UTDBP3004
Gifts and Grants for Philanthropic Purposes

Policy Statement

Policy on Soliciting, Accepting and Processing Gifts and Grants for Philanthropic Purposes

Purpose

The basic purpose of this section is to set forth University policies, in accordance with the Board of Regents' Rules and Regulations, Rule 60101: Acceptance and Administration of Gifts and guidelines as set forth by UTS 138 Gift Acceptance Procedures and procedures at The University of Texas at Dallas related to soliciting, accepting, and processing of all gifts, including grants and gifts-in-kind, from external sources (individuals, foundations, corporations and other organizations).

This section also details the responsibilities related to the above subject, of University employees, administrative heads, the Office of Development and Alumni Relations and the Office of Budget and Finance with regard to the solicitation, acceptance and processing of philanthropic gifts and grants.

Definition of Gifts

For purposes of this document, gifts are defined as a voluntary transfer of value from an external entity to The University of Texas at Dallas, usually in the form of monetary funds, checks, securities, real properly or personal property for an unrestricted or restricted purpose where no goods and services are received. Gift designations that may be determined by the donor include support for an unrestricted purpose, endowments, capital projects, general student support, scholarships, departmental research or other non-research related general support. The awarding of a gift to the University contains only minimal requirements, generally relating to donor pledge payments and the University's commitment to effectuate the donor's intent. Awards require only minimal reporting to the donor in the form of a general statement of how funds were used (e.g. annual report, acknowledgement letter, IRS form). Anaward is irrevocable, except in the case of bequests.

Certain transactions, as determined by the Office of Development and Alumni Relations, may not be recognized as charitable contributions as defined by the IRS. These transactions include those where the donor retains explicit or implicit control over the use of the gift after acceptance, where the contribution includes a quid pro quo arrangement, and/or there is a conflict of interest.

Not included in the definition of gifts are grants from public entities (local, state and federal) and those grants determined as sponsored projects.

Any questions concerning the definition of an award as a gift or sponsored project under this policy will be resolved through consultation between the Office of Development and Alumni Relations and the Office of Research and Innovation. Classification for accounting purposes will be determined by the Office of Budget and Finance.

General Divisional Responsibilities

Office of Development and Alumni Relations

The Office of Development and Alumni Relations shall comply with all of The University of Texas System policies Rule 60101: Acceptance and Administration of Gifts and UTS 138 Gift Acceptance Procedures, as well as federal and state laws. The authority to accept gifts to The University of Texas System is vested in the Board of Regents of The University of Texas System who has delegated the Vice President for Development and Alumni Relations as the designated receipt executive for gifts at The University of Texas at Dallas.

The Vice President for Development and Alumni Relations and those designated staff members who assume day-to-day responsibilities have the general responsibility of soliciting, coordinating, reporting, processing, tax receipting, and maintaining records for all fundraising. This includes projects, proposals and solicitations initiated by that office and those initiated elsewhere within the University. Therefore, all gifts received by the University must be processed through the Office of Development and Alumni Relations.

The Vice President for Development and Alumni Relations and/or designee has the responsibility of reconciling records with official University records maintained by the Office of Budget and Finance.

The Vice President for Development and Alumni Relations has the responsibility for reporting a comprehensive impact that alumni and other supporters create at the University by representing all gifts, including pledges and planned gifts, at both face and present values. To accomplish this, the Office of Development and Alumni Relations tracks all outright gifts, pledges and planned gift intentions. Gifts will be categorized according to the most recent edition of the Global Reporting Standards for Educational Institutions, published by the Council for Advancement and Support of Education.

The Vice President for Development and Alumni Relations must report all gifts from a foreign source with an aggregate value of $250,000 or more within one calendar year to the U.S. Department of Education as per Section 117 of the Higher Education Act of 1965 and must annually report gifts of $50,000 or more from a foreign source associated with a "foreign country of concern" to the National Science Foundation. The Office of Development and Alumni Relations shall coordinate with the Office of Financial Aid and Office of Research and Innovation to ensure reports are submitted.

Office of Budget and Finance

The Office of Budget and Finance is primarily responsibile for maintaining the University;s official fiscal records, ensuring that gifts are properly accounted for, and ensuring all cash receipts are recorded as received in accordance with applicable state and federal law. . These activities help provide assurance to donors, The University of Texas System, the State Auditor's Office, and the public that University funds are managed with due care. Accounting departments reconcile gift accounts and apply appropriate gift revenue recognition.

The Office of Budget and Finance is responsible for financial reporting, including gifts, in accordance with accounting principles generally accepted in the United States of America (US GAAP) as established by the Governmental Accounting Standards Board (GASB).

The University of Texas at Dallas Faculty, Staff and Students

Proper management of gift processes at the University is a shared responsibility of all departments and individuals working together to maximize philanthropic support and to properly handle gifts. All fundraising activities by faculty, staff and students (and any non-employees) are to be coordinated through the Office of Development and Alumni Relations.

