We've been receiving a lot of out of the ordinary gifts in the last year or so (for which I'm grateful), and the latest involves the gift of mineral rights. A donor gave us mineral rights that my institution sold for $800,000. To sell the rights the institution accrued $150,000 in legal and brokerage fees. Both of those figures are fuzzy numbers that I'm using for the sake of this example. The question we're kicking around is if the gift amount that should be recorded in our donor recognition software is $800,000 or $650,000. Our finance department believes it should be $650,000, and my office is saying $800,000. Can anyone offer any insight on this?
Here-we would record and recognize the donor at $800K. That is the value of the GIK. Similarly, when I accept a horse, I do not remove the cost of feeding/stabling the horse from the value assigned the GIK. Hope I am not missing something about your question. ��