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Acceptance & Administration of Gifts Policy
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Acceptance & Administration of Gifts Policy
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Financial Affairs
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This policy sets out policies of the University that are applicable to the acceptance and administration of gift funds received from outside donors to support instructional, research, public service, student aid, or other recognized University functions or objectives.


The term “gifts,” “grants,” “cooperative agreements,” and “contracts” are often used synonymously and are grouped together in source classification of institutional funds. However, in view of the considerable differences in policies pertaining to acceptance procedures and program administration, the following general distinctions will be observed.


This term designates funds or property voluntarily bestowed upon the University without expectation of return or compensation on the part of donor. For institutional accounting and administrative purposes, “gifts” are classified into the following two main categories:

  • Unrestricted Gifts.

    This term designates gifts upon which the donor has not placed definite restrictions as to method or purpose of expenditure, therefore leaving the determination of the appropriate use of such funds to the University. This term may also be applied to gifts received under a continuing solicitation program for general support of an institutional activity.
  • Restricted Gifts.

    This term designates gifts upon which the donor has identified definite restrictions on the purpose for which or the conditions under which such funds may be expended or disbursed. The University will make every effort to fulfill that purpose and conditions.

Grants and Contracts.

The distinction between “grants” and “contracts” is less pronounced than between these terms and “gifts.” In many cases, the distinction depends only on whether the sponsor or grantor designates the governing document as a “grant” or as a “contract.” General definitions are as follows:


Funds received from outside sources for the purpose of supporting the public service, research, or instruction functions in a specific area of mutual interest to the institution and the grantor. The governing documents furnished by the grantor at the time of such grant awards usually designate the funds as “grants” and specify the degree of accounting and reporting obligations on such funds.

Contract Funds.

Funds received by the institution for specific services rendered to agencies, corporations, or others under negotiated contracts. These contracts are formal written documents which specify the rights and obligations of the parties involved.

Cooperative Agreements.

A “cooperative agreement” is the appropriate relationship between a governmental agency and a recipient when the principal purpose of the relationship is to transfer money, property, services, or anything of value to the recipient in order to accomplish a public purpose. The purpose may be categorized by:

  • Support or stimulation authorized by governmental statute, rather than acquisition.
  • Purchase, lease, or barter, of property or services for the direct benefit or use of the governmental entity.
  • Substantial involvement between the agency, acting for the governmental entity, and the recipient during performance of the contemplated activity.


  • No solicitation of gift funds or property shall be made by anyone in the name of, or for the benefit of, the university without the prior approval of the Rector or his designated representative, the Supervisor General of Public Relations & Media Information. By administrative authority, all fund-raising activities of the University and its units are under the administrative supervision of the Supervisor General of Public Relations & Media Information.
  • Any dean, director, faculty, or staff member who wishes to undertake any type of fund-raising program or solicitation of contributions in the name of the University from alumni, business, industry, foundations, or friends, or who seeks to establish a fund-raising program, shall follow the guidelines established for this purpose by the Supervisor General of Public Relations & Media Information.

Procedure :



  • To ensure appropriate accounting treatment and administration of gift funds in accordance with the wishes of, or agreement with the donor, departments must furnish the Supervisor General of Public Relations & Media Information with the official agreement or written documentation which designates the purpose or restrictions on the use of such funds. Such documents, information, and requests for account numbers will then be directed to the Director of Financial Affairs to receipt of this information, and such information is required for the permanent document files on each such account.

Accounting Treatment of Gifts

  • Generally accepted accounting principles require “unrestricted gifts” be accounted for by the institution as revenue of Current Funds. Such funds may be budgeted, appropriated, and expended for any appropriate institutional purpose through the institution’s normal fiscal procedures.
  • Restricted gift monies available for current expenditure in accordance with the purpose designated by the donor will be credited to an appropriate restricted account within the specified college or department.
  • The donor’s written communication at the time of gift determines the placement of the funds and how the funds can be spent. If the donor does not clarify his or her intent upon donation of the gift, the funds are considered totally unrestricted. If the donor restricts the donation, then the funds are placed in an appropriate restricted account.