Gift/Pledge Processing

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Gift/Pledge Processing

• Presented by Donna Steinmetz
• Director of Gift/Pledge Processing Compliance

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Topics of the Day

• Gift/Pledge Processing What we do
• Entering CRRs
• How to request new gift accounts
• MoCodes/PeopleSoft accounts

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Gift/Pledge Processing

• Gift Processing deposits all gift dollars into
  the appropriate accounts, sets up and maintains
  all pledges including payroll deductions,
  receipts all donors, along with maintaining the
  giving histories of all alumni and friends.

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Gift/Pledge Processing Staff

• Office Assistant
• Rebekah Sanders 882-3703
• Reconciliation/Payroll Deductions/KBIA
• Courtney Bartels 882-0274
• Donor Relations
• Rick Ricketts 884-1646
• Major Donor
• Brandi Phillips 882-5152
• Athletics/Credit Cards/Pledges
• Crystal Rudloff 884-7709
• Mizzou Annual Fund/Collegiate License Plates
• Angie Randolph 882-5154
• Rebekah Sanders 882-3703
• Scanning/Linking/Daily Receipts
• Jennifer Orman 882-0538
• Erik Platner 882-2616

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Statistics

• Transactions Processed

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What is a Gift?

• IRS defines a charitable contribution as a
  donation or gift to, or for the use of, a
  qualified organization. It is voluntary and is
  made without getting, or expecting to get
  anything of equal value.
• IRS Publication 526

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Life of a Gift

• Day 1
• Check source document are received
• Source document is date stamped.
• Check and source document are gift numbered.
• CRR (Cash Received Report) is prepared,
  depositing money to Development Clearing Account.
• Donor ID and account code looked up and applied
  to source document.
• Batch is created in Advance.
• Gift recorded in Advance

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Life of a Gift

• Computer programs are run which do the following
• Produce reports showing deposit and advance
  entries balance.
• JEs (Journal Entries) are created, moving monies
  from clearing account (C4779) to designated fund.
• Accounting system is updated, which shows monies
  deposited in specific accounts.
• DDRs (Daily Development Reports) created.
• Advance is updated.
• Receipt file is built.

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Life of a Gift

• Day 2
• Deposit is sent to bank.
• Receipt file is reviewed by Gift Processing and
  Donor Relations.
• Day 3
• Receipts are printed, reviewed, folded, stuffed,
  and mailed.
• Total processing time is 48 hours.

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Checks Received by the Department

• Checks should be given to the departments fiscal
  officer. The fiscal office will prepare an
  online Gift CRR and an online Advice of Gift.
  The Gift CRR, Advice of Gift and checks should be
  sent to cashiers office for verification and
  posting (all funds are to be deposited on the day
  they are received).
• COPIES of the Gift CRR and Advice of Gift, COPIES
  of the check and correspondence are to be sent
  to Gift Processing, Room 109 Reynolds Alumni
  Center
• Gift Processing does not realize gift dollars are
  sitting in the Clearing Account waiting to be
  processed until notified by the department. It
  is at the time of recording that these dollars
  are moved from clearing to the designated
  accounts by Journal Entry.

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Checks Brought Directly to Gift Processing

• Checks brought directly to Gift Processing should
  be accompanied by appropriate Advice of Gift
  form
• Cash gifts of 1,000.00 or more use Advice of
  Gift form UM9.
• Cash gifts under 1,000.00 use Advice of Gift
  form UM9a.
• Gifts in kind use Advice of Gift form UM9

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Non-Cash Gifts (Gifts-in-Kind)

• What are they?
• Gifts-in-Kind are gifts of tangible or intangible
  personal property (other than cash or securities)
  that are deductible by the donor under federal
  tax law.
• The IRS uses different terminology
• They only refer to these as Property other than
  cash (non-cash gifts)

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Types of Non-Cash Gifts

• Publicly Traded Securities
• Closely Held Securities
• Tangible Personal Property
• Real Property
• Intangible Personal Property
• Motor Vehicles

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Entering a CRR

• Cashier Deposit with Gift Money
• If a department directly receives a gift and that
  department normally makes cashier deposits,
  select Cashier Deposit with Gift Money. The
  credit account will be a gift clearing account
  for the Columbia campus. The MoCode/PS Account
  combination is entered automatically.
• Note A CRR must be prepared in advance of
  depositing funds with the campus Cashier's Office.

