3.1.28 Gift Acceptance Policy

Piedmont University actively encourages the solicitation and acceptance of gifts that advance the University’s mission to provide quality educational experiences to its students. The Office of University Advancement (UA) is charged by the President and Board of Trustees to promote and secure private gifts and donations in support of the University’s mission, to collect and maintain donor information on all gifts, provide donors with the appropriate receipt for tax filing purposes, and to adequately and appropriately steward gifts to the University. This document sets forth the University’s policy of gift acceptance by providing a set of standards in which gifts are reviewed, accepted, recorded, and receipted.

Protection of the University

This Gift Acceptance Policy (GAP) defines the process to be used in accepting or refusing a charitable donation. This policy defines what types of charitable gifts may and may not be accepted by Piedmont University. Some gifts, such as real estate, may pose potential risks for the University. Other gifts may be difficult or costly to manage, creating an administrative hardship for the University. In all cases, a gift should be accepted only if it is clearly beneficial to and in the best interest of the University. Certain types of gifts will require review and approval by the appropriate University representatives prior to acceptance.

A gift may be declined for one or more of the following reasons:

Conditions of the gift not consistent with the purposes, values, or objectives of the University.
The gift could financially jeopardize the donor or the University.
The gift could violate law or damage the University’s reputation.
The University does not possess the resources to manage the gift, honor the terms of the gift; or the gift poses unwarranted or unmanageable expense to the University.

Protection of Donors

A number of provisions within the policy are designed to ensure that donors will be solicited for charitable gifts only in an appropriate and ethical manner. This policy also designates protocol for accepting charitable gifts that are restricted by the donor for particular purposes, and for ensuring those restrictions will be honored once the gift has been accepted.

I. AUTHORITY TO ACCEPT GIFTS

The President is the principal executive officer of the University, acting pursuant to the general powers delegated to the office by the Board of Trustees. Presidential authority allows for the acceptance and disposition by the President, of proposed gifts, on behalf of the University. The President confers with the Senior Vice President for Administration and Finance when making determinations of financial impact regarding gift acceptance and disposition.

The Vice President for University Advancement is responsible for managing the University’s gift procurement and processing operations, for coordinating all fundraising operations, and for implementing policies set by the Board of Trustees. The presentation, cultivation, motivation, negotiation, preparation, solicitation, processing, and stewarding of gifts to the University shall be the responsibility of the Office of University Advancement. Fundraising conducted on behalf of the University shall be subject to the approval of the Vice President for University Advancement.

The Senior Vice President for Administration and Finance is responsible for determinations by way of financial analysis regarding acceptance, management and disposition of university property, subject to the review of the President. The Senior Vice President for Administration and Finance, in conjunction with the Vice President for University Advancement, will consult directly with the President in cases involving gifts of significant magnitude and complexity. The Senior Vice President for Administration and Finance is responsible for ensuring that the University’s outside financial relationships, whether with donors, project managers, brokers, and any other involved entities, are free from any conflicts of interest. In any instance where the acceptance of a gift may present a conflict of interest or give the appearance of a potential conflict, the Senior Vice President for Administration and Finance is responsible for making the necessary inquiries and investigations to properly assess the legal and risk elements that might affect the acceptability of property offered as a gift.

