The Federal government requires that the Federal Surplus Property Program (FSP) places restrictions on property transferred through the donation program. Title to the property does not pass to the donee until it has been used for the period of restriction. A summary of these restrictions is as follows:
- Federal surplus property is restricted to use by the eligible organization only. Property may not be acquired for personal use or for use outside the State.
- Federal surplus property must be placed into use within 12 months from the date of its acquisition.
- Federal surplus property must be used for a minimum period of 12 months from the date it is placed into use.
- Federal surplus property with an original acquisition cost of $5,000 or more and passenger motor vehicles must be used for a minimum period of 18 months from the date it is placed into use. Aircraft and vessels have an additional period of restriction.
- Federal surplus property cannot be sold, loaned, traded, or torn down for parts during the minimum use period without prior permission.
- Federal surplus property is considered Federal Financial Grant-In-Aid and may require compliance under the Single Audit Act of 1984 and the provisions of OMB Circular A-133.
- Failure to comply with these terms and conditions may require payment to the US Government for the value of the property.
National Disaster Relief Assistance
FSP is given a priority status on obtaining federal surplus property when any area in Minnesota is declared a national disaster. The items obtained can only be distributed to organizations located within the area declared a disaster, and must be used for disaster relief.