st. edward’s university gift acceptance policies and

St. Edward’s University Gift Acceptance Policies

and Procedures

Revised: May 2012 Approved by Board of Trustees May 10, 2012

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TABLE OF CONTENTS INTRODUCTION………………………………………………………………………………… 4 PURPOSE AND RESPONSIBILITY ………………………………………………………….. 4 GENERAL POLICIES …………………………………………………………………………... 5 ACCEPTANCE POLICIES AND PROCEDURES BY TYPE OF GIFT ASSET …………... 8

OUTRIGHT ……………………………………………………………………………………... 9 I. Cash and Cash Equivalents II. Third-Party/Assignment of Interest

III. Matching Gifts IV. Marketable Securities V. Closely Held Securities

VI. Mutual Funds VII. Life Insurance

VIII. Retirement Plan /IRA Distributions IX. Real Property and Mineral Interests X. Tangible and Intangible Personal Property

XI. Gifts-in-Kind SPLIT-INTEREST GIFTS ……………………………………………………………………….. 35

I. Charitable Gift Annuities II. Charitable Remainder Trusts

III. Charitable Lead Trusts IV. Pooled Income Fund

DEFERRED ……………………………………………………………………………………. 46 I. Bequest Expectancies II. Life Insurance Beneficiary Designations

III. Retirement Plans/IRA Beneficiary Designations IV. Retained Life Estate Agreements V. Payable-On-Death/Transfer-On-Death Forms

PLEDGES ……………………………………………………………………………………… 58 Pledge Receivables Statements of Intent Annual Fund Pledges Pledge Write-off Policy

GIFTS WITH ASSOCIATED BENEFITS …………………………………………………….. 62 ENDOWMENTS ………………………………………………………………………………… 66 RESTRICTIONS ON GIFTS …………………………………………………………………… 68 GIFT ACKNOWLEDGEMENT AND STEWARDSHIP ………………………………………. 69 NAMING POLICY ………………………………………………………………………………. 71 GIFT REFUNDING POLICY …………………………………………………………………... 75 AMENDMENTS TO POLICY ………………………………………………………………….. 76 APPENDIX ………………………………………………………………………………………. 77

Other Guidelines and Policies Donor Bill of Rights Club, Organization, Department or Team Fundraising Policy and Guidelines Commemorative Plaque and Naming Policy

Environmental Assessment Gift Transmittal Forms Gift Transmittal Form

Currency Acceptance Form Donor Letter of Transfer

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Gift Intent Forms Intent Form – Outright Gifts

Intent Form – Split-interest Gifts Intent Form – Deferred Gifts Gift Information Forms Split-interest Gift Information Form Mary Doyle Heritage Society Bequest Checklist Agreement Forms Endowment Agreement Template Endowed Scholarship Agreement Template Annual Scholarship Agreement Template Life Estate Agreement Office of University Advancement Best Practices Glossary of Terms

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INTRODUCTION

St. Edward’s University (hereinafter referred to as “St. Edward’s” or the “University”) is a diverse, nationally recognized liberal arts institution overlooking downtown Austin, Texas. Founded in 1885 by the Congregation of Holy Cross, the university emphasizes critical thinking, social justice and ethical practice. Combining a Holy Cross, Catholic heritage with a clear vision for the future, St. Edward’s is dedicated to preparing students for the opportunities and challenges of a 21st century world. PURPOSE AND RESPONSIBILITY The purpose of the Gift Acceptance Policies and Procedures is to support the mission of St. Edward’s and to give University staff guidelines approved by the Board of Trustees concerning the acceptance of charitable gifts to the University. These policies will facilitate giving by allowing University staff to respond quickly in the affirmative, when appropriate, and to seek broader approval before acceptance, when necessary. It will also guide and encourage University staff to decline gifts which are not appropriate and cannot be used for the greatest good of St. Edward’s. The Board of Trustees for St. Edward’s is responsible for reviewing these policies on an ongoing basis and periodically monitoring staff adherence to the policies. Staff bears responsibility for maintaining the policies on a day-to-day basis.

http://www.stedwards.edu/aboutus/holycross.htm

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GENERAL POLICIES St. Edward’s will not accept a gift, whether outright or life-income in character, if the gift would be inconsistent with the goals and objectives of the University. The designated entity for acceptance of charitable gifts is the Office of University Advancement. All gifts solicited or unsolicited of money, gifts-in-kind, and/or property of any description to the University shall be immediately reported to, and when appropriate, receipted by the Office of University Advancement. Gifts received by any University personnel should be delivered immediately (the same day), if possible, to the Office of University Advancement. A guiding principle in soliciting and accepting gifts to the University is that the donor is to be treated fairly and with respect. Seeking to further the philanthropic cause of St. Edward’s shall not outweigh a proper concern for the best interest of the donor. All information concerning donors and prospective donors, including names, names of beneficiaries, amount of gift, size of estate, etc., shall be kept in strict confidence by St. Edward’s and its representatives. A donor, or, in the case of a testamentary gift or other acceptable circumstances, an executor, beneficiary, or close family member, may grant permission to the University to publicly announce any gift or feature of a gift to the University. Counting and Reporting University Advancement Office “Counting” and “reporting” are terms used by advancement offices to track all of the gifts, pledges, and deferred gifts received during a specified period towards a specific fundraising goal. The intent of counting and reporting is to reflect the total impact of fundraising efforts by representing all gifts, pledges and deferred gifts at their face value. St. Edward’s Office of University Advancement counts all gifts received at face value in its fundraising reports. Financial Affairs Office St. Edward’s follows Generally Accepted Accounting Principles (GAAP). St. Edward’s accounts for all gifts in its financial statements in accordance with Financial Standards Accounting Board (FASB) Rules 116 and 117, which require the classification of gifts into three categories,

I. gifts that are permanently restricted by the donor; II. gifts that are temporarily restricted by the donor; and,

III. gifts with no donor-imposed restrictions.

Fundraising amounts represented in St. Edward’s financial statements follow FASB guidelines, which discount the face value of gifts and pledges for determining the present value of future receipts and establish an allowance for uncollectable pledges. This is not a measure of fundraising effort, but a measure of the future value of a gift. Physical Acceptance of Funds When a St. Edward’s staff member receives a check, cash, or other currency, it is the responsibility of that staff member to transmit the funds to the Office of University Advancement along with any accompanying donor correspondence within twenty-four hours. If a St. Edward’s staff member receives funds while traveling on University business, he or she shall transmit the funds to University Advancement within twenty four hours after his or her return. A Gift Transmittal Form (see Appendix) or reply form from an approved University solicitation must be attached.

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The use of campus or interoffice mail to transmit funds to University Advancement is discouraged. Acceptable means of transmission include hand-delivery and courier delivery. Gifts of cash must be delivered in person to the Office of University Advancement. At the time of delivery a University Advancement staff member will verify the cash amount with the deliverer. A completed Cash Acceptance Form (see Appendix) will be signed by the University Advancement staff member and the deliverer as verification of the amount delivered and accepted for deposit by University Advancement.

No St. Edward’s staff member may take physical possession of any non-cash item prior to receiving approval from the Vice Presidents for University Advancement and Financial Affairs where such is required. If Vice President approval is not required for a non-cash item, the staff member shall follow the acceptance procedures as outlined in these policies (Section X: Tangible and Intangible Personal Property).

Legal Counsel

St. Edward’s shall seek the advice of legal counsel in matters relating to acceptance of gifts where appropriate.

Conflicts of Interest

All prospective donors shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and/or estate planning consequences.

At no time should any St. Edward’s staff member or volunteer involved in the solicitation of a gift serve as professional legal, tax, or financial advisor to a donor or prospect in matters relating to a gift. St. Edward’s staff may sometimes provide gift-planning information that addresses the needs of the donor and assists the donor’s professional advisors. That information may include sample documents and financial projections for specific gift options. To protect the University from potential claims that a gift was incompetently presented and/or solicited with undue influence and because the University representatives do not represent the donor, the donor will be encouraged, in writing, to finalize any documents and review all projections with his or her own advisors to ensure that the donor is receiving proper income tax, gift and/or estate planning advice. In all cases, University representatives will emphasize that they are employees of the university, and that they do not represent the donor.

Only attorneys-at-law, serving as outside counsel on behalf of St. Edward’s, shall be authorized to offer legal opinions on matters related to gift solicitation, acceptance, and disposition. Qualifying Gifts

To qualify as a gift to St. Edward’s, the following conditions must be met:

• The transfer of cash or other assets must be unconditional; • The transfer must be in furtherance of St. Edward’s charitable mission; and, • The transfer must be non-reciprocal, which means there must be no implicit or

explicit statement of exchange, purchase of services, or provision of exclusive information to the donor in exchange for his or her gift.

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If a donor receives benefits in return for his or her gift to St. Edward’s, the amount of the benefit he or she receives is deducted from the gift in any receipting, reporting, and gift crediting in accordance with IRS regulations. St. Edward’s will not serve as an administrator of donor advised funds, but can accept gifts from donor advised funds administered by another non-profit. Beyond the restriction to a specific fund or project as determined at the time of gift, the donor will not have the power to direct how funds are invested or directed.

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ACCEPTANCE POLICIES AND PROCEDURES BY TYPE OF GIFT ASSET

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OUTRIGHT GIFTS I. Cash and Cash Equivalents Definition Cash and cash equivalents include all U.S. or foreign currency, checks drawn on U.S. or foreign banks, credit/debit card payments (Visa, MasterCard, American Express and Discover), wire transfers, money orders and payroll deductions. Examples • John Donor wishes to make a gift to The St. Edward’s Fund. He sends a check to

University Advancement. • Jane Donor hands a $50 bill to a development officer at an alumni event. • Joe Donor calls University Advancement and makes a $100 gift via credit card. • Jane Staff signs up for payroll deduction during the Faculty and Staff Campaign drive. Acceptance Policy a. Cash and cash equivalent gifts can be delivered to University Advancement in person, by

USPS mail, through electronic funds transfer, through direct deposit (payroll deduction), through the lockbox or through the internet via St. Edward’s online giving site. The use of campus or interoffice mail to transmit cash and cash equivalent gifts to University Advancement is not permitted. Acceptable means of transmission include hand-delivery and courier delivery. Gifts of currency must be delivered in person to University Advancement. At the time of delivery a University Advancement staff member will verify the currency amount with the deliverer. A completed Currency Acceptance Form will be signed by the University Advancement staff member and the deliverer as verification of the amount delivered and accepted for deposit by University Advancement.

b. In general, a gift that is mailed or delivered by an overnight delivery service recognized by the Internal Revenue Service is deemed made when posted and surrendered for delivery in the regular course of business. In determining the date of the gift, particular attention should be given to the envelope transmitting any gift that is mailed or sent by such an overnight delivery service, because the postmark on the envelope will generally establish the date for computing the value of the gift.

c. A gift that is transferred electronically is deemed made when it is credited to the University’s account. St. Edward’s is not required nor obligated to establish the appropriate date used to determine the date the gift was made for the donor’s purposes.

Processing Procedure a. Checks and money orders should be payable to St. Edward’s University. b. All cash and cash equivalent gifts will be deposited in the University’s bank via the

University’s business office. c. The gift will be batched and entered into the University Advancement database within two

business days of receipt of the gift.

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Gift Acceptance Considerations • Who is the legal donor? • Is the check made payable to St. Edward’s? • What is the date on check? What is the postmark date? Stewardship Gifts will be processed and receipted within two business days of receipt of the gift. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Cash and cash equivalent gifts processed will be recorded and reported at face value for

both public reporting purposes and CASE. • St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all

gifts in its financial statements in accordance with Financial Standards Accounting Board (FASB) Rules 116 and 117.

Contacts Office of University Advancement 512-464-8826 Director of Advancement Services 512-448-8430 Controller 512-448-8773 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

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II. Third Party/Assignment of Gift Income Definition A person may assign to an institution income that the person would have received from a third party as payment for services (e.g., payment for serving on a corporate board, honoraria for speaking engagements, etc.). In such circumstances, credit for the gift will be given to the person making the assignment. This assumes that the organization making the payment will report the payment for services as income to the individual (usually on IRS Form 1099), and the individual would then take a corresponding tax deduction. The individual may choose to decline the payment and request the third party contribute the payment to the institution. In this case, the gift is from the third party and the third party does not report the payment as income to the individual.

Examples • Joe Donor serves on a committee for XYZ Corporation. He is paid for this and requests the

check be made out to St. Edward’s University. XYZ makes the check payable to St. Edward’s and sends it with a letter stating that the check is a charitable contribution from Joe Donor. Joe receives credit for the gift.

• Jane Donor serves on the board of ABC Foundation. She is paid for her services. She declines being paid, but requests the foundation contribute the payment to St. Edward’s. ABC receives credit for the gift and soft credit is given to Jane.

