LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 1 of 7 August 27, 2018
TITLE:
Donations
ROUTING
Local District
Superintendents
& Administrators
Principals
School Administrative
Assistants
Fiscal Services Managers
Central Office Fiscal Staff
Fiscal Specialists
NUMBER:
BUL-5895.2
ISSUER:
V. Luis Buendia, Controller
Accounting and Disbursements Division
DATE:
August 27, 2018
PURPOSE:
MAJOR
CHANGES:
The purpose of this Bulletin is to provide updated information on receiving and
accounting for donations. It replaces BUL-5895.1, “Donations”, dated February 10,
2016.
Forms have been revised to separate cash donations from in-kind donations.
Additional guidance has been added on distinguishing donations and grants. Unit
heads now certify that the donation does not include matching or reporting
requirements.
GUIDELINES:
Education Code Section 41032 allows the governing board of any school district to
accept donations for its benefit or for the benefit of any of its schools, subject to any
conditions or restrictions that the Board of Education may prescribe. It is, and has
been, the intent of the Board of Education that no donation shall provide a substantial
advantage in educational benefits to a school if such benefits cannot be balanced in
all schools.
I. Review of Funds
To ensure proper accounting of funds, the intent, purpose, and source of the monies
should be examined closely. All documentation associated with the funding,
including checks, memos, letters, etc. should be reviewed to determine whether the
funds are a donation or not. Key words such as grant, reimbursement, scholarship,
lease, invoice, commission, auxiliary services, and the like may indicate that the
funds are not a donation. In order to determine with certainty whether the funding
should be considered a donation, obtain additional information from the originator of
the funds, and/or contact the Accounting and Disbursements Division at (213) 241-
7889.
It is important to distinguish donations from grants and sponsorships. Agreements
which provide the District with funds but require matching funds, status or expense
reports, and/or delineate the use of funds beyond just a general intent (i.e. “for
computers”, etc.) constitute grants not donations. Agreements which provide funds
to the District with the requirement for recognition through signage or other means
constitute sponsorships. Please see BUL-6876.1 for more information on
Sponsorships.
LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 2 of 7 August 27, 2018
Donations provided by a vendor who has been contracted for a student body activity,
(e.g. school photography, yearbooks, fundraiser) should belong to the school’s
Associated Student Body and be deposited into the student body account following
the procedures in Publications 464 (elementary schools), 465 (secondary schools),
and 469 (adult schools).
II. Procedures for Acceptance of Donation
District policy authorizes administrators to accept donations of cash, services,
equipment, or real property. However, accepting donations is voluntary and
donations should only be accepted where there is a legitimate use in the school
program and the donation would not cause a hardship to the receiving site.
Procedures and policies are outlined below and must be followed when accepting
donations.
Contributions of money linked matching funds or required reporting are grants, not
donations. Accordingly, the person submitting the donation to be processed will be
required to certify that there are no matching funds or reporting requirements.
The donation account should not be used as a clearing account. For example:
collections for employees for retirement celebrations, or collections to purchase
award recognition for employees, etc, should not be recorded in the donation account.
This does not apply for donations received from outside sources that may specifically
be for employee or student recognition. For example: The “Target Take Charge for
Education” program, Booster clubs, Parent Teacher Association (PTA), etc.
1. Cash Donations - District
A. When a donation is received, the administrator must prepare the “Request to
Process a Donation” form (Attachment A), attach the check made payable to
Los Angeles Unified School District, and forward as follows:
K-12 Schools, including Special Education……Fiscal Specialist
Early Childhood Education Centers……………Early Childhood Education
Fiscal Services
Beaudry Building, 11
th
floor
Adult Education, ROP/ROC, Skills Centers…...Adult Education
Fiscal Services
Beaudry Building, 18
th
floor
LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 3 of 7 August 27, 2018
Local District ..................................................................Fiscal Services Manager
All Other Offices ............................................................Budget Services Branch
Beaudry Building, 26
th
floor
Cash donations will be placed in the following accounting lines (Program Codes):
K-12 Schools 010-0000 1110-1000-13938
Special Education Schools 010-6500 5750-2700-12538
Adult Education Schools 110-0000 4110-1000-13717
ROP/ROC/Skills Centers 010-0000 6000-1000-14806
Early Childhood Education Centers 120-0000 0001-2700-17623
Offices 010-0000 0000-7200-13237
B. The administrator should provide the donor with an official
acknowledgement of the donation (Attachment B – sample letter).
