University of Arkansas officials have decided against implementing a gift-tax fee on donations to help pay down a projected $4.3 million shortfall in the budget for its Advancement Division.
In an email sent to campus deans on Thursday, Chancellor Dave Gearhart said the UA will work to cover the deficit in other ways. That includes a mix of budget cuts, hiring freezes, money transferred from within the university and what is described as “unrestricted funds.” UA Spokesman John Diamond said the unrestricted funds include money from donations that not are earmarked for a specific college or purpose.
It is possible the gift recovery fee will be implemented for the next fiscal year (2013-14) as the UA continues working toward the launch of a new capital campaign. Gearhart projected $1.5 million could be generated if the fee were implemented this year, but that plan was abandoned for 2012-13.
“He’ll decide at some point in the future whether or not to adopt such a fee,” Diamond said. “It will definitely not be for fiscal year 2013.” Click here to read the full story from our partners at ArkansasBusiness.com.