E-Insight

June 2003

Developing Opportunities

CVMBS Development Office Update from Paul Maffey

The question of what is a gift versus what is a grant comes up quite often in development activities at CSU, and several people have asked me to clarify the CSU definition of a gift as it relates to funds and/or equipment. CSU follows the guidelines outlined by the Council for Advancement and Support of Education (CASE) and the Council for Aid to Education, which closely mirror the regulations of the IRS.

A gift is a contribution/donation received by CSU for almost any use. The following rules apply:

• The gift can be cash, equipment, or other item of value and gifts of service.

• We can agree to use the gift as the donor specifies.

• The use of the gift does not principally benefit the donor.

• The contribution is a voluntary, irrevocable and nonreciprocal transfer. There can be no implicit or explicit statement of exchange, purchase of services, or provision of exclusive information in return for the gift.

• If the donor receives benefits in return for the gift made, the amount of the gift recorded and reported is reduced by the fair market value of all benefits given, according to U.S. Internal Revenue Service regulations.

• CSU has no obligation to report to the donor how the gift is used or invested. We can provide such reports as part of donor stewardship.

• A gift can include a contract. Usually, however, a gift involves no written or verbal contract between CSU and the donor.

• Oftentimes a gift is unsolicited.

The Dean of the College delegates the responsibility for all activities related to solicitation of gifts, including money, equipment and property to the Development Office. We coordinate the College effort with the University gift acceptance staff to make the process as transparent as possible for you. The Sponsored Programs office oversees research initiation and the administration of the funded projects via contractual arrangements.

It's not as complicated as it sometimes seems. There are some gray areas that can surface and we may need to work those out on an individual basis. As a College, we are committed to help you solicit, and benefit from, as many gifts as we can. If you have any questions, please feel free to contact me at (970) 491-3932, or drop me a line at rpmaffey@colostate.edu.