Managing Checks, Cash, Credit Card Payments, and Gifts

Accepting checks

Manage checks as follows. Staff may refer to the Extension intranet page  "Check, credit card and cash handling" (requires login).

Request that checks be made payable to the Regents of the University of Minnesota.

• • Checks cannot be signed over to the University of Minnesota if made payable to someone else.

  • Note the program (e.g., Goodhue County Master Gardeners) in the memo line or when mailing the check to the University.

  • When delivering or mailing funds, include  a note with justification that covers the 5 W's of who, what, where, when and why.  If the money was raised at an event, include a flyer or info sheet from the event.  Make sure to include the address location of where the event took place so the correct sales tax rate can be applied if required.  

  • Mail or deliver stamp-endorsed checks to our regional administrative staff person:
    
    Kristi Martini-Starzynski

UM Extension Rgnl Ofc Andover

Bunker Hills Act Ctr L-1, 550 Bunker Lake Blvd NW

Andover, MN 55304

• Complete a Program Receipt Log and Deposit Record and mail it with your checks to administrative staff person (see above.)  Include the date received, the amount, the payer (name and address on the check), program title (Master Gardener Volunteer Program) and the EFS number/chartstring receiving the funds. Unsure about the EFS number? Contact mgweb@umn.edu.

Accepting cash

Manage cash and coin as noted below. Staff may refer to the Extension intranet page Check, Credit Card, and Cash Handling  for additional details.   

• Ensure funds are verified by a second individual before providing funds to the regional support staff.

• For cash, secure a money order from a U.S. Post Office. The issuing fees are based on the money order dollar amount (up to $500 is $1.45; $500.01 to $1,000 is $1.95). Use the total cash received to pay the dollar value of the money order plus the issuing fee. Keep the receipt to track the money order. There is a $6.95 processing fee to replace a lost or stolen money order.  (See an example of a money order.)

  • • Deliver money order to a regional office or to mail it to our regional administrative staff person:
      Kristi Martini-Starzynski
      UM Extension Rgnl Ofc Andover
      Bunker Hills Act Ctr L-1, 550 Bunker Lake Blvd NW
      Andover, MN 55304

    • Up to $50 cash may be sent through the mail if this is a reasonable level of risk tolerance for the program.

• When delivering or mailing funds for deposit, include a note with justification that covers the 5 W's of who, what, where, when and why.  If the money was raised at an event, include a flyer or info sheet from the event.  Make sure to include the address location of where the event took place so the correct sales tax rate can be applied if required.  

• Per University Policy, deposit revenue when the total reaches $1,000 or greater, or once a week, whichever comes first.

Cash advance

If cash is needed to make change, for a plant sale for example, staff and volunteers should refer to the Cash advances for Master Gardener events.  (To avoid the need for having cash on hand for change, counties should consider accepting only checks and credit cards.) Contact mgweb@umn.edu with questions.

In summary,  volunteer-led groups can request cash advances by submitting the request through Extension's Master Gardener Program Funds Smartsheet Request Form. 

Staff can request a cash advance through Chrome River.  Staff may refer to the Extension intranet page Travel and Reimbursements. Allow at least 2 weeks lead time.

• • Once the request is submitted through Chrome River, the cash advance document routes to supervisor,  then to department approver and then to Central for approval. If the employee has direct deposit, funds will be deposited directly in the employee's bank account. For employees without direct deposit, a check will be issued (requires longer lead time).

  • Employee goes to their bank to get the required cash needed. 

  • After the event/sale, the employee is responsible for reconciling the cash advance in Chrome River.

The University issues cash advances to employees in support of official University business for a very limited number of business activities. Expectations are outlined in the Policy | Cash Advances. To request a cash advance through Chrome River  staff can follow this procedure. Following the use of the cash advance, staff must reconcile the cash advance to an expense report using this job aid.

Accepting credit card payments

Payment may be made to the University of Minnesota via customer or company credit/debit card and is processed through an Extension or Central Accounts Receivable Clover Terminal.