Acceptance Policy a. If a check has already been issued in the donor’s name, he or she must endorse it to St.

Edward’s University in order to be accepted. b. Alternatively, the donor may request that the income be remitted directly to St. Edward’s

and any check drafted be written in St. Edward’s name. If the check is payable directly to St. Edward’s by the third party, a letter must accompany the check identifying the payment as a charitable contribution from the individual. If the University receives the check directly from the third party organization with this letter, credit for the gift will be given to the person who performed the services, not the third-party organization.

c. A person has the option to waive all rights to the payment and suggest that, in lieu of payment, the organization contribute to the University. In this case, the organization is making the gift and will receive the credit. A soft credit will be given to the individual making the recommendation. If the circumstances of the gift are not clear, the University will contact the check issuer to ascertain legal ownership of the gift.

Processing Procedure a. All checks will be deposited in the University’s bank via the University’s business office.

The gift will be batched and entered into the University Advancement database within two business days of receipt of the gift.

Gift Acceptance Considerations • Who is the legal donor? • Did the donor assigning the income to St. Edward’s actually receive income credit for his or

her gift?

Stewardship Gifts will be processed and receipted within two business days of receipt of the gift. See the Gift Acknowledgement and Stewardship section for details.

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Campaign and Annual Counting Guidelines • Third party/assignment of interests gifts processed will be recorded and reported at face

value for both public reporting purposes and CASE. • St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all


Contacts Office of University Advancement 512-464-8826 Director of Advancement Services 512-448-8430 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

III. Employer-Sponsored Matching Gifts Definition A matching gift may be received from a company or a company funded foundation, matching a gift given to St. Edward’s by an employee, retired employee, or a director of the company, foundation, or other organization. Examples • Jim Donor works for XYZ, Inc. XYZ, Inc. matches employee contributions to qualified

charities on a 2:1 basis. Jim gives a $50 gift to St. Edward’s and submits a matching claim form. XYZ, Inc. processes the claim and gives St. Edward’s $100.

• Jill Donor signs a legally enforceable pledge agreement to pay St. Edward’s $3,000 for five years. In year one, she submits a check to St. Edward’s for $2,000 and includes a matching form from her husband’s company, ABC Co. St. Edward’s processes the match and receives $1,000 from ABC Co. However, that amount is not credited against Jill’s pledge.

Acceptance Policy The University will accept matching gifts from all qualified matching gift entities. Processing Procedure a. In most cases, a donor wishing to maximize his or her contribution to St. Edward’s with a

match from his or her employer may obtain a matching gift claim form from the corporate employment or benefit office. Many companies are now employing online processes for employees to submit claims.

b. The donor should complete the portion of the form with the corporation's employee information, and then submit the form with her or his gift to St. Edward’s or go online to submit the claim after they give the gift to St. Edward’s.

c. The gift and data specialist will complete the matching gift claim form and submit it to the company or foundation according to the instructions on the claim form. If claims are submitted online, the gift specialist will verify the gift when the request is made from the company.

d. Matching gifts must be credited to the same account(s) as the original gift unless restricted by the matching company. These gifts will be matched to The St. Edward’s Fund for the general use of the University or to the fund specified by the matching gift company.

e. The donor’s giving record is soft credited for the value of the matching gift when received. When the gift being matched is a stock gift, the value that will be matched is the internally

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calculated value as described in Section IV on marketable securities, and not the net proceeds from the sale.

f. Potential matching gifts cannot be entered as a part of a pledge the donor makes for future support since those are not funds the donor has control of or is irrevocably entitled to receive.

g. All matching gifts will be deposited in the University’s bank via the University’s business office.

h. The gift will be batched and entered into the University Advancement database within two business days of receipt of the gift.

Gift Acceptance Considerations • Is the match being claimed for a gift from a donor advised fund? If so the matching gift

company should be notified of the source of the gift to ensure St. Edward’s matching eligibility.

Stewardship Gifts will be processed within two business days of receipt of the gift. Receipts will be sent to those companies that require it. For matching gifts of $1,000 or more, the donor will be notified that the match was received. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Matching gifts received from companies and foundations are counted at the face value of

the gift. Potential matching gifts, or claims, are not counted and should never be considered as a way to fulfill an individual’s pledge to St. Edward’s.

• St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all gifts in its financial statements in accordance with Financial Standards Accounting Board (FASB) Rules 116 and 117.

Contacts Office of University Advancement 512-464-8826 Director of Advancement Services 512-448-8430 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

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IV. Marketable Securities Definition Marketable securities are stocks, bonds and other financial instruments that are regularly listed for sale on public exchanges. Unlike closely held securities, shares or units that are “marketable” have readily ascertainable values and are freely transferable to other owners, including charities. Examples • Jane Donor transfers electronically to St. Edward’s 350 shares of XYZ, Inc. stock, which

trades on the New York Stock Exchange. • Joe Donor holds 500 shares of ABC Co. in certificate form. ABC Co. trades on the NYSE.

He submits the stock certificate and stock power form in separate envelopes along with a letter of instruction to a representative of the University, who forwards the stock to the University’s bank for processing and deposit.

Acceptance Policy a. Upon learning of a proposed gift of marketable securities, a University Advancement staff

member will make every practical effort to contact the prospective donor and request the completion of the Donor Letter of Transfer. The staff member accepting a gift of marketable securities must notify the Director of Advancement Services.

b. Marketable securities gifted by electronic transfer from a donor’s brokerage firm to the University’s brokerage firm should be preceded by the Donor Letter of Transfer providing instructions.

c. Marketable securities not handled by a broker should be delivered by hand or sent only by certified or registered mail, or by an overnight delivery service recognized by the Internal Revenue Service. A stock power form (available from the Director of Advancement Services) signed by the donor naming the University as transferee should also be sent along with a notarized Donor Letter of Transfer. If a blank stock power is used, it should be sent in a separate envelope, using certified or registered mail, or hand delivery. In general, when a stock certificate is mailed, it should be left blank and sent in one envelope. A separate envelope should be sent which includes the signed stock power with signature guaranteed and the notarized letter of instruction. Both envelopes should be delivered as noted above.

d. In general, a gift that is mailed or delivered by an overnight delivery service recognized by the Internal Revenue Service is deemed made when posted and surrendered for delivery in the regular course of business. In determining the date of the gift, particular attention should be given to the envelope transmitting any gift of marketable securities that is mailed or sent by such an overnight delivery service, because the postmark on the envelope will generally establish the date for computing the value of the gift. When two envelopes are used, the date on the postmark of the later envelope will control. A gift that is transferred electronically is deemed made when it is credited to the University’s account. St. Edward’s is not required nor obligated to establish the appropriate date used to determine the fair market value of the gift for the donor’s purposes.

Processing Procedure a. To determine the fair market value of the gift of stock for University purposes, the University

will use the average of the high and the low value of the stock as listed on the applicable stock exchange using Yahoo Finance or any other comparable reporting website for the appropriate date of receipt of the stock. If that date should fall on a day the exchange is closed, the average will be computed between the high and low values of the stock as

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listed on the applicable stock exchange using Yahoo Finance or any other comparable reporting website for both the preceding business day and the following business day from the date of receipt of the gift. The average of such two averages will be the appropriate value for University purposes. In all events the responsibility for determining the value of a gift of marketable securities for purposes of the donor’s income tax charitable deduction shall be exclusively the responsibility of the donor.

b. Upon receipt of a gift, the Director of Advancement Services (DAS) will verify the receipt of the asset to the University. Once receipt has been verified, the DAS will prepare a memo with details of the transfer, including the gift value, to the Vice President for University Advancement, the Vice President for Financial Affairs, the Controller, the Gift and Data Specialist and the donor’s manager.

c. In general, gifts of marketable securities will be sold as soon as practical unless: i. The Vice President for Financial Affairs for the University decides that the stock

should be held as a part of the organization’s portfolio; ii. The number of shares involved is sufficient to have a depressing impact on the price

of the stock, in which event the sale may be extended over a period of time necessary to avoid such an impact; or

iii. The terms of the gift declare otherwise or the stock is subject to contractual or regulatory restrictions on sale, such as the resale restrictions of Rule 144 under the Securities Act of 1933 and revised in 2008.

d. Securities that have certain resale restrictions generally should be held until the restrictions on sale expire and then sold under the guidelines above.

e. Gifts of bonds that require a holding period generally should be accepted and cashed when the holding period has expired.

f. The gift will be batched and entered into the University Advancement database within two business days of receipt of the gift.

Gift Acceptance Considerations Unless otherwise approved by the Vice President for Financial Affairs for the University, gifts of marketable securities that should not be accepted include:

• Securities that may create a liability to the University; • Securities that by their nature may not be assigned (excepting securities with transitory

restrictions on assignment, such as stock subject to the resale restrictions of Rule 144 under the Securities Act of 1933 and revised in 2008); and

• Securities that, on investigation, have no apparent value. Stewardship Gifts of marketable securities will be processed and receipted within two business days of receipt of the gift. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Gifts of marketable securities processed will be recorded and reported at the fair market

value of the gift of stock as determined by the University following the procedures outlined above.


Contacts Office of University Advancement 512-464-8826 Office of Financial Affairs 512-448-8413

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Director of Advancement Services 512-448-8430 Controller 512-448-8773 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

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V. Closely Held Securities Definition Closely held securities are an asset category that includes the total value of stock in closely held corporations. Closely held corporations are those whose ownership is concentrated among a relatively small numbers of owners, and whose stock is not traded publicly. These corporations include all S corporations and some C corporations. An S corporation, for United States federal income tax purposes, is a corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns. A C corporation, for United States federal income tax purposes, is a corporation that is taxed under 26 U.S.C. § 11 and Subchapter C (26 U.S.C. § 301 et seq.) of Chapter 1 of the Internal Revenue Code. Most major companies (and many smaller companies) are treated as C corporations for federal income tax purposes. Examples John Donor is the President of a small, privately held company. He gives fifty shares of his company’s stock to St. Edward’s. Acceptance Policy a. Closely held securities may be accepted only with the approval of the Vice President for

Financial Affairs for the University and only when an investigation reveals no significant potential liability for St. Edward’s in receiving the gift, and only if any lack of liquidity is anticipated to present no major difficulties for the University.

b. The closely held security must have a minimum value of $1,000.00. c. Interest in closely-held entities that transfer control of the entity to the University may be

accepted only when the potential benefits from the gift outweigh potential liabilities – where the company involved is not engaged in activities inconsistent with the mission, goals and objectives of the University and where the demands on staff time regarding the management of the company are acceptable.

Processing Procedure a. Gifts of closely held securities that exceed $10,000 in value should be reported at the fair

market value placed on them by a qualified independent appraiser as required by the Internal Revenue Service (IRS) for valuing gifts of stock that are not publicly traded. In the U.S., the institution by obtain the appraiser’s valuation figure from “Noncash Charitable Contributions,” IRS Form 8283, which the donor must usually provide for the recipient organization’s signature. A signature by the recipient organization does not signify an approval of the indicated amount. This confirmation of receipt will only be applied by the recipient organization after the donor and the independent appraiser sign the document. 1

b. Gifts of closely held securities less than $10,000 may be valued at the per-share cash purchase price of the most recent transaction. Normally, this transaction is the redemption of the stock by the corporation. If no redemption has occurred during the reporting period,

1 CASE Reporting Standard & Management Guidelines for Educational Fundraising, 4th Edition

http://www.irs.gov/businesses/small/article/0,,id=98263,00.html

http://en.wikipedia.org/wiki/Corporation

http://en.wikipedia.org/wiki/Tax

http://en.wikipedia.org/wiki/Internal_Revenue_Code

http://www.law.cornell.edu/uscode/26/11.html


http://www.law.cornell.edu/uscode/26/301.html



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an independent certified public accountant (CPA) who maintains the books for that corporation is qualified to value its stock. 2

c. The gift will be batched and entered into the University Advancement database within two business days of receipt of the gift.

Gift Acceptance Considerations • Unless waived by the Vice President for Financial Affairs for the University, if the proposed

gift is one of stock in a closely-held corporation that currently owns or formerly owned real property, or other property (such as mortgage notes) secured by an interest in real property, St. Edward’s shall comply with its Environmental Assessment Policy Number G-15.

• Is the Fair Market Value (FMV) at an amount that will yield benefit to the university or establish a fund once all of the incurred costs are applied?

• Can the stock be liquidated immediately? • Are there any conditions which prohibit disposal of the stock? • Is the gift credit the donor will receive consistent with his or her intentions? Stewardship Gifts of closely held securities will be processed and receipted within two business days of receipt of the gift. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Gifts of closely held securities processed will be recorded and reported at the appraised or

per-share cash purchase price as determined by the University following the procedures outlined above.


