 | Board of Visitors minutes October 8, 1977 |  |
APPROVAL OF POLICIES RELATING TO THE SOLICITATION AND ACCEPTANCE
OF GIFTS AND BEQUESTS
- The following resolution was adopted:
RESOLVED by The Rector and Visitors of the University of Virginia that the following policy statement relating to the solicitation and acceptance of gifts and bequests by the University be and it is hereby approved: - The University is composed of the College of Arts and Sciences and the Schools of Architecture, Commerce, Education, Engineering and Applied Science, Graduate Arts and Sciences, Graduate Business, Law, Medicine, and Nursing. Private contributions to the University of Virginia may be for the general purposes of the University as a whole or for the specific use of the College, for one of the Schools, for an individual department, for a particular facility, program, area of study, or organization.
- The donor may direct that a contribution be expended in full during one or more years for current operating expenses or purchases, or it may be used to establish a special endowment fund or be added to general endowment funds. The uses of the funds may be specified for purposes such as professorships, scholarships, books, teaching, research, etc. almost without limit.
- Gifts for either the current use or the endowment purposes of the University should be made payable to "The Rector and Visitors of the University of Virginia" and shall be received and expended or invested by the Rector and Visitors under its authority. Gifts for current or capital purposes may also be accepted by University-related foundations.
- Any proposals or plans for major fund raising from private sources should be discussed with the Vice President for Development before being undertaken. Any school, department, University-related foundation or other organization which seeks to initiate a new annual giving program or to conduct one or more special solicitations with a goal of $10,000 or more, therefore, must first consult with the Vice President for Development. Those which are conducting established annual giving programs need not clear these regular solicitations with the Development Office.
- When a gift to the University is received, it must be reported promptly to the Treasurer for deposit to the proper account using the University's Deposit/Receipt Form. Copies of all Deposit/Receipt Forms relating to gifts to the University will be sent to the Development Office by the Treasurer's Office. All gifts to the University transmitted to members of either the Faculty or the Administration must be acknowledged to the donor by the appropriate Dean, Department Head or Administrative Officer. For gifts to the University in excess of $250, a copy of both the letter of transmittal from the donor and the acknowledgement to the donor must also be forwarded to the Development Office.
- The President will send acknowledgement letters to those donors making gifts to the University, or to any University-related foundation, which are of an appropriate size for such acknowledgement. Each University-related foundation, therefore, will consult with the Vice President for Development in order to establish an appropriate minimum size of gift for the President's acknowledgement to their donors.
A. General Policies Pertaining to Restrictions in Uses of Gifts
1. General Restrictions
Restrictions based on race, color, religion, creed, sex, or national origin are unacceptable in any gift to the University and should be unacceptable in any gift to a University-related foundation.
2. Restrictions Involving Student Financial Aid
- The following restrictions are unacceptable in gifts to the University for scholarships, fellowships, or other financial aid funds and should be unacceptable in contributions to a University-related foundation for such purposes:
- (a) Restrictions permitting designation of an individual recipient by the donor;
- (b) Restrictions to relatives or descendants as recipients;
- (c) Restrictions upon the future employment of the recipient;
- (d) Restrictions by the donor on interest rates and conditions for repayment of loans. (Rates of interest or repayment requirements should be determined by University policy and practice at the time of the loan.)
B. General Policies Pertaining to Solicitation and Acceptance of
Certain Types of Gifts
1. Gifts of Tangible Property
An offer of a gift of tangible property may be accepted initially and conditionally on behalf of the President and the Rector and Visitors by deans, directors of libraries and museums, and other authorized officers. The receipt and acceptance of such tangible gifts with estimated value of $250 or more shall be reported to the Vice President for Development for confirmation and formal acceptance by the Rector and Visitors.
Gifts of tangible personal property such as paintings or other works of art or furniture, or collections as such, should not be accepted if made on the condition or expectation that the items will be permanently exhibited, or that the collections will be maintained and shown as such. Any gift offered with such a restriction or condition shall be reported to the Vice President for Development and may be accepted only by vote of the Board of Visitors.
- The following are unacceptable restrictions or considerations in connection with gifts-in-kind:
- (a) The acceptance of such gifts shall not involve significant additional expense for their present or future use, display, maintenance or administration.
- (b) No financial or other burdensome obligation or expense is or will be directly or indirectly incurred by the University as a result thereof.
- (c) University officers or faculty members should not furnish valuations or appraisals to donors in connection with gifts-in-kind to the University of Virginia.
- (d) Gifts of tangible personal property (such as books and paintings) will not be accepted if made on the condition, or understanding, or expectation that the items will be loaned back to the donor or persons designated by the donor for life or extended periods of time to be determined by the donor.
2. Gifts of Real Property
- (a) An offer of a gift of real estate shall be reported to the Vice President for Development and may be accepted only by vote of the Board of Visitors.
- (b) No financial or other burdensome obligation or expense shall be incurred directly or indirectly by the University as a result of a gift of real property, particularly where the donor wishes to retain a life estate for himself and others in the property. Expenses for maintenance and real estate taxes shall be borne by the donor where a life estate is retained in such property.
