Policy 2. Gift Acceptance
Section 2.1 Gift Acceptance General Provision
The fundraising program of the University of North Georgia encompasses all gift solicitations on behalf of the University and its colleges, units or affiliated entities. All fundraising on behalf of the University will be coordinated by the University of North Georgia Foundation (UNGF) and conducted in accordance with the UNGF Code of Ethics and these policies.
Gifts of cash (or checks made payable to UNGF, not the University) and negotiable securities may be accepted by UNGF staff. All gifts in other forms will be reviewed by the UNGF CEO or COO, in accordance with the policies below, and accepted, rejected or presented to the Executive Committee of the UNGF Board of Directors for final determination. When timing is a critical factor, a gift may be accepted by the CEO or COO, conditional on subsequent approval by the Executive Committee.
The UNGF will record all gifts, deposit gifts into the appropriate funds and promptly issue gift receipts to donors.
The administration and investment of all gifts for the benefit of the University is the responsibility of UNGF. The UNGF Finance Committee oversees fund management and financial policies. All gifts will be invested in accordance with UNGF investment policies, established by the UNGF Investment Committee. Donors may not control the investment of specific gifts.
The University President retains the right to approve or disapprove of any naming or to return a gift to a donor, in the best interests of the University, and in accordance with the University Naming Policy: https://policy.ung.edu/policy/naming-opportunities.
Section 2.2 Fund Agreements
All endowment gifts shall be documented in a written fund agreement (or other written form) that outlines the program to be supported and the schedule of contributions. All non-endowed gifts should be documented in pledge forms, fund agreements or other written forms.
To maximize efficiency of operations, separate named funds and accounts must meet established minimum initial or annual donation amounts, and/or maintain prescribed minimum fund balances, as specified in the Section 3 Gift Accounting policy. These minimums will be updated periodically in consideration of changing economic conditions, with the approval of the Foundation Board.
Section 2.3 Donor Restrictions on Gifts
All gifts solicited and accepted on behalf of the University must further the mission and strategic initiatives of the University. The terms of each gift should be as flexible as possible to permit the most productive use of the funds, while accomplishing the donor’s goals.
No restrictions shall be accepted if in violation of local, state, or federal law or noncompliance with the Internal Revenue Code or IRS Regulations.
In accordance with federal and state law, provisions that restrict gifts on the basis of race, national origin, color, religion or nationality are prohibited. Provisions that discriminate on the basis of age, marital status, disability or gender are discouraged, or if disallowed by law, prohibited.
IRS conditions for a qualifying gift, and principals of academic freedom, mandate that:
Preferences for relatives, descendants or friends of the donor in awarding scholarships or fellowships are not permitted.
A gift from any donor made on the condition or with the understanding that the award will be made to a student or faculty member of the donor’s choice will not be accepted.
Any gift that includes a commitment of future employment of the recipient may not be accepted.
A donor may not serve on a committee that selects or evaluates the recipient beneficiary of the gift.
Section 2.4 Altering Donor Restrictions
It is a paramount obligation of UNGF that a donor’s gift be used for the purposes given. The use of a donor’s gift for any purpose other than that stipulated by the donor is prohibited.
If the use stipulated by the donor becomes impossible, illegal or impracticable, consent for using the funds in a different manner will be sought from the donor, if possible. If the donor is deceased or incapacitated, or cannot be located, then consent may be sought from the donor’s family members, estate representatives, or other legal agents.
If consent cannot be obtained, the use may be altered in accordance with the terms of the original written document, or as provided by Georgia law, which may include seeking court approval.
If the donor wishes to amend or alter the terms of his or her gift, the UNGF and University must first agree to those alterations and the alterations must be documented in writing.
Section 2.5 Gifts of Cash and Negotiable Securities
Gifts of cash and negotiable securities may be accepted by UNGF. Checks must be payable to UNGF, not the University. Gifts of cash are considered to be made on the date postmarked, accepted by a UNGF staff member, or delivered to the Foundation office. Credit card gifts are considered to be made on the date they are processed, regardless of postmark dates.
Securities that are traded on the New York and American Stock Exchanges, as well as other major U.S. and foreign exchanges and the NASDAQ, corporate bonds, government issues and agency securities may be accepted as gifts. In general, such securities shall be sold as soon as possible after their receipt.
The value of a gift of securities is determined by averaging the highest and lowest selling prices quoted for the security on the day the transfer is completed by the donor to the Foundation, in compliance with IRS regulations.
Donors should notify the Foundation of the securities being gifted, the number of shares, the intended gift date, and the intended use of the gift. Securities may be wired to a designated Foundation brokerage account, see Appendix for Stock Transfer Authorization Form.
Section 2.6 Gifts of Partnership Interests, Non-Publicly Traded Securities, Closely Held Business Interests or other Business Interests
A gift of an interest in a limited or general partnership, or of stock in a corporation that is not publicly traded, or of restricted stock of a publicly traded corporation may be accepted on behalf of the University, but only after appropriate due diligence by UNGF staff (including such matters as possible liability, the assets of the entity, the liquidity of the interest, the partners’ or shareholders’ agreement, etc.), then subsequent approval by the CEO or COO of the Foundation and recommendation to and approval by the Executive Committee.