II. GENERAL PRINCIPLES

Mission and Values: The Office of University Advancement (UA) is responsible for the University's gift procurement program. UA works to ensure that all gifts are appropriate and used for their intended purpose. A gift is any item of value given by a donor who expects nothing of value in return. While most gifts offered to the University are helpful and acceptable, the University does reserve the right to decline gifts (refer to the section titled Protection of the University).
Approval of Exceptions: Acceptance of gifts to the University in a manner that is in any way inconsistent with the policies outlined in this document, must be approved in writing by the University President or the Senior Vice President for Administration and Finance.
Adherence to Policies: Members of the UA staff and other University representatives, including volunteers, approved to solicit gifts on behalf of the University, are required to adhere to these policies.
Donor Advisory: The University does not provide legal, financial, compliance, or professional advice to donors. While the University Advancement staff may provide the donor with proposed gift illustrations, including estimated calculations, donors will be advised to seek assistance from independent legal counsel or other independent professional advisors, of the donor’s choosing, concerning matters relating to legal, tax, and estate planning in relation to the presentation of any gift to the University.
Ethical Standards: The University is committed to the highest ethical standards.UA staff, within all levels of the University, shall adhere to the Statement of Ethics adopted by the Council for Advancement and Support of Education. Any suspected instance of unethical fundraising behavior, including but not limited to, donor complaints, should be immediately referred to the Vice President of University Advancement for review.
Responsibility to Donor: The University staff and representatives shall endeavor to assist donors in accomplishing their philanthropic objectives. Information concerning all transactions between a donor and the University (including but not limited to, the Board of Trustees, officers, faculty, and staff), shall be held by the University in strict confidence and may be publicly disclosed only with the permission of the donor. Donors will be included in general public recognition and communication materials, unless the donor has requested omission from such acknowledgments.
Donor Expense: Except as provided elsewhere in the Gift Acceptance Policy for specific assets, expenses associated with a donor’s gift shall be paid by the donor. Typical expenses include appraisal fees, to substantiate the value of the donor’s gift for tax purposes, and the donor’s legal fees. The University may, with prior approval from the Senior Vice President for Administration and Finance, agree to pay some or all of the donor’s expenses associated with the gift (such as a title search for a real estate donation), following a recommendation from the Vice President for University Advancement that doing so is necessary to facilitate the gift.
Gift Restrictions: To provide the University with maximum flexibility in the pursuit of its mission, donors shall always be encouraged to make unrestricted gifts. As a general rule, unrestricted gifts in the $1 - $50,000 range will be designated to the Annual Fund. Unrestricted gifts above $50,001 will be designated at the discretion of the President.
Unsolicited Gift: In the event an unsolicited gift or donation is made directly to a department or division of the University, the UA Office shall be notified as soon as reasonably possible in order to initiate the appropriate acknowledgment and record keeping. As previously indicated, some gifts may be deemed inappropriate and may be denied by the University.

III. GIFT ACCEPTANCE PROCEDURES

Outright Gifts of Cash: Gifts given by cash, check, credit card, wire transfer, or payroll deduction, shall be accepted by the University regardless of the amount. All checks shall be made payable to Piedmont University and shall never be made payable to any individual representative of the University. Virtual currencies are not accepted by the University. As a tax-exempt corporation under section 501(c) (3) of the Internal Revenue Code, the University is eligible to receive matching funds from most corporate matching gift programs. Individuals whose employers contribute matching funds will have those matching funds directed to the same purpose as was their original gift, unless the organization matching the gift requires otherwise.
1. Acceptance of Cash and Checks: All staff members within the Office of University Advancement shall encourage donors to give online through the giving website. If an UA staff member receives a check, in-hand, while visiting with a donor, he/she should initiate the gift processing within 24 hours after returning to the University. Should a gift be received via cash, check, or credit card, that does not indicate the purpose and designation of the gift; the donation will be allocated to the University’s General Annual Fund.
2. Acceptance of cash by wire transfer: Gifts should be wired in U.S. currency. Donors are expected to make such conversion of currency. Donors wishing to transfer funds, by wire, will be provided with appropriate instructions. Generally, UA staff will obtain current instructions from the Controller’s Office and provide these directly to the donor. If the donor’s wire transfer does not indicate the purpose or designation of the gift, the UA staff member must make every reasonable effort to contact the donor to secure written documentation of the gift’s intended purpose and/or designation.
3. Instructions for the wire transfer of cash gifts to Piedmont University: Instructions, including details such as the account name to be used, the name of the banking institution, the routing and account numbers, the swift code, and the ACH transfer number, are kept on file in the Controller’s Office and available for use by UA staff.
4. Gifts made by payroll deduction: Payroll deduction gifts are generally prohibited from counted toward a pledge and must be counted as cash donations at time of payroll deduction. To change or initiate a payroll deduction, the employee is required to submit their request in writing.
Gift Pledges: The UA Office is responsible for recording, acknowledging, billing, and monitoring the status of all pledges and payments. Donors wishing to make gift installments over time, must document their planned commitments to the University in a written pledge agreement (preferably a University pledge form) that will create a formal obligation for the donor. In any case, a pledge should specify the amount; purpose; payment schedule, and restrictions or University obligations (if any) related to the gift.

