602.1 - Procedure for Receiving Gifts and Donations of Capital Equipment to the University



This procedure provides the guidelines related to gifts/donations of capital equipment to the University of North Carolina at Chapel Hill.

Scope of Applicability

This procedure applies to all employees of the University.


Capital equipment can be acquired through gifts and/or donations to the University. Gifts may be designated for certain types of scholarly endeavors but are free of most restrictions. The Development Office coordinates gifts to the University.

  • If capital equipment is donated to the University, the equipment's value should be recorded as capital gifts at the acquisition value (please refer to Finance Policy 602 - Policy on Acquisition of Equipment) on the acquisition date. This includes equipment donations from affiliated organizations that are not component units;
  • If the acquisition value of the donated equipment is greater than or equal to the established capitalization threshold and is to be used in University operations with an expected useful life of 2 or more years, the donated equipment should be tagged and recorded with Asset Management.
  • Capital equipment gifts/donations to the University should be communicated to Asset Management by the receiving department by submitting a copy of Finance Form 602.1.1f - Equipment Donations - Gifts Form. The Asset Management team should evaluate the reported capital equipment donations to determine if they meet the capitalization policies and require tagging and recording during the interim periods and before the end of June. Items identified after the month of June related to the current financial statement period are treated as accrual items. 




Capital Equipment  - Equipment with a useful life of two or more years are capitalized if the acquisition cost is $5,000 or more per item or aggregate component parts, contains or is made of non-expendable material and is not made for consumption. The acquisition cost of equipment includes installation charges and freight. See Finance Policy 601 - Policy on Capital Assets for more details.

Frequently Asked Questions

Q: Could we purchase capital equipment with a "Buy 1 Get 2", or "Buy 2, Get 3" promotion? If so, how do we record the purchase?

A: The fully paid capital equipment is to be recorded at the purchase price, plus any shipping fees, setup costs, and legal fees (see Finance Procedure 602.2 - Procedure for Purchasing and Trading in of Capital Equipment). The free item should be registered as a Gift/Donation to the University.

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures


Contact Information

Primary Contact

Other Contact

Office of University Development
UNC-Chapel Hill
PO Box 309
Chapel Hill, NC 27514-0309
Phone: 919-962-2336
Fax: 919-962-2387

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Article ID: 131668
Thu 4/8/21 9:14 PM
Tue 3/5/24 9:13 AM
Responsible Unit
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Finance and Budget
Issuing Officer
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Issuing Officer Title
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Director, eProcurement and Materials Management
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05/27/2022 12:00 AM
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07/01/1999 12:00 AM