- (c) Restrictions as to the ultimate sale of real property received as a gift will not be accepted by the University. Where final sale is not restricted, designating a purpose within the University for a fund created by the assets received from a sale of such property, is permissible.
3. Gifts of Securities
The handling of gifts of securities often has very specific tax consequences to the donor. All gifts of securities to the University must be handled by the Treasurer's Office. The Treasurer of the University will then notify the Office of University Development of all such gifts.
C. General Policies Pertaining to the Establishment of Funds for
Certain Purposes
It is the policy of the Rector and Visitors to approve the establishment of funds for certain purposes upon the receipt of gifts or commitments which meet the prescribed requirements. Only the most popular types of funds and their funding requirements are described below. There are many other purposes for funds which offer a variety of gift opportunities. Each school or department may suggest special activities, programs, research, lectures, etc. which can be supported by varying amounts of funding.
Gifts for endowment are usually pooled for investment with the University's general endowment funds and the individual funds are credited with their pro rate share of the earnings at the annual rate as determined by the Finance Committee of the Board of Visitors. A new endowment fund may be established by the University with a principal amount of not less than $5,000.
An endowment fund may be established, however, even though the principal amount may not have reached the required minimum, if the donor will undertake a binding obligation to supplement the income of the fund with annual gifts sufficient to provide a total income which is equal to at least 5 percent of the principal required for the establishment of the endowment fund. The donor must also agree to complete the endowment within a reasonable period of time.
1. Professorships
A named endowed professorship may be established to supplement the available State support for an existing professorship in a school or a field of study. Such an endowment fund may be established with gifts to total $100,000 where such a fund is submitted for matching under the Eminent Scholars program or under an equivalent matching program. Gifts should total $200,000 if terms of the gift fail to qualify for matching or if matching funds are not available.
2. Lectureships
A named endowment fund to provide a lecture program (i.e., one which may be used for the honorarium and expenses of a special guest lecturer) may be established with a fund of not less than $10,000
3. Scholarships
A named endowed scholarship may be established with a fund of not less than $25,000 or a guarantee of annual support for one or more recipients totaling at least $1,200 but with no award being made which is less than $300 to a recipient.
4. Fellowships
A named endowed fellowship may be established with a fund of not less than $100,000 or a guarantee of annual support for one or more recipients totaling at least $5,000 but with no award being made which is less than $1,000 to a recipient.
5. Prize Funds
A named financial award for outstanding accomplishment may be provided through the establishment of a prize fund with an endowment of not less than $5,000 to furnish awards of approximately $200 or more to one or more students each year.
6. Book Funds
The earnings from an endowed book fund may be used for the purchase of books or other materials in a particular field or library and also may be used as specified by the donor for other expenses of the library. Such a fund may be established with not less than $5,000.
7. Funds for Student Activities
Gifts and funds will be accepted for the support of recognized student activities only if such activities have the approval of the Vice President for Student Affairs.
8. Funds for Buildings and Grounds
Whenever a donor, in making a gift to the University for a building, wishes to have the building named for one whom he designates, it is the policy of the Rector and Visitors to require that at least fifty-one percent of the announced cost of the building be given by the donor. When gift opportunities are offered for parts of a building or for landscape features, a donor may name such designated portions of buildings and grounds by contributing the entire announced cost. There may be exceptions to this policy but in no case shall any agreement or understanding in this regard be reached without the Rector and Visitors first being advised.
D. General Policies Pertaining to Bequests
Any bequest to the University of Virginia should be made to "The Rector and Visitors of the University of Virginia, a Virginia public corporation, located at Charlottesville." This is the legal name of the corporate body.
1. Unrestricted Bequests
An unrestricted bequest is of special value because of
the freedom to use it wherever and however needed. An unrestricted
bequest intended for the general purposes of the University, one which
the Rector and Visitors are free to use to establish an endowment fund
or to expend in whole or in part as they deem best, might read simply:
"I hereby devise and bequeath to The Rector
and Visitors of the University of Virginia,
a Virginia public corporation, located at
Charlottesville (the sum of $. . . .) (all
the rest, residue and remainder of my estate)
(. . . . percent of my residuary estate)."
Depending upon the size of such a bequest it will, under
present practices of the Rector and Visitors, be added to a general
endowment fund if it is relatively small, or used to establish an
endowment fund in the name of the testator or in whatever other name
he or she may direct. If the bequest meets the stated minimum dollar
requirements and the testator wishes to assure that the principal
will be used to establish an endowment fund and remain as such permanently
and not be expended, the will might read as follows:
2. Restricted Bequests
Many donors understandably have special interests which
they may desire to promote or support. Bequests for these restricted
purposes may be expressed as follows:
"I hereby devise and bequeath to The Rector
and Visitors of the University of Virginia,
a Virginia public corporation, located at
Charlottesville (the sum of $. . . .) (all
the rest, residue, and remainder of my
estate) (. . . . percent of my residuary
estate) for the benefit of the (College)
(School) to be used for (the library)
(for publications) (for research) (for
scholarships)."