C. The administrator must maintain detailed records documenting how and
when the donated funds were spent. Such documentation may include vendor
receipts or invoices, cancelled checks, or printed reports. Expenditures which
may be “charged to” or “made from” the above accounts include a wide
variety of items including material, equipment, salaries, contracts, bus trips,
repairs, and alterations of buildings. For donations with specific donor intent,
a control sheet should also be completed to document that the donation was
spent in accordance with the donor’s intent. See Attachment C for a sample
control sheet.
D. For audit purposes, administrators must retain a copies of the completed
“Request to Process a Donation” form, the donation check, the
acknowledgement letter, and detailed accounting records to show that the
donated funds were spent according to the intent of the donor. These records
must be kept five years the time the donation has been fully spent.
2. In-Kind Donations (Equipment, Computers, Materials, Real Property, Library
Books, Services, or Artwork/Valuables)
A. Administrators may accept donations of equipment, materials, real property,
library books, services, and/or artwork valuables. However, no donations
should be accepted if the cost for maintenance and operation of the asset
would be excessive. Moreover, to ensure the safety of students and staff, it is
the responsibility of the administrator to have the following offices review
and approve donated items and/or services for compliance as listed below.
Administrators will be liable for consequences of not following the
guidelines below.
LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 4 of 7 August 27, 2018
i. Maintenance & Operations Branch – Review and approve donations of
new and used equipment or modifications of facilities to ensure that
equipment is Underwriters Laboratory (UL) approved and safe to
operate. Review and approve donations of services to determine and
verify if appropriate insurance, contractor licenses, and safety
prequalification are required.
ii. Environmental Health and Safety – Review donations of chemical
products and playground equipment.
iii. Transportation Services Division – Review donations of new or used
motor vehicles to ensure that vehicles are properly inspected for safety,
that ownership (i.e. pink slip) is transferred to the District, that proper
license plates are obtained, and that funding lines are provided for
preventive maintenance.
iv. Office of the General Counsel and Risk Management Division – Review
donations of real property and other assets, including building, facility,
and land, for any legal concerns, or where the person receiving the
donation believes there may be a legal issue.
B. For donations of equipment, computers, real property, and other assets
valued at $5,000 or more, the administrator must submit all documents
related to the donation to Fixed Asset Accounting Section, for proper
recording.
C. For donations of computers and computer software, it is the responsibility of
the administrator to complete all information contained on the “Request for
Licensing Information for Donations of Computers and/or Computer
Software” form. (Attachment D). Any District staff member who donates
software must also complete this form. The form must be kept on file as
evidence of proper copyright licensing in the event of an audit. The
documentation must be kept until five years after the equipment has been
taken out of service. For additional information, please review Information
Technology Division’s BUL-716.2, “Compliance with the 1976 United
States Copyright Law- Computer Software,” dated October 1, 2005.
It is the responsibility of the administrator to ensure that their computer
inventory is updated in Remedy Asset Manager. For instructions, please
refer to the IT Asset Management System Handbook which can be accessed
by visiting the IT Asset Management’s website:
https://achieve.lausd.net/itam.
The Information Technology Division may provide support for donated
computer equipment. The donated equipment will be deemed as salvaged if
the cost to support and/or repair is greater than the value of the equipment
donated.
D. Donations of artwork must include a written statement from the artist or
his/her agent indicating that both the artwork and the copyright to its image
LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 5 of 7 August 27, 2018
belong to the District. For additional information on artwork, please refer to
Office of the Superintendent’s BUL-Q-17 (Rev.), “Protection of Valuable
Works of Art and Restrictions on Their Sale”, dated June 1, 2000.
E. The administrator should provide the donor with an official
acknowledgement of the donation (Attachment B – sample letter). If item
donated is a vehicle, either for use or resale, please contact the Controller’s
Office to ensure the District complies with IRS regulations.
F. Donated equipment, computer software, and artwork must be recorded on the
site’s inventory records if the value is $500 or greater.
G. If the donor does not provide delivery of items donated, it is the
responsibility of the administrator to arrange and pay for pickup/delivery.
H. Installation, maintenance and upkeep of the donated equipment are the
responsibility of the site’s administrator.
I. The administrator must keep a copy of all documents related to the donation
must be kept on file at the site accepting the donation until five years after
final disposition of the items/equipment.
J. For additional information on the donation of library books, please refer to
Integrated Support and Intervention’s Bulletin 6222, “Criteria for
Acceptance of Library Book Donations,” dated February 6, 2014.
