MONETARY AND PROPERTY GIFTS: ACCEPTANCE, REPORTING
AND DISBURSEMENT
NUMBER:
R.2.
DEPARTMENTS & DISTRICTS AFFECTED:
ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED
BY THE BOARD OF SUPERVISORS
EFFECTIVE: 7/85
REVISED: 9/90, 12/93, 3/00
_________________________________
David E. Sundstrom, Auditor-Controller
1.
POLICY
Agency and department heads have the authority
to accept on behalf of the Board of Supervisors
(Board) gifts, bequests and devises of money or
property with a value not to exceed $10,000 per
gift. Appropriations are required if a department/agency
wishes to make an expenditure due to the receipt
of monetary gifts by the County. Gifts in excess
of $10,000 are to be reported directly to the Board
for acceptance. For gifts, bequests and devises
of $5,000 or more, but not exceeding $10,000, departments/agencies
shall also notify each Board office via off-agenda
letters of such gifts and donations immediately
upon receipt. For gifts, bequests, and devises under
$5,000, departments/agencies shall use their own
discretion in deciding whether to advise the Board.
The value of all donated property will be determined
by the donor.
1.1
Purpose
To establish a procedure for the acceptance,
reporting, depositing, and disbursement of
monetary donations and a procedure for acceptance
and reporting of property donations received
by the County.
1.2
Authority
Authority
Subject
Government
Code Section 25355
Acceptance of gifts by
the Board
Government
Code Section 25356
Treatment of specified
and unspecified donations.
Government Code Section
29130
Making funds available for appropriation.
Internal Revenue Code
Sec. 170(f)(8)(B)(i)
Requirements of the receipt given
to the donor by the donee.
Internal Revenue Code
Sec. 6050L
Disposal of donations within 2 years.
Internal Revenue Form
8283 Instructions
Donee acknowledgment
Board of Supervisors'
Resolution
No. 93-1235
Delegation of authorization to accept
gifts.
1.3
Definitions
1.3.1
Monetary Donations
Monetary donations include currency,
checks, money orders, etc.
Fair market value is the price at
which property would change hands between
a willing buyer and seller, neither
having to buy or sell and both having
reasonable knowledge of all the necessary
facts.
2.
PROCEDURES
2.1
Receipts
The recipient agency shall acknowledge the
acceptance of a gift by giving the donor a
receipt or a letter of acceptance.
2.1.1
Monetary Donation Receipt
Enter the amount of currency, check
number, name of donor, and date of transaction
on the uniform cash receipt form F850-58.2.
Refer to CAP No. C.5.,
Handwritten Cash Receipts.
2.1.2
Property Donation Letter of Acceptance
Describe each gift of property on
agency letterhead. Include the donor's
name and the date the property was received.
2.2
Deposits
Monetary gifts for specified purposes shall
be deposited to the appropriate fund/agency
(budgeted fund/agency or trust fund) under
Revenue Source Code 7670, "Miscellaneous
Revenue" for budgeted funds/agencies,
and Balance Sheet Account Code 9200, "Balance-Trust
Funds" for unbudgeted trust and other
special funds. Monetary gifts received for
unspecified purposes should be deposited into
the County General fund. Such gifts should
be deposited in accordance with CAP
No. C.4., Deposits.
2.3
Board Reports and Approval
2.3.1
Donations Over $10,000
A listing of monetary and property
donations accepted by departments/ agencies
which are each in excess of $10,000
must be submitted directly to the Board
for approval on an Agenda Item Transmittal
(AIT).
2.3.2
Donations of $5,000 to $10,000
For monetary donations of $5,000 or
more but not exceeding $10,000, and
for property donations valued at $5,000
or more but not exceeding $10,000, departments/agencies
shall notify each Board office via an
off-agenda letter of each such donation
immediately upon receipt.
2.3.3
Donations Under $5,000
For monetary donations under $5,000
and property donations valued at under
$5,000, departments/agencies shall use
their own discretion in deciding whether
to advise the Board of such donations.
2.4
Transfers from Trust Funds
Departments/agencies which deposit monetary
donations into a trust fund because the donations
are restricted to a specified purpose must
transfer those donations periodically from
the trust fund to Revenue Source Code 7670,
"Miscellaneous Revenue," in the
General Fund, or in other funds outside the
General Fund as appropriate, in order to expend
the monies for the specified purposes. The
expenditures cannot be made directly out of
the trust fund.
2.5
Appropriations of Unanticipated Revenue
If the department/agency does not have
sufficient appropriations to cover the expenditures
related to the donations, an AIT must be submitted
to the Board identifying Revenue Source Code
7670, "Miscellaneous Revenue," to
be increased and requesting that monies be
appropriated in an equal amount according
to Section 29130 of the Government Code. Pursuant
to Section 29130, gifts received must be either
in excess of anticipated amounts or not specifically
set forth in the department/agency budget.
2.6
Property Donations
2.6.1
Reporting
Property donations with a minimum
fair market value equal to or greater
than the fixed asset amount per CAP
No. FA.2., Fixed Asset Expenditure Coding,
and department/agency-controlled equipment,
must be reported to the Department/Agency
Property Officer. Property donations
that qualify as fixed assets must also
be reported to the General Ledger Unit
of the Auditor-Controller Department
for inclusion into the agency's central
fixed assets inventory records. Send
a memo to the General Ledger Unit listing
a description of the donated asset,
the dollar value, and the date received.
Attach copies of any relevant documentation
such as a copy of the letter of acceptance
given to the donor.
2.6.2
Value
The value of donated property is the
responsibility of the donor. If the
donor does not place a value on the
property, or it is felt that the value
has been overstated or understated by
the donor, then the department/agency
should make a reasonable estimate of
its fair market value.
For all donations over $500, the donor
is required to file Form
8283 with the Internal Revenue Service
(IRS) along with written appraisals
supporting the value of the donation.
This form also requires the donee to
acknowledge the donation and to receive
a copy of the written appraisals (see
Section 2.8).
If the value of donated property, such
as land or structures and improvements,
remains unknown, the department/agency
may wish to hire an independent appraiser.
The department/agency should have documentation
showing that the value assigned to the
asset is reasonable.
2.7
Records of Donations
Departments/Agencies shall maintain internal
records of all gifts, bequests, and devises
of money and property. No formal reports of
donations are required except as noted in
Section 2.3.
2.8
Completion of IRS Donee Acknowledgment
The department/agency receiving the donation
is required to fill out Part IV of IRS Form
8283 upon receipt from the donor. This
form is only required for donated property
valued in excess of $500, and the department/agency
should receive a copy of Section B of the
form, which includes the appraisal summary
for the property donated.
2.9
Disposal of Donated Items Within 2 Years
The department/agency is required to file
IRS Form 8282
if donated property valued at more than $500
is disposed of within 2 years of initial donation,
except for property which was consumed or
distributed for charitable purposes. This
form must be filed within 125 days after disposal
and a copy must be sent to the donor of the
property.
Legal