If the endowment fund is for a limited or restrictive
purpose, it is advisable to provide an "escape" clause. Those who
administer the University's affairs in the future should be left
free to make use of the funds in the best interests of the University
and the public under changed conditions. This can be accomplished
by the statement:
"If, in the opinion of The Rector and
Visitors of the University of Virginia,
all or part of the earnings of this fund
cannot be usefully applied to the above
purpose (or in the above manner), they may
use the same for any purpose within the
general corporate powers of the University"
or, if it is desired to restrict the gift to a particular School or
Department,
". . . . for any other purpose related
to the College or School which in its
opinion will most nearly accomplish my
wishes and purposes."
It is recommended that specified purposes be described as broadly as possible, and that detailed limitations and restrictions be avoided. The Vice President for Development must be consulted before a detailed plan for a specified purpose is approved.
3. Suggested Language for Specific Purposes
(a) Professorships
To establish a professorship at the University of
Virginia, either by an inter vivos gift or through a bequest, the
following statement is suggested:
"I hereby (give), (devise and bequeath)
to The Rector and Visitors of the University
of Virginia, a Virginia public corporation,
located at Charlottesville (the sum of
$ . . . .) (all the rest, residue and
remainder of my estate) (. . . . percent
of my residuary estate) to establish the
. . . . Fund. This Fund shall be added to
the University's Eminent Scholars Endowment
Fund and the income therefrom shall
be used to attract and retain eminent
scholars in the field of . . . . .
at the University through the establishment
of the . . . . Professorship in the
(College, School) of . . . . . Such
income is to be matched by State appropriation
when and if such funds are provided
by the Commonwealth of Virginia for
such purposes.
(b) Scholarships or Fellowships
The following form will create by bequest a scholarship
or fellowship fund which will be efficient to administer:
"I hereby devise and bequeath to The
Rector and Visitors of the University
of Virginia, a Virginia public corporation
located at Charlottesville (the sum of
$ . . . .) (all the rest, residue, and
remainder of my estate) (. . . . percent
of my residuary estate) to establish the
. . . . Fund, the earnings only from
which shall be used for (scholarship)
(fellowship) to students in the University
of Virginia (College of Arts and Sciences)
or (other school within the University).
Awards from this fund are to be designated
Funds endowed for these purposes should be established with the provision of the "escape" clause suggested above so as to permit the use of the funds in a manner which will most nearly accomplish the wishes of the donor.
(c) Teaching, Research or Lectureships
Funds may be given for teaching, for research or for
lectureships in specific areas. While it may be desired to refer to
the academic area of the teaching or lectureship, or to the subject
matter or field of research, provision should be made to permit
discretionary use in a different academic area, subject or field:
"I hereby devise and bequeath to The
Rector and Visitors of the University of
Virginia, a Virginia public corporation,
located at Charlottesville (the sum of
$. . . .) (all the rest, residue, and
remainder of my estate) (. . . . of my
residuary estate) to establish the
. . . . (Fellowship) (Research Fund)
(Lectureship). The earnings only from
the fund may be used for the stipend
and support of (a teaching fellow) (a
research fellow) (for a research program
in . . . .) (for the support of a member
of the teaching staff with the rank of
lecturer or a visiting professor in
. . . .)."
Funds endowed for these purposes should be established with the provision of the "escape" clause suggested above so as to permit the use of the funds in a manner which will most nearly accomplish the wishes of the donor.
(d) Book Funds
"I hereby devise and bequeath to The Rector and Visitors of the University, a Virginia public corporation, located at Charlottesville (the sum of . . . .) (all the rest, residue, and remainder of my estate) (. . . . percent of my residuary estate) to establish the . . . . Fund. The earnings only may be used to the purchase of books or other materials (in the field of . . . .) and for other purposes of the (University of Virginia Library) (the Law School Library, etc.)."
If the fund is restricted to a particular field it would be desirable to permit alternative use in other fields at the discretion of the Librarian.
E. General Policies Pertaining to Deferred and Other Estate-Related Gifts
The terms and conditions of gifts to create charitable remainder unitrusts, charitable remainder annuity trusts, charitable income ("lead") trusts, or charitable gift annuities, and the terms and conditions of gifts which are acceptable for a pooled income fund trust shall be submitted by the Vice President for Development to the Vice President for Business and Finance before the acceptance of such gifts by the University.
A pooled income fund gift or a charitable gift annuity provides the means whereby a donor, who cannot afford to make a large enough gift for a separately invested trust, can support the University and receive the benefits offered by a life income gift. The Finance Committee of the Board of Visitors has authorized the establishment of the University of Virginia Pooled Income Fund. A gift to this Fund will be commingled with the gifts of others as in a mutual fund, and will be managed by a Trustee. The gift may be unrestricted or designated for a purpose specified by the donor.
The income from a gift to the Pooled Income Fund will be paid quarterly to the first beneficiary, and may also be paid to a second beneficiary, for his or her lifetime. At the termination of the life income contract the share of the trust fund attributable to the donor's contribution is transferred to the University or to a University-related foundation.
| Board of Visitors minutes October 8, 1977 | |