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GIK value

  • 1.  GIK value

    Posted 08-10-2021 01:57 PM
    I've searched the archives and don't see anything that would apply.

    We've received $5,000 from a foundation to cover the cost of moving and archiving a collection of approximately 200 printed catalogues of various art exhibitions that were funded by said foundation. Our college library is excited to receive both the collection and the funds that will cover the costs to assimilate these into our collection. We have asked for, but did not receive, an estimate of the value of these catalogues. The foundation is very small and it appears they are just happy to have found a home for these materials.

    We will receipt the $5,000 and acknowledge the catalogues (no value to be mentioned), but our finance office wants to know the value of the catalogues. Neither the library nor my office has the expertise or bandwidth to go through and research these for a total value. The donor has not indicated that they are looking for a tax deduction for the catalogues, and we do not expect them to send us an 8283.

    My question is - if the donor won't assign a value, do we need to assign a 'real' value, or can we just assign a nominal value, like $1, so that the GIK portion can be entered into our CRM? What other options do we have?

    Thanks so much - I rely on this community more then you'll ever know!!
    - Anne



    ------------------------------
    Anne Dexter
    Director of Advancement Services
    anne.dexter@marist.edu
    ------------------------------


  • 2.  RE: GIK value

    Posted 08-10-2021 02:34 PM
    The business office, at least, will need a GIK valuation to enter the asset on their books. Assuming none of these are rare collectibles, it looks like the market rate (based on a bit of googling) is about $5/catalog when sold in lots. You might also be able to bring the lot to an art dealer and just have them look through it to confirm there's nothing rare, and give you a sense of the value. From a fundraising compliance perspective, you don't need to assess a value here if the donor is not going to get a deduction. The IRS doesn't care what value you record on a GIK in your donor database.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 3.  RE: GIK value

    Posted 08-10-2021 03:18 PM
    Isaac,
    Thanks for the clarification!

    ------------------------------
    Anne Dexter
    Director of Advancement Services
    anne.dexter1@marist.edu
    ------------------------------



  • 4.  RE: GIK value

    Posted 08-10-2021 03:25 PM
    I agree that you should do your best to establish a value and agree with everything Isaac said.

    CASE also supports recording a nominal value ($1) in the Advancement CRM when you cannot obtain anything more reliable.  Let the Finance Office chase their own booking amount!  CASE further states you can replace that $1 with a more accurate estimate should you obtain that later.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: GIK value

    Posted 08-31-2022 11:43 AM
    Hi John and all,
    Do you have a citation/link for this guidance from CASE?  I searched the global standards but did not find it.  We have a situation where a collection of art was donated in 2021, but the appraisal did not account for 3-4 of the over 100 pieces.  Now, the donor has had those pieces appraised and it turns out that they are worth more than the rest of the collection combined. Your note above seems to indicate above that I should be able to adjust the amount of the original gift accordingly? Or should I book the additional value in this fiscal year, since that is when we received the information?

    Thanks in advance for any guidance!
    Barbara Martell
    Georgia Gwinnett College

    ------------------------------
    Barbara Martell
    Advance
    Georgia Gwinnett College
    bmartell@ggc.edu
    ------------------------------



  • 6.  RE: GIK value

    Posted 08-31-2022 12:01 PM
    I don't have a citation to CASE handy, but the general principles of revenue recognition, for CASE and for general accounting and fundraising tracking would be to record the revenue in the year the gift was received, not the year in which you realized how valuable the gift was. The oversight in valuation doesn't change the underlying financial reality of the donation.


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:







  • 7.  RE: GIK value

    Posted 08-31-2022 12:07 PM
    The CASE Standards do not answer all specific questions.  They provide guidance on what to count, how to count, and when to count.

    Typically, organizations record gifts in kind when the organization receives them.  They are valued, then, in a myriad of ways.  Appraisals are best.  But independent verifications are fine.  And low-value items can be recorded based on input from the donor.

    Remember, all of this is for internal purposes only.  We never share these values with donors. 

    Also, remember that what we decide to count might not be the same as what your Business Office decides to book - if they even want to book a GIK.

    And finally, the Gift Acceptance Committee is there to address any inconsistencies and debates on counting.

    Regarding your current situation, CASE generally suggests that we not count anything until a value is known.  They mention this specifically regarding patents and IP.  If you were unaware of these items - or believed their value was insignificant at the time, an argument could be made to count these at their correct value now - assuming that the value does not include appreciation since the original date of the gift.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987