Contacts Office of University Advancement 512-464-8826 Office of Financial Affairs 512-448-8413 Director of Advancement Services 512-448-8430 Controller 512-448-8773 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

2 CASE Reporting Standard & Management Guidelines for Educational Fundraising, 4th Edition

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VI. Mutual Funds Definition A mutual fund is an open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. There are many different types of mutual funds. Examples Jane Donor has $40,000 in securities she wants to donate to St. Edward’s. Of that amount, more than half is held in mutual funds and the rest is held in individual company shares. Acceptance Policy • Mutual funds may be held in certificate form but they are more likely held in electronic form

by a brokerage firm, financial institution, or the mutual fund company itself. Since the transfers of mutual funds vary widely from firm to firm, gifts of mutual funds are dealt with on a case-by-case basis and may not be able to be transferred to or accepted by the University.

• Due to the administrative costs associated with the transfer of mutual funds, mutual funds valued at less than $1,000 will not be accepted by the University.

Processing Procedure If the mutual fund is accepted by the University, the basic process is as follows:

a. The development officer shall notify the Director of Advancement Services (DAS). b. The DAS will work with the appropriate Finance offices and personnel to determine

whether the mutual fund shares can be transferred and how they are to be transferred. c. Note that depending on how the shares are held, the transfer can take anywhere from a

week to more than three months to complete. Development staff should be mindful of this potential for delay, especially if a donor is attempting to make a year-end gift.

d. The DAS will value the mutual fund shared at the public redemption value, which is the net asset value of the fund on the date of the gift. Net asset value is determined by valuing all securities in the fund at day’s end, reducing that value by expenses, and dividing that figure by the number of shares outstanding. This price is published in a variety of publications and on numerous websites daily.

e. The gift will be batched and entered into the University Advancement database within two business days of receipt of the gift.

Gift Acceptance Considerations • Can the mutual funds be liquidated easily? • Are there any conditions which prohibit disposal of the mutual funds? Stewardship Mutual funds will be processed within two business from the completion of the transfer into the University’s control. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Gifts of mutual fund shares are counted at the public redemption value, which is the net

asset value of the fund on the date of the gift. Net asset value is determined by valuing all securities in the fund at day’s end, reducing that value by expenses, and dividing that figure by the number of shares outstanding. This price is published in a variety of publications and on numerous websites daily.

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VII. Life Insurance Definition Life insurance is a policy that will pay a specified sum to beneficiaries upon the death of the insured. Donors may make an outright gift of a policy to St. Edward’s by irrevocably transferring all incidents of ownership in a policy to St. Edward’s. Examples • John Donor, age 60, bought a whole life policy on his life when his children were very

young. Now that his children are grown and the policy is fully paid up, he donates it to St. Edward’s which surrenders it and receives cash.

• Jane Donor owns a universal life policy on her life that currently has a cash surrender value of $57,000. She transfers it to St. Edward’s which cashes it out and uses the funds for a purpose the donor has specified.

Acceptance Policy a. St. Edward’s University will accept two types of life insurance gifts:

i. gift of a paid-up insurance policy; ii. gift of a new or existing insurance policy, for which the donor intends to continue

making payments so that the policy does not lapse. b. In either case, the donor must name the University as both the owner and the beneficiary of

the insurance policy with the understanding that St. Edward’s will cash in the policy as soon as practicable, at the discretion of St. Edward’s. If the donor only specifies St. Edward’s as the beneficiary of a policy, but retains ownership, the donor has made a revocable deferred gift, which is addressed later in these policies in the Life Insurance Beneficiary Designations section.

c. The FMV of the policy must be at least $5,000. d. St. Edward’s University will make payments on a policy if the donor makes annual gifts at

least equivalent to the amount of the premium. The University is under no obligation, but may continue to pay the premiums if the donor does not make an equivalent annual gift.

e. St. Edward’s will not: i. Accept ownership of term policies as they have no current cash value and seldom

remain in force until the death of the insured. ii. Accept group life insurance as it is owned by the employer. Donors may opt to name

St. Edward’s as beneficiary of either a term or group life policy, but that would qualify as a revocable deferred gift as opposed to a current outright gift.

iii. Participate in any pooled insurance program including Investor-Owned Life Insurance or Stranger-Owned Life Insurance programs.

iv. Endorse any particular insurance product, company, program, agent, agency, or company, nor will it provide donor lists to any of them.

Processing Procedure a. When a gift of life insurance that meets the above criteria is proposed, the gift officer should

notify the Director of Planned Giving who will assess the policy, consulting with external and internal experts as necessary. The Director of Planned Giving will obtain all relevant data on the insured, secure an in-force illustration on the policy, and then submit the proposal to the Vice President for Financial Affairs for approval.

b. If approved, the Director of Planned Giving will coordinate the transfer of ownership with the donor and insurance company and provide documentation to Advancement Services for processing.

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c. Advancement services will provide all necessary information to the Office of Financial Affairs and the Business Office for their records and systems.

d. A life insurance gift is a noncash gift and should be reported by the donor on IRS Form 8283 if the donor claims a charitable deduction of $500 or more. Moreover, if the policy’s value is $5,000 or more, in order to obtain the benefit of a charitable deduction, the Internal Revenue Service will require the donor to (1) complete IRS Form 8283, (2) obtain a “qualified appraisal” of the property from a qualified appraiser, (3) attach a fully completed appraisal summary to the tax return in which the deduction is first claimed, and (4) maintain records of certain information listed in Treas. Reg. § 1.170A-13(b)(2)(ii). These obligations rest upon the donor and do not affect acceptance of the donated property by the University. Upon presentation and acceptance of the gift, however, the University will sign the Donee Acknowledgment for such gift contained in Form 8283, if requested to do so by the donor. If St. Edward’s University sells, exchanges or otherwise disposes of any property for which it has signed a Donee Acknowledgment within two years of the date the University received the gift, the University shall file Form 8282, Donee Information, with the Internal Revenue Service, with a copy to the donor, disclosing that fact and such other information as the Internal Revenue Service may require.

e. A life insurance policy with cash value is a current asset of the donor, which upon transfer, becomes an asset of St. Edward’s. As with all of St. Edward’s assets, life insurance policies are periodically reviewed and monitored in light of the asset’s performance and the goals of both the donor and the unit for which the policy is designated.

f. The gift will be batched and entered into the University Advancement database within two business days of receipt of the gift.

Stewardship Gifts of life insurance will be processed and receipted within two business days of transfer of ownership to the University. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines a. Irrevocable gifts of fully paid-up life insurance policies where St. Edward’s has been named

both owner and beneficiary of the policy are counted as outrights gifts at the cash surrender value as identified in writing by the insurance provider.

b. Irrevocable gifts of new or partially paid-up life insurance policies where St. Edward’s has been named both owner and beneficiary of the policy are counted as outrights gifts at the cash surrender value as identified in writing by the insurance provider. In addition, the premium payments made by the donor to the institution, which in turn pays the premium to the insurer, will be counted as outright gifts at the full value of the premiums paid. If no gift is received to pay the premium and the University chooses to pay it, this is an expenditure and will not be counted as gift. In addition, if there are any increases in the cash surrender value, it will not be reported as a gift.

c. Realized death benefits of a previously recorded policy will not be counted as gift income. If the realized benefits are more than the reported cash surrender value, this is considered a gain on the disposition of the institution’s assets and will not be recorded as gift income.

d. Realized death benefits on a policy that was not previously recorded will be recorded at the insurance company’s settlement amount.

e. Realized death benefits on a policy for which the University was only named beneficiary and counted in gift reports previously as a deferred gift will be counted at the insurance company’s settlement amount less any amounts previously counted. The cash settlement will be applied to the deferred gift and the remaining balance will count as an outright gift.

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f. St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all gifts in its financial statements in accordance with Financial Standards Accounting Board (FASB) Rules 116 and 117.

Gift Acceptance Considerations • Is the policy paid up? • Will the donor continue to make annual gifts to the University to cover the premium

payments? Contacts Office of University Advancement 512-464-8826 Office of Financial Affairs 512-448-8413 Director of Advancement Services 512-448-8430 Director of Planned Giving 512-233-1401 Controller 512-448-8773 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

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VIII. Retirement Plan/IRA Distributions

Definition Retirement plan and IRA distributions are the payments made from a retirement plan or IRA to the account owner, or, in the case of the account owner's death, the beneficiary. Acceptance Policy A beneficiary may transfer funds from a retirement plan by following the steps outlined below.

a. Take a distribution from the plan b. Pay income tax on that distribution c. Make an outright cash or cash equivalent gift to St. Edward’s d. Take a charitable deduction for the outright gift. The charitable deduction may not be

available to all donors. Processing Procedure See Processing Procedures under Cash and Cash Equivalents section. Gift Acceptance Considerations An outright gift of a retirement plan or IRA distribution during life is not a tax efficient option under current law. However, recent legislation has allowed for charitable IRA rollover incentives which have made it more beneficial to use IRA funds to make a charitable contribution. The University attempts to remain current on such benefits and will inform donors accordingly. Stewardship Gifts will be processed and receipted within two business days of receipt of the gift. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Retirement plan and IRA distribution gifts are treated as outright gifts and counted at the

face value of the gift. • St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all


Contacts Office of University Advancement 512-464-8826 Director of Advancement Services 512-448-8430 Controller 512-448-8773 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

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IX. Real Property and Mineral Interests Definition Real property (also called real estate or realty) is land, its natural resources, and any permanent buildings on it. Mineral rights is the ownership of all rights to gas, oil or other minerals as they naturally occur in place, at or below the surface of a tract of land. Examples • Jane Donor owns 100 undeveloped acres in the mountains that she would like to give to St.

Edward’s. • John Donor would like to donate his house in Atlanta to St. Edward’s. • Jane Donor proposes funding a charitable remainder trust with her vacation home. (Any

proposed gift of real property to fund a planned gift will be subject to the Gift Acceptance Policies governing both Real Property and the proposed type of planned gift vehicle, such as a bequest, life estate or charitable remainder trust.)

Acceptance Policy a. Upon notification of a potential gift of real property, St. Edward’s will:

i. Make every practical effort to meet personally with the prospective donor; ii. Request an inspection of the property by the Vice President for Financial Affairs or the

Director of Physical Plant; iii. Comply with Environmental Assessment Procedures (Appendix Section I).

b. The donor will have a survey done of any gifts of real property. Unless otherwise approved by the Vice President for Financial Affairs for the University, St. Edward’s will not pay for such survey.

c. The donor will have a building inspection done of any improvements on commercial property given to St. Edward’s. Unless otherwise approved by the Vice President for Financial Affairs for the University, St. Edward’s will not pay for such building inspection.

d. The donor will have gifts of real property appraised by a qualified appraiser to establish a fair market value for the donor’s purposes. Unless otherwise approved by the Vice President for Financial Affairs for the University, St. Edward’s will not pay for such an appraisal.

i. The appraisal must be prepared not earlier than 60 days prior to the date that the contribution is made, and must be prepared not later than the due date of the return on which the deduction is claimed or the date that an amended return is filed if the amended return is the first return on which the deduction is claimed.

ii. The appraisal must be prepared, signed, and dated by a qualified appraiser as defined below.

iii. The appraisal must include the following information: 1. A description of the property in sufficient detail for a person who is not generally

familiar with the type of property to ascertain that the property that was appraised is the property that was (or will be) contributed;

2. In the case of tangible property, the physical condition of the property; 3. The date (or expected date) of contribution to the donee; 4. The terms of any agreement or understanding entered into (or expected to be

entered into) by or on behalf of the donor, which relates to the use, sale or other disposition of the property contributed. This includes restrictions on the donee’s right to use or dispose of the donated property, all provisions which confer on anyone, other than the donee charity, the right to income from the donated property or the right to possession of the property, including voting rights to securities, a right of purchase, or a right to designate the person to

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receive income, possession or right to purchase, or a provision which earmarks the donated property for a particular use. As an added precaution, all agreements between the donor and the donee charity relating to the gift should be attached to the appraisal and incorporated into it by reference;

5. The name, address, and taxpayer identification number of the qualified appraiser and, if the qualified appraiser is a partner in a partnership, an employee of any person (whether an individual, corporation, or partnership), or an independent contractor engaged by a person other than the donor, the name, address and taxpayer identification number of the partnership or the person who employs or engages the qualified appraiser;

6. The qualifications of the appraiser; 7. A statement that the appraisal was prepared for income tax purposes; 8. The date or dates on which the property was valued; 9. The appraised fair market value of the property on the date (or expected date)

of contribution; 10. The method of valuation used to determine the fair market value, such as the

income approach, the market data approach, or the replacement-cost-less-depreciation approach;

11. The specific basis for the valuation, if any, such as any specific comparable sales transactions;

12. A description of the fee arrangement between the donor and the appraiser. iv. The appraiser must sign the Appraisal Summary when the donor presents it. In this

regard, no part of the fee arrangement for a qualified appraisal can be based, in effect, on a percentage (or set of percentages) of the appraised value of the property.

