Board of Visitors minutes :: June 13, 1997 :: University of Virginia Library

When a potential gift of real estate, outright or deferred, first comes to the attention of the University or one of its University-related foundations, the Planned Giving Office will be notified and given the opportunity to review the suitability of the asset for gifting purposes prior to the commencement of the due diligence process. This office will coordinate communications concerning the acceptance of the property within the University community and can assist in the solicitation and acceptance process.

Coordination Between UREF and UVA

The University Development Office, or the school/unit which is involved with a prospective gift, is responsible for all contacts with the donor and for notifying University personnel of the potential gift. Performance of due diligence will be managed by UREF. So as to not confuse donors and to reduce the number of University persons with whom donors must interact, UREF will work through the University Development Office or appropriate foundation, instead of working directly with the donors, in the management of its review.

UREF Management of Real Estate Gifts

All gifts should be made to the University of Virginia Real Estate Foundation (UREF). This foundation's purpose is to accept and manage properties on behalf of the University of Virginia. After a property has been deeded to UREF, UREF ensures that the property is managed properly, including paying annual taxes and property insurance, maintaining landscaping/facilities, renting the property, etc.

Pro-forma of Estimated Transaction and Carrying Costs, and Marketability

As a part of the due diligence process, UREF will develop a pro forma showing the estimated cost to receive, maintain, and dispose of the property. This pro forma, in addition to an analysis of the marketability of the property, is a crucial part of the due diligence process. Normally, it will be UREF's intention to sell properties as soon as possible. If it is determined that a property will not sell within a reasonable amount of time, or if the sales price will be significantly different from the donor's appraised value, the Foundation may choose not to accept the gift. Donors will receive an estimate of all transaction costs to accept, manage, and dispose of the property. This estimate would include those costs determined as necessary by UREF to put and keep the property in a condition to be marketed. The estimate will detail which costs would be customarily paid by UREF and which costs would be customarily paid by the donor as part of the transaction.

Minimum Review Time for Gifts

The due diligence process will take, at a minimum, 90 days. This means that the due diligence process for gifts must begin prior to October 1 if gifts are to be received in any calendar year. The 90-day minimum review period will not be accelerated unless the Executive Vice President and Chief Financial Officer of the University directs the Foundation to do so.

Minimum Acceptable Value

Any gift valued at less than $10,000 will be reviewed on a case-by-case basis to determine if the benefits of accepting the gift will exceed the cost of accepting and maintaining it.

Transaction Costs

Costs related to reviewing, accepting, maintaining, and disposing of real estate will be attributed to each individual gift. These costs typically may include legal fees, travel to review gifts, general due diligence, (e.g., market analysis, title search, environmental and building review), taxes, utilities, repairs, insurance, etc.