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Criteria for Determining if a Contribution is Charitable


WVUF or WVURC Guidelines

The WVU Foundation can only hold certain type of funds. Typically, the WVU Foundation only hold funds that have charitable intent. Please review the following images for general guidelines, however, please note that most of these determinations are decided on a case-by-case basis.  If you have questions, please reach out to the Office of Corporate and Foundation Relations.  

Work flow chart for your reference is here.  

Current Facilities and Administration Rates are located here.

WVU Rate Agreement FY 2022


  • Criteria for Determining if a Grant Qualifies as a Charitable Contribution


    Charitable

    Voluntary donation to tax-exempt organization exclusively for religious, charitable, scientific, literary, or educational purposes IRC §170(c)(2)(B) and (D); IRS Pub. 526 (2010) Source: Internal Revenue Manual (IRM) http://www.irs.gov/irm/index.html


    Not Charitable

    Exchange transaction having potential commercial benefit or profit that does not support charitable purposes, i.e., accrues to an individual or a for profit corporation Treas. Regs. §53.4944-3(a)(1)(ii); Scheidelman (T.C. Memo. 2010-151); Kaufman (136 T.C. No. 13)

    Other characteristics of non-charitable contributions: Condition precedents (Treas. Reg. 1.170A-1(e); Rev. Rul. 79-249, 1979-2 C.B. 104) Material restrictions (Treas. Reg. 1.507–2(a)(8)(v)) Earmarks (IRC 170. Section 3.03 of Rev. Proc. 82-39)


    Irrelevant Criteria

    • Unexpended funds must be returned

    • Financial reporting is required

    • Progress/activity reporting required

    • A signed grant agreement is required

    • Expectation of deliverables

    • Scope of work, budget, and timeline

    • Requires regulatory approval

    • Agreement addresses ownership or license of intellectual property

    • Insurance or indemnification is required

    • Record keeping, accounting, and disclosure requirements

    • Publicity restrictions or requirements

    • Prohibited activities or uses of funding

    • Enforceable schedule, performance milestones



    Criteria for Selecting the Correct Type of University Account

    Gifts, Grants, and Contracts for Research

    Criteria for Selecting the Correct Type of University Account

     

    Criteria for Selecting

    the Correct Type of University Account

    Gift

    Grant

    Contract

    • Unexpended funds do not revert to the sponsor

    • No itemized budget

    • No specific period of performance

    • Transfer of funds or goods is irrevocable

    • No formal financial accounting required beyond a general report of expenditures

    • May be restricted to a specific area of research or unrestricted; donor may define the purpose

    • No requirement regarding disposition of tangible or intangible property (inventions, copyrights or rights to data)

    • Has a budget that details how the funds will be used

    • Financial reports are required

    • Has a defined period of performance

    • Sponsor retains the right to revoke the award and require the return of unused funds

    • Best efforts are used in completing the research

    • Benefits the grantee by furthering its own purposes or programs

    • PI defines the scope of work or submits a proposal

    • Sponsor anticipates a potential commercial benefit as a result of the work sponsored

    • May involve some supervision or control by sponsor

    • Sponsor retains the right to terminate the contract

    • Publication may require review/approval of the sponsor

    • Benefits the sponsor; carries out research needed by the sponsor

    • Recipient is paid only if the work is accomplished

    • Sponsor or Sponsor and PI jointly define the scope of work



  • Corporate in-kind donations
  • Gifts-in-kind from corporations are a valuable way of benefiting WVU through a charitable gift to the WVU Foundation. Gifts-in-kind include donations of property other than cash and marketable securities such as equipment, technology, furnishings, automobiles, software and licensing. A gift in kind requires an official transfer of ownership (or in the case of software the use) of property from the donor to the Foundation. The IRS requires the donor to determine the fair market value of the gift for corporate tax reporting purposes. The Foundation will issue a gift-in-kind receipt consisting of a brief description of the donated property. The Foundation will recognize the donor for the value of the gift without referencing or receipting a specific dollar amount.

    Gifts-in-kind that have a fair market value of more than $5,000 may require the completion of IRS Form 8283. Acceptance of a gift-in-kind is made by officials at WVU. Further, gifts-in-kind that involve unique handling provisions or require a consequent use of University resources such as personnel costs, storage facilities, set-up costs or license fees may require a written agreement between the donor and the University.

    Corporate gifts-in-kind of $25,000 or more should be substantiated by a list of the donated property, inventory, or equipment along with a record of the software and the length of or type of licensing provided with a value for any annual support agreements. The substantiation may be in the form of signed correspondence from the corporation.

    It is the practice of the WVU Foundation to transfer ownership of gift-in-kind assets to WVU unless directed otherwise by the donor and WVU.    

    How to donate a gift-in-kind

    The Gift-in-Kind Form should be completed. The unit/college development officer will provide the form and assist in this process, allowing the donor to determine fair market value and fill in the description of the gift in the space provided. IRS regulations require the donor to determine the fair market value. For corporate gifts of $25,000 or more, a letter or email from a representative of the corporation stating the fair market value with an accompanying inventory of the donated property is acceptable.

    When the fair market value is over $5,000, the donor is required to fill out IRS form 8283, attach a qualified appraisal when instructed and complete the form by a signed declaration of appraiser. The exception to this is C Corporations. The completed paperwork can be given to your college or unit contact who will then forward it to the WVUF where the transaction will be acknowledged and receipted. The IRS Form 8283, which is acknowledged by the Foundation, will be returned to you with the gift receipt. The Foundation recommends that the donor consult with his/her tax advisor to determine the appropriate tax consequences of any charitable contribution.

    The WVU Foundation-issued gift receipt will make no reference to the fair market value of the gift-in-kind, only a brief description of the donated property. The Foundation will record the fair market value for recognition purposes only.
    Any gift-in-kind that is determined by WVU officials to be inappropriate for permanent preservation may be disposed of by the University. Donors are asked to complete and sign an authorization form providing the Foundation instructions for publicizing the gift-in-kind.

    Whenever the items cannot be used for an educational purpose, the donor’s charitable deduction will be limited to the lesser of the cost basis or fair market value. Gifts of items with no related use will be reviewed on a case-by-case basis for acceptance.

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