A gift pledge is to be paid over a period of time not exceeding five (5) years, with shorter installment periods being encouraged. Any canceled or unfulfilled portion of the pledge will be subtracted from the total donation amount recorded. Verbal pledges shall not be included in official pledge reports. The Controller’s office will be notified by UA of any pledges or changes in pledges.
1. In the event of internal fundraising or other crowdfunding efforts, gift agreements may take the form of an internal memorandum initiated by UA and approved by the Senior Vice President of Administration and Finance.
2. Pledge Collection and Review Policy: In accordance with CASE standards, pledges will be reviewed annually. Pledges will be written off when there is relative certainty that no other payments will be received. Annual Fund and open single-year pledges will be written off approximately 30 days after the close of the fiscal year (see exception below). Multi-year pledges will be reviewed by the Director of Advancement Services (DAS) to determine if payments are being submitted per pledge agreements. If agreements are not being met, the DAS will contact the donor to, either provide a new payment timeline or confirm that the pledge will not be fulfilled and will communicate any changes to the pledges to the Controller’s Office. Unfulfillable pledges will be written off when confirmation from the donor is received stating that the pledge will not be honored. The Controller’s Office will discount pledges per accounting standards, as applicable.
A list of outstanding pledges will be distributed to the Vice President for University Advancement and gift officers, along with a notice stating that, unless the donor provides an updated payment schedule within 60 days, the University will write off the pledge (or update its records to reflect a loss of the pledge receivable and de-obligate the pledgor from his/her promise to give). In some circumstances, pledges may be maintained on the books (with the recommendation of the Vice President for University Advancement and the approval of the Senior Vice President for Administration and Finance) if there is a reasonable expectation that the pledge will, in fact, be honored despite the delay in receipt of the funds and/or despite the nature of being a single-year gift.
Gifts of Marketable Securities: The University will assist in the transfer of custody of marketable securities from the donor (or his/her custodian) to the University. Gifts of marketable securities will be accounted for at fair market value on the date the gift is made, as determined by the mean between the high and low quotes on the date of the gift. Mutual funds shall be valued based on the closing net assets value (NAV) on the business day of the date of the gift. Gifts of marketable securities will be disposed of expeditiously.
1. To Donate Mutual Fund Shares: The donor may also inform an UA staff member of his or her desire to donate mutual fund shares. The UA staff member shall instruct the donor to contact his/her mutual fund representative and ask whether an account for Piedmont University has already been established with the investment company. If an account has not been established, the donor should forward the necessary paperwork to UA, accompanied by a letter indicating his or her intent to donate mutual fund shares to the University. Within the letter, the donor should affirm the name of the mutual fund, the number of shares or specific dollar amount s/he intends to donate, the purpose of the gift, and the contact information for the investment company and the donor.
Gifts in Kind: Gifts in Kind (GIK) are non-cash donations of materials or long-lived assets related to the mission of Piedmont University, along with donations that are readily convertible to cash in support of the University’s mission. Such gifts can take the form of items such as equipment, software, hardware, personal collections, cars, boats and airplanes (i.e., tangible personal property), as well as real estate.
Prior to recommending a gift in kind for final approval, the UA staff member, along with a Finance staff member, shall determine the estimated carrying costs, including insurance, storage, curatorial services, maintenance, etc., for the property. The responsibility for substantiating a GIK rests with the donor as further described below.

If the property will not be retained for use by the University, the UA staff member must determine a plan for appraising and selling the property/item for cash that includes the anticipated time frame and marketing expense for the proposed sale. The UA staff member must present that information to the Senior VPAF for purposes of making the gift acceptance and disposal determination.

A Gift in Kind Acceptance Form should be completed for all GIK donations.

