 | Board of Visitors minutes May 23, 1992 |  |
ATTACHMENT A
THE CAMPAIGN FOR THE UNIVERSITY OF VIRGINIA
GIFT CREDITING AND VALUATION POLICY
I. GENERAL
A. Gifts received and commitments made during the period of July 1, 1993 to June 30, 1998 will be credited to the Campaign, including annual, capital and endowed gifts, matured bequests, and irrevocable life insurance gifts.
B. Gifts received prior to July 1, 1993 may, under certain circumstances, be credited to the Campaign. These circumstances include:
1. Endowed and Capital Gifts to the Darden School and Jefferson Scholars campaigns. These fund raising efforts constitute the first phase of the Campaign for the University of Virginia.
2. Gifts received for projects/programs designated as priorities in the "Plan for the Year 2000." The size of gift should be at the prospect's maximum giving potential.
3. Selected gifts received where the donor requires the gift to count as part of his/her Campaign commitment.
4. All of the above are to be counted only after review and approval of the President and the Vice President for Development.
C. Pledges exceeding five years will be considered on an individual basis by the Gifts Policy Committee.
D. Oral pledges must be confirmed in writing before they are counted. Donors will be encouraged, insofar as possible, to state their philanthropic intentions in a letter or memorandum, even though such statements may be informal and non-binding. Failing this, the solicitor will record his/her own understanding of the terms of the oral commitment and submit it via letter to the donor for written confirmation or modification.
E. Gifts are to be valued and credited on the date the University gains control of the assets. The amounts reported are to be arrived at without regard to the donor's personal estimation of the gift value.
F. Naming of commemorative gifts for new construction (or a portion thereof) will be accepted if equal to at least 50% of the total private cost of the project. Other naming gift opportunities relating to existing facilities are available and negotiable.
II. CURRENT ANNUAL, CAPITAL AND ENDOWED GIFTS
A. Cash, securities, written pledges, and gifts of tangible assets are to be credited at full value. A donor may include in his or her pledge an explicit provision for altering the time period of the pledge if his or her personal circumstance were to change substantially.
B. Gifts of securities are to be credited at market value on the date the University gains control of the assets. Neither losses nor gains realized by the sale of the securities after their receipt, nor brokerage fees or other expenses associated with the transaction are to affect the gift value.
C. Corporate matching gifts will be recorded according to the policies and procedures of the company matching the gift. Matching gifts will be credited to the donor as annual or capital gifts. If a donor wants his or her matching gift to follow the original gift into a restricted fund, every effort will be made to accommodate the request.
III. GIFTS OF REAL ESTATE AND PERSONAL PROPERTY
A. Gifts of real estate and personal property--such as land, residential housing, income producing property, paintings, antiques, and rare books--are to be valued by an independent, expert appraiser paid for and retained by the donor. The University retains the right to receive its own independent appraisal for property with a market price of $250,000 or more.
B. Gifts of real estate must undergo an environmental study and zoning assessment before they are accepted by the University.
C. Small gifts of real and personal property--such as rare books or prints--with an apparent worth of less than $5,000 may be valued by someone with knowledge in the field, and that informal valuation may be used for reporting purposes.
D. Gifts of real estate and personal property, if accepted by the University, will be credited to the campaign goals at the appraised fair market value.
E. Gifts of real estate, personal property or gifts-in-kind which are retained by the University for its own collection are to be counted in a separate column.
F. Gifts accepted by the University which may become part of the University's inventory (generally, property held for sale in the course of the donor's trade or business), will be credited to the Campaign at fair market value. Special approvals are required for gifts of computing resources or gifts of materials requiring the execution of a contract with a vendor.
IV. PLANNED GIFTS
A. Gifts to establish charitable remainder trusts, contributions to pooled income funds, and gift annuities are to be credited at fair market value.
1. Regarding trusts administered by others, the value of the assets in trust that the donor has chosen to have administered by others is to be included in the gift totals provided the trust is irrevocable and the University of is an irrevocable beneficiary. The University must have a copy of the trust agreement.
B. In crediting charitable lead trusts, only the income received from the lead trust each year during the period of the Campaign (or a five year period) is to be reported in the gift totals.
C. Paid bequests, outright bequests from estates in probate, and any additional payments on previous bequests received during the campaign are to be given full credit for the amount received.
D. For individuals age 70 or over by June 30, 1998, properly documented and realistically valued bequest expectancies are to be recognized at full value if the bequest is to be received outright from the testator's estate or if the bequest is in the form of a remainder interest which has no more than two beneficiaries, both of whom are to be 70 or over by June 30, 1998. They will not be counted toward the Campaign goal but noted as "future support".
1. Bequest expectancies are to be reported separately so as to emphasize the fact that the proceeds therefrom will likely not be available to complete the goals of the Campaign. Each donor will be encouraged to include with his or her bequest intention a gift of cash or securities to help complete campaign goals.
2. All donors will be encouraged to provide in their wills for payment by charitable bequest of any unpaid portions of a Campaign pledge.
E. In crediting gifts of insurance the University must be named both beneficiary and irrevocable owner of an insurance policy before the policy is to be recorded as a gift.
1. The cash surrender value of the policy when given, rather than its face value, is the amount to be credited as a gift.
2. If the donor pays further premiums on the policy, the premiums are to be included in the gift totals.
3. If University elects to pay the premiums, the institution should consider those payments as operating expenditures and not report increases in the cash surrender value as gifts.
4. Regardless of whether the donor or the University pays the premiums on the policy it owns, the difference between the cash value and the insurance company's settlement at the death of the donor should not be reported as a gift but rather as a gain on the disposition of assets.
5. In those cases where the University receives the proceeds of an insurance policy in which it was named beneficiary but not owner, the full amount received is to be reported as a gift.
V. GOVERNMENT AND NON GOVERNMENT GRANTS AND CONTRACTS
A. A differentiation must be made between gifts, grants and contracts when reporting. Grant income from private, non-government sources should be included in the gift totals; contract revenue should not be included.
B. A private grant is bestowed voluntarily and without expectation of any tangible compensation; it is donative in nature.
1. Whereas UVa has the legal responsibility of using funds received as gifts and grants for the purpose specified by its donors, its obligation to the donor usually does not, and probably should not, exceed the limit of the gift.
2. UVa's responsibility under a contract, on the other hand, normally involves the generation of some tangible product or service, such as a report of research, often for the exclusive or proprietary use of the contracting agency and subject to certain standards of performance, and the expectation of economic benefit on the part of the grantor.
C. Government grants, whether local, state, federal or foreign, are not to be included in the Campaign gift totals.
VI. EXCLUSIONS
The following type of funds will be excluded from campaign report totals:
A. Gifts or pledges, outright and deferred, which already have been counted in previous campaigns, even if realized during the campaign, even if realized during the campaign reporting period.
B. Investment earnings on gifts, even if accrued during the time period of the campaign and even if required within the terms specified by a donor source.
C. Earned-income transfer payments from medical or analogous practice plans.
D. Surplus-income transfers from ticket-based operations.
| Board of Visitors minutes May 23, 1992 | |