5.9 Disposition of Gift Tangible Personal Property

5.9.1 Objective

To provide all University of Tennessee Foundation (UTFI) officials involved in the receipt, use, or disposition of gift personal property with guidelines for disposal of such property, including sale, donation, exchange, or trade.

5.9.2 Definition of Gift Personal Property

1. Gift personal property is defined as any non-cash item (other than stocks, securities, limited partnerships, and real property) that is acquired by gift, inter vivos or testamentary trust, or testamentary bequest. Items such as jewelry, rare coins, artwork, furniture, automobiles, and boats are examples of personal property subject to this policy.
2. Gift personal property should not be considered or disposed of as foundation surplus property unless it has been used by a department.   However, if provisions are made at the time of donation to use funds from a gift’s sale after the department, campus, or unit no longer has use for it, the property should be disposed of according to the guidelines in this section.

5.9.3 Disposition

Due to the variety of gifts that may be donated to the foundation and the potential methods of disposition for such property, the Chief Financial Officer (CFO), in consultation with the President and Chief Executive Officer (President), will determine the most appropriate disposition method (donation, exchange, trade, sale, etc.)

5.9.4 Disposition by Sale

If selling a particular item is in the foundation’s best interest, the president (or designee) will determine (1) the item’s fair market value at the proposed sale time, (2) the most advantageous method of sale (including, but not limited to, private sale, sealed bid, or public auction conducted by the university or a commercial auctioneer), (3) an acceptable sale price, and (4) eligible buyers (if by private sale or sealed bid).

5.9.5 Approval of Disposition

Before disposing of any gift property with an estimated fair market value exceeding $5,000, the president and board chair will approval the sale.

5.9.6 Reporting Requirements

1. The following reporting requirements apply whenever gift personal property is accepted and/or disposed of.
   • For accepting gifts of personal property,
     • The provisions of 6.1 Gift Acceptance, particularly Section 6 concerning gifts of tangible personal property, must be satisfied
     • The CFO must approve the gift in advance of acceptance.
     • Any foundation official who takes delivery of gift personal property must notify the CFO as soon after delivery as possible.
     • Development officials should inform donors of their obligation to file IRS Form 8283 (Noncash Charitable Contributions). The CFO is the only UTFI officer authorized to execute Form 8283 on behalf of UTFI.  See 6.1 Gift Acceptance.
   • Departments, campuses, or units that no longer have use for gift personal property in their custody should notify the CFO as soon as possible.
   • If the foundation disposes of gift items valued above $500 within three years of their receipt, the foundation must file IRS Form 8282 (Donee Information Return) within 125 days after the date of disposition.

Updated: June 1, 2021