v. To be a “qualified appraiser,” the appraiser must sign and complete Internal Revenue Service Form 8283, Section B, denoted “Appraisal Summary.” The Appraisal Summary includes declarations by the appraiser that:

a. The individual holds himself or herself out to the public as an appraiser. b. Because of the appraiser’s qualifications as described in the appraisal, the

appraiser is qualified to make appraisals of the type of property being value. c. The appraiser understands that a false or fraudulent overstatement of the

value of the property described in the qualified appraisal or appraisal summary may subject the appraiser to a civil penalty under Section 6701 for aiding and abetting an understatement of tax liability, and consequently the appraiser may have appraisals disregarded pursuant to 31 U.S.C. Section 330(c).

d. The appraiser is not: i. The donor or the taxpayer who claims or reports the deduction under

Section 170 for the contribution of the property being appraised; ii. A party to the transaction in which the donor acquired the property

being appraised (i.e. the person who sold, exchanged or gave the property to the donor, or any person who acted as an agent for the transferor or for the donor with respect to such sale, exchange or gift), unless the property is donated within two months of the date of acquisition and its appraised value does not exceed its acquisition price;

iii. The donee of the property; iv. Any person employed by any of the foregoing persons or related to any

of the foregoing persons under Section 267(b) (e.g., if the donor acquired a painting from an art dealer, neither the art dealer nor persons employed by the dealer can be qualified appraisers with respect to that painting);

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v. Any person whose relationship with any of the persons listed in (1) through (4) above would cause a reasonable person to question the independence of such appraiser. For example, an appraiser who is regularly used by any person described in (1) through (3) above and who does not perform a substantial number of appraisals for other persons has a relationship with such person that is similar to that of an employee and cannot be a qualified appraiser with respect to the property contributed.

e. Unless otherwise approved by the Vice President for Financial Affairs, the minimum FMV of the property must be at least $200,000.

f. In general, it is the policy of St. Edward’s not to accept contributions of property subject to any form of indebtedness or other liability in order to prevent the University from becoming responsible for the payment thereof. Circumstances may arise where the Vice President for Financial Affairs for the University believes that the acceptance of a gift encumbered by some form of liability would be in the University’s best interest and that any financial risk would be within acceptable limits. In such event, the Vice President for Financial Affairs shall determine whether to accept the gift and will prepare a response for the donor as soon as possible and preferably within 10 working days. In evaluating whether to accept such gift, consideration shall be given to the fair market value of the gift, the amount of the potential liability, the ability to sell the property, the costs associated with selling the property, and all other matters deemed relevant.

g. In general, St. Edward’s will not accept a gift involving real property that makes the University a principal in a real estate partnership, undivided interests in real estate, joint venture, or business activity in which the University participates fully in the risks of the operation and has more than limited liability for the conduct of the business (e.g., as a general partner, principal in a joint venture, or as an owner of a working interest).

h. If appropriate, St. Edward’s may accept gifts of real property for programmatic purposes. Gifts of real property that are programmatically advantageous must be accompanied by endowed funds, a revenue generating mechanism, or some other explicit financial plan to support the maintenance of the gift and the fulfillment of the programmatic purpose. Specific criteria will be used over time to evaluate the success of the proposed program and whether or not the program should be continued, and to enable judgment as to whether the property should be retained, used for another purpose, sold or transferred to another owner.

i. Gifts of mineral interests may be received absent extenuating circumstances such as extended liabilities or other considerations making receipt of the gift inadvisable. In this regard, prior to the acceptance of mineral interests, all offered gifts are to be first examined by a qualified consultant for such extenuating circumstances that would argue against receipt of the gift. The expense of the examination must be borne by the donor unless the Vice President for Financial Affairs for St. Edward’s and the Fiduciary Committee of the Board of Trustees approves an exception. Working mineral interests, which entail special problems regarding taxation, should be considered in advance of receipt of the gift, with a view towards establishing a plan that will minimize any adverse effect on the tax status of St. Edward’s.

j. If St. Edward’s receives a gift of a personal residence or farm with a life estate retained, see the section under Retained Life Estate for additional information.

Processing Procedure a. Preferably before acceptance, but in all events no later than upon acceptance of a gift of

real property, St. Edward’s will endeavor to advise the donor in writing of the value placed

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on the gift by the University for its purposes, including the price the University will seek in any sale of the property.

b. Upon acceptance of a gift, St. Edward’s will provide a letter of acknowledgment and appreciation to the donor meeting Internal Revenue Service substantiation requirements.

c. In general, when a donor contributes property (other than publicly traded securities) for which a charitable deduction in excess of $5,000 is claimed, in order to obtain the benefit of a charitable deduction, the Internal Revenue Service will require the donor to (1) complete IRS Form 8283, (2) obtain a “qualified appraisal” of the property from a qualified appraiser, (3) attach a fully completed appraisal summary to the tax return in which the deduction is first claimed, and (4) maintain records of certain information listed in Treas. Reg. § 1.170A-13(b)(2)(ii). These obligations rest upon the donor and do not affect acceptance of the donated property by St. Edward’s. Upon presentation and acceptance of the gift, however, the University will sign the Donee Acknowledgment for such gift contained in Form 8283, if requested to do so by the donor.

d. If St. Edward’s sells, exchanges or otherwise disposes of any property for which it has signed a Donee Acknowledgment within two years after the date it received the gift, the University shall file Form 8282, Donee Information, with the Internal Revenue Service, with a copy to the donor, disclosing that fact and such other information as the Internal Revenue Service may require.

e. With respect to real property that neither St. Edward’s nor one of its supported organizations desires to use or which, for any other reason, the University decides to dispose of, St. Edward’s, in its sole discretion, will list such property for sale, and, with full disclosure to the donor if it is within two years after the date the gift is received, will attempt to realize a sale which will result in a purchase price of no less than the appraised value of the property, although it is not bound to do so.

f. The gift will be batched and entered into the University Advancement database within two business days of completed transfer of ownership.

g. All copy of all of the related documentation will be sent to the Business Office. Gift Acceptance Considerations • Who will pay for the Phase 1 Inspection? • Is the property subject to mortgage or debt? • St. Edward’s will not accept gifts of an interest in a timeshare property or program. • Are there any unrelated business income tax issues? • Is there any reasonable possibility that the property could be contaminated by hazardous

waste? • Has the property been utilized in a manner that would embarrass St. Edward’s? Stewardship Gifts of real property and mineral rights will be processed and receipted within two business days of transfer of ownership to the University. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Gifts of real property are counted at the values placed on them by a qualified independent

appraiser as required by the IRS for valuing non-cash charitable contributions. • St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all


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Contacts Office of University Advancement 512-464-8826 Office of Financial Affairs 512-448-8413 Director of Advancement Services 512-448-8430 Director of Planned Giving 512-233-1401 Controller 512-448-8773 Gift and Data Specialist 512-448-8776 Accounts Receivable/Business Office 512-448-8785

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X. Tangible and Intangible Personal Property Definition Tangible personal property is an asset that can be touched, handled, or moved by an individual, as opposed to intangible assets. Tangible personal property includes automobiles, art, furniture, jewelry, coin or stamp collections, boats, and similar assets. Intangible or intellectual property refers to assets produced through creativity and innovation such as inventions, patents and copyrights of literary or artistic works.

Examples Tangible property:

• Joan Donor owns an automobile she wishes to donate to St. Edward’s. • John Donor owns an 18th century painting he wishes to donate to St. Edward’s. • Jillian and Jorge Donor own a collection of rare books they would like to donate to the

St. Edward’s library system. Intangible or intellectual property:

• John Donor, a professor, gives to St. Edward’s the copyright to his popular book. • Jane Donor, a scientist, donates to St. Edward’s her patented process for making a

vaccine. • Joan Donor, a cartoonist, gives to St. Edward’s all trademark and licensing rights

associated with one of her popular characters. • Royalties. Institutions that receive gifts for royalties from property they do not own

(such as patents) – or from property that could not be values and thus was not counted at the time of the gift – should count and report the income they receive resulting from that ownership each time a payment is received. However, do not enter a pledge in anticipation of such payments. Royalties from vendor affinity agreements, such as alumni credit card programs are not countable.

Acceptance Policy a. Gifts of both tangible and intangible personal property will be subject to advance approval

by the Vice President for Financial Affairs and the Vice President for University Advancement of the University.

b. While exceptions may be considered, St. Edward’s requires that gifts such as art, furniture, computers, boats, automobiles, medical equipment, and other forms of tangible personal property, must satisfy each of the following before acceptance: i. The item to be received can be used by the University and the University can sell or

otherwise dispose of the property; ii. For property that cannot be used by the University but can be sold, the FMV must be at

least $5,000 and verified by a qualified appraisal; iii. The item to be received is not encumbered by high transportation costs, storage costs,

or unusual maintenance; and iv. The item to be received must not be encumbered by debt.

Processing Procedure a. Upon learning of a proposed gift of tangible or intangible personal property to St. Edward’s,

a University staff member will make every practical effort to meet personally with the prospective donor and obtain advance approval of acceptance from the Vice President for Financial Affairs and the Vice President for University Advancement of the University.

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b. In general, when a donor contributes property (other than publicly traded securities) for which a charitable deduction in excess of $5,000 is claimed, in order to obtain the benefit of a charitable deduction, the Internal Revenue Service will require the donor to (1) complete IRS Form 8283, (2) obtain a qualified appraisal of the property from a qualified appraiser, (3) attach a fully completed appraisal summary to the tax return in which the deduction is first claimed, and (4) maintain records of certain information listed in Treas. Reg. § 1.170A-13(b)(2)(ii). These obligations rest upon the donor and do not affect acceptance of the donated property by the University. Upon presentation and acceptance of the gift, however, St. Edward’s will sign the Donee Acknowledgment for such gift contained in Form 8283, if requested to do so by the donor.

c. If St. Edward’s sells, exchanges or otherwise disposes of any property for which it has signed a Donee Acknowledgment within two years of the date the gift was received, the University shall file Form 8282, Donee Information, with the Internal Revenue Service, with a copy to the donor, disclosing that the property was disposed of and such other information as the Internal Revenue Service may require. St. Edward’s reserves the right to liquidate, upon transfer or any time thereafter, any tangible or intangible property obtained through charitable donation, unless otherwise specified in a legally binding agreement between St. Edward’s and the donor(s). Any such restrictions may impact its marketability and therefore the value of the gift.

d. Donors are responsible for establishing the value of tangible and intangible personal property donated to charity for reporting to the IRS. St. Edward’s will count gifts of tangible and intangible personal property that qualify as a charitable deduction for a donor at fair market value regardless of the value the donor may be able to take as a charitable deduction.

e. For property valued at $5,000 or more given to the University, St. Edward’s requires that a current independent appraisal be provided. Any gift received by the University accompanied by a written independent appraisal acceptable to the Vice President for Financial Affairs for the University shall be credited at the appraised value.

f. For gifts or property valued at less than $5,000, the University will use the value provided in any one of the following ways:

i. The value placed on the gift by a qualified appraiser. While not necessary for IRS purposes, the donor my nonetheless obtain such an appraisal;

ii. The value declared by the donor. The donor should provide a copy of either the paid bill of sale or the invoice and copy of the check or personal credit card statement showing payment. Sales tax will not be included in the gift’s value.

iii. The value determined by a qualified expert on the faculty or staff of the University, but not an individual whose fundraising totals are directly affected by the gift.

iv. The value established by a purchaser’s winning auction bid at a charity auction run by the University, if no fair market value for the item was available before the auction.

v. In the absence of a provided value, the gift will be carried on the books of the University in the manner deemed most appropriate by the Vice President for Financial Affairs of the University.

g. In general, a gift that is mailed or delivered by an overnight delivery service recognized by the Internal Revenue Service is deemed made when posted and surrendered for delivery in the regular course of business. In determining the date of the gift, particular attention should be given to the package or envelope transmitting any gift that is mailed or sent by such an overnight delivery service because the postmark on the package or envelope will generally establish the date for determining when the gift was made. Otherwise, either the date the property’s ownership is completely assigned to the University via a deed of gift, or when an employee of the University takes possession of the property will be the date of the gift for University purposes. St. Edward’s is not required nor obligated to establish the appropriate date used to determine the date the gift was made for the donor’s purposes.

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h. The gift will be batched and entered into the University Advancement database within two business days of transfer of ownership of the property. If value is in question, a $1 will be assigned until appropriate value has been sustained.

Gift Acceptance Considerations • Does transfer of the gift require a title transfer? • Does the gift appraise in excess of $5,000? • Does the gift require additional expenditures to maintain the asset after receipt? • Is there potential for unrelated business taxable income, the carrying costs, and the

potential for revenue from the gift? • Are there any legal, ethical, and public relations issues which might arise from acceptance

of such a gift? • Will receiving and enjoying the value or benefit of the intellectual property subject St.

