'Gift in Kind' Definition

A Gift in Kind is a tangible item, good, or service the University typically would otherwise have to buy if the item, good, or service had not been donated. Gift in Kind is often abbreviated as 'GIK' and can also be referred to as a non-monetary donation. 

Considerations for determining whether to accept a gift in kind:

• Gift should be relevant to the mission of the University and further the work of departments and programs at the University.
• Donor’s intent should match the interests of the University.
• Consideration should be given to potential future costs associated with accepting the gift (maintenance, repair, storage, etc.).
• Consideration and formal evaluation should be performed related to future competitive bidding concerns, and any potential legal and/or insurance concerns associated with accepting the gift.

Instructions for L&S Departments/Programs: Accepting a Gift in Kind

1. Complete the Gift in Kind Routing Form.
2. Email the following to L&S Gift Management: budgetoffice-gifts@ls.wisc.edu. 
   
   • Completed Gift in Kind Routing form.
   • Supporting documentation
   • Gift in Kind agreement: attach if requested by the donor.
3. The L&S Gift Management team reviews the materials and sends to the Campus Gift Management team for processing.
4. Campus Gift Management records the donation in Workday, which is subsequently reported to the Board of Regents.
5. Unless otherwise notified, the department coordinates taking physical custody of the item.
6. After the item has been received by the department, the department is responsible for issuing a Gift in Kind Acknowledgment Letter to the donor. A copy of the letter issued needs to be provided to Campus Gift Management. Do NOT include an estimated value of the donation in the Donor Acknowledgment Letter. Any Form 8283 requested by a donor can be signed by Campus Gift Management on behalf of UW-Madison.

Other scenarios

• There may be instances when it is not practical to complete the GIK Routing Form prior to taking physical custody of the item. This is okay. When this happens, the department can complete the GIK Routing Form as soon as possible and follow the process outlined above.
• If a department/program accepts gifts in kind on a frequent basis, or if a high volume of gifts is received, it is acceptable to consolidate the processing and reporting for a period of time. Some examples:
  • Record the name and address of the donors, and the description of items donated so acknowledgment letters can be issued.
  • Create a listing of donations received in a monthly period.
  • Complete one GIK Routing Form for that month's donations and attach the detailed listing to the form for processing.

Supporting Documentation

Recommended forms of support:

• Third party appraisal
• Itemized listing
• Invoice or quotation of item or similar item
• Published value of the item or similar item, such as web searches, online or physical catalogs, or online auction sites.

Supporting documentation is needed to substantiate the value of the item, and is required if the gift is considered capital equipment. The campus Property Control team will track the item as an asset to the University, in the Asset Management System. This means that the item will be insured. The item will be included in depreciation calculations that impact the University's financial statements. Due to these reasons and to avoid risk upon audit, it is important to include documentation that reasonably supports the estimated fair value assigned.

Gifts in Kind Acknowledgment Letter

• Once approval has been received and the item(s) have been received by the campus department, the department is responsible for issuing a Gift In Kind Acknowledgment Letter to the donor. The language used in the letter template should be incorporated for tax purposes.
• Send copies to the L&S Budget Office, budgetoffice-gifts@ls.wisc.edu and Campus Gift Management, giftmgt@bussvc.wisc.edu.
• Do NOT include an estimated value of the donation in the Donor Acknowledgment Letter. Any Form 8283 requested by a donor can be signed by Gift Management on behalf of UW-Madison.
• If the item(s) donated is deemed to be capital equipment property, Gift Management will provide documentation to Property Control so the asset can be properly tagged and added to the Asset Management System.

Capital Equipment

Criteria for capital equipment:

• It has an estimated fair value of $5,000 or more
• It has an estimated useful life of one year or longer

If the item being donated meets the definition of capital equipment, supporting documentation must accompany the GIK Routing Form. 

Gift in Kind Agreement

If a gift in kind agreement is being requested by the donor, email Gift Management (giftmgt@bussvc.wisc.edu) for signature, and copy budgetoffice-gifts@ls.wisc.edu. Gift Management will consult with Risk Management or Legal Services as needed, and sign on behalf of UW-Madison. Departments do not have signature authority for these agreements.

Gift in Kind Resources

• Instructions from the Division of Business Services: https://businessservices.wisc.edu/accepting-payments/gifts/gifts-in-kind/
• Gift in Kind Routing Form: https://www.busserv.wisc.edu/GiftForms/gift_in_kind.aspx
• Campus Gifts in Kind policy: https://policy.wisc.edu/library/UW-3009
• Gift in Kind Training course: https://www.talent.wisc.edu/Catalog/Default.aspx?CK=77467
• Email Contacts
  • L&S Budget Office: budgetoffice-gifts@ls.wisc.edu
  • Campus Gifts Management Office: giftmgt@bussvc.wisc.edu