All University faculty, staff and students are responsible for forwarding gifts and gift documentation within one business day to gift services in the Office of Development and Alumni Relations.

Anyone who is or could be in contact with donations for the University is required to take an annual gifts compliance training to keep current with University gift processes and contact information for gift processing assistance.

Solicitation of Gifts

All solicitation of gifts by any University administrator, dean, faculty or staff member must be coordinated in advance with the Vice President for Development and Alumni Relations. This will occur through prospect coordination meetings. The Vice President for Development and Alumni Relations, an appropriate development and alumni relations staff member, or a designee may work with the administrators, deans, faculty or staff members on approved fundraising initiatives.

Expenditures related to the cultivation and stewardship of constituents must be reasonable and appropriate for the activity. Expenses are "reasonable" when they are appropriate for the nature of a particular business event and readily justified as having an appropriate business purpose. Expenses are "appropriate" when they are neither meager nor extravagant. If a faculty of staff member is considering an expense of $500 or more for the cultivation, solicitation or stewardship of a single constituent, the faculty or staff member is advised to seek the advance approval of the Vice President for Development and Alumni Relations. The Office of Development and Alumni Relations will include information related to the guidelines in its campuswide training materials. During cultivation, solicitation, stewardship, or other activities, administrators, deans, faculty and staff will not make any confidential or proprietary information available or accessible to constituents unless authorized to do so.

Regarding unsolicited gifts inquiries which might be forthcoming from prospective donors, the appropriate University employee will notify the Vice President for Development and Alumni Relations as soon as possible after the contact.

For gifts of research, newly named scholarships, namings, estate gifts and endowments, in most cases, a gift agreement signed by both the Vice President for Development and Alumni Relations and/or the University President and the donor is required for the protection of the University and the donor's wishes. It is required that anyone communicating with a donor or submitting a proposal about potential gifts of this nature must coordinate with the Vice President for Development and Alumni Relations to ensure gift agreement processes are followed.

Acceptance of Gifts

According to policy UTS138, only the University President and the Vice President for Development and Alumni Relations are authorized to accept gifts. All gift agreements, gift letters or other official gift acceptance documents can only be officially signed and accepted by the University President and/or Vice President for Development and Alumni Relations

Monetary Gifts

Monetary gifts to the University may only be accepted by the President or the Vice President for Development and Alumni Relations and/or designee. Gifts in the form of cash, checks, and ACH/Wires shall be processed regardless of the amount. Please refer to the internal procedures established by the Office of Development and Alumni Relations, in coordination with the Treasury Department within the Office of Budget and Finance, for guidance on processing payments including checks, ACH and wire transfers. Gifts made through the University's official PCI-compliant online giving platform must be processed exclusively through the approved system to ensure proper security. Departments may not collect or store credit card information in any form. Employees may make charitable contributions through payroll deduction using the University's payroll deduction form available through Galaxy. All gifts must be received in accordance to Payment Acceptance Policy UTDBP3040.

Gifts-in-kind

Gifts-in-kind to the University must be approved by the appropriate dean and the Vice President for Development and Alumni Relations. A department cannot accept gifts that would require another department to store, shelf, or inventory with that department's review. For example, this would include accepting books or a collection of books without the approval of the Dean of the Library. For gifts of art, including but not limited to paintings and sculptures, before the gift is accepted it must be reviewed by The University's Art Committee. Please refer to policy UTDPP1126 Public Art Collection Committee. . The University will exercise discretion to ensure that items are only accepted when applicable to the mission of the University or having value to the University.

The following steps will be followed to obtain official approval, record the gift and create and send tax receipt(s) to the donor:

1. Prior to acceptance of a gift-in-kind, a recommendation must be transmitted through a department/unit's dean to the Vice President for Development and Alumni Relations. All required documentation must be provided, including a completed gift-in-kind form, a listing of item(s) being donated, a value as stated by the donor for gifts under $5,000 or a certified appraisal for gifts $5,000 or more if available and paid for by the donor.
2. The Vice President for Development and Alumni Relations will evaluate the proposed gift and forward it for appropriate approval and acceptance as necessary to UT system Office of External Relations, Communications and Advancement Services (OERCAS), UT System Office of General Counsel and/or the UT system Real Estate Office.
3. The Vice President for Development and Alumni Relations will notify all parties that the gift will or will not be accepted.
4. If approval to accept gift-in-kind is granted, gift services in the Office of Development and Alumni Relations will record the gift and send an official tax receipt to the donor. The Vice President for Development and Alumni Relations is authorized to sign and return IRS Form 8283, if requested by the donor, for gifts other than those processed and approved by the U.T. System OERCAS.
5. A copy of all paperwork associated with the gift-in-kindwill be forwarded by gift services in the Office of Development and Alumni Relations to Accounting so that the appropriate accounting entries may be made. Any gifts received as capital will then be tagged by the University Property Manager.
6. If approval is granted, the originator will, in coordination with the school's dean and the Vice President for Development and Alumni Relations, arrange for theacceptance of the donation with thedonor(s). See the subsection on publicity below for procedures related to publicity.
7. If any gift-in-kind is sold within three years, the person responsible must notify the Vice President for Development and Alumni Relations of such sale so the appropriate IRS form 8282 is filed if necessary.

