Chapter 3: Acquisition and Receiving
Michigan Tech receives non-cash gifts such as property, materials, and supplies from corporations, companies, individual donors, other universities, and sponsors. In order to insure continued benefit from this generosity and meet requirements established by the IRS and University policy, it is important that the procedures and guidelines are followed.
Departments contacted directly by a potential donor should refer to:
- Michigan Tech Fund (individuals)
- Corporate Development (corporations and companies)
- Financial Services and Operations (universities and sponsors).
Physical transfer of gift-in-kind items to Michigan Tech should not be made prior to notification and approval. Official receipts or other acknowledgements stating the value of the donation cannot be initiated from receiving departments.
Departments must verify that they have a need or purpose for the gift-in-kind donation and are responsible for the care, storage, and maintenance of the items, including future disposal costs. If equipment contains hazardous materials, disposition costs and methods must be carefully considered prior to acceptance. Equipment which may contain or use radioactive sources or produces x-rays must be approved by the department of Occupational Safety and Health Services, OSHS.
Gifts which require changes to existing University facilities, and gifts that require any obligation of the University for maintenance and support, must be approved by the executive director of Financial Services and Operations before acceptance.
The Board of Trustees approves all capital additions in excess of $3,000,000. Capital additions from $50,000 to $250,000 shall be approved by the Treasurer, and capital additions from $250,000 to $3,000,000 shall be approved by the President of the University. All capital additions in excess of $3,000,000 must be approved by the State of Michigan’s Legislative Joint Capital Outlay Subcommittee regardless of the source of acquisition.
Any gifts which require a change in use of space must be reviewed and approved by Occupational Safety and Health Services and Facilities Planning. As a general rule, any gifts-in-kind of any significant size and value must be approved prior to acceptance.
The university should retain all corporate and private donations (valued over $500) for at least three years from date of acquisition unless the donor authorizes otherwise in writing. If the item is sold prior to the three year limit, both the donor and IRS may need to be notified.
If the donor requests credit for the gift for their tax purposes and the gift has a value exceeding $5,000, it is the donor's obligation to obtain a certified appraisal stating the fair market value of the gift and provide that appraisal. For gifts-in-kind valued under $5,000 where the donor wants tax credit, it is the donor's responsibility to obtain a fair market value from a recognized expert in writing.