CASE Reporting Standards

University of ColoradoOffice of Advancement

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Council for Advancement and Support of Education

CASE  is  an  international  association  of  educational  institutions.

CASE  also  offers  a  variety  of  advancement  products  and  services,  provides  standards  and  an  ethical  framework  for  the  profession,  and  works  with  other  organizations   to  respond  to  public  issues  of  concern  while  promoting  the  importance  of  education  worldwide.

CASE Reporting: the Norm

not the Exception

•Policy•Communication

•Local  Ownership

•Data  Transfer

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What Is A Gift?

•Accounting•Reporting  (Counting)•Stewardship

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What Is A Gift?

• Gifts  &  Grants  are  synonymous  (for  CASE  and  CAE  reporting  purposes)

• A  gift  is  the  irrevocable transfer  of  property  or  money  to  a  qualified  organization  and  has  no  donor-­‐imposed  restrictions,  conditions,  or  control

– You  cannot  un-­‐gift  a  gift!

– We  are  going  to  continue  to  promote  the  term  “Private  Support”    when  we  reference  the  transactions

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Let’s Talk About

“Control”

• Once  a  gift  always  a  gift

– Cannot  give  a  gift  back  – 1099s

– Retain  gift  after  a  restricted  program  is  canceled

• Scholarship  recipient  selection

– Donor’s   involvement

– Certainly  cannot  have  a  majority  vote

– Control  based  on  position/power

• Cannot  require  institution  to  take  action  it  otherwise  would  not  take  

• (Gift  Agreement)  Dan  Richie

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Common Gift Myths

• Donation  of  time  or  service.    While  truly  a  charitable  act,  only  a  volunteer’s  REQUIRED  out-­‐of-­‐pocket  expenses  (mileage,  parking,  supplies,  etc.)  may  be  deducted.

– FASB/GASB  may  recognize  as  an  asset

– Expressly  forbidden  as  a  charitable  donation  per  IRS  Publication  526

– Donated  advertising  space  is  a  “service” per  IRS  Revenue  Ruling  57-­‐462

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Common Gift Myths

• The  use  of  a  donor’s  property  by  a  charitable  organization  (partial  interest  – IRS  Pub  526)

– Vacation  home  for  charity  auction

– Office  space  in  lieu  of  rent

– One-­‐time  display  of  artwork  (fractional  gifts  are  the  exception  – and  are  legal!)

– Use  of  software• Basically,  if  the  company  gives  your  institution  a  software  license,  and  the  right  to  use  it  for  a  specific  

period  of  time,  then  it  isn’t  a  gift  – it’s  a  partial  interest  and  it  can’t  be  counted  or  reported  for  purposes   of  the  VSE  or  CASE  Campaign  Survey.  The  donor  would  not  receive  hard  credit.  Instead,  the  donor  can  be  given  soft/stewardship  credit.  On  the  other  hand,  if  there  is  a  complete  transfer  of  ownership  in  software  – i.e.,  the  underlying  intellectual  property,  programming  code,  patent,  etc.  –then  it’s  considered  to  be  an  irrevocable  transfer  of  title  to  intellectual  property  and  is  an  outright  gift.

– “RECOGNITION  CREDIT”

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Gift-in-Kind,

What's it Take?

• What’s  the  determining  factor  for  acceptance  of  a  gift-­‐in-­‐kind?

– Related  use:  The  GIK  must  be  useful  to  the  institution   in  fulfilling  the  purpose  or  mission  for  which  the  institution

– 3rd part  appraisal,  the  University  or  the  Donor  can  not  influence  the  value  of  the  “personal  property”

– Organization  must  sign  a  8283  form  if  the  donor  is  seeking  a  tax  deduction

– *Gift  Use  Agreement  for  Personal  Property  (much  needed  here  at  CU)

• Chancellor,  CFO,  Vice  Chancellor  of  Advancement

Use,  term,  disposal

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So What Is a “Good”

Sponsorship?

• Any  payment  by  any  person  engaged  in  a  trade  or  business  with  respect  to  which  there  is  no  arrangement  or  expectation  that  the  person  will  receive  any  substantial  return  benefit

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“Free” Recognition

A Sponsor Can Receive

• Mention  of  location,  phone  number,  website

• Value-­‐neutral  descriptions,  including  displays  or  visual  depictions,  of  the  sponsor’s  product  line  or  services

• Displays  of  brand  or  trade  names  and  product  or  service  listings

• Logos  or  slogans  that  are  an  established  part  of  the  sponsor’s  identity

• Mere  display  or  distribution  (free  or  at  a  cost)  of  the  sponsor’s  product  at  a  sponsored  activity

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Recognition Cannot

Include:

• Qualitative  or  comparative  language

• Price  information  or  other  indications  of  savings  or  value  

• An  endorsement  or  inducement  to  purchase,  sell,  or  use  the  sponsor’s  service,  facility,  or  product

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The Old

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The CASE Guidelines

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Most items refer to

Campaign.If you’re not

in a Campaign, you should

be planning one!!!!!!