In coordination with the Office of Development and Alumni Relations, here are some examples (not comprehensive) of gift-in-kinds that require more review and approval per UTS138:

• Gifts of real estate must be reviewed by the UT System Real Estate Office and Office of General counsel prior to acceptance. The UT System Real Estate Office will process these gifts.
• Closely held securities and partnership interests must be reviewed by the UT system OERCAS and the UT Office of General Counsel prior to acceptance and processed by the UT System OERCAS.
• Gifts of Marketable securities must be transferred and sold through the UT system OERCAS.

Endowments

The UT System OERCAS must approve the acceptance of gifts restricted to establishing an endowment or charitable remainder trust or given for addition to the UT system Pooled Income Fund, or to amend an existing endowment, regardless of value.

Deferred Gifts (Bequests, Trusts, Annuities, Remainder Interest, Life Insurance)

The Vice President for Development and Alumni Relations is responsible for maintaining records regarding any known gifts that will accrue to the University at some time in the future. Immediately upon receipt of information regarding a deferred gift, the Vice President shall notify the UT System OERCAS. With the advice and assistance of the UT System OERCAS, the Vice President for Development and Alumni Relations will work with the donor as appropriate. Bequests and interests in or distributions from trusts must be reviewed, processed and approved by UT System OERCAS.

To assist the Vice President for Development and Alumni Relations in this effort, it is the responsibility of any administrator, dean, faculty or staff member who comes into possession of such knowledge to forward the information immediately to the Vice President for Development and Alumni Relations.

Gifts from UT Dallas Faculty and Staff

The University of Texas at Dallas is grateful for gifts from members of its faculty and staff. The University recognizes that employees may wish to make gifts in support of programs they oversee or are responsible for administering. Due to IRS regulations, in order for a gift to qualify for a charitable deduction, the donor may not personally benefit from or control these gifts. Therefore, faculty and staff or organizations owned by or partially owned by faculty and staff who make a gift to such a program (the "donor") may not authorize use of those gifts for personal benefits or uses such as support for:

• The donors salary.
• Consumer goods to the used by the donor.
• Personal travel by the donor
• Scholarship or fellowship assistance to the donor or to a close relative.

It is ultimately the responsibility of the donor to ensure that a donation meets the definition to quality as a charitable deduction for income tax purposes regardless of whether or not a gift receipt has been issued.

Processing of Gifts

Gifts to the University will be forwarded immediately to the Vice President for Development and Alumni Relations and/or designee and will includewritten restrictions from the donor (if any) and the fair market value of any goods and services received by the donor as a result of the gift. The Vice President for Development and Alumni Relations is responsible for recording the gift, journalizing to the appropriate cost center and account in the University financial system, and sending the official tax receipt to the donor following all applicable IRS regulations. The records are permanently held and maintained by the Office of Development and Alumni Relations.

A gift transmittal form or gift-in-kind form should be thoroughly competed and be included for every gift forwarded to the Office of Development and Alumni Relations for processing. Any award letter, gift agreement, solicitation, handwritten note or other applicable documents must also be provided in either original form or scanned copies. For gifts processed at the beginning of the next calendar year, please also include all envelopes.

Please refer to the University Payment acceptance Policy - UTDBP3040 and the annual gifts compliance education for cash handling information.

Any questions regarding processing and administration of gifts not addressed in this policy should be directed to the Office of Development and Alumni Relations.

Stewardship of Gifts

Proper stewardship of all gifts is essential to maintaining a relationship with donors. When a gift has been made to the University, the Vice President for Development and Alumni Relations is responsible for generating the stewardship letter to the donor, including a receipt for income tax purposes when appropriate.

Since the school or department receiving the gift has the strongest relationship with the donor, the schools and departments are strongly encouraged to acknowledge each gift in a reasonable and appropriate manner to demonstrate the University's appreciation of the donor's support.

Publicity

The Vice President for Development and Alumni Relations, the donor, university communications, staff and the administration of the unit or function named in the gift are responsible for coordinating publicity related to gifts. In all cases, the interests and wishes of the donors will be respected.

Depending on the size of the gift, appropriate publicity could include one or more of the following (list not exhaustive):

1. Picture-taking session on campus.
2. News release.
3. Publicity in University publications.
4. Membership in appropriate giving club.
5. Recognition at special events.
6. No publicity (if requested by donor).

Review

This and all other policy and procedure documents concerning gifts to the University shall be reviewed periodically by the Vice President for Development and Alumni Relations in consultation with the President.