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University Business Policies and Procedures Manual |
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University Business Policies and Procedures Manual |
1030
GIFTS MADE TO THE UNIVERSITY
Effective Date: July 1, 2003
Revised: 08/01/06
Subject to Change Without Notice
Authorized by UNM Regents' Policy 7.13 "Receipt and Investment of Gifts to the University"
1. General
Private support is extremely important to the teaching, research and public service mission of the University. Through private support, the University can enhance current programs and develop resources to support future programs. To ensure effective development and management of private support and compliance with Internal Revenue Service (IRS) regulations, the University coordinates all efforts to obtain and increase private support through the University of New Mexico Foundation, a non-profit corporation. The Foundation was chartered by the University of New Mexico Board of Regents in 1979 to solicit, accept, and manage private contributions for the purpose of promoting the educational, research, and service commitments of the University. The University Development Office staffs the Foundation under the oversight of the Foundation Board of Directors and the Vice President for Institutional Advancement. All gifts received by the University, including gifts to colleges, schools, departments, and/or programs, must be reported to the Development Office. This policy applies to the receipt and investment of all gifts from private sources made to benefit the University's education, research, or public service mission irrespective of who actually receives the contribution. Gifts may come in many forms including:
This policy does not apply to grants from governmental agencies or to contracts from governmental agencies, corporations, or other entities for research or service projects where the funding agency initiates the project, specifies processes, methods, and benchmarks, and/or derives direct substantial economic benefits from the results. Such contracts are handled by the applicable office of Pre-Award Services (Main Campus or Health Sciences Center).
2. Development Office
The Development Office in conjunction with the Foundation Board of Directors and the Vice President for Advancement directs and manages the fund-raising activities of the University. With a comprehensive overview of the University's fund-raising activity, the Development Office serves as a clearing house for funding requests to ensure prospective donors receive the proper acknowledgment and are not approached by several colleges or schools at the same time. If faculty or staff members are contacted by a donor directly, they must contact the Development Office or their college's or school's development officer immediately to ensure the donor's interests and wishes are respected and the donation complies with University policies and IRS regulations. The Development Office organizes funding requests, establishes relationships with donors, and matches funding requests with prospective donors. Development professionals in colleges and schools are an integral part of the University's development team and participate in identification, cultivation, solicitation, and stewardship. The Development Office works closely with these development professionals to ensure the University presents a unified image to donors and prospective donors. The Development Office has expertise in various fund-raising methods including capital campaigns, planned giving, endowments, and memorial gifts. Detailed information on fund-raising is available in The UNM Development Handbook.
3. Foundation Gift Acceptance Committee
The Foundation Gift Acceptance Committee was established by the Foundation Board of Directors to govern the acceptance and disposition of all gifts made to the University and the Foundation, whether such gifts are lifetime gifts or bequests, or current or deferred gifts, with emphasis on specific types of non-cash gifts, especially real estate and deferred gifts. The Gift Acceptance Committee has in force "Gift Acceptance Policies and Procedures," adopted by the Foundation and approved by the University President, July 2, 1998. The Development Office staffs the Gift Acceptance Committee, and will advise schools and departments on gift acceptance policy and whether proposed gifts require review by this Committee prior to acceptance by the University or the Foundation.
4. Gifts
The University reserves the right to refuse any gift that violates University values and/or policies. All gifts given to the University are the property of the University and are irrevocable. All gifts discussed in Section 1. above must be reported to the Development Office immediately upon receipt. KNME, KUNM, and other departments approved by the Director of Development can report their gifts in lump sum, except that all donations of $1,000 or more must be reported individually. Cash gifts must be handled in accordance with "Cash Management" Policy 7200, UBP. Gifts other than cash, securities, intangibles, and real property (real estate) may only be accepted in accordance with "Gifts of Tangible Personal Property" Policy 7110, UBP. The Development Office reports property valued over $1000 to the University office of Inventory Control for addition to the University's inventory in accordance with "Property Management and Control" Policy 7710, UBP.
When either designated funds or endowed fund accounts are to be established by a donor, the department must consult with the Development Office to develop either a gift agreement or endowment agreement to be signed by both parties outlining the use of funds. In the absence of a gift agreement or endowment agreement, the Foundation is chartered under its Articles of Incorporation to make decisions for the donor. The stated purpose of the Foundation is to carry out the donor's wishes and assure that the funds and property received are applied to the uses specified by the donor.