Piedmont University does not accept the value of a person or organization’s time or service as a GIK donation.
1. Gifts of Tangible Personal Property: The University may accept gifts of tangible personal property. Prior approval from the Senior Vice President for Administration and Finance is required. Gifts shall not have restrictions or limiting conditions, such as special requirements or requests concerning (or related to) the sale of the item(s). Partial interest art donations will be accepted in accordance with IRS regulations.
2. Qualified Appraisal: For property valued over Ten Thousand and no/100 Dollars ($10,000) the donor, at his/her expense, should secure a qualified appraisal to determine the fair market value of the property. Exceptions to the policy of requiring the donor to incur the cost of appraisal, are outlined in section 2.7 above.
If a qualified appraisal is not available (i.e., if the appraisal has not already been performed and it would likely be time/cost-prohibitive to have it performed), the Senior VPAF may elect to record the property at a value determined by utilizing external qualified expert opinions, provided that the value of the gift does not exceed $25,000 and (2) the appraisal is not performed by an individual whose fundraising totals are directly affected by the gift.
1. Gifts of Real Estate: Gifts of real estate may include developed property, undeveloped property, or gifts subject to the life estate of the donor. Generally, gifts of real estate will be liquidated on the public market as soon as possible rather than held and managed for investment purposes. Alternative plans require approval of the President and/or the Board of Trustees of the University. Retained life use contracts must include provisions stipulating that the named tenant, and/or donor, or other specified designee of the donor, is obligated to maintain the property, pay all taxes and necessary insurance on the property, and that the tenant, donor, or designee must not encumber the property with debt of any kind.
2. Approval: Acceptance of all real estate gifts requires prior written approval by the Senior Vice President for Administration and Finance upon recommendation from the Vice President for University Advancement.
3. Required Information: Prior to obtaining written approval, the responsible UA staff member shall work with the Vice President of University Advancement to compile all relevant information and documentation regarding the real estate including:
  - Property Disclosure Form completed by the donor.
  - A copy of the Deed conveying the property to the donor.
  - A copy of the current property tax bill.
  - A preliminary title search report.
  - If already conducted, a copy of the Phase I Environmental Study.
  - A copy of each promissory note, mortgage, deed of trust, or any other liens on the property.
  - A copy of each lease or other contract affecting (or relating to) the property.
  - A copy of the appraisal (refer to 3.6.1.3).
4. Physical Inspection: The University shall arrange for a physical inspection of the property and a written summary of the inspection shall be included in the file, documenting the consideration and acceptance of the gift.
5. Environmental Review: The donor shall conduct a Phase I Environmental Study on the property. The University reserves the right to address concerns within the study results, and subsequently choose to continue with the evaluation of the gift or to decline the gift.
6. Title Insurance: The University shall obtain an owner’s title insurance policy protecting its title to the real property received from a donor. The costs associated with obtaining an owner’s title insurance policy shall generally be at the expense of the donor.
7. Appraisal: The University shall obtain an appraisal from an independent third-party appraiser no more than sixty (60) days prior to the transfer of property. The costs to obtain the appraisal shall generally be at the expense of the donor. The Senior VPAF may make the determination allowing the University to cover the appraisal cost if the VPUA determines that the appraisal cost may negatively affect the donor’s transfer of the gift.
8. Donor Reporting Requirements: Donors are encouraged to seek professional tax advice with regard to the tax deductibility of GIK donations. Acknowledgement letters issued by Advancement Services will include a description of the item, rather than a dollar amount of the donation.
  1. Total non-cash contributions valued at more than $500 require the donor to file an IRS Form 8283 with their tax return. For gifts in excess of $5,000, the donor may request the University complete the donee portion (i.e., Part IV) to confirm receipt of a non-cash gift. Only the VP of University Advancement or the Controller may complete the donee portion of the form on behalf of the University.
  2. Motor vehicles, boats and/or airplanes require a Form 1098-C if valued over $500, which must be completed by the University and sent to the donor and the IRS.
  3. If the University disposes of a reported GIK with an original value in excess of $500 within 3 years of acceptance, it must file IRS Form 8282 with the IRS and send a copy of the form to the original donor.
If the property is income producing, donor provided information must also include:
- Copies of the profit and loss statements for the two most recent years.
- A summary of current insurance coverage for the property.
- A current market analysis of the property.
- An appraisal conducted by a qualified appraiser who has no business or personal relationship with the donor or the University.
- An agreement stating that the University will receive any and all income from the property.
Gifts Received through Estates and Trusts: Donors shall be encouraged to name the University as a beneficiary in a donor’s estate plans. The University reserves the right to decline a bequest if it requires the creation of a program that is inconsistent with the University’s mission or proves more costly than beneficial to the University. All bequests received for restricted endowment purposes will be accepted only on the condition that, should the purpose for which the funds are provided cease to exist, the University shall reserve the right to allocate those funds to purposes as similar as possible to the original intent of the donor. This language should be provided to a bequest donor who asks for such language from the University. Matured unrestricted bequests with a value of up to $50,000 shall be placed in the University’s annual fund and designated for the University’s highest priorities. Matured unrestricted bequests with a value in excess of $50,000 shall be used for other unrestricted purposes or placed in a quasi-endowment at the discretion of the President or Board, working in conjunction with the Senior Vice President for Administration and Finance.
Gifts of Life Insurance: While the University will not actively procure gifts of life insurance policies from its donors, it will accept all or a portion of the benefits of life insurance contracts that have been purchased on the lives of donors or family members. Policies that are not fully paid up may be accepted by Piedmont University with the understanding that the donor will make further contributions to cover premium payments. The University may unilaterally exercise its right to surrender a policy for its cash surrender value if a donor fails to cover any such payments. The University will not accept outright gifts from donors for the purpose of having Piedmont University purchase a new insurance policy on the donor’s life. For the University to accept any life insurance gift, a copy of the policy along with written instructions from the donor regarding designated use of the gift is required.
Gifts of Retirement Plan Assets: The University will accept funds it receives as the designated beneficiary of a retirement plan [for example, an IRA, a 401 (k) plan, or a defined contribution plan]. The University should obtain a copy of the executed designation form that the donor has submitted to the retirement plan administrator that names the University as a beneficiary.
Other Property: Acceptance of any other type of property as a gift to the University, including but not limited to patents, royalties, trademarks, copyrights, professional services, etc., shall be accepted only when the gift is in keeping with the tax-exempt purpose of Piedmont University. Acceptance requires the prior written approval of the Vice President for University Advancement.
Bargain Sale Transactions: A bargain sale transaction, defined as the purchase of personal or real property at a cost well under its established value, may be accepted by the University only with the prior written approval of the Vice President for University Advancement and the Senior Vice President of Administration and Finance. In these transactions, all of the policies governing the acceptance of personal and real property apply. In limited circumstances, the University may consider bargain sale transactions to acquire property that would not be retained for use in the University’s programs, as long as it is determined during the approval process that the property can be expediently sold for cash. If the donor considers the discount to be a charitable contribution, the gift must be labeled as such in the bill of sale and must be approved by the Senior VPAF prior to being accepted as a gift.
Life-Income Gifts