3. Donations of Gift Cards/Pre-Funded Debit Cards
A. When a donation of gift cards/pre-funded debit cards is received, the
administrator must prepare the “Request to Process a Donation” form
(Attachment A). At the time of processing, Accounting and Disbursements
Division will reflect both the donation income and expenditure of the funds
using the same accounting lines listed for cash donations.
B. The administrator should provide the donor with an official
acknowledgement of the donation (Attachment B – sample letter).
C. The administrator must maintain detailed records. Please see REF-055300
for information on documenting how the donated card was spent and any
potential tax effects.
D. The administrator must keep a copy of all documents related to the donation
until five years after the donation was fully spent.
LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 6 of 7 August 27, 2018
III. Approval Process
For internal control purposes, further review and approval of donations are required
as indicated below.
Amount
Reviewed and Approved By
Any
Fiscal Specialist
$5,001 to $15,000
Fiscal Services Manager
$15,001 to $20,000
Deputy Controller
$20,001 and above
Controller
If a donation exceeds $25,000, the Accounting and Disbursements Division will
prepare a quarterly Board Report ratifying the acceptance of the donation.
IV. Refund of Donations
Donations will not be refunded unless otherwise provided below.
Cash Donations that have been spent consistent with the donor’s stated intent should
not be returned to the donor. Donated funds may only be returned to the donor if, for
any reason, said funds were not spent in accordance with the donor’s stated specified
intent. Nothing shall preclude the District from contacting the donor to request
modification to the intent if it appears that the District may not be able to fulfill the
donor’s intent. If the donor did not express a specific purpose and the funds were
spent as determined by the administrator, then funds should not be returned to the
donor.
Non-cash donations should not be returned to the donor if such donations were used
in accordance with the donor’s intent. If the donor did not express a specific
purpose, and the donated items were used as determined by the administrator, then
such donated items should not be returned to the donor. If a gift of land and/or
building has been accepted by the Board upon condition or agreement that it be
devoted to school purposes of the District, whether that condition or agreement is
written or oral and whether the terms thereof are recited or referred to in any
instrument executed in connection with the conveyance of the gift, and the Board
subsequently determines that the land and/or building cannot be feasibly utilized for
any school purpose of the District, the Board may cause it to be reconveyed to the
donor without consideration to the District; provided that failure to do so shall not
affect the rights of any bona fide purchaser or encumbrancer of the land.
RELATED
RESOURCES:
BUL-1378, “Criteria for Acceptance of Library Book Donations”, Instructional
Services, dated October 25, 2004
LOS ANGELES UNIFIED SCHOOL DISTRICT
POLICY BULLETIN
BUL-5895.2
Accounting and Disbursements Division Page 7 of 7 August 27, 2018
BUL-Q-17 (Rev.), “Protection of Valuable Works of Art and Restrictions on Their
Sale”, Office of the Superintendent, dated June 1, 2000.
BUL-716.2, “Compliance with the 1976 United States Copyright Law – Computer
Software”, Information Technology Division, dated October 1, 2005.
BUL-953.1, “Control of Site Equipment”, Accounting and Disbursements Division,
dated August 23, 2010.
BUL-6222, “Criteria for Acceptance of Library Book Donations”, Integrated Support
and Intervention, dated February 6, 2014.
REF-055300, “Tax Implications on Employee Receipt of Gift Cards, Tickets, and
Other Fringe Benefits”, Accounting and Disbursements Division, dated August 17,
2018.
ASSISTANCE:
• For assistance with donations to school sites, please contact your Fiscal
Specialist. For assistance with donations to Local Districts, please contact your
Fiscal Services Manager.
• For assistance with donations to Associated Student Body, please call Student
Body Finance Support at (213) 241-2150.
• For assistance with donations to Early Childhood Education Centers, please call
(213) 241-1043.
• For cash donations to all other offices, please contact the Budget Services and
Financial Planning Division at (213) 241-2154.
• For assistance with grant approval process concerning delegation of authority for
grant applications (Board Resolution 254), please contact the Division of
Instruction at (213) 241-4822.
• For assistance with donations of computers and computer software, please call
Information Technology Division Helpdesk at (213) 241-5200.
• For assistance with donations of artwork, please call the Arts Education Branch at
213-241-8222.