Departments must consult with the Development Office about any terms or conditions imposed on a gift by the donor prior to accepting the gift. The IRS may, in certain circumstances, disqualify a charitable deduction for a gift where such conditions imply a partial interest. A donor may not control a gift in terms of selecting beneficiaries for scholarships, endowed chairs, etc.; however, a donor may be consulted and advised concerning the recipients. Neither the University nor the Foundation provide legal, tax, or accounting counsel to donors. Donors are advised to retain professional counsel for purposes of interpreting the financial and tax consequences of their gift(s).
4.1. Recognition of Donors
It is important to thank a donor promptly for a gift in a manner appropriate to the size of the gift and consistent with the donor's personal wishes. It is equally important that gifts to the University are acknowledged in a consistent manner. For these reasons the execution of acknowledgment forms must be processed by the Development Office; however, the department receiving the gift may and should express appreciation and gratitude for the gift. Departments that regularly receive property (clothes, objects used as props, etc.) with an anticipated value less than $250 may give the donor a written acknowledgment that includes date, UNM organization, and a reasonably detailed description of the property; however, the acknowledgment may not include a dollar value. Although generally the donation of services does not result in a tax deduction for the donor, it is important for the department to acknowledge the donation and thank the donor. Departments receiving donated services with a value of $1,000 or more must report the donation to the Development Office.
Any associated benefits a college or school may wish to grant the donor, such as use of University facilities, premiums, and fee waivers must be coordinated through the Development Office to ensure donors are treated consistently. The University will always honor a donor's wish for anonymity. For information concerning naming recognition refer to "Naming Facilities, Spaces, Endowments, and Programs" Policy 1020, UBP.
4.2. Non-cash Gifts
A donor must complete IRS Form 8283 when claiming a deduction of $500 or more for non-cash gifts. At the donor's request a representative from the UNM Foundation will sign part IV of IRS Form 8283, confirming receipt of the non-cash gift. If the donor is claiming a deduction of $5,000 or more, the donor must get a qualified appraisal by a qualified appraiser no earlier the sixty (60) days prior to the date of the donation. Neither the University nor the Foundation will be responsible for obtaining an appraisal. The donor should refer to IRS Publications 526 and 561 for specific information on valuing non-cash gifts and determining the applicable deduction.
If a department decides to sell a gift valued over $5,000 they must consult with the Development Office to determine if the donor has attached specific conditions on disposition of the gift. Please refer to Policy 7110, "Gifts of Tangible Personal Property" The Development Office may need to submit a form 8282 with the IRS stating the date of disposition and value received.
4.3. Reporting
All gift reporting must comply with standards established by the Development Office based on the Council for Advancement and Support of Education's Standards for Annual Giving and Campaigns in Education Fund Raising, unless University or Regent policy states different or additional reporting requirements. The Development Office provides the following reports and documents.
4.3.1. Donor Receipt
An official University/UNM Foundation receipt is issued to the donor at the time of the gift or as soon as possible after receipt of the gift. The recipient department also receives a copy of the donor receipt. For donations greater than $75 for which the donor receives a benefit, the Foundation will note the value of any benefit received on the receipt.
4.3.2. Current or Non Endowed Accounts
The recipient department receives a monthly statement that shows the fund title, number, monthly balance, and any new gifts for the month.
4.3.3. Endowment Accounts
Donors receive an annual report which shows endowment performance. Each college, school, or department that receives an endowment is sent an annual statement showing fund title, value at the beginning and end of the fiscal year, additions to the principal, total investment returns for the year, and the total spending distribution transferred for use by the recipient department based on predetermined percentages set forth by the "Regents' Endowment Investment Management Policy."
5. Donor Information
Employees and volunteers who have access to information concerning donors or prospective donors must take every precaution to ensure that such information is used only for authorized purposes and properly discarded when no longer in use. Violation of this policy may result in disciplinary action, up to and including dismissal.
6. Conflict of Interest
All University students, staff, faculty, and volunteers must avoid any action with a donor that is or appears to be a conflict of interest. Examples of problematic transactions with a donor include, but are not limited to, purchase, sale, exchange, or lease of property from a donor; gratuities, commissions, fees, salary or other benefits from a donor; and loans from a donor.