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Entering a CRR

• On the CRR intro screen, choose Cashier Deposit
  with Gift Money
• If you also have a non-gift deposit, you may
  either choose a template or choose Don't Use One.
  If you only have a gift deposit, choose Don't Use
  One. (If you do not have a personal template, you
  may go back and create one).
• Enter the following information on the CRR form

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Enter the following information on the CRR form

• Receipt Details
• Currency - Enter Currency as count of TYPE of
  bills received, not by the total dollar amount.
  Enter by 100s, 50s, 20s, 10s, 5s, and 1s.
• Coins - Enter Coins under each TYPE of coin
  received, not by the total coin amount. Enter by
  1.00s, .50s, .25s, .10s, .05s, and .01s.
• Total Check Amount Enter the sum of all checks
  in dollars and cents.
• Number of Checks Enter the count of the actual
  number of checks in the deposit.
• Total Currency Automatically calculated as
  currency is entered.
• Total Coins Automatically calculated as coins
  are entered.
• Total Receipts Automatically calculated sum of
  currency, coins, and checks

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Enter the following information on the CRR form

• Deposit Details
• Dates - An optional field strictly for the
  department's use. If used it must be entered in
  mm/dd/yy format. For reports of sales to others
  (tickets, products, etc.), the date will normally
  be the latest business date for the sales. For
  other items, the date can be the date received or
  the date of the check.
• Explanation/Source of Receipts Automatically
  entered as "Gift Clearing Account".
• MoCodes Automatically entered based on the
  campus's gift clearing account.
• PS Accounts Automatically entered based on the
  campus's gift clearing account.
• Amount Enter the dollar amount for that portion
  of the deposit.
• Total Deposit Automatically calculated from the
  above Amount field(s).
• Preparer's Comments Enter the purpose of the
  CRR. This is mandatory and requires a minimum of
  20 characters. (e.g. "Daily receipts from
  5/20/02").

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Enter the following information on the CRR form

• Click Submit to submit the entry or Cancel to
  cancel the entry.
• Click on Continue with Gift Processing to enter
  Advice of Gift.

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Enter the following information on the CRR form

• Enter the following information on Advice of Gift
  for EACH donor
• Donors Name Enter donors full name
• Donors Address Enter donors full address
• Date of Gift Enter the date the gift was made
• Amount Enter the amount of the gift
• Preferred MoCode Enter the MoCode for the gift
  to be distributed
• MoCode/Account Comments Enter any comments
  about preferred MoCode and Account
• Restrictions and/or Special Instructions Enter
  any restrictions or special instructions that
  came with the gift

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Enter the following information on the CRR form

• Click Save to save the donor information. If
  there is another donor, enter the information and
  click Save again.
• Click on Continue to return to initial CRR screen
  or on Render Printable PS CRR if you want to
  print a copy.
• Detailed instructions can be found at
  http//www.umsystem.edu/ums/departments/fa/control
  ler/applications/pscrr3.shtml

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Acknowledgements

• All donors receive an official University of
  Missouri receipt within five days of Gift
  Processing receiving the donation.
• Year-end summaries have been discontinued.

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Deans Letters

• Criteria is established by the Dean
• Excel file is electronically sent to the Deans
  office every Tuesday Morning.
• Deans office prepares and mails letters from
  Excel file.

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Matching Gift Forms

• If a donor works for a company, which will match
  his/her gift, there will be a company matching
  gift form, which needs to be verified and
  completed by the University.
• The University has ONE specified individual in
  Development who is authorized to sign these
  forms. That is the Director of Gift/Pledge
  Processing Compliance. Send the form along with
  a copy of the CRR for processing to Gift
  Processing, 109 Reynolds Alumni Center
• If the form is received after the gift, send to
  Gift Processing for completion.