Telephone _________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
LOS ANGELES UNIFIED SCHOOL DISTRICT
Accounting and Disbursements Division
BUL-5895.2 ATTACHMENT A
August 27, 2018
REQUEST TO PROCESS A DONATION
School/Office:____________________________ Cost Center _________________________
Contact Person ___________________________
DONOR INFORMATION
Name of Individual/Group/Company _______________________________ Telephone _____________________
Address _____________________________________________________________________________________
FORM OF DONATION: Check (Attach) Prefunded Card Materials/Equipment/Services
AMOUNT OF CASH (VALUE OF NON-CASH) DONATION $____________________
ACCOUNTING LINE ____________________________
TYPE OF DONATION (Select one)
CASH without donor-specified intent. Please describe below how this donation is intended to be used
CASH with donor-specified program intent. Donors may stipulate that the donation should be used for a
specific purpose or program only. Please describe below how this donation is to be used. Schools/offices
should use the control sheet (Attachment C) to track expenditures.
MATERIALS, EQUIPMENT, COMPUTERS, ART WORK, LIBRARY BOOKS, OR SERVICES
(Complete this form only for those items or services with a value of more than $5,000. Be sure to list items
whose value is $500 or more on the annual inventory listing.) Please provide description of the non-cash
donation
I understand that money received pursuant to an agreement that requires matching funds, expenditure reporting,
and/or return of funds not spent within a specific period constitutes a grant, not a donation. I hereby certify that
there is no agreement for matching funds, expenditure reporting, or return of funds in regard to this donation.
APPROVAL: Site Administrator __________________________ Date: _________________
Please retain copies of all documentation, including letters from donors, related to the donation at the site as
evidence that the donation has been spent in accordance with the donor’s intent.
Local District/Central Office Approvals
Amount
Reviewed By
Signature
Date
Any
Fiscal Specialist
$5,001 to $15,000
Fiscal Services Mgr
$15,001 to $20,000
Deputy Controller
$20,001 and above
Controller
LOS ANGELES UNIFIED SCHOOL DISTRICT
Accounting and Disbursements Division
BUL-5895.2 ATTACHMENT B
August 27, 2018
SAMPLE ACKNOWLEDGEMENT OF DONATION
DATE
Donor Information
On behalf of the Los Angeles Unified School District, (name of school/office) accepts
with gratitude your donation of
(specify amount of cash, or description of equipment, materials, or services donated)
for use at our school.
We wish to express our appreciation for your interest in our educational program.
For your records, the Los Angeles Unified School District’s federal tax identification
number is 95-6001908. As a duly constituted political subdivision of the State of
California, it is considered a qualified organization to receive deductible donations.
Sincerely,
(Administrator)
LOS ANGELES UNIFIED SCHOOL DISTRICT
Accounting and Disbursements Division
BUL-5895.2 ATTACHMENT C
August 27, 2018
DONATION CONTROL SHEET
School/Office:
Donor :
(Can attached statement from donor)
Amount Balance
Form Prepared by:
Please attach documentation showing donor's intent and documentation of expenditures (receipts, invoices, etc.) for audit purposes,
and retain with Attachment A.
Amount of Donation: _______________
Date
Expenditure Description
Site Administrator Approval
Intent:____________________________________
Description _____________________________________________________
Make/Model _____________________________________________________
Serial # ______________________________________________________
LOS ANGELES UNIFIED SCHOOL DISTRICT
Accounting and Disbursements Division
BUL-5895.2 ATTACHMENT D
August 27, 2018
REQUEST FOR LICENSING INFORMATION FOR DONATIONS OF COMPUTERS
AND/OR COMPUTER SOFTWARE
School/Office:____________________________ Cost Center ___________
Contact Person ___________________________ Telephone ____________
DONOR INFORMATION
Name of Individual/Group/Company _______________________________ Telephone ___________
Address ___________________________________________________________________________
COMPUTER:
OPERATING
SYSTEM
SOFTWARE
SOFTWARE
In order to avoid potential copyright infringement lawsuits against the District, it is mandatory that
administrators secure from the donor, documentation on PROOF OF PURCHASE for all software
donations. Examples of documentation are:
1.) Software License Number
2.) Software Agreement Statement
3.) Original Installation Diskettes/CD-ROM
I declare that no additional copies of the donated software exist on any other computers.
Donor Name_____________________________ Donor Signature_____________________ Date _____
Any District staff member who donates software to be used on LAUSD computers must also complete this
form.
Title of Software _________________________________________________
Software Company ________________________________________________
Serial/License # __________________________________________________
Description ______________________________________________________
Title of Software _________________________________________________
Software Company ________________________________________________
Serial/License # __________________________________________________
Additional sheets may be attached if more space is needed to detail software
information.
