Gift administration procedure

Intent and objectives

This procedure outlines the framework for administering philanthropic gifts to RMIT University and its controlled entities including RMIT Foundation. RMIT Advancement is responsible for the processing, receipting and reporting of all philanthropic income for RMIT University.

The procedure seeks to be compliant with all relevant Australian charitable and tax legislation.

Scope

All areas within RMIT and its controlled entities, including RMIT Foundation.

The scope of this procedure includes gifts of money and property such as real estate, shares, business donations of stock and equipment, and cultural gifts. Donors may be individuals, corporations, charitable trusts, private ancillary funds (PAFs) and other organisations.

Gifts to RMIT are tax deductible and do not attract GST.

Exclusions

The following are not philanthropic gifts, and are excluded from this policy:

  • Government funds
  • Commercial income including sponsorships
  • Services provided at no charge (pro bono services)
  • Gifts or benefits offered to staff (see RMIT Conflict of Interest guidelines)

Cash gifts are not accepted at RMIT University except in exceptional circumstances.

Procedure steps and actions

1. Rules Regarding Gift Administration

RMIT Advancement is responsible for the process ing, receipting and reporting of all philanthropic income for RMIT University. The University, including Colleges, Schools and central units, is responsible for the acquittal and delivery of philanthropic projects in accordance with donor intentions. Advancement is the central point of contact for support and assistance in managing philanthropic income and donor relations.

RMIT Advancement issues receipts for tax-deductible gifts in accordance with ATO requirements. Information on philanthropic gifts donated to RMIT is recorded on RMIT’s central fundraising database (Raiser’s Edge), and financial records are recorded in RMIT’s finance system. SAP and Raiser’s Edge will be reconciled monthly by Financial Services Group.

Donations may be made either to RMIT University or RMIT Foundation as both are DGR endorsed entities. If the donor is a public ancillary fund or a private ancillary fund, ie endorsed by the ATO as a DGR item 2 entity, the donation will be banked and receipted by RMIT University. DGR item 2 entities are listed on the ABN Lookup website at http://abr.business.gov.au/ or on the ACNC website

All philanthropic donations to RMIT University or controlled entities are deposited into the designated RMIT account. This is to ensure appropriate compliance and increase transparency and reporting capabilities. Funds will then be directed to the relevant University IO. All new internal orders for donations are generated by Financial in consultation with Advancement.

Under the terms of its Trust Deed and endorsement by the ATO as a public ancillary fund, RMIT Foundation distributions can only be made to RMIT University, and cannot be made directly to individuals, including staff or students of RMIT University.

Funds are to be used for the purposes for which they are given. If this is not possible, consultation must be undertaken with Advancement to determine alternate arrangements. Advancement will liaise with donors as required.

2. Determining what is a philanthropic gift

Before processing a gift, work may be required to confirm if a gift meets ATO requirements. Refer to the Gift Administration Guidelines, or contact Advancement for further advice.

3. Gift Processing

Cheque, credit card, money order

a) Gifts received by RMIT are to be forwarded to Advancement Office, with Gift Notification Form and other relevant supporting documentation.

b) RMIT Advancement will record gift information, generate a tax-deductible receipt letter and bank donation to RMIT account.

c) FSG will reallocate gifts weekly to relevant SAP GL code and internal orders as per Gift Notification Form.

Direct deposit

a) If RMIT staff are aware that a gift has been made via direct deposit, they are to complete a Gift Notification Form including other relevant supporting documentation and forward to the Advancement Office.

b) RMIT Advancement will record gift information, generate a tax-deductible receipt letter and bank donation to RMIT account.

c) FSG will reallocate gifts weekly to relevant SAP GL code and internal orders as per Gift Notification Form.

Online

a) Gifts may be made online using Mastercard or Visa.

b) Online gifts are automatically issued an electronic receipt to the donor and gift information is recorded in RE.

c) FSG will reallocate gifts weekly to relevant SAP GL code and internal orders.

d) Processing of all credit card details is done securely, and is PCI compliant.