Section 2.7 Gifts of Tangible Personal Property
Gifts of tangible personal property, including but not limited to art, antiques, collections, manuscripts, books, and vehicles, may be accepted only after review and approval by the Foundation CEO or COO, and in some instances the University.
A gift of tangible personal property may be accepted only when:
Such a gift is consistent with the mission of the University, or may be liquidated and the proceeds used by the University; and
No financial or other burdensome obligation or expense is or will be directly or indirectly incurred by the UNGF because of the gift, unless approved by the Executive Committee.
Consistent with the donor’s intent for the gift, which must be documented in writing, UNGF may retain the gift of such property for University use, transfer the asset to the University, or liquidate it for the benefit of the University.
Gifts In Kind will be acknowledged by the item(s) listed with no value. The Foundation will give the donor credit for recognition of total giving. A Gift In Kind Contribution Form (see Appendix) must be completed and approved by the Foundation office prior to any gifts of tangible personal property being accepted from a donor.
Section 2.8 Gifts of Real Property
Gifts of real property, or interests in real property, may be accepted on behalf of the University by UNGF, after approval by the CEO and the UNGF Executive Committee. Due to the expenses associated with gifts of real property, only gifts valued in excess of $100,000 will generally be considered. Most property gifts are actively and promptly marketed and the proceeds used for the charitable purpose designated by the donor. Some property may be received and held for use by the University.
However, no interest in real property, whether outright, in trust, by bequest, as a secured interest, or otherwise, will be accepted by UNGF without first complying with all due diligence requirements as set by the Foundation Board. Each such gifts requires at a minimum:
A title insurance commitment showing marketable title in the donor, free and clear, issued by a reputable title insurance company;
An appraisal by a qualified appraiser (not older than 60 days and paid for by the donor);
A Phase I environmental audit by a qualified environmental engineer, indicating that ownership will not expose the Foundation to environmental liability;
A market feasibility study for purposes of liquidation;
An on-site evaluation by the Foundation CEO or COO, or their designee; and
A listing of all carrying costs, including but not limited to taxes, insurance, association dues, membership fees, and transfer charges.
Moreover, unless waived by the Foundation CEO or COO, the donor shall be responsible for all costs related to the environmental impact study, title search, market feasibility study, and any other related study.
Gifts of mortgaged property raise significant tax issues for the donor and the Foundation, and may require additional review. Gifts of time shares, ground rents, and burial lots will not be accepted.
The execution and delivery of a deed of gift (preferably in the form of a warranty deed or trustees’ deed) shall complete the gift. The donor shall pay the costs associated with the conveyance and delivery of the gift.
Gifts of real property shall be valued at their fair market value on the date of the transfer as set forth in a “qualified appraisal” prepared in accordance with IRS regulations.
Section 2.9 Planned or Deferred Gifts
Various types of planned or deferred gifts are encouraged and may be accepted.
Bequest Expectancies: are encouraged but do not count as current gifts. Generally, the Foundation will not serve as a trustee or co-trustee of a trust or as executor of an estate, exceptions, where appropriate, may be made with prior approval of the Foundation CEO or COO, and approval by the UNGF Board.
Gifts of Charitable Trusts: UNGF may serve as trustee if UNGF is 100% charitable remainder beneficiary of such trust. UNGF will not serve as trustee of a charitable lead trust.
Gifts of Charitable Gift Annuities.
UNGF may consider other forms of planned or deferred gifts, including gifts of insurance, retained interests in personal residences or farms or pooled income gifts. Appropriate due diligence and approval by the Executive Committee is required.
Neither the University nor UNGF provides legal or tax advice. All prospective donors shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their deferred gifts and other tax and estate planning.
General provisions for planned or deferred gifts:
Such gifts will normally be funded with cash, marketable securities or marketable real property.
The minimum amount required for funding a life income plan in which UNGF is to serve as a trustee is $100,000.
Payouts from life income arrangements will be set in accordance with IRS rules and those recommended by the American Council of Gifts Annuities.
The Foundation reserves the right to charge reasonable management fees to offset estimated costs to be incurred during the development and management of various planned gifts. Fees charged by the Foundation or third parties providing administration for deferred giving instruments will be absorbed by the individual instrument.
A companion Fund Agreement should be executed by the parties outlining the purposes of the donor’s gift, when realized by UNGF.
Section 2.10 Gifts to Support Scholarly Activities of Faculty
Funds may not be contributed to UNGF to benefit a particular individual. All gifts are deemed made irrevocably to the institution, and will not be transferred to another organization or institution in the event a particular faculty member leaves the University.
Section 2.11 Gifts in lieu of Honoraria
A payor may make a gift to UNGF, in lieu of paying an honorarium, if accompanied by a letter from the payor identifying the payment as a charitable contribution. If a University employee wishes to make a gift of an honorarium which has been sent to him or her directly, he or she must first deposit the honorarium personally and then make a separate private gift to the Foundation.
Section 2.12 Gifts of Other Property
Gifts of other property such as copyrights, or royalties, are generally not accepted by the Foundation.
These gifts may be considered only with the approval of the Foundation CEO or COO, and subsequent approval of the Executive Committee.
Individuals may accept royalty payments directly, and then make a private gift to the Foundation.