3.10.1 Charitable Remainder Unitrusts: The University will accept gifts of a remainder interest in a charitable remainder unitrust (herein “CRT”) based on the following: where-by the donor retains the right to receive income from the property calculated as a fixed percentage of the full fair market value of the principal valued annually, and upon the death of the life income beneficiary or a term of time not to exceed 20 years, after which the principal transfers to the University. The University will assist prospective CRT donors by providing calculations illustrating tax benefits and projecting distributions, and by providing a draft of the CRT agreement. The University shall propose to serve as trustee of a CRT with assets of no less than One Hundred Thousand and No/100 Dollars ($100,000) so long as the trust names the University irrevocably as a beneficiary of at least 50% of the remainder. The fixed percentage to be paid shall be no more than seven percent (7%) of the net fair market value of the trust assets valued annually. Percentage rates may be reviewed periodically and adjusted in keeping with IRS regulations and current economic conditions. The remainder interest in the property must be at least 35% of the net fair market value of such property as of the date such property is contributed to the trust. No beneficiary shall be under the age of sixty (60), and the maximum number of beneficiaries shall be two (2). The University discourages but will consider on a case-by-case basis, the use of real estate to fund a CRT for which the University serves as trustee. However, transfers of mortgaged property will not be accepted as a contribution to a standard CRT. For gifts of real estate to fund a FLIP charitable remainder trust, the Donor will be encouraged to act as his/her own trustee until the property is sold. If the trust is testamentary or rises upon the death of the donor, the University reserves the right to disclaim any interest that would be in violation of the Gift Acceptance Policy.

