Policy 2 Gift Acceptance
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.