11.4 Relinquishing Gifts to an External Institution

Policy Statement

An employee who is separating from the University of Illinois System for employment at an external institution may request to relinquish a gift which was restricted solely for their scholarly activities (such as research). They may request to either:

1. Relinquish money from the applicable system gift fund to an external institution,
2. Relinquish assets (such as equipment) to an external institution which were purchased from the applicable system gift fund, or,
3. Relinquish assets (such as equipment) to an external institution which were donated to the system as a gift-in-kind for the employee’s scholarly activities.

The system is under no obligation to approve any relinquishment requests, as the gift money and assets are owned by the system and not by the separating employee.

If the system agrees to proceed with any relinquishment requests, then units must ensure that specific conditions are met prior to processing the relinquishment of the money or assets to the applicable external institution.

Reason for the Policy

To ensure compliance with donor intent restrictions before making a relinquishment to an external institution.

Applicability of the Policy

Units that have requests from a separating or separated employee to make a relinquishment to an external institution as outlined within the policy statement.

Procedure

In order to make this type of relinquishment, the following requirements must be satisfied:

Requirements to relinquish money from a system gift fund:

1. The gift was restricted solely for scholarly activities (such as research) performed by a specific employee.
2. The requested amount of the relinquishment does not exceed the unencumbered budget balance available in the applicable system gift fund within Banner.
3. The unit head must approve the relinquishment of the money from the system gift fund to the external institution.
4. UIF must approve relinquishment of the money from the system gift fund.
5. Units must obtain written confirmation from the external institution agreeing to accept the money, to honor all original donor intent restrictions, and to confirm that the applicable individual has begun employment at their institution.
6. UIF must send the applicable documentation originally received with the gift (such as a signed donor agreement) to the external institution along with the relinquished money.
7. Written confirmation must be obtained from the external institution confirming receipt of the money.

Instructions to complete this relinquishment process are provided at, Relinquishing Money from a Gift Fund to an External Institution.

Requirements to relinquish assets purchased from a system gift fund:

1. The gift was restricted solely for scholarly activities (such as research) performed by a specific employee.
2. The unit head must approve the relinquishment of the asset purchased from the system gift fund to the external institution.
3. The unit must ensure that any applicable property accounting requirements are satisfied as described within 12.3.4 Permanently Transfer Equipment with Researcher and 12.3.5 Other Permanent Equipment Transfer Situations.
4. UIF must approve relinquishment of the asset purchased from the system gift fund.
5. Units must obtain written confirmation from the external institution agreeing to accept the asset, to honor all original donor intent restrictions, and to confirm that the applicable individual has begun employment at their institution.
6. UIF must send the applicable documentation originally received with the gift (such as a signed donor agreement) to the external institution along with the relinquished asset.
7. Written confirmation must be obtained from the external institution confirming receipt of the asset.

Requirements to relinquish assets donated as a gift-in-kind:

1. The gift was restricted solely for scholarly activities (such as research) performed by a specific employee.
2. The unit head must approve the relinquishment of the donated asset to the external institution.
3. The unit must ensure that any applicable property accounting requirements are satisfied as described within 12.3.4 Permanently Transfer Equipment with Researcher and 12.3.5 Other Permanent Equipment Transfer Situations.  
4. UIF must approve relinquishment of the donated asset.
5. Units must obtain written confirmation from the external institution agreeing to accept the asset, to honor all original donor intent restrictions, and to confirm that the applicable individual has begun employment at their institution.
6. UIF must send the applicable documentation originally received with the gift (such as a signed donor agreement) to the external institution along with the relinquished asset.
7. Written confirmation must be obtained from the external institution confirming receipt of the asset.

Related Policies and Procedures

12.3.4 Permanently Transfer Equipment with Researcher
12.3.5 Other Permanent Equipment Transfer Situations

Additional Resources

Job Aid: Relinquishing Money from a Gift Fund to an External Institution

Last Updated: April 1, 2020 | Approved: Vice President, Chief Financial Officer & Comptroller | Effective: April 1, 2020