3.10.2 Charitable Remainder Annuity Trusts: The University will accept gifts of a remainder interest in a charitable remainder annuity trust (herein “CRAT”) whereby the donor retains the right to receive income from the property or creates an income interest based upon a fixed dollar amount and upon the death of the life income beneficiary, or the expiration of a specified term of time not to exceed 20 years, the principal transfers to the University. The University shall propose to serve as the trustee of a CRAT with assets of at least One Hundred Thousand and no/100 Dollars ($100,000) so long as the trust names the University irrevocably as a beneficiary of at least fifty percent (50%) of the remainder. The fixed percentage to be paid shall be no more than seven percent (7%) of the net fair market value of the trust assets valued on the gift date. The remainder interest in the property must be at least 35% of the net fair market value of such property as of the date such property is contributed to the trust. The University will consider on a case-by-case basis the use of the real estate to fund a CRAT for which the University serves as a trustee. However, transfers of mortgaged property will not be accepted as a contribution to a CRAT.

3.10.3 Charitable Lead Trust: The University will accept gifts of a lead income interest in a charitable lead trust (herein “CLT”) whereby the University has the right to receive income from the property and, upon the expiration of a specified term of years, the assets held in trust are conveyed to the donor’s beneficiaries. No CLT agreement shall be entered into, with a donor, for a sum of less than One Hundred Thousand and no/100 Dollars ($100,000.00) where the University serves as a Trustee and is named an income beneficiary.

3.10.4 Charitable Gift Annuities: The University may enter into a charitable gift annuity (herein “CGA”) agreement between a donor and the University whereby the donor makes a gift to the University in which the University is legally obligated to pay the donor a fixed dollar amount of income for his/her lifetime. The agreement may be for no more than two (2) lives. The University may enter into a deferred gift annuity whereby the donor makes a gift to the University in which the University is legally obligated to pay the donor a fixed dollar amount of income for his/her lifetime commencing at an agreed-upon future date. The agreement shall be for no more than two (2) lives. The period of deferral between the transfer for the deferred payment gift annuity and the date the annuity payments commence shall be no less than ten (10) years. For CGAs issued for contributions of cash or marketable securities, the University will utilize the rates updated and published regularly by the American Council on Gift Annuities (ACGA). On a very limited case-by-case basis and only with the prior approval of the Senior VPAF, based upon recommendation from the Vice President for University Advancement, a CGA may be issued in exchange for a gift of real estate. The real estate will be discounted by 50% of the appraised value of the property before applying the ACGA rates, with the discount factor to be approved by the Senior VPAF, and upon a recommendation from the Vice President for University Advancement, taking into account the anticipated costs of selling the property and the likely carrying costs of the property prior to its sale. Prior to funding a CGA with a gift of real estate, the UA staff member must first comply with all of the requirements set forth in Subsection 3.7 above. Payments to the donor from a CGA funded with a gift of real estate shall be deferred until the property sells. The minimum gift to fund a CBA with immediate or deferred payments shall be Fifty Thousand and no/100 Dollars ($50,000). The minimum age when payment begins for a current gift annuity shall be 65. The minimum age to create a deferred gift annuity shall be 55.

IV. FUND ESTABLISHMENT AND ADMINISTRATION

A named fund may be established for any worthwhile purpose which is within the University’s mission, and which meets the minimum requirements for the creation of a separate fund. An Endowed Fund Agreement / Establishment of Fund document signed by the donor and Vice President for University Advancement, or his/her designee, establishes the account and provides assurance that the funds will be used for the purpose intended. An approved copy of the fund agreement is distributed to the donor, the UA Office, and the Controller’s Office.

The donor’s wishes provide the most important criterion for determining the fund’s purpose. This purpose should be clearly stated at the time of establishment. When possible, this purpose should be stated in general terms to permit the University flexibility when using the monies. To reduce the number of named funds to be administered, new contributions can often be placed in existing funds and still fulfill the intent of the donor.

Two different types of named funds can be established: restricted and endowment.

4.1 Restricted Fund: A named restricted fund requires a minimum of $25,000 plus evidence of ongoing funding.

4.2 Endowment Fund: A donor may establish an endowed fund - subject to the University’s endowment, investment, and spending policies - for the general purposes of the University or for restricted purposes that are approved in accordance with these procedures. A named endowed fund requires a minimum commitment of $25,000. Funds established prior to the establishment of this policy valued less than $25,000 are exempted from the minimum requirement but are subject to current guidelines. The minimum amount required to establish new endowed funds will be reviewed and raised periodically. However, all endowed funds established under agreements between the donor and the University will be subject to the minimum funding requirement in effect at the time the agreement was executed, which will be written into the gift agreement/fund establishment document. The assets contained within each endowed fund shall be commingled for investment and administration with the University’s endowment pool. General policies applied to endowment funds, including the formula for spending from endowment funds, shall apply to all endowment funds.