Edward’s to any risk of a legal claim? It may be necessary to obtain paperwork and assurances from the donor verifying his or her rights and the absence of any infringement issues.

• Some intellectual property rights cannot be transferred or can be transferred only under certain conditions.

Stewardship Gifts of tangible or intangible personal property will be processed and receipted within two business days of transfer of ownership to the University. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Gifts of tangible and intangible personal property which qualify for a charitable deduction

are counted at their full fair market value as determined by the processes outlined above. • Gifts of software and hardware that qualify as a charitable donation under the laws of the

appropriate tax authority and that have an established retail value are counted at the educational discount value if such exists or the fair market value.



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XI. Gifts-in-Kind Definition Gifts-in-kind are generally defined as non-cash donations of material or long-lived assets, other than real and tangible or intangible property (see Sections IX and X). Gifts-in-kind might include such items as equipment, software, printed materials, food or other items used for hosting dinners, etc. Gifts-in-kind usually (although no always) come from companies, corporations, or vendors in contrast to individuals, who typically give personal property. Examples • Deep discounts or bargain sales. Company ABC offers to sell their product to St. Edward’s

at a “deep discount” or “bargain sale,” that is not a discount that applies to purchases made by the University or other higher education institutions on a regular basis and is not uniquely identified as a special reduction to be considered as a donation.

• Royalties. Institutions that receive gifts for royalties from property they do not own (such as patents) – or from property that could not be values and thus was not counted at the time of the gift – should count and report the income they receive resulting from that ownership each time a payment is received. However, do not enter a pledge in anticipation of such payments. Royalties from vendor affinity agreements, such as alumni credit card programs are not countable.

• Software and hardware. Irrevocable gifts of software or hardware with an established retail value count at the educational discount value (if one exists) or the fair market value, as long as the agreement qualifies as a charitable donation under IRS regulations.3

Acceptance Policy a. The acceptance of gifts-in-kind to be recorded as assets of the University will be subject to

advance approval by the Vice President for Financial Affairs and the Vice President for University Advancement of the University. Gifts-in-kind valued at less than $5,000 that are not tangible property to reside on University property will not be recorded as an asset or posted to the general ledger and will not require the approval of the Vice President for Financial Affairs and the Vice President for University Advancement. Examples include a book, a gift certificate for the donor’s product, vendor discounts, etc.

Processing Procedure a. Upon acceptance of the gift, the donor must submit the Gift-in-Kind information form and

attach the documentation used to determine the value (bill of sale indicating the retail or educational discount price less the discounted amount, royalty check or information establishing the retail value or fair market value).

b. University Advancement will record the gift at the educational discount value and/or the value the institution would have paid had it purchased the item outright from the vendor. In the case of deep discounts or bargain sales, the gift the discounted amount will be recorded as the gift.

c. Gifts-in-kind to be recorded as University assets will be sent for processing to the general ledger. The corresponding documentation will be sent to the Business Office.

d. Gifts-in-kind not recorded as University assets will be entered in the University Advancement database but not transferred to the general ledger.

Gift Acceptance Considerations

3 When entering into agreements with companies to accept “mega gifts” of software and hardware and be a test site for the company, the University needs to ascertain whether it is a gift, partial interest, or an exchange transaction according to the IRS and CASE standards.

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• Is this a gift-in-kind or gift tangible or intangible personal property? • Does the gift assist the University in accomplishing its goals, mission or programs? Stewardship Gifts-in-kind will be processed and receipted within two business days of being notified of the University’s possession of them. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • University Advancement will count the gift at the educational discount value and/or the

value the institution would have paid had it purchased the item outright from the vendor. In the case of deep discounts or bargain sales, the discounted amount will be recorded as the gift.

• A person’s or organization’s time or service is not considered a charitable contribution and is not countable, regardless of whether the assistance is as a volunteer or a professional specialized service (accounting, legal work, consulting.)



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SPLIT-INTEREST GIFTS I. Charitable Gift Annuities Definition A standard charitable gift annuity (CGA) is transaction where a person irrevocably transfers to an institution some property, such as cash or securities, and the institution agrees in a contract to pay the donor or other beneficiaries (maximum allowable of two beneficiaries) a guaranteed annuity for life. A deferred payment charitable gift annuity is almost identical in construct to the standard charitable gift annuity. The significant difference is that the contract stipulates some date in the future when payments to the donor or other beneficiaries will begin. Examples • Joan Donor is a 67 year old woman, recently widowed. She donates $100,000 in cash in

exchange for a one-life CGA. St. Edward’s agrees to pay her the current rate offered by the ACGA for her age, which is 6.2%. Each year, St. Edward’s will pay her $1,240. When she dies, the payments will terminate and the residuum of her gift will fund the school or program she designated.

• Jill and Jesse Donor are 74 and 82, respectively. They donate $280,000 in stock that is traded on the NYSE. In exchange for their donation, St. Edward’s agrees to a two-life gift annuity with the rate of 6.6%. They receive annual payments of $18,480. Jill dies, and Jesse continues to receive the full amount of the annuity. Jesse dies and the remaining funds will fund the school or program they designated.

Acceptance Policy a. In working with prospective gift annuity donors, care will be taken to assure that the person

entering into the annuity fully understands that the annuity gift is irrevocable and understands the nature of the fixed payment which will be payable to them. All prospective donors will be urged to seek advice of their own legal and/or tax counsel. The relevant University staff member will communicate clearly to the prospective donor that he or she represents St. Edward’s.

b. A University staff member will make every practical effort to meet personally with prospective gift annuity donors.

c. All gift annuities entered into with the University must predominantly benefit the University and in every instance must benefit exclusively charitable, religious or educational causes.

d. For a standard CGA, the following criteria must be met: i. Must be economically viable for St. Edward’s. ii. Youngest annuitant must be at least 72 years of age. iii. Must be funded with at least $100,000 in cash or readily marketable securities.

e. For a deferred CGA, the following criteria must be met: i. Must be economically viable for St. Edward’s. ii. Youngest annuitant must be at least 60 years of age at the time of the contract and

at least 72 years of age at the time payments commence. iii. Must be funded with at least $100,000 in cash or readily marketable securities.

f. St. Edward's maintains the right to set its own gift annuity rate, however, it is the policy of St. Edward's to adhere to one (1) point less than the rates recommended by the American Council on Gift Annuities (ACGA) and a cap of 8.5%.

g. Gift annuity donors in Texas will be reminded in correspondence or conversations with them and their advisors that a qualified charitable gift annuity is not insurance under the laws of the State of Texas, nor is it subject to regulation by Texas Department of Insurance, nor is it protected by a guaranty association affiliated with Texas Department of Insurance.

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Most specifically, this information will be in the gift annuity document in a type and format to be at least as large and as obvious as the other language in the gift annuity. All requirements in other states will be addressed with similar care as to compliance with local law.

h. The University reserves the right to reject any annuity contract proposals from states where regulations are deemed overly burdensome or when excessive compliance costs would be required. St. Edward’s will not enter into gift annuity agreements with residents from the states of California, Florida, New York or any other state requiring a reserve fund.

i. All gift annuity donors shall be requested to provide the tax basis of donated assets. For purposes of tax reporting and gift annuity accounting, St. Edward’s University shall rely on tax basis information provided by the donor. If no such information is provided, the University shall assume that the tax basis of the gift asset is zero dollars, and the donor shall be so advised in writing.

Processing Procedures a. Gift officers working with a donor interested in a gift annuity should consult with the Director

of Planned Giving to compile and provide accurate information and contracts. b. When St. Edward’s enters into gift annuity agreement, the gift officer should:

i. Prepare and have donor sign duplicate originals of : 1. Gift annuity agreement (both returned to the University for the signature of the

Vice President for Financial Affairs). Donor will keep an original signed copy and the University will keep an original signed copy.

2. Disclosure letter with a copy of the most recent annual report. Donor keeps one copy and returns other to the University.

3. Attorney disclaimer letters if the donor(s) did not consult with a professional advisor (attorney or CPA) in the gift planning process. Donor keeps one and returns other to the University.

ii. Prepare and have donor(s) and life income recipient(s) sign a W-9, to verify Social Security numbers.

iii. Provide completed Intent Form and full set of documents to Advancement Services for input into the database and for the donor’s and gift annuity files.

c. Advancement Services will provide a copy of the gift information form and full set of documents to the Grants Accountant in the Business office which is responsible for the set-up and administration of the annuity and its payouts.

d. The Financial Affairs office will: i. Add gift annuity information to payment management system for the university. ii. Recheck all contract and payout information. iii. File the information in the permanent gift annuity file. iv. Be responsible for the oversight of the annual information in the form of IRS Form

1099-R and provide any necessary supplemental information to University donors by January 31st of each and every calendar year with regard to the filing of federal income tax returns (and state and local income tax returns where necessary).

v. Be responsible in consultation with the University Advancement Office for the annual review of the procedures for and maintenance of individual state registration for the issuance of gift annuities.

e. The University Advancement office will provide a gift receipt meeting Internal Revenue Service substantiation requirements for gift annuity gifts.

f. During the life of annuitant(s), fund administration will be coordinated by Office of Financial Affairs and any outside vendor they select (as of July 2011, the vendor is State Street Global Advisors).

g. During life of annuitant(s), University Advancement should send a personal note or letter to donor(s) and annuitants (if different) at least once per year.

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h. Upon the death of an annuitant, the Office of Financial Affairs will: i. With a two-life annuity, note death of first to die in appropriate files and notify the

administrators of the annuities of the death and the updates needed for distribution. ii. With a one-life annuity or upon death of last annuitant, notify the administrators of

the annuity to cease payout and take appropriate steps to restructure the gift in accordance with gift annuity and final fund distribution.

i. Upon the death of an annuitant, the Office of University Advancement will: i. Notify the Office of Financial Affairs. ii. Send note of sympathy and appreciation to appropriate parties. iii. With a one-life annuity or upon death of last annuitant, obtain death certificate,

obituary or service bulletin and work with the Office of Financial Affairs to take appropriate steps to restructure the gift in accordance with gift annuity and final fund distribution.

Gift Acceptance Considerations Reference above acceptance section. Stewardship • Charitable gift annuities will be acknowledged with letters from the Vice President for

University Advancement and the President of the University. • A thank you letter will be sent to any professionals assisting with the gift. • If approved by the donor(s), a letter informing remainder beneficiary(ies) of the gift will be

sent. • See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Gifts made in exchange for a charitable gift annuity will be counted at their face value for

public reporting purposes, and at their discounted present value to CASE and CAE. • St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all



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II. Charitable Remainder Trusts Definition A charitable remainder trust (CRT) is an irrevocable trust authorized and governed by federal tax law that benefits the donor or other individuals named by the donor (known as “income beneficiaries”) for a term of years or lives. Upon the termination of the trust, the remaining assets pass to one or more qualified charities (known as “remainder beneficiaries.”) The donor specifies a payout percentage which the income beneficiaries receive annually. The donor names a Trustee who manages the assets and ensures that both the specified annual payout and the remainder are distributed as per the terms of the trust and in accordance with federal and state law. The Trustee has a fiduciary duty with regard to the trust and its beneficiaries. Fiduciary duty is the highest standard of duty imposed by law. CRTs are tax-exempt trusts. The assets within them may be bought and sold without regard to capital gains taxes. However, CRT payouts to individual beneficiaries are subject to income taxation. There are two types of standard CRTs – charitable remainder unitrust (CRUT) and charitable remainder annuity trust (CRAT). Charitable Remainder Unitrust (CRUT): A CRUT distributes a fixed percentage of the fair market value of the trust assets, calculated annually. A donor may make additional contributions to a CRUT after it is established. There are three variant forms of CRUTs:

• Charitable remainder unitrust – net income (NICRUT): A NICRUT pays only the net income earned by the trust each year, but not more than a set percentage of the property’s fair market value. It provides for payments of either (1) a fixed percentage (at least 5 percent) of the trust’s annual value or (2) the net income of the trust, whichever is less. NICRUTS are an attractive option when the trust is funded with an asset that must be sold before it generates income, such as real property.

• Charitable remainder unitrust – net income with makeup provisions (NIMCRUT): A NIMCRUT (sometimes called a “type 3 CRUT”) pays the net income earned by the trust each year up to a fixed percentage of value, but makes up any deficit below that percentage with surplus income in subsequent years. A deficit may occur when actual net income is less than the fixed percentage payout rate. NIMCRUTs are useful for trusts funded with real property.

• Charitable remainder unitrust – standard and flip unitrust: This is similar to a charitable remainder unitrust – net income but less flexible, as the annual income is explicitly a fixed percentage of the asset value, usually between 5 and 7 percent. The IRS has issued regulations allowing trustees of income exception CRUTs to convert (flip) them to standard CRUTs under certain circumstances. This generates a charitable remainder unitrust – combination, also called a “flip-CRUT” or “flip unitrust.” Flip provisions are often attractive when the funding asset is an illiquid or difficult-to-sell asset and the trust flips after the sale.