1. Staff reserve and check out Clover credit card terminals by completing the Extension Payment Card Request Form.  Email the completed form to Kristi Martini Starzynski at marti987@umn.edu. Terminals can be shipped; the cost is charged to the state program. Reserve the terminals as early as possible (once an event date has been confirmed). All fields of the form must be filled:

   • Include dates needed

   • The EFS number funds are to be deposited into

   • Full address of where the event is taking place, including zip code

   • List of people who will be using the Clover Terminal(s)

   • Please include a copy of the event flyer or brochure if available

2. All staff and volunteers using the Clover terminal(s) will need to complete the required training and forms.  Forms and training are good for one fiscal year, July 01 – June 30.  If you have a plant sale in May, new forms and training need to be comleted for any event on or after July 1.

   • Extension Payment Card Compliance Policies

   • UM1623

   • Online Video Training

3. Training can be done on July 1 and is good for the full fiscal year.  You can complete this step before your event. 

4. Do NOT wait until the day before your event to complete the training and forms.  This does not allow you enough time to create a user log-on to use the machine.

During the event make sure that the machine is kept and operated by only those individuals who have been assigned and trained to use the terminal.

Secure the machine and all paperwork (credit card receipts and completed Program Receipt Log and Deposit Record) and return to the nearest regional office or to merchant manager Kristiy Martini Starzynski.

Clover® is Extension's point of service provider to accept credit card payments. Clover®  Flex terminals are available for check out from the program merchang manager and can be used for plant sales, event registrations and other activities. The terminals operate with plug-in rechargeable batteries and run  on 4G cellular networks. If your group is interested in using this service, read more HERE.

Managing payment and event online registration

The MN Landscape Arboretum and Extension Learning Technologies (ELT) offer registration packages for online courses, in-person events, conferences, and hybrid offerings. Read more HERE. Contact mgweb@umn.edu for more information.

Electronic funds transfer (EFT)

EFT (electronic fund transfer) is used to move money from one account to another. The transaction is completed electronically, and the two accounts can be at the same financial institute or different financial institutions.

If the customer is paying with an EFT,  staff work with their center accountant (AFNR / Andrew Bartus (bart0446@umn.edu)) to initiate an Invoice Request Form to claim the funds sent to the University of Minnesota. Payment may be made to the University of Minnesota via customer or company credit/debit card and is processed through an Extension or Central Accounts Receivable credit card terminal.

Managing speaker gifts and agreements

If community organizations (e.g., schools, community education programs, etc.) are contributing donations to your program for volunteer speakers' time,  they can make a gift to the [Insert name] County Master Gardener program.  They can do that online or by sending a gift by mail. For the mail-in option, ask the donor to make their check payable to the University of Minnesota Foundation with the county Master Gardener name in the memo line and to complete the gift form which ensures the gift is directed to the program of their choice.  No written agreement is needed if an organization  is making a gift.  

Read step-by-step instructions in the Lifecycle of a Gift.

The delivery of workshops, programs, and professional services regardless if a fee will be charged, requires an agreement to be completed. If you are new to preparing agreements, submit an RSS work ticket to review a prepared program agreement before getting the customer’s signature. Volunteer-led groups should use the online Master Gardener Program Funds Request Form (Smartsheet). Money collected as a fee from speaking or program is deposited into your income account. Checks must be made payable to Regents of the University of Minnesota. Once the class, program, etc has been delivered, submit an RSS work ticket  to request that Extension sends the customer a bill. Volunteer-led groups should use  the online Master Gardener Program Funds Request Form (Smartsheet). Let them know if the class was canceled so that can be recorded as well.

Read step-by-step instructions in the Lifecycle of a Workshop Agreement TO BE UPDATED.

IMPORTANT: If the payment is between two Extension groups, the funds can be directly deposited into the EFS account. No agreement is needed.  (e.g., Todd County Master Gardener volunteer group pays Crow Wing county volunteer program $50 as speaker fee/gift.  Funds/check is deposited into Crow Wing EFS account.)