V. DONOR RECOGNITION

The Vice President for University Advancement may establish criteria for the recognition and commemoration of a donor, by awarding certain honors or benefits, based on various (or specified) giving levels achieved by a donor and/or type of gift given. These honors or benefits may include the listing of the donor’s name on a roll or plaque comprised of significant donors, or the opportunity to receive invitations to donor recognition events. Unless the donor specifies otherwise, gifts may be recognized in the University publications, listing donors by name within gift ranges or funding purposes. If a donor wishes to remain anonymous, he or she must request anonymity in writing.

VI. ANONYMITY STATEMENT

The term “anonymous” has varying degrees with regard to gift entry and acknowledgment. The primary question with regard to anonymity by the donor is whether he/she wants to receive credit for the donation. If a donor wishes to receive a tangible receipt for a gift, the University must then assign the gift to the donor’s constituent record. If the donor does not require a gift receipt and prefers not to be connected to the donation in any way, the gift can be posted anonymously. However, if the donor merely wishes that his/her name not be publicized in connection to the gift, the University’s gift accounting database enables the coding of the gift as anonymous for donor recognition purposes, protecting the donor’s name and other information pertaining to the gift. Additionally, an anonymity code can be assigned to the donor as well, ensuring that no public record of future gifts occurs.

The provision of a written anonymity statement (or selection of “anonymous” check box in the case of online gifts) by the donor will ensure the proper stewardship of gifts and pledges of this nature. Anonymity Statements should be completed for all gifts and pledges committed to the University in which the donor requests to remain anonymous.

VII. GIFT RECEIPTS

7.1 Receipt: A single receipt, or acknowledgement letter, will be issued to donors for each individual donation of any amount, fulfilling the University’s fiduciary duty to its donor. A good faith effort will be made to prepare receipts within 2-5 business days of gift entry. In the case of payroll deducted and monthly recurring gifts, a gift acknowledgement letter will be sent to the employee when the election is made, and letters are mailed at year-end according to IRS regulations. All philanthropic commitments will be credited to the donor using UA gift processing data management system.

VIII. REPORTING AND VALUATION STANDARDS

8.1 Counting Period: the counting period for all outright gifts, planned gifts, pledge payments received, and all outstanding pledges made shall commence on July 1 and conclude on June 30.

8.2 Planned Gifts: All planned gifts shall be counted in accordance with CASE Reporting Standards & Management Guidelines published by the Council for Advancement and Support of Education and on file in the University Advancement Office.

8.3 Campaign and VS Reporting: Counting for annual giving and campaigns in fundraising shall be in accordance with the most current guidelines provided by the Council for Aid to Education (publisher of the VS reports) and the Council for Advancement and Support of Education. Guidelines are on file in the University Advancement Office.

8.4 Record Keeping: Donor records will be stored securely in the UA Office.

8.5 Differences Between Financial Accounting and Advancement Reporting:

It is important to clarify the distinction between financial accounting, which underlies the financial reporting of gifts following accounting principles generally accepted in the United States of America (US GAAP) established by the Financial Accounting Standards Board (FASB), and Advancement reporting, which is a measure of fundraising activity in accordance with standards set forth by the Council for Advancement and Support of Education (CASE) and approved by the Vice President for University Advancement. This policy focuses on Advancement reporting, not financial accounting and reporting.

University Advancement tracks all outright gifts, pledges, and planned gifts received. The intent of Advancement reporting is to reflect the total impact of fundraising efforts by representing all gifts, including the value of pledges and planned gifts.

Gift revenue accounted for in the University’s financial accounting system and presented in the audited financial statements is in accordance with US GAAP and FASB and may differ from gifts included in Advancement reporting for a number of reasons, including but not limited to: transfers of assets not recognized as gifts in the University’s financial accounting system; gifts recognized in different periods than in Advancement reporting; and gifts reported at different amounts based on differing methodologies used to value gifts in the University’s financial accounting system and Advancement reporting.

Piedmont University complies with all IRS and Department of Education regulations and reporting requirements.

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Section 3 - General Policies