Charitable Remainder Annuity Trust (CRAT): A CRAT is similar to a unitrust except that the designated income beneficiary(ies)/donor and second beneficiary (if one is name) receive a fixed income from the gift for the rest of their life, a term of years, or as long as the trust has assets. Distributions are determined by the original value of the trust’s assets. The donor cannot make future contributions to this type of trust.

Examples

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• Jack Donor hires an attorney to plan his estate. Together, they decide a CRUT would be a good option. The attorney drafts the trust document and Jack and his wife execute it and name Acme Bank as Trustee and names St. Edward’s as one of three remainder beneficiaries. Acme Bank sets up a new account for the trust assets. Jack transfers approximately $500,000 in XYZ, Inc. stock to the CRUT. He specified a 5% payout rate and named himself and his wife as income beneficiaries. They will receive a payout of roughly $25,000 in the first year of the trust. Their payout fluctuates over the years as the assets in the trust grow and decline. When both Jack and his wife die, the assets that remain in the CRUT will be split between St. Edward’s and two other charities.

• Jim Donor is a single man who wants to establish a CRT and asks St. Edward’s to serve as Trustee. Jim funds the trust with $1.5 million and opts for a 5.5% payout rate. Jim’s attorney recommends a CRAT. Jim is the lone lifetime beneficiary and the trust will terminate when he dies. He receives $225,000 each year until his death. His payout amount does not change, regardless of the performance of the trust assets. When Jim dies, St. Edward’s will receive all of the assets remaining in the trust, as Jim irrevocably named St. Edward’s as sole remainder beneficiary.

Acceptance Policy General: a. All charitable remainder trusts entered into with the University must benefit the University

and in every instance must benefit exclusively charitable, religious or educational causes with values and objectives not inconsistent with those of St. Edward’s.

b. For a charitable remainder trusts, the following criteria must be met: i. Must be economically viable for St. Edward’s. ii. Youngest annuitant must be at least 72 years of age. iii. Must be funded with at least $100,000 in cash or readily marketable securities or real

estate. c. Gifts of any asset other than cash, unrestricted publicly traded securities, or readily

marketable real estate will not be accepted as funding for charitable remainder annuity trusts or “straight” charitable remainder unitrusts. St. Edward’s further will not accept a gift of non-liquid assets in trust if it is anticipated that cash overdrafts may occur in the account. The Vice President for Financial Affairs for the University in consultation with the Fiduciary Committee must approve any exceptions, and, if exceptions are approved in the case of charitable remainder trusts, the donor will be advised to seek legal counsel regarding the effect of a cash overdraft on the qualification of the trust and will be urged to contribute sufficient liquid assets to the trust to cover all costs relating to holding the property until it is sold.

d. Donors of all split-interest gifts shall be requested to provide the tax basis of donated assets. For purposes of the tax reporting and trust accounting, St. Edward’s shall rely on tax basis information provided by the donor. If no such information is provided, the University shall assume that the tax basis of the donated asset is zero dollars ($0).

e. All charitable remainder trusts shall be approved by the Vice President for Financial Affairs for the University. Only the Vice President for Financial Affairs for the University shall have the authority to sign charitable remainder trusts on behalf of the University.

f. St. Edward’s University will serve as trustee of a charitable trust only when such service is approved by the Vice President for Financial Affairs for the University after consideration of the trust as a whole and a review of the trust instrument.

g. As a general rule, St. Edward’s University will not accept a fee for service as trustee of a trust of which it is a beneficiary, but may recover its direct and indirect expenses incurred in managing the trust assets and the trust.

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h. As trustee, St. Edward’s may hire attorneys, accountants, agents, investment advisors, investment managers and brokers whose services are reasonably necessary to the administration of the trust estate, and it may delegate acts that are merely mechanical or ministerial, although discretion with respect to investment authority may not be delegated without specific authorization in the trust instrument.

i. As a general rule, the initial corpus of a charitable trust should be conveyed to the trust simultaneous with the execution of the trust by the donor.

j. The value of the charitable remainder trust (regardless of the amount of the charitable deduction) must be at least 10% of the net fair market value of the property transferred to the trust on the date of the contribution.

Charitable Remainder Unitrusts: a. The minimum initial gift to fund a Charitable Remainder Unitrust shall be cash, publicly

traded securities or readily marketable real estate with a value of at least $100,000. Subsequent additions to the unitrust may be made at any time unless the trust agreement provides otherwise. The percentage to be paid by the unitrust to the donor or to the donor’s designee(s) shall be approved by the Vice President for Financial Affairs. In no event shall the rate be less than five percent (5%). Representatives of St. Edward’s will discuss appropriate charitable remainder trust variations with donors, including “straight,” “net income,” “net income with make-up,” and “flip” unitrusts.

b. St. Edward’s will accept unitrusts that last for no more than two measuring lives, for a selected term of years if such term is no longer than 20 years, or an appropriate combination of both.

Charitable Remainder Annuity Trusts: a. The minimum initial gift to fund a Charitable Remainder Annuity Trust shall be cash,

publicly traded securities or readily marketable real estate with a value of at least $100,000. No additions to the annuity trust may be made at any time. The annuity amount to be paid annually by the annuity trust to the donor or to donor’s designee shall be approved by the Vice President for Financial Affairs for the University.

b. St. Edward’s University will accept annuity trusts that last for no more than two measuring lives, for a selected term of years if such term is no longer than 20 years, or for an appropriate combination of both.

Processing Procedures a. A University staff member will make every practical effort to meet personally with

prospective charitable remainder trust donors. b. In working with prospective charitable remainder trust donors, care will be taken to assure

that the person creating the trust fully understands that the trust is irrevocable and understands the nature of the payments that will be made to the trust beneficiaries. All prospective donors will be urged to seek advice of their own legal and/or tax counsel. The relevant University development staff member will communicate clearly to the prospective donor that he or she represents the University.

c. When St. Edward’s University enters into a Trust Agreement as Trustee, the Director of Planned Giving or manager should:

i. Prepare and have donor sign duplicate originals of : 1. Trust agreement. Both are returned to the University for the signature of the

Vice President for Financial Affairs. 2. Attorney disclaimer letters if the donor(s) did not consult with a professional

advisor (attorney or CPA) in the gift planning process. Donor keeps one and returns other to the University.

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ii. Prepare and have donor(s) and life income recipient(s) sign a W-9, to verify Social Security numbers.

iii. Return to donor(s) a signed original of the trust agreement. iv. Assure that all transfer documents, such as stock powers and deeds, are properly

handled, and that deeds for real estate are timely and properly filed in the appropriate deed records.

v. Carefully review trust instrument for unusual and specific provisions such as the unitrust or annuity amount, payment dates (e.g., quarterly, etc.) and accounting requirements.

vi. Provide completed gift information form and full set of documents (including Trust agreement, planned giving software analysis and W-9) to the Business Office for accounting and its files.

vii. Provide gift information form to the Records Room for processing and filing. d. When St. Edward’s University enters into a Trust Agreement as Trustee, the Business

Office should: i. Carefully review trust instrument for unusual and specific provisions such as the

unitrust or annuity amount, payment dates (e.g., quarterly, etc.) and accounting requirements.

ii. Recheck planned gift software tax calculations concerning trust. iii. Recheck the cost basis and holding period for each asset transferred to the trust. iv. Add trust information to its system. v. Provide information to Controller for review and St. Edward’s books. vi. Set up a permanent trust file.

e. During life of trust, Director of Planned Giving should: i. Enclose personal note or letter to income recipient(s) and donor(s) (if different) at

least once per year. f. During life of trust, the Business Office should:

i. Set up distribution checks and statements according to controlling documents. ii. If payments are made or deposited directly to bank, send letter to income

recipient(s) and donor(s) (if different) at time of first payment advising of the transaction.

iii. Separate for accounting purposes each trust’s property from the University’s own property and property of other trusts. Joint investments with the assets of other trusts and with endowment assets may be allowed, but each trust’s interests must be kept separate for accounting purposes, and such commingling may only occur if authorized by each relevant trust document or other governing document.

iv. Preserve and protect trust property for the benefit of St. Edward's and assert reasonable care to make trust property productive.

v. Maintain separate accounts and tax records for each trust account. vi. Accurately allocate University’s fixed costs and direct costs of each trust in order to

avoid “nonqualified additions” to each trust. vii. Monitor trust funds, fair market value of assets and income earned. viii. Prepare and send K-1 or substitute K-1 annually.

g. Upon death of first income recipient: i. Business Office and Planned Giving should be notified. ii. University Advancement should obtain a copy of the death certificate. iii. University Advancement should send note of sympathy to loved ones drafted and

signed by appropriate staff. h. Upon death of second income recipient:

i. Business Office and Planned Giving should be notified. ii. University Advancement should obtain death certificate, obituary or service bulletin.

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iii. University Advancement and business office should take appropriate steps to restructure the gift in accordance with trust.

iv. University Advancement should send a note of sympathy and appreciation to heirs and loved ones, drafted and signed by the appropriate staff.

Gift Acceptance Considerations • Is the proposed payout rate acceptable to St. Edward’s? • Can the proposed funding assets be readily liquidated? • If there is another proposed remainder beneficiary, are there any conflicts or other reasons

not to accept the fiduciary responsibility for a trust which benefits them? • Are there any other extenuating circumstances which make acceptance risky for St.

Edward’s? Stewardship • Charitable remainder trusts will be acknowledged with letters from the Vice President for

University Advancement and the President of the University. • A thank you letter will be sent to any professionals assisting with the gift. • Unlike most other gifts, the Internal Revenue Service substantiation requirements do not

require formal substantiation of contributions to charitable trusts. • See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • A CRT where St. Edward’s is irrevocably named remainder beneficiary, including those

administered outside of St. Edward’s, is counted at the face value of St. Edward’s proportional share for public reporting purposes, and at the discounted present value of St. Edward’s proportional share to CASE and CAE. Where St. Edward’s is a revocable beneficiary of a CRT, please refer to the policy for counting bequests.



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III. Charitable Lead Trusts

Definition A charitable lead trust (CLT) allows for one or more charitable organizations to receive income payments from the trust for a specified number of years or one or more lifetimes. At the end of that term, the assets of the trust return to the donor (grantor CLT) or designee (non-grantor CLT). This allows a donor to transfer assets to children or grandchildren while potentially reducing transfer taxes. There are two commons forms of CLT:

• A charitable lead annuity trust (CLAT) makes a fixed-dollar payment annually to charity. The annual payout for a CLAT will not vary.

• A charitable lead unitrust (CLUT) pays to the charity a fixed percentage of the market value as determined annually. The annual payout for a CLUT will vary.

Unlike charitable remainder trusts, CLTs do not have a minimum or maximum payout rate by law, and their term can be for any number of years, or for the life of one or more living individuals. Also unlike CRTs, CLTs are not exempt from income taxation. Whether a donor opts for a CLUT or a CLAT, how he or she designates the remainder significantly impacts the tax treatment of the trust. Examples • Jessica and Jeffrey Donor create a CLUT and transfer approximately $1 million in

securities to it. They name three charities as income beneficiaries, and St. Edward’s is one of those charities. They set a 6% payout rate, which means that in the first year approximately $60,000 will be distributed from the trust. St. Edward’s will receive one-third of that payout, or approximately $20,000 in the first year. Subsequent payout amounts will depend on the investment performance of the trust assets. The donors specified a twenty year term. At the end of the twenty years, the trust will be terminated and the remaining assets will be transferred to Jessica and Jeffrey. At this time, the payout to St. Edward’s ceases. This is a grantor CLUT.

• Jane Donor’s will creates a testamentary CLAT. She dies, and her entire estate funds the CLAT. The initial funding value of the CLAT is $35 million. She specified a payout rate of 10% in her will, so each year $3.5 million will be distributed to St. Edward’s, the sole charitable beneficiary. This payout amount will not change, regardless of the performance of the investments in the trust. At the end of the ten year trust term, the assets that remain in the trust will be distributed to Jane Donor’s ten grandchildren and all payouts to St. Edward’s cease. This is a non-grantor CLAT.

Acceptance Policy a. Because of the tremendous potential for liability, the sophisticated nature of the CLT, and

the oversight required to ensure that a CLT benefits the donor and remainder beneficiaries, St. Edward’s will not serve as a trustee for a CLT.

b. All charitable lead trusts entered into with the University must benefit the University and in every instance must benefit exclusively charitable, religious or educational causes with values and objectives not inconsistent with those of St. Edward’s.

c. All charitable lead trusts shall be approved by the Vice President for Financial Affairs for the University.

d. The minimum initial gift to fund a Charitable Lead Trust (either a lead unitrust or a lead annuity trust) shall be cash, publicly traded securities or readily marketable real estate with a value of at least $100,000. Subsequent additions to the lead unitrust may be made at any time subject to the approval of the Vice President for Financial Affairs for the University. No additions are permitted to a lead annuity trust.

