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© National Association of Charitable Gift Planners, 2009—All rights reserved.
shall be counted at their fair-market value.
(2) Caution should be exercised to ensure
that only gifts that are convertible to cash or
that are of actual direct value to the
institution are included in value are treated
like other gifts-in-kind, but so called mega
gifts of software and hardware may require
special care. These types of gifts can be
especially complex, and institutions should
exercise extreme caution in counting these
gifts in campaign totals.) Gifts with fair-
market value exceeding $5,000 should be
counted at the value placed on them by
qualified independent appraiser as required
by the IRS for valuing non cash charitable
contributions. Gifts of $5,000 and under may
be reported at the value declared by the
donor or placed on them by a qualified
expert.
e. Nongovernmental Grants and
Contracts: Grant income from private,
nongovernmental sources should be reported;
contract revenue should be excluded
. The
difference between a private grant and contract
should be judged on the basis of the intention of
the awarding agency and the legal obligation
incurred by an institution in accepting the
award. A grant is bestowed voluntarily, without
expectation of any tangible compensation. It is
donative in nature. A contract carries an explicit
quid pro quo relationship between the source
and the institution.
f. Realized Testamentary Gifts: All
bequests realized during the defined duration of
the campaign should be counted at full value in
campaign totals, insofar as the amount received
exceeds commitments counted in a previous
campaign. If a revocable testamentary
commitment made during the current campaign
and counted in Category C matures during the
same campaign period, it should be removed
from Category C and included as an outright gift
in category A.
g. Realized Retirement Plan Assets: All
gifts of retirement plan assets realized during
the defined duration of the campaign should be
counted at full face value in campaign totals to
the extent the gift was not counted as a
commitment in a previous campaign.
b. Marketable Securities: Marketable
securities should be counted at the average of
the high and low quoted selling prices on the gift
date (the date the donor relinquished dominion
and control of the assets in favor of the
institution). If there were not any actual trades
on the gift date, the fair-market value can be
computed using the weighted average of the
mean of the high and low trading prices on a
date before and a date after the gift date, if
those dates are a reasonable number of days
before and after the actual gift date. If there
were no actual trades in a reasonable number
of days before and after the gift date, then the
fair-market value is computed based on the
average of the bid and the ask price on the gift
date. Exactly when dominion and control has
been relinquished by a donor depends on the
method of delivery of the securities to the
donee. These reporting standards do not
address the multitude of tax rules regarding the
delivery of securities by the donor to the donee.
c. Closely Held Stock:
(1) Gifts of closely held stock exceeding
$10,000 in value should be reported at the
fair-market value placed on them by a
qualified independent appraiser as required
by the IRS for valuing gifts of non-publicly
traded stock. Gifts of $10,000 or less may
be valued at the per-share cash purchase
price of the closest transaction. Normally,
this transaction will be the redemption of
the stock by the corporation.
(2) If no redemption is consummated
during the reporting period, a gift of closely
held stock may be credited to campaign
totals at the value determined by a qualified
independent appraiser. For a gift of $10,000
or less, when no redemption has occurred
during the reporting period, an independent
CPA who maintains the books for a closely
held corporation is deemed to be qualified
to value the stock of the corporation.
d. Gifts of Property:
(1) Gifts of real and personal property that
qualify for a charitable deduction should be
counted at their full fair-market value. Gifts-
in-kind, such as equipment and software,