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NYU Shanghai Education Development Foundation Measures on Managing Gifts-in-Kind
Chapter I. General Provisions
Article I. In order that the NYU Shanghai Education Development Foundation (hereafter referred to as “the Foundation”) operates in accordance with relevant laws and regulations as well as the rules set out in the “NYU Shanghai Education Development Foundation Articles of Association”, the NYU Shanghai Education Development Foundation Measures on Receiving Gifts-in-Kind (hereafter referred to as “the Measures”) has been drafted to regulate the receiving of gifts-in-kind, and transfer of gifts-in-kind.
Chapter II. Receiving Gifts-in-Kind
Article II. The Foundation shall sign a Gift Agreement with the donor which clearly denotes the details of the gift-in-kind, including its name, type, the number of items received, quality, purpose, etc.
Article III. The Foundation when receiving in-kind gift shall make sure that the donor have legal ownership and/or right to dispose of any and all gifts-in-kind donated to the Foundation. If necessary, parties involved must apply the appropriate transfer of property procedures for gifts-in-kind.
Article IV. When the Foundation receives gifts-in-kind such as fixed assets or art work and cultural artifacts, it shall determine the value of such gifts-in-kind in accordance with the following process:
1. If the donor provides relevant documentation (e.g. receipts/invoices, customs declaration forms, etc.), then the amount on the documentation shall be the value of the gift-in-kind, and be entered as such in all financial records. If there is a significant discrepancy between the value indicated on the documentation and the fair market value of the donated item, the value of the gift-in-kind shall be based on its fair market value.
2. If the donor does not provide relevant documentation, then the value of the gift-in-kind shall be entered into all financial records based on its fair value.
Fair value is defined as the amount of money exchanged between fully informed parties in their own discretion, on the exchange of assets or settlement of liabilities in a fair and equal transaction. Fair value shall be determined in the following order:
1) If there is an active market for identical or similar items, then the fair value of the item shall be determined based on the item’s market value.
2) If there is no active market for identical or similar items, or if similar or identical items cannot be found, then a qualified assessment agency shall be hired to assess the item’s value and provide a valuation report. The value of bulk items donated without a purchase invoice (estimated to be valued at more than RMB 30,000 or USD 5,000) must be confirmed by an assessment agency.
3. Donated works of art and other cultural artifacts will be entered on the Foundation’s financial records at a value agreed by the Foundation and the donor in accordance with relevant laws and regulations.
Article V. For all gifts-in-kind received, the Foundation shall sign two copies of “Proof of Receiving Gifts-in-kind” with inventory list as attachment to indicate that it has received exactly what’s listed on the inventory list. One copy will be filed and saved at the Foundation and entered into the financial records by the Foundation’s finance department, the other one will be mailed to the donor together with the “Unified Receipt of Donation for Public Welfare” issued by the Foundation. The Foundation shall generate a “Unified Invoice of Donation for Public Welfare” which clearly delineates the item received is a “gift-in-kind” in the “Material Objects (Currency)” column.
Article VI. The Foundation shall use gifts-in-kind to finance and support its mission and purpose as well as activities and programs that are within its scope of business.
Article VII. The Foundation shall appoint a member of staff to be responsible for the receipt and management of gifts-in-kind. If gifts-in-kind received cannot be used in a manner which is consistent with the Foundation’s mission and purpose, it may be sold through auction or other legal channels. Proceeds from the sale of gifts-in-kind must be used in a manner consistent with the Foundation’s mission and purpose and charitable objectives.
Chapter 3 Transferring Gifts-in-kind
Article VIII. If the Foundation receives food, medicine, or other medical devices as gifts-in-kind, the Foundation must ensure that the items are still under warranty and have use value when reaching the intended beneficiaries.
Article IX. When the Foundation receives donated products manufactured by a corporation, the Foundation shall require the corporation to provide certificates of the quality of the gifts-in-kind or product certifications, along with other relevant information about the donated product(s) including the name, specification, category, quantity, etc. The above supporting documents should all be provided to the beneficiary as the same time when the in-kind gift is transferred.
Article X. During the transfer of gifts-in-kind from the Foundation to the beneficiary, the beneficiary shall sign a “Proof of Transferring Gifts-in-kind” which clearly shows the details of the gift(s) in kind, including name, category, quantity, quality, purpose, etc. If transfer of ownership procedures apply to the gifts-in-kind, then such procedures shall be conducted.
Article XI. The Foundation shall do necessary and reasonable inspections of gifts-in-kind, and ensure gifts-in-kind remain in the best possible condition with the available resources, so they may be used to support their donated purpose.
Chapter 4 Additional Provisions
Article XII. These measures are written in both the Chinese and English languages. In the event of a conflict between the two versions, the Chinese version will control.
Article XIII. The Measures shall be interpreted by the Foundation Secretary’s Office.
Article XIV. The Measures shall come into effect upon approval by the Foundation’s Board of Directors.