Accounting Handbook: Gift Revenues & Recognition

Accounting Handbook: Gift Revenues & Recognition

December 3, 2019 0 By Kody Olson


Are you responsible for recognizing gift revenue
at the University? If you receive charitable contributions in
the form of cash, checks, credit cards, or other forms of currency, the Gift Revenues
& Recognition procedures apply to you. Organizational units should process financial
support to the University as a gift if it meets all of the designated criteria. When receiving a gift from a donor, the University
provides the donor with nothing other than recognition of the gift
and disposition of the gift in accordance with the donor’s wishes. Let’s take a quick look at what that means. Generally speaking,
gift revenues arise when an item of value is given to the University by a donor, and
the donor neither expects nor receives anything of economic value in return,
except as included with fundraising events or life income arrangements. The donor may receive some indirect benefits
– and that’s OK. When the cash is received, gift revenues must be classified as Non Operating Revenues Unless the gifts are restricted for capital
assets, which must be classified as Capital Revenues CU’s gift recognition procedures cover
Gift Characteristics, Gift Determination and Gift Recognition Basis To find out more, see the Accounting Handbook
chapter on GIft Revenues & Recognition. If you’d like to learn about specific gift
handling procedures – including deposit – see the Accounting Handbook chapter on Gift/Charitable
Contribution Processing. And if you have any questions:
Contact your campus controller’s office.