Tax invoices

a) Wherever possible tax invoices should not be issued for donations. However there may be circumstances where an invoice is required.

b) All tax invoices for donations should be generated by Advancement and must not contain GST. To request an invoice complete and submit an Invoice Request Form to giving@rmit.edu.au.

Gifts of property (includes shares, real estate, trading stock or other assets)

a) Certain types of gifts of property are tax-deductible according to ATO regulations. These include property, shares, and donations of trading stock disposed of outside the usual line of business.

b) The donor is responsible for obtaining the appropriate valuation required by the ATO for the gift of property. If RMIT business units choose to pay for the valuation, it is to be funded from their budget.

c) Finance is to be informed of the current market value of any property that qualifies as an RMIT asset, in accordance with the Property, plant and equipment (PPE) policy and procedures.

d) Advancement is to be notified of the gift of property and will issue a tax-deductible receipt to the donor.

Philanthropic research donations

a) All philanthropic research donations must comply with existing R&I procedures.

b) The receipting of philanthropic research donations will also comply with existing gift administration procedures as outlined above.

Recording and receipting of gifts

a) Receipts must comply with ATO obligations and are only issued by Advancement. The receipt must include the following information:

b) identify it is a ‘gift’

c) include the name of receiving DGR (RMIT University or Foundation)

d) include DGR ABN

e) The amount of the gift (a description will replace the amount for non-monetary gifts)

f) The date of the gift

g) A unique receipt number.

h) The donor name included on the receipt will be the name on the cheque, credit card, etc. \

i) Gift deeds will be developed by the Advancement Office, in consultation with relevant internal stakeholders for all major gifts and endowments. Copies of signed Gift Deeds are in RE and TRIM.

j) Donations below major gift level can be documented via exchange of letter or Gift Deed.

k) For pledged income to be realised in the future, Advancement will record the details of the donor and the pledge in Raiser’s Edge, including creating a pledge schedule, where known.

Reporting

a) Endowment reports will be produced by Advancement and FSG annually for all contactable donors or their nominated representatives.

b) FSG and Advancement will produce reports in line with RMIT and legislative compliance.

c) The Advancement Unit will collaborate with RMIT University staff to develop acquittal reports for donors as required.

Disbursement and acquittal of funds

The procedure for the disbursement and acquittal of funds relates to the following 3 areas:

Transit Funds

a) Transit Funds relate to singular gifts which are to be acquitted within a year of which they have been given. Refer to above procedures depending on method of donation.

b) Beneficiaries are responsible for acquitting funds and reporting to Advancement. Refer to Gift Administration Guidelines and Fund Acquittal Template.

Multi-Year Transit Funds

a) At time of acceptance of gift, documentation will be provided by Advancement to beneficiary on schedule of disbursement of these funds.

b) FSG will disburse funds to beneficiary as per the schedule.

c) Beneficiaries are responsible for acquitting funds and reporting to Advancement. Refer to Gift Administration Guidelines and Fund Acquittal Template.

d)From time to time, the Director, Advancement may request further information or progress reports from RMIT beneficiaries for donor stewardship and reporting purposes for any gift. This may be due to the nature of the project, budget, projects over multiple financial periods, or some other reason.

e) Unclaimed or unspent disbursements must be returned to RMIT Foundation.

f) Future disbursements to an RMIT beneficiary will be dependent on project progress or acquittal reports.

Endowment Funds:

a) FSG will notify Advancement and relevant beneficiary of approved distributions from endowment funds on an annual basis. FSG transfers distributions to relevant IO and GL codes. Beneficiaries are responsible for acquitting funds and reporting to Advancement. Refer to Gift Administration Guidelines and Fund Acquittal Template.

b) From time to time, the Director, Advancement may request further information or progress reports from RMIT beneficiaries for donor stewardship and reporting purposes for any gift. This may be due to the nature of the project, budget, projects over multiple financial periods, or some other reason.

c) Unclaimed or unspent disbursements must be returned to RMIT Foundation.

d) Future disbursements to an RMIT beneficiary will be dependent on project progress or acquittal reports.

The amount available for disbursement from RMIT Foundation may vary from year to year.

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