Gift Tender Types

Examples of gifts in kind include:

• Equipment or hardware
• Printed materials
• Deep discounts or bargain sales
• Food or other items used for hosting dinners
• Gift baskets
• Gift certificates
• Tangible personal property (including vehicles, art, animals, printed materials, food, etc)
• Intangible personal property (copyrights, patents, etc)
• Real property

If a donor is considering giving a Gift-in-Kind and has questions, please contact the Sr. Director of Gift Policy Administration for guidance.

Last, if your department is considering holding a Raffle, please read “Raffles and Opportunity Drawings” under “Other Topics” on this website.

Most Gifts-in-Kind intended for educational or research purposes are processed through The Regents of the University of California, rather than the UC San Diego Foundation. The Foundation does not maintain infrastructure for storing or managing these types of assets.

Valuation and Transfer Requirements

• Gifts-in-Kind must be assigned a fair market value, determined either by an independent appraiser or, in specific cases, by a qualified campus official.

• UC San Diego must take physical possession of the item in order to complete the asset transfer.

• The official gift date is based on both the date the deed is signed and the date the item is received.

Legal Disclaimers and Safety Reviews

Some Gifts-in-Kind come with legal disclaimers such as:

• “Disclaimer of all warranties”

• “Title and risk of loss”

• “Indemnification” clauses

When gifts include these terms, the University requires additional due diligence. In these cases:

• Approval must be obtained from UC San Diego’s Environment, Health & Safety (EH&S) office.

• The gift cannot be accepted until it’s confirmed that no safety risks are present due to equipment failure or misuse.

Equipment and Export Control

If the gift includes technical equipment or components, clearance is also required from UC San Diego’s Export Control office to confirm compliance with U.S. Export Control laws.

Required Documentation

Departments must notify Gift Services & Gift Policy when a Gift-in-Kind is:

• Received,

• Sold, or

• Intended for future sale or disposal.

For proper recording, the following documents are typically required:

• Gift letter

• UDEV-100 form

• Deed of gift and fair market valuation (required for gifts over $500)

If the gift is valued at more than $5,000, the IRS and University policy require:

• An independent appraisal provided by the donor,

  • Unless the donor is also the creator of the item, in which case they may provide a value themselves.

  • In that case, the donor should report the educational discount value, not the full retail price.

Gifts Intended for Sale or Disposal

Some Gifts-in-Kind—like fine art, real estate, or other appreciated assets—are intended to be sold by the university. These types of gifts:

• Must go through extensive valuation and due diligence processes

• Are generally directed to the UC San Diego Foundation

• Cannot be accepted until all requirements are met

UC San Diego and the UC San Diego Foundation recognize non-cash contributions, also known as Gifts-in-Kind, when donated for campus fundraising efforts. These donations are often featured at annual galas, auctions, raffles (aka opportunity drawings), and other events held across campus.

Common auction and raffle items include:

• Gift certificates for experiences like spa days or haircuts

• Artwork, jewelry, or surfboards (a Luau favorite)

• Products or services donated by local companies

Departments also sometimes request donated food or drink certificates—think pizza, coffee, or fast food—as thank-you gifts for volunteers or student workers.

To comply with UC policies and IRS guidelines, Gifts-in-Kind must be properly valued and recorded. Importantly:

• If a donated item represents the services or labor of the donor, it typically cannot be recorded as a charitable gift.

• Items like gift cards or certificates donated directly by the issuing business (e.g., a Starbucks card donated by Starbucks) are considered lost income and are not eligible for charitable gift credit.

• Artists who donate their own work may only claim a deduction for the cost of materials, not the time or value of the finished piece.

While these items may not always qualify as tax-deductible gifts, they can still be used to support events and recognize participants.

When a Gift-in-Kind valued at $5,000 or more is used as a raffle prize (also known as an opportunity drawing), federal tax withholding rules apply.

Under IRS regulations, the organization conducting the raffle is required to:

• Withhold 24% of the fair market value (FMV) of the prize for federal income tax purposes (reduced from the previous 28% backup withholding for non-cash prizes).

• Collect this amount from the winner before awarding the item.

• Report the prize and withholding on IRS Form W-2G.

• Submit the withholding to the IRS along with required documentation.

Additionally:

• The prize must be appraised to determine its FMV, especially if no reliable retail value is available.

• The winner must complete IRS Form W-9 and provide their Social Security Number at the time of the event.

Due to these strict requirements, we strongly discourage using high-value items as raffle prizes. If you are considering doing so:

• The value must be verified before promotional materials are distributed.

• All potential participants must be clearly informed in advance that they will be responsible for paying the tax on-site and providing personal tax information.

Event staff would be responsible for:

• Collecting the required tax withholding from the winner at the event

• Submitting the payment and required forms to the IRS in compliance with federal law

For guidance before accepting or promoting a high-value raffle prize, please contact the Office of Gift Services.