Is there a difference if the gift is made to ASU or ASUF?
Departments receive the same amount of funding available, whether the gift is to ASU or ASUF.
Here’s an example: Donor A gives $500 to ASUF in support of the sustainability efforts of ASU’s College ABC. For any gift received by ASUF, a donor may restrict 95% of the gift for use by College ABC; the remaining 5% is unrestricted for ASUF to use to support university initiatives. The $500 is deposited into the ASUF account of College ABC, with 5%, or $25, being reallocated to the ASUF unrestricted account. The department transfers the funding in its ASUF account to its university account for spending. Using ASUF deposit code RC0075-Gifts ASU Foundation, $475 is deposited into College ABC’s gift worktag, GF00000000000X, with the entire amount ($475) available for spending. The gift funds are not subject to the university’s administrative service charge, or ASC.
Here’s another example: Donor A gives $500 to ASU in support of sustainability efforts of ASU’s College ABC. If gifts are given directly to ASU, the gift funds are deposited through ASUF directly into the responsible ASU account. ASU will reallocate 5% of the gift into an unrestricted central university account to be used for university initiatives at the discretion of the executive administration. Gift-funded expenses will not be subject to the university’s ASC. The $500 is deposited into the gift worktag for College ABC, GF00000000000X, using a Private Gift revenue category other than RC0075-Gifts ASU Foundation. Five percent, or $25, will then be reallocated to an unrestricted university initiatives account. The college has $475 in its account available for spending. Gift-funded expenses are not subject to the ASC.
Departments must have a gift worktag established in the Financial Management System and to be exempt from ASC, gifts are the only allowable revenue source for these accounts. ASC-exempt gift accounts are located in the restricted fund and are identified by a gift worktag beginning with "GF," such as GF00000000000X.
Departments should establish separate gift accounts for major recurring gifts. This will help facilitate reviews to ensure that gifts are spent in accordance with donor wishes.
How can the 5% reallocation be tracked in the FMS?
The reallocation will occur on the same cycle as the ASC posting, which typically occurs over the weekend and with monthly close processing. Departments will see a debit (reduction to revenue) using revenue code RC0074-Gift Unrestricted Allocation. On a weekly basis, departments should be able to correlate activity against RC00074-Gift Unrestricted Allocation to gift deposit activity.
Please contact your Financial Services accountant with questions.