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Payroll Deductions

• If a donor wants to contribute by payroll
  deduction, use form UM107
• Gift Processing notifies the Payroll Department
• Individuals with payroll deductions do not
  receive mailed acknowledgements. The amount
  contributed is shown on each pay stub. They will
  however receive year-end tax receipts
• Payroll Deductions forms are supplied by Gift
  Processing, 882-0274

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Pledges

• Pledges are commitments to make future gifts.
  Only the entity exercising legal control over the
  assets to be given can make a pledge.
• Donor cannot commit funds from a donor advised
  fund or community foundation.

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Pledge Documentation

• Signed Pledge Form
• GASB 33 Checklist
• The checklist and documentation requirements do
  not apply to pledges under 1,000. For pledges
  25,000 and under an e-mail from the donors home
  or business computer outlining the pledge
  agreement is acceptable documentation of the
  donors intent. The checklist is required for
  all pledges 1,000 and over.
• If it is not possible to obtain signed
  documentation from the donor, the development
  officer must send a confirmation letter to the
  donor, outlining the amount of the pledge,
  payment period, payment frequency, payment
  amount, and designation of the funds. The letter
  should ask the donor to acknowledge the
  information contained in the letter by signing
  and returning in an enclosed envelope.
• Electronic Pledge Form must be completed on line
  and after the information has been typed in, hit
  the submit button at the bottom of the screen and
  it is automatically sent to Gift Processing.
• Electronic Pledge Form and Checklist can be found
  on the TISG Website. https//cf.iats.missouri.edu/
  gift_reports/index.cfm?CFID2622264CFTOKEN735454
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• Hard copies of signed documentation should be
  routed to 109 Reynolds Alumni Center. If you
  need a pledge recorded immediately, you can fax
  the signed documentation to 884-3148.

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Pledge Payments

• When payments are received, the Advice of Gift
  form should indicate whether the gift should be
  applied to a pledge.
• A pledge was sent over for ABC Company. When
  payments were received the Advice of Gift Form
  indicated a gift from Jane Doe, these payments
  were never applied to the pledge and therefore
  caused double counting.

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Delinquent Pledges

• A report of delinquent pledges is sent to the
  Development Officer each month.
• The report should be reviewed and any changes or
  modifications should be sent to Gift Processing.

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Request for New Non-Endowed Gift Account

• New gift account requests for non-endowed funds
  should be submitted to MU ALUMNI, GiftAcctReq
  using the UM New Chartfield Request Form
• How to Access Outlook Forms
• In Outlook Go to File New Choose Form
• Look in Organizational Forms Library -
  highlight the form you need and click open
• Fill out the form and send to your Fiscal
  Officer. Your Fiscal Officer must be the one to
  submit the form to the email address noted above.
• Its a good idea to include a copy for your
  record

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Request for New Non-Endowed Gift Accounts

• Be sure to include specifics as to what the funds
  will be used for
• Indicate whether the University committed
  resources or services as a condition for the
  gifts
• Whether the donor has requested an accounting of
  the use of the funds and of results of the
  programs or projects undertaken
• Whether the donor retains any control over the
  gifts, i.e., selection of scholarship recipients,
  etc.

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Request for New Endowed Gift Accounts

• New endowed gift account requests should be
  submitted to the Office of Gift Planning
  Endowments.
• You should contact Paula Schlager to assist you
  with your requests.
• All new endowed gift account requests must go
  through the Office of Gift Planning Endowments.

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References

• CASE Reporting Standards Management Guidelines
• For Educational Fundraising, 4th Edition
• Charitable Contributions IRS Pub. 526
• http//www.irs.gov/pub/irs-pdf/p526.pdf
• Charitable Contribution IRS Pub. 1771
• http//www.irs.gov/pub/irs-pdf/p1771.pdf
• Updates on Disclosure and Substantiation Rules
• http//www.irs.ustreas.gov/pub/irs-tege/topic-g.p
  df
• Office of the Controller website
  http//www.umsystem.edu/ums/departments/fa/control
  ler/applications/pscrr3.shtml
• Accounting Services website http//accounting.miss
  ouri.edu/outlook_forms.html

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Questions????