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e. The percentage to be paid annually by the lead trust to the charitable designee shall be approved by the Vice President for Financial Affairs for the University.

f. St. Edward’s University may accept lead trusts of any length or term, whether it be measured by lives or by a term of years.

Processing Procedure a. When a St. Edward’s representative becomes aware of a proposed CLT or an existing

CLT, the matter should be referred to the Director of Planned Giving for handling and coordination with other St. Edward’s administrative offices.

b. The Director of Planned Giving will provide the following services: i. Work with the donor and his or her advisors to develop the trust to help ensure that

the income stream will benefit St. Edward’s. ii. Secure any necessary approval. iii. Submit the Split Interest Gift Information Form to the gift processing staff.

c. Note that although a gift officer may be notified about a CLT, gift process staff are perhaps equally likely to be the first to learn that St. Edward’s is receiving annual payments from an unsolicited CLT. Accordingly, gift processors who receive a check with the term “Trust” or name a person and label him or her as “Trustee,” should contact the Director of Advancement Services if there is no prior record of such a trust in the database. The Director of Advancement Services will then notify the Director of Planned Giving who will then work to fill in details about the gift.

d. Once the details are learned, the Director of Planned Giving will provide the information to the Director of Advancement Services who will ensure the information is entered in the database.

Gift Acceptance Considerations • Reference above acceptance section. Stewardship • Charitable lead trusts will be acknowledged with letters from the Vice President for

University Advancement and the President of the University. • A thank you letter will be sent to any professionals assisting with the gift. • Unlike most other gifts, the Internal Revenue Service substantiation requirements do not

require formal substantiation of contributions to charitable trusts.

Campaign and Annual Counting Guidelines • A charitable lead trust shall be recorded as a pledge in the year that it is given and counted

at face value of the payment stream for both public reporting purposes and to CASE. The annual income will be recorded as pledge payments.



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IV. Pooled Income Fund Definition A pooled income fund is program maintained by charity that provides a donor with income in exchange for a contribution to the fund. Contributions from several donors are combined to produce an investable amount. Income realized through the fund’s investments is distributed to donors in proportion to their respective contributions. Donors receive a partial charitable deduction at the time of contribution. At the death of the donor, the portion of the fund attributable to the donor’s original contribution is transferred to charity. Acceptance Policy St. Edward’s does not offer a pooled income fund.

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DEFERRED GIFTS

I. Bequest Expectancies Definition Bequest expectancies are provisions in a will, trust or other testamentary legal document providing a gift to charity pursuant to applicable state law. Typically, these may be revoked before the donor’s death unless accompanied by a legally enforceable contract. The gift may be designated as a percentage of the donor’s estate, a specific dollar amount or description of property (such as securities, real estate, or other assets), or a residual of the donor’s estate. Bequest expectancies may also be made contingent upon a certain event happening.

Examples • Percentage: Jeff Donor’s will reads, “I give and bequeath 20% of the rest, residue, and

remainder of my estate to St. Edward’s University, an educational institution in Austin, Texas, for its general purposes.”

• Specific dollar amount: Joe Donor’s will reads, “I give and bequeath the sum of $50,000 to St. Edward’s University, an educational institution in Austin, Texas, for its general purposes.”

• Residual: Jane Donor’s will reads, “I give and bequeath the rest, residue and remainder of my estate to St. Edward’s University, an educational institution in Austin, Texas, for its general purposes.”

• Contingent specific: Jay Donor’s will reads, “I give and bequeath the sum of $50,000 to my cousin Jessica Donor if she is unmarried at my death and to St. Edward’s University, an educational institution in Austin, Texas, for its general purposes if she is married at my death.”

• Contingent residual: Jill Donor’s bequest through her revocable trust indicates: “If neither of my children, Jane and Jack, are living at the time of my death, then I give and bequeath the rest, residue, and remainder of my estate to St. Edward’s University, an educational institution in Austin, Texas, for its general purposes.”

Acceptance Policy a. Employees, officers and directors of St. Edward’s do not prepare wills for donors to the

University. Appropriate staff may, upon request, provide suggested gift clauses to donors’ attorneys for inclusion in wills prepared by donors' attorneys.

b. St. Edward’s may not serve as executor of estates or as attorney-in-fact. Officers and directors of the University may not serve as executors of estates or as attorneys-in-fact in their capacity as University officers and directors under ordinary circumstances. In some instances officers and directors may serve as such (the donor is the St. Edward’s representative’s family member or spouse and would likely have been named executor anyway), but only with the permission of the Vice President for Financial Affairs for St. Edward’s University.

c. If a St. Edward’s representative learns that he or she has been named executor or other legal actor under a donor’s estate plan, the representative shall promptly contact the Director of Planned Giving for assistance in requesting the donor change the document.

d. St. Edward’s representatives shall not sign as witnesses to wills under which they know St. Edward’s has been named as a beneficiary.

e. As a general rule, St. Edward’s University will not bear any cost associated with creating or amending a will or revocable trust.

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Processing Procedure a. Whenever possible, a designated employee of St. Edward’s University will review in

advance any restrictions or conditions placed on a charitable bequest and confirm that the legal name of the beneficiary is accurately stated: St. Edward’s University, Inc. in Austin, Texas.

b. A bequest will be classified as either documented or known as follows: i. Documented – St. Edward’s has a copy of the will or that portion of the will pertaining

to the gift to the University. ii. Known – The donor has informed a representative of St. Edward’s that there is a

bequest for the University in his or her will. c. When St. Edward’s University learns of a known or possible bequest, the Director of

Planned Giving should: i. Start and maintain a bequest file and checklist. ii. When appropriate, send a letter of acknowledgment and appreciation to the donor.

A copy of the acknowledgment letter goes in the donor’s file. In the acknowledgment letter, the University should request a copy of that portion of the will pertaining to the gift to the University, explaining that sending a copy does not obligate the donor if he or she wishes to make a change.

iii. If the donor is willing to disclose details about the bequest, then the gift can be recorded at both its face value and its net present value and may qualify for inclusion in campaign totals. The minimum documentation required to record a bequest would include any one of the following:

1. A “Heritage Society Gift Intent Form” which is signed by the donor and provides an estimate of the amount of the estate gift; or

2. a copy of the legal document establishing the estate gift, such as the relevant provision of the will or trust. If the legal document does not specify an amount for the bequest, the development officer should obtain a written estimate of that amount.

iv. If the donor does not provide an estimated fair market value, the bequest expectancy will be valued at $1.00

v. Advancement Services will record the bequest as a bequest expectancy pledge in the division’s database based on the documentation received.

vi. St. Edward’s University should annually review all known and possible bequests, and make sure individuals have been visited and/or contacted in last 12 months.

d. When St. Edward’s University has been notified that an individual has died, leaving a testamentary gift to the University, the Director of Planned Giving should:

i. Start and maintain a bequest file and checklist. ii. Notify and keep Advancement Services informed of file activity. iii. Write a note of appreciation to the attorney, trust officer, or executor and request

information on the addresses of surviving heirs. iv. Send a note of sympathy and appreciation to surviving heirs or loved ones. v. After the will has been admitted into probate, request a copy of the will and compare

with the will on file (when available) and the copy of the will provided by the attorney. vi. If administration of the estate is going to be lengthy, request one or more partial

distributions. Seek the University’s share of the interest earned. vii. If St. Edward’s is to receive a percentage or residue from the estate, request a copy of

the estate inventory which is ordinarily available 90 days after the will is admitted to probate. Also request the federal estate tax return, if any, and a final accounting.

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viii. Documents such as releases, waivers, and final accountings requiring the signature of a St. Edward’s representative should be reviewed by University counsel and executed by the Vice President for Financial Affairs for St. Edward’s University.

ix. On completion of the probate proceedings, provide all documents to the Director of Advancement Services who will submit them to Business Office for handling of fund set-up and management.

x. The gift will be recorded in the division database as a realized bequest and applied to the bequest expectancy. If there was not an existing expectancy, the gift will be entered as an outright bequest.

xi. Distributions from estates and trusts will be credited toward the purposes set forth by the donor. If the purpose designated by the estate or trust no longer exists, then at the direction of the Board of Trustees, the distributions shall be used to further the objectives and purposes of St. Edward’s University, giving due consideration to the Donor’s(s’) intent. For those estates and trusts where there is no purpose set forth by the donor, at the direction of the Board of Trustees or other appropriate University administrators, the distributions shall be used to further the objectives and purposes of St. Edward’s University.

xii. The original documentation will be filed in the Bequest Intention binder, a scanned copy will be saved in the donor’s database record and paper copy will be filed in the donor’s advancement file.

Gift Acceptance Considerations • Will this bequest intention supersede the potential for the donor to make a more significant

outright gift? Stewardship • When a donor informs St. Edward’s that he or she has made a bequest to benefit the

University, that donor is eligible for membership in the Mary Doyle Heritage Society, regardless of whether proper documentation can be obtained.

• Bequest expectancies will be acknowledged with letters from the Vice President for University Advancement and the President of the University.

Campaign and Annual Counting Guidelines Bequest expectancies are counted at a discounted amount based on the age the donor or donors will be by the date of the anticipated end of the campaign. If not in a campaign, the amount will be based on the age of the donor or donors at the time the bequest is made. For public reporting purposes, the face value of bequest expectancies will be discounted using the table below:

(For couples, use the younger age.)

Although certain expectancies can theoretically be irrevocable, they are rare. If irrevocable, such gifts are reported to CASE based on the IRS’s monthly published discount rate for life expectancy tables for annuities.

Age of Donor % of Face Value Counted

64 and below 0%

65-74 50%

75-84 75%

85 and up 100%

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Contingent bequests will be recorded in the Planned Giving module of ONE, but may not be reported for campaign purposes, regardless of documentation. Whether the gift is counted in annual totals will depend on the likelihood of the contingency.

Realized assets received on a previously recorded bequest expectancy will be reported in gift reports like payments on previous pledge commitments.

St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all gifts in its financial statements in accordance with Financial Standards Accounting Board (FASB) Rules 116 and 117.

Contacts Office of University Advancement 512-464-8826 Director of Advancement Services 512-448-8430 Director of Planned Giving 512-233-1401 Gift and Data Specialist 512-448-8776

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II. Life Insurance Beneficiary Designation Definition A donor may name St. Edward’s beneficiary of a life insurance policy without transferring ownership of that policy to St. Edward’s. When a donor only names St. Edward’s beneficiary and does not transfer ownership, he/she has made a revocable deferred gift, similar to a bequest in a will. Like a bequest, this gift is an expectancy. Naming St. Edward’s as beneficiary is different from making an outright gift of a life insurance policy to St. Edward’s. Please refer to the life insurance gift acceptance policy for guidelines on the acceptance of outright gifts of life insurance. A donor may choose to name St. Edward’s as either primary or secondary beneficiary. If St. Edward’s is secondary beneficiary, then the expectancy is contingent, as it depends on the occurrence of another event. Examples • Julie Donor is a 77 year old widow. She owns a universal life insurance policy with a

$250,000 death benefit and names St. Edward’s as beneficiary. She does not want to transfer ownership of the policy and make a current outright gift, because the asset has a cash value of $123,000 and she worries that she may need that cash one day.

• Jesse Donor is a divorced father of four grown children. His children are self-sufficient and he has made adequate preparation for them in his estate plan. He names St. Edward’s as beneficiary of a whole life insurance policy. He does not want to transfer the asset to St. Edward’s because if he remarries, he will change his primary beneficiary to his new wife.

• Joe Donor takes out a term life insurance policy with a $10,000 death benefit and tells Sally Solicitor that he would like to give it to St. Edward’s. Sally thanks Joe for his graciousness, and explains that St. Edward’s Gift Acceptance Policies will not permit her to accept a term policy. However, she suggests that he name St. Edward’s as beneficiary of the policy. If the policy remains viable, St. Edward’s will receive the death benefit when Joe dies.