• Gift  Types  and  Methods  of  Reporting

• Gift  Types  and  Counting  Criteria

• Planned/Deferred  Gift  

• Credit

• Counting  and  Reporting

• Outright  Gifts

• Deferred  Gift

• Donor  Purposes

• CASE  Management  Guidelines

• Campaign  Planning

• Handling  Certain  Gifts

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Now, You Too Can

Count Bequest

Expectancies

• Irrevocability  no  longer  required  – too  difficult  to  manage  (State  laws  varied),  and  donor-­‐unfriendly  to  request

• Pledged/Executed  (not  found)  during  campaign

• Should  consider  age  and  variable  valuation:

– Under  50  -­‐ $0

– 50-­‐69  – Present  value

– 70+  -­‐ Face  value

• Report  separately  from  outright  and  irrevocable  deferred  gifts

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Back to the Future for

Irrevocable Deferred

Gifts

• May  once  again  count  at  face  value  (3rd

edition  went  strictly  present  value)

• Separate  goals  should  be  created  for  these  as  well  –You  can  bring  in  more!    But  more  here  does  not  mean  less  “there”

• The  issue  of  transparency  suggests  that  you  still  report  the  present  value  (IRS  deduction)  of  these,  too,  but  face  value  counts  towards  goal

– Only  the  present  value  counts  for  VSE  purposes

• Minimum  ages  should  be  considered

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Conditional Pledges

• Reasonable  expectation  that  the  conditions  will  be  met  during  the  campaign.    Examples  include

– Challenges  – I’ll  give  you  mine  if  you  raise  the  other

– Capital  Commitments  – If  you  build  it  I  will  pay

• Appropriate  documentation

• Pledge  A,  B,  C

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Counting Government

Funds

• Actually,  no  change  – you  never  count  government  funding  from  any  government  for  any  reason

• Acknowledgement  that  government  funds  are  helpful  in  achieving  strategic  goals,  can  be  leveraged  to  secure  private  gifts,  and  recognize  that  some  fundraising  staff  help  secure

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Counting Government

Funds

• Counting  emphasis  has  always  been  on  raising  charitable  donations  from  the  private  sector

• Impossible  to  level  the  playing  field  when  looking  at  large  public  research  universities  compared  to  small  private  colleges

• Securing  government  funds  does  not  qualify  as  a  private philanthropic  act,  however  we  most  certainly  can  and  should  recognize  its  value  in  achieving  institutional  goals  (UCCS)

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REPORTING

OCG, OGC & OSP

• Stay  tuned

• Local  control  and  accountability

• Better  data  feed  from  source

• Foundations/Corporations

• Partners  

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What Doesn’t Count*

• Advertising  revenue• Alumni  membership  dues/fees• Appraisal  costs  and  other  expenses  

associated  with  conveying  a  gift• Contract  revenues  (including  clinical  

trial  funds)• Contributed  services• Partial  interest• Standard  discounts  on  purchases  (does  

not  include  true  bargain  sales)• Earned  income  transfer  payments  from  

money  earning  programs/businesses• Gifts  or  pledges  counted  before;  

payments  on  pledges  or  bequests  made  before

*Applies to Campaigns AND VSE

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What Doesn’t Count*

• Gifts  to  social  organizations• Governmental  funds  – ALL  kinds• Oral pledges  (except  phone!)• Written-­‐off  pledges• Investment  earnings  on  gifts  – includes  

gains/losses  on  sales  of  stock/other  property

• Funds  from  exclusive  vendor  relationships:  Affinity  credit  cards,  pouring  rights,  royalties,  or  other  contractual  obligations

• Non-­‐gift  portion  of  QPQ  transactions• Surplus  income  from  ticket-­‐based  

operations

*Applies to Campaigns AND VSE

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Additional Resources

– www.FundSvcs.org

• Association  of  Advancement  Services  Professionals  (AASP  –Advserv.org)

• Advancement  Services  book  

• CASE  Reporting  Standards  &  Management  Guidelines  -­‐ &  10/2011  Clarification

• IRS  Publications  526,  561,  &  1771

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Questions

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How Will This

Benefit Us?

– Unrelated  use:    May  still  qualify  as  a  gift-­‐in-­‐kind  (that  you  can  count  and  the  donor  can  deduct  – sort  of),  provided  it  was  given  specifically  to  be  sold  (charity  auction)

– “the  Treasury  Regulations  under  section  170  provide  that  if  a  donor  contributes  tangible  personal  property  to  a  charity  that  is  put  to  an  "unrelated  use",  the  donor's  contribution  is  limited  to  the  donor's  tax  basis  in  the  contributed  property”

– “The  term  "unrelated  use"  means  a  use  that  is  unrelated  to  the  charity's  exempt  purposes  or  function  .  .  .  The  sale  of  an  item  is  considered  unrelated,  even  if  the  sale  raises  money  for  the  charity  to  use  in  its  programs” 27

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