indicates approval or disapproval of the gift on the proposal (Exhibit A.) If the donor requires the University to sign a contract or agreement relating to the gift, the document must be reviewed in accordance with "Contracts Signature Authority and Review Policy," 2010, UBP.

5. Factors to Consider in Evaluating Proposed Gift

In deciding whether or not a proposed gift should be accepted, a department should consider:

• the operating cost of the gift, including the initial installation and on-going maintenance expenses as well as source(s) of payment of these expenses;
• the relationship of the proposed gift to existing collections, teaching, research, or service activities;
• whether the gift is consistent with current and planned future departmental activities;
• whether current faculty and/or staff have the expertise to utilize the gift;
• the condition of the gift, including its anticipated useful life; and
• whether the gift poses any health or safety risk(s).

6. Gift Reporting and Acknowledgment

Once a gift is received, the department must report it to the Development Office on a Gift/Pledge Transmittal Form (Exhibit B.). It is the donor's responsibility to establish a value for the gift and, if the value is over $5,000.00, to provide, at the donor's expense, a qualified appraisal. The appraisal must be sent to the Development Office as an attachment to the Gift/Pledge Transmittal Form.

The department receiving the gift should send an acknowledgment expressing its appreciation and gratitude to the donor. The Development Office will send the donor a formal acknowledgment if the department so requests on the Gift/Pledge Transmittal Form. Written acknowledgment from the department and/or the Development Office may include only a description of the gift, not a dollar value.

The Development Office reports all property valued over $5000 to the University Property Accounting Department in accordance with "Property Management and Control" Policy 7710, UBP. The Property Accounting Department will issue the recipient department a report and a tag for the equipment. The department is required to tag the equipment and return the report to the Property Accounting Department within thirty (30) days.

7. Disposal of Gifts

Once a gift is accepted, the item becomes University property. If at any time the department wants to sell or otherwise dispose of the gift, the disposition must follow University policy and state law.

8. Exemptions

Some University departments have their own policies and procedures for accepting and disposing of certain categories of gifts of tangible personal property. These departments are therefore exempt from the requirement to obtain Development Office approval under Section 2. herein for those gifts described in their respective policies and procedures. These departments shall, however, report gifts to the Development Office as provided for under Section 6. herein. The exempt departments are:

• University Art Museum
• Jonson Gallery
• Maxwell Museum of Anthropology
• Museum of Southwestern Biology
• Health Sciences Center Library

In addition, the General Library and Law Library are also exempt subject, however, to the requirement that acceptable written policies must be promulgated within one (1) year after adoption of this policy. Other departments desiring to become exempt from the requirements of Section 2. must develop their own policies and procedures consistent with this policy and subject to review by the Office of the University Counsel in conjunction with the Development Office. The President must approve any additional exempt departments. Any changes made to the policies of exempt departments must be submitted for review to the Office of the University Counsel.

9. Attachments

Exhibit A. - UNM Foundation Proposal and Checklist for Donations of Equipment and Other Tangible Personal Property
Exhibit B. - Gift/Pledge Transmittal Form

Comments may be sent to UBPPM@UNM.edu
http://www.unm.edu/~ubppm