Acceptance Policy Naming a charity as beneficiary of a life insurance policy can have an impact on a donor’s estate plan. Accordingly, any donor considering such a gift should be strongly encouraged to consult with his or her legal and financial advisors before making such a gift. Processing Procedure a. Whenever possible, a designated employee of St. Edward’s University will review in

advance any restrictions or conditions placed on a life insurance beneficiary designation and confirm that the legal name of the beneficiary is accurately stated: St. Edward’s University, Inc. in Austin, Texas.

b. If given an option, the gift officer should strive for a copy of the life insurance beneficiary designation form from the insurance company. If the donor is unable or unwilling to provide the requested form, the gift officer must complete the Estate Intention Letter (Appendix ??) to the best of his or her ability, write “N/A” as the estimated fair market value, and add his/her name in the note at the bottom of the form. When a donor does not provide an estimated fair market value, the estate expectancy will be valued at $1.00.

c. The life insurance beneficiary designation form or Estate Intention Letter is submitted to Advancement Services so that the planned gift may be properly recorded as an expectancy in the database. The gift officer will forward to Advancement Services the backup documentation for the beneficiary designation on a gift transmittal form.

d. A life insurance beneficiary designation will be classified as either documented or known as follows:

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i. Documented – St. Edward’s has a copy of life insurance beneficiary designation form from the insurance company.

ii. Known – The donor has informed a representative of St. Edward’s that there is a life insurance beneficiary designation for the University in his/her estate.

e. When a representative of St. Edward’s learns of a documented or known life insurance beneficiary designation, the Director of Planned Giving should:

i. Start and maintain a bequest file and checklist. ii. When appropriate, send a letter of acknowledgment and appreciation to the donor.

A copy of the acknowledgment letter goes in the donor’s file. In the acknowledgment letter, the University should request, if not in possession of it already, a copy of the life insurance beneficiary designation form pertaining to the gift to the University, explaining that sending a copy does not obligate the donor if he/she wishes to make a change.

iii. If the donor is willing to disclose details about the life insurance beneficiary designation, then the gift can be recorded at both its face value and its net present value and may qualify for inclusion in campaign totals. The minimum documentation required to record a life insurance beneficiary designation would include any one of the following:

a. A Mary Doyle Heritage Society Gift Intent Form which is signed by the donor and provides an estimate of the amount of the life insurance settlement;

b. or, a copy of the insurance beneficiary designation form. iv. If the donor does not provide an estimated fair market value, the insurance

beneficiary designation expectancy will be valued at $1.00 f. Advancement Services will record the life insurance beneficiary designation as an

expectancy pledge in the division’s database based on the documentation received. g. The original documentation will be filed in the Bequest Intention binder, a scanned copy will

be saved in the donor’s database record and a paper copy will be filed in the donor’s advancement file.

h. When St. Edward’s has been notified that an individual has died who has named St. Edward’s as beneficiary of a life insurance policy, the gift will be processed as follows:

i. Realized death benefits on a policy that was not previously recorded will be entered as an outright gift when the check from the insurance company is received.

ii. Realized death benefits on a policy for which the University was only named beneficiary and was counted in gift reports previously as a deferred gift will be entered at the insurance company’s settlement amount when the check is received. The cash settlement will be applied to the deferred gift and the remaining balance will count as an outright gift.

i. St. Edward’s University should annually review all documented and known insurance beneficiary designations, and make sure individuals have been visited in last 12 months

Gift Acceptance Considerations • Will this beneficiary designation supersede the potential for the donor to make a more

significant outright gift? Stewardship • When a donor informs St. Edward’s that he or she has made a bequest to benefit the

University, that donor is eligible for membership in the Mary Doyle Heritage Society, regardless of whether proper documentation can be obtained.

• Life insurance expectancies will be acknowledged with letters from the Vice President for University Advancement and the President of the University. See Appendix ?? for acknowledgement matrix.

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Campaign and Annual Counting Guidelines Life insurance expectancies are counted at a discounted amount based on the age the donor or donors will be by the date of the anticipated end of the campaign. If not in a campaign, the amount will be based on the age of the donor or donors at the time the expectancy is made. For public reporting purposes, the face value of life insurance expectancies will be discounted using the table below: (For couples, use the younger age.) Although certain expectancies can theoretically be irrevocable, they are rare. If irrevocable, such gifts are reported to CASE based on the IRS’s monthly published discount rate for life expectancy tables for annuities. Contingent bequests will be recorded in the database, but may not be reported for campaign purposes, regardless of documentation. Whether the gift is counted in annual totals will depend on the likelihood of the contingency.

Realized assets received on a previously recorded bequest expectancy will be reported in gift reports like payments on previous pledge commitments.

St. Edward’s follows Generally Accepted Accounting Principles (GAAP) and accounts for all gifts in its financial statements in accordance with Financial Standards Accounting Board (FASB) Rules 116 and 117.


III. Retirement Plans/IRA Beneficiary Designations

Definition

Age of Donor % of Face Value Counted

64 and below 0% 65-74 50% 75-84 75% 85 and up 100%

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A retirement plan provides people with income, or a pension, after they retire when they are no longer earning regular income from employment. For many, however, retirement plans serve as more of a savings device. Employees make regular contributions to retirement plans which appreciate over time. Many retirement plans offer tax deferral on contributed income. Some examples of retirement plans include 401(k) plans, 403(b) plans, IRAs (both traditional and Roth), company-based pension plans and annuities. Refer to the Retirement Plans/IRA Distributions in the Outright Gifts section of this policy for the acceptance and counting of those outright gifts versus the acceptance and counting of these deferred gifts. Although outright gifts from retirement plans are not tax favored under current law, in many cases naming St. Edward’s as a beneficiary of a retirement plan is an excellent option for donors. The manner in which St. Edward’s is named will depend on the type of plan and the plan administrator. Naming St. Edward’s as beneficiary of retirement plan proceeds is not an outright gift but an expectancy, like a bequest in a will. St. Edward’s may be primary or secondary beneficiary. If the latter, the designation is contingent. Examples • Jim Donor has an IRA with $500,000. He has no children and no spouse. He names St.

Edward’s beneficiary of the IRA proceeds. At his death, St. Edward’s will receive the assets remaining in his IRA.

• Jeff Donor is employed and has a 401(k) plan. He names Jill, his spouse, as the beneficiary under his plan, and designates St. Edward’s as the secondary, therefore contingent, beneficiary. St. Edward’s will only receive the proceeds from this plan if Jill predeceases Jeff.

Acceptance Policy a. St. Edward’s University may be named as a primary, secondary, partial, or contingent

beneficiary of a retirement plan or IRA. b. Naming a charity as beneficiary of a retirement plan or IRA can have an impact on a

donor’s estate plan. Accordingly, any donor considering such a gift should be strongly encouraged to consult with his or her legal and financial advisors before making such a gift.

c. Follow the Acceptance Policy outlined for Bequests. Processing Procedure a. A St. Edward’s representative (typically the Director of Planned Giving) should ensure that

the beneficiary designation form for a retirement plan or IRA payable to the University and/or to a charitable trust of which the University is a beneficiary is properly worded.

b. Upon the donor’s death, the University will instruct the plan or IRA trustee to make the distribution in cash rather than in-kind.

c. Follow the Processing Procedure outline for Bequests.

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Gift Acceptance Considerations • Will this beneficiary designation supersede the potential for the donor to make a more

significant outright gift? Stewardship • When a donor informs St. Edward’s that he or she has designated the University the

beneficiary of a retirement plan or IRA, that donor is eligible for membership in the Mary Doyle Heritage Society, regardless of whether proper documentation can be obtained.

• Retirement plans/IRA beneficiary designations will be acknowledged with letters from the Vice President for University Advancement and the President of the University.

Campaign and Annual Counting Guidelines The counting and reporting policies for retirement plan and IRA designations mirror those for Bequests.


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IV. Retained Life Estate

Definition A retained life estate is a gift plan defined by federal tax law allowing the donation of a personal residence or farm with the donor retaining the right to life enjoyment. A life estate may be retained for one or more lives or it may be retained for a term of years. All routine expenses – maintenance fees, property taxes, repairs, etc. – are the responsibility of the donor. The donor receives an income tax deduction for a significant portion of the value of the contributed property (the property is irrevocably deeded to the charity) and estate tax benefits. St. Edward’s interest in the property is known as a remainder interest. A personal residence is any home used by the donor as a residence, as opposed to investment property. This may include primary residences as well as vacation homes. A farm is defined as land and the improvements thereon used by the donor and or the donor’s tenant to produce crops, fruits, or other agricultural products. Examples • Joan Donor is an elderly widow with a home adjacent to the St. Edward’s campus. She

does not want to sell her home, nor does she want to leave it until her death. She gives St. Edward’s the property subject to a life estate for the term of her life. She continues to live in her home and pays for all maintenance and upkeep. At her death, St. Edward’s takes possession of the property. The University tears down the house and constructs a new building on the property.

• John Donor and his wife Jane Donor own a vacation home in Florida where they reside for three months each summer. They plan to move into a retirement village in ten years. They donate their vacation home to St. Edward’s subject to a life estate for the specific term of ten years. They continue to enjoy the use of their home and, at the end of the ten-year term, St. Edward’s takes possession of it. St. Edward’s sells the home and the proceeds from the sale are used according to the Donors’ wishes.

Acceptance Policy a. Prior to acceptance of any life estate agreement entered into with respect to real property,

the acceptance policies concerning real estate gifts in general, as described earlier in these policies and procedures, shall be followed.

b. Remainder interest gifts in personal residences will not be accepted without the approval of the Vice President for Financial Affairs of the University.

c. St. Edward’s may enter into a life estate agreement on a vacation home, farm, ranch, or other real property interest that the Vice President for Financial Affairs of the University deems suitable, beneficial, or advisable for use or investment by the University.

d. To shield St. Edward’s from claims of undue influence or conflict of interest, all deeds of title for gifts of real property subject to life estates shall be prepared by the donor’s attorney or title company, not St. Edward’s. These deeds must then be reviewed by St. Edward’s legal counsel prior to execution and acceptance.

e. The minimum fair market value of the property must be $200,000 at the time of the gift. f. In general, a life estate agreement should not be entered into for more than two measuring

lifetimes. g. When the life estate ends, St. Edward’s must become the sole owner of the property and

can then use the property or sell it and retain the proceeds from the sale for the purpose designated by the donor.

Processing Procedures

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a. Donors must sign a Life Estate Agreement with the University that clarifies their responsibilities for property repairs, taxes, insurance, environmental liabilities and other expenses.

b. Upon acceptance of any life estate agreement entered into with respect to real property, the processing procedures concerning real estate gifts in general, as described earlier in these policies and procedures, shall be followed.

c. If sufficient documentation is obtained, Advancement Services will record the life estate gift in the database. A gift of personal residential property subject to a retained life estate is complete on the date the donor transfers the property according to the laws of the state in which the property is located.

d. To ensure preservation of St. Edward’s assets and maximum protection from environmental liability, St. Edward’s should remain in touch with the holder of the life estate during the specified term and regularly monitor the property.

e. Upon acceptance of a life estate agreement, St. Edward’s will provide an acknowledgment to the donor meeting Internal Revenue Service substantiation requirements.

Gift Acceptance Considerations • Will the property require any outlay of funds from St. Edward’s to provide upkeep of the

property? • Can the property be easily liquidated or converted for use by St. Edward’s? Stewardship Life estate agreements will be acknowledged with letters from the Vice President for University Advancement and the President of the University. Campaign and Annual Counting Guidelines • When a donor makes an irrevocable gift of personal residential property subject to a

retained life estate, he/she has granted St. Edward’s a remainder interest in that property. For public reporting purposes, such gifts are counted at the fair market value of St. Edward’s remainder interest in the property and at their discounted present value for CASE and CAE. The fair market value may be determined by the value placed on the property by a qualified independent appraiser or the stated.



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V. Payable-On-Death/Transfer-On-Death Forms

Definition Payable-On-Death (POD) or Transfer-On-Death (TOD) is a beneficiary designation that allows individuals to direct that the assets in a particular account be transferred to another individual or to a charity upon death without having to go through probate. The individual maintains complete control of his/her assets during his/her lifetime and the named beneficiaries have no access to or control over the assets as long as the individual is alive. Once the designation is completed and the original account holder has died, the beneficiary will need to produce only a death certificate and identification to take custody of the assets. PODs or TODs are available at financial institutions in many, but not all, states.

Naming St. Edward’s as beneficiary through a POD or TOD designation is not an outright gift but a revocable expectancy, like a bequest in a will.

Example Joanne Donor has a savings account at her local bank with $52,000 in it. She completes a POD form and directs that upon her death, the funds should be payable to St. Edward’s. When Joanne dies, a St. Edward’s representative presents her death certificate and identification and takes custody of the assets.

Acceptance Policy a. Use of a POD or TOD can have an impact on a donor’s estate plan. Accordingly, any

donor considering such a gift should be strongly encouraged to consult with his or her legal and financial advisors before making such a gift.

b. Follow the Acceptance Policy for Bequests.

Processing Procedure a. Follow the Processing Procedures outlined for Bequests. Gift Acceptance Considerations • Will this beneficiary designation supersede the potential for the donor to make a more

significant outright gift? Stewardship Payable-On-Death (POD) or Transfer-On-Death (TOD) designations will be acknowledged with letters from the Vice President for University Advancement and the President of the University. Campaign and Annual Counting Guidelines The counting and reporting policies for POD and TOD beneficiary designations