7. Responsibility to Donor
To ensure that donors and prospective donors have confidence in the University, they are entitled to:
8. Fund-raising Programs
All solicitations of gifts from individuals, corporations, and foundations must be coordinated by the Development Office and development professionals in colleges or schools. Any literature, including brochures, booklets, and newsletters used to attract private funds must be approved by the Development Office in order to present a unified voice and image and to ensure that the most accurate, up-to-date information appropriate to a particular fund-raising effort is reflected. All gifts received by the University or faculty, staff, volunteers, or student organizations for support of any University program or activity, irrespective of source or gift type, shall be deposited in and expended through University accounting systems in accordance with University Business Policies and Procedures. The use of outside bank accounts is prohibited. The Development Office will ensure that all University fund-raising events comply with local, state, and federal laws.
8.1. Fund-raising Campaigns
A fund-raising campaign is markedly different than ordinary fund-raising efforts in that it has a specific goal of money to be raised within a fixed period of time, generally one (1) to three (3) years. Normally, campaigns are restricted to raising the substantial amounts of money needed for construction of new buildings, endowments, major renovations, and other large projects. As campaigns depend upon reaching out to the larger community beyond the circle of existing donors, their success or failure directly affects the University's reputation as a whole and its ability to raise money for other needed programs. As a consequence, any college, department, center, or division wishing to conduct a fund-raising campaign must develop a formal plan in conjunction with the Development Office. This plan is presented by the dean or director to the Vice President for Advancement and the Executive Vice President for Academic Affairs and Provost or Executive Vice President for Health Sciences. The plan must be approved by the cognizant vice president in consultation with the Development Office and Executive Cabinet. Gaining approval of campaign status for fund-raising efforts allows for counting multi-years gifts and pledges in a single fiscal year. Campaigns that include naming opportunities to recognize donors must comply with "Naming Facilities, Spaces, Endowments, and Programs" Policy 1020 UBP.
8.2. Pledges
A pledge is a signed and dated commitment to make a gift during a specified period of time according to specified terms. Pledges are serious commitments and must be submitted to the Development Office on a Statement of Intent (Pledge) of Gift Support form.
8.3. Solicitations of Employees
All fund-raising programs for the benefit the University that include solicitation of students, staff, or faculty must be approved by the Vice President for Advancement in advance in writing. A fund-raising plan must be submitted through the cognizant dean or director to the Executive Vice President for Academic Affairs and Provost or Executive Vice President for Health Sciences who will submit the request to Vice President for Advancement for approval. It is critical that donations be completely voluntary, confidential, and not an inferred condition of employment or academic success. For additional information on solicitation of employees, refer to "Solicitation" Policy 3730, UBP.
9. Volunteers
A volunteer is any person who works without compensation on behalf of UNM on a temporary or continuing basis. All volunteers are subject to the requirements of this policy. Whenever volunteers are involved in fund-raising efforts, it is important they are trained in the University's policies and procedures. The Development Office can assist schools and colleges in the selection, recruitment, and training of volunteers.
10. Exceptions
In certain exceptional circumstances, the University or the Foundation may chose to return a gift to a donor if, in its sole determination, the programs or activities for which a gift was given cannot be reasonably accomplished. Such a return may have adverse tax consequences to the donor. This and all other exceptions to this policy must be reviewed and approved on a case-by-case basis in accordance with applicable laws and regulations by the Director of Development in consultation with the vice president responsible for the college or department impacted by the gift, the Vice President of Advancement, University Counsel, and the Foundation Board of Directors.
11. Related Policies
11.1. Board of Regents' Policy Manual
"Naming University Facilities, Spaces, Endowments, and Programs" Policy 2.11, RPM
"Receipt and Investment of Gifts to the University" Policy 7.13, RPM
"Regents' Endowment Fund" Policy 7.19, RPM
"Naming Facilities, Spaces, Endowments, and Programs" Policy 1020 UBP
"Gifts of Tangible Personal Property" Policy 7110, UBP
"Property Management and Control" Policy 7710, UBP
"Cash Management" Policy 7200, UBP
Comments may be sent to UBPPM@UNM.edu
http://www.unm.edu/~ubppm
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