Anticipated bequests, based on notice that a donor has included the University in a will, are not reported since they are revocable. When a gift of intangible property results in royalties or other payments, such payments are treated as income and not reported as gifts. Deferred gifts are reported at their full value on the date of receipt. To report insurance policies as gifts, the University must be named both irrevocable owner and beneficiary. The value of the policy is its cash surrender value at the time of receipt, not its face value.
Insurance policies are to be treated as securities for reporting purposes.
After a life insurance policy is received as a gift, it may be surrendered for its cash value, or it may be maintained. The full amount of all pledges and grant awards are reported for gift purposes when notification is received, regardless of whether they are accompanied by a payment.