UMN gift accounts

Local programs may process tax deductible “gifts/donations” through the University of Minnesota Foundation (UMF). This expands giving opportunities by allowing individuals and organizations to make tax-deductible donations. Funds deposited at UMF are to be used in accordance with the terms and conditions of gifts. Extension Finance will process gifts and UMF is the University’s legal entity to send thank you notes and gift receipts to donors. UMF funds will earn interest. The three types of funds are: 

• UMF Demand funds: Demand funds are established with gift monies designated for current program support. All funds are available “upon demand” and with 100% liquidity. The funds  are pooled for investment purposes with other accounts intended for current use, and generally cannot be exposed to significant market risk. Therefore, they are invested in short-term fixed income securities. Demand funds receive distributions of interest based upon the short-term rates set by the UMFIA. Demand funds earn the least amount of interest of all funds. This type of fund will likely be the one used most by Master Gardener groups. No administrative fee is charged.

• UMF Quasi-endowment funds: Quasi-endowment funds are similar to permanent endowment funds in that expanding the principal amount is a long-term goal; however, in addition to expending income, principal may be invaded and expended for the funds’ intended purpose.  The initial fund balance must meet the minimum guideline for establishing a quasi-endowment (currently $10,000). Funds are invested in the long-term pool.  Annual UMF administrative fee is 1.5% of the fund's market value. Earnings vary with the market, but average approximately 4% to 5% per year. 

• UMF Endowment funds: Endowment funds are established when gift monies are intended to exist in perpetuity and the endowment income is intended to support ongoing programs. The principal of the endowment cannot be spent. The minimum fund balance for establishing a permanent endowment is $25,000. Funds are invested in the long-term pool.  If available funds are not  spent, reinvestment of available funds to principal is permitted on an annual basis. Annual  UMF administrative fee is 1% of the fund's market value. Earnings vary with the market, but average approximately 4-5% per year. 

Gift Processing

Gift processing is completed in conjunction with Extension’s Chief Development Officer and Finance Director in Extension Finance. Donations via check should be made payable to the “University of Minnesota Foundation" with the county noted in the comments line.  Local program staff, volunteers and regional support office  staff will forward gifts and documentation (eg., letter from donor indicating purpose, email, etc.) to the Extension Finance Director for proper receipt and processing. The AFNR accountant would establish a spending budget (fund 1701) which correlates with the gift fund. 

Here is the Extension gift priority page  highlighting the Master Gardener Volunteer Program. The page includes links for organizations to give online and to download mail-in gift form.

Receiving Gifts

Here is the Extension gift priority page  highlighting the Master Gardener Volunteer Program. The page includes links for organizations to give online and to download mail-in gift form (see an example of a completed gift form).

Checks should be made payable to:

• • University of Minnesota Foundation

  • Note the program (e.g., Goodhue County Master Gardeners)

  • Gifts should be mailed directly to UMF -- along with a completed gift form:

    • •  University of Minnesota Foundation 

      • PO BOX 860266 

      • Minneapolis, MN 55486-0266

  • Master Gardener Volunteer Program Gift Forms can be downloaded here. If mailing the check for an organization:

    • You do not need to sign the form

    • You may request UMF to mark the donor "do not solicit." Include the note in the "Special Instructions" box on the Gift Form.

    • The completed form and the check should be mailed to UMF (see above for the address).

Example:  A gift card is donated from a business or person to the Master Gardener program and then given away as a door prize or in a basket:

• If the donor wanted to, they could submit UMF's in-kind gift form and receive a gift receipt from UMF for the value of the gift card they contributed. It's the donor's choice if they submit that form or not.

• Once donated, from UMF's perspective, the gift card belongs to Extension. UMF doesn't have any expectation that Extension report back how  the small in-kind type contributions were used. 

Working with Fundraising organizations

Gifts and donations, which include the proceeds/commissions from partnering with fundraising organizations (e.g. FlowerPower, Holland Bulbs, etc.), must be deposited into the University of Minnesota Foundation account (using the foundation chartstring) and mailed to the UMN Extension Development Office.

Checks should be made payable to:

• • University of Minnesota Foundation

  • Note the program (e.g., Goodhue County Master Gardeners)

  • Gifts should be mailed the UMN Extension Development Office along with a completed gift form:

    • UMN Extension Development Office

    • ATTN: Ryan Thibodeau

    • 405 Coffey Hall, 1420 Eckles Ave.

