Acceptance of Gifts to the University that Require 501(c)(3) Tax Exempt Status
General Policy an Procedure Summary: This official policy gives guidance on the receipt of gifts when the donor requires that the gift be given to an entity with 501(c)(3) status.
Definition of Key Terms: Cost Basis - The cost basis is generally the donor's purchase price of the asset contributed plus any costs of purchase, such as commissions and fees. The cost basis of interests in partnerships, limited liability companies, and sub chapter S corporations (s-corps) change over time. The donor or their representative must provide the University with the cost basis on interests in the aforementioned entities.
Background: The tax exempt status of the Curators of the University of Missouri is under Section 115 of the Internal Revenue Code (IRC). Certain circumstances may require that contributions be made to an entity that is tax-exempt under Section 501(c)(3) of the IRC. For questions about the tax-exempt status of UMSL please call the UMSL Office of University Advancement at 314-516-4109. In June 2008, the University of Missouri created a trust named "The Curators of the University of Missouri Special Trust" (Special Trust) and applied for 501(c)(3) tax-exempt status for the Special Trust with the Internal Revenue Service (IRS). The IRS granted tax-exempt status to the Special Trust under Section 501(c)(3) which allows such donors a vehicle to make contributions to the Special Trust for the University of Missouri's benefit. The UM System Treasurer's Office (treasurer's office) established a new Special Trust bank account (Special Trust Account). The EIN is 26-6440629. The Special Trust is controlled by The Curators of the University of Missouri, a public corporation, and that corporation is also the beneficiary of the trust. Gifts to this 501(c)(3) can be designated for an individual campus, department, or any other entity within the University.
Policy and Proceedures:
If a donor requires that contributions be made to an entity with tax-exempt status under Section 501(c)(3), UMSL Advancement should contact the treasurer's office. The treasurer's office, in conjunction with UMSL Advancement, the system's general counsel and the UM System's Controller's Office (controller's office) will determine if the Special Trust should receive the gift.
If a donor wishes to contribute shares of an S-Corp stock, it is likely that the Special Trust Account would be used.
Special Trust Details
Name of the trust: The Curators of the University of Missouri Special Trust - Trustee of the trust: The Curators of the University of Missouri - Bank account number: Contact the system treasurer's office
For gifts to the Special Trust Account, USML should obtain from the donor the cost basis of the gift. The university will report the cost basis to the IRS at a later date.
Processing And Recording The Gift
- The treasurer's office will process the gift into the Special Trust Account at the bank.
- The treasurer's office and the controller's office will record the gift into the PeopleSoft Financial System (accounting system).
- After the gift has fully settled in the Special Trust Account, the treasurer's office will create an Advice of Gift and send the Advice to Development. The treasurer's office will also then transfer the gift to the appropriate university account(s).
- Upon the above transfer of the gift from the Special Trust Account to the university account the treasurer's office and the controller's office will make the necessary adjustments (journal entry, etc.) in the accounting system.
- For donated property over $5,000 (except for certain publicly traded securities) Form 8283, Noncash Charitable Contributions, Part IV Donee Acknowledgment, should be completed and provided to the donor (see instructions on IRS Form 8283).
- The treasurer's office will notify the controller's office of the sale or disposition date of the asset. The controller's office will then prepare an IRS Form 8282, Donee Information Return, to be filed within 125 days after the disposition of the asset.