    • St. Paul, MN 55108

Employer Gifts

Many employers reward employees who volunteer in the community by making a donation to a designated organization on the employee's behalf.  The Extension Master Gardener Volunteer Program county funds are managed by the University of Minnesota Foundation. To begin the process, search for University of Minnesota Foundation on your page and select it, then add a  statement noting which Master Gardener county you would like to support in your documentation. 

Here are a few things to consider:

• Funds will be deposited into the county program's University of Minnesota Foundation account.

• The University of Minnesota Foundation tax ID # to provide the employer is 41-6042488.

• When the  organization/volunteer/donor makes their gift, they should add a short note or payable-to message that confirms where the contribution is going (e.g., Anoka Co Master Gardener Program).

• If the employer would like to send an electronic transaction vs. a paper check, the UMN foundation group can help make that an easy process.

In-kind gifts 

Volunteers often donate simple in-kind gifts, including unreimbursed volunteer expenses,  to the  University of Minnesota Extension Master Gardener Volunteer Program. Volunteers can get a gift receipt for most "goods" that they contribute  (e.g., plants donated for plant sales, food brought to events, etc.) by completing the Gift-in-kind form.  

The volunteer donor assigns the item(s) a value on the form.  If it's $500-4,999 volunteers need to include an an IRS 8283 form. If it's $5,000+ volunteers need  to include a 3rd-party appraisal.

When completing and submitting the Gift-in-kind form, the volunteer donor does not need to include any receipt(s). The donor  assigns the value to whatever the item(s) is that they are giving. Donors may want to keep receipts for their own personal tax purposes. Donors receive a gift receipt from the University of Minnesota Foundation indicating the value of the item(s) they donated.

To receive a gift receipt for a gift-in-kind donation:

• Download the Gift in-kind gift form and complete the top portion of the form (Donor Information and Item Information).

• Email the completed form to the county program coordinator or the state office (mgweb@umn.edu). Staff will forward the form to the University of Minnesota Extension Foundation (UMF) in care of Jane Johnson, Chief Development Officer, at johns350@umn.edu.

• UMF mails a completed copy of the Gift-in-kind form and a gift receipt. The UMF mailing includes the documentation necessary to receive tax benefits for the charitable contribution.

Silent auctions

Some volunteer groups include silent actions as part of their local event. Groups can accept the items as gifts and process them through the University of Minnesota Foundation (UMF) or they can treat them as sales and deposit the proceeds in their general expense / revenue EFS account.

UMF Process

UMF receipts silent auctions for many Extension programs. Items "sold" as part of a silent auction receipted by UMF do not need to collect sales tax.

BEFORE THE AUCTION - receiving items to auction off

• Anyone who contributes an item to a silent auction has the option to receive a charitable/gift receipt for the item(s) they contribute. 

  • The Gift-in-kind gift form is how we make that happen. The donor fills in the top half, and signs.

  • If the donor values their item at $500 or more, they also have to complete an IRS 8283.

DURING THE SILENT AUCTION

• Bid sheets - We have a template we've used many times. An example of what it could look like is online here.

• Fair market value - UMF is adamant that the donor/person who contributes an item to a silent auction needs to assign that item a fair market value. There's a box on the template for that number to go.

AFTER THE AUCTION

• Winning buyers/donors complete the section on the back side of the template and choose how to pay for their item(s).

  • Payment - That template example allows people to pay with cash, check, or card. 

    • We do not have credit card machines linked to UMF. The credit card machines owned by Extension do not work for this because they're linked to the Regents accounts and not UMF.

    • If an online payment option is a deal breaker, then some other groups have created a z-link to their UMF gift fund and directed people there on-the-spot. Here is a link to the webpage  where individuals can give to a local Master Gardener program.

• Mail everything to Ryan in 405 Coffey Hall -- bid sheets, IRS forms, gift-in-kind forms, checks, cash, etc. 

  • The bid sheets themselves for every item MUST be mailed back to our team after the event.

  • Ryan processes checks and cash, and double-checks the credit card portion for anyone who used that option.

• Receipt - Generated by UMF

Grants

The University of Minnesota Foundation is a 501c3 and local Master Gardener programs are eligible to apply for these using UMF's 501c3 number.

Here is an example of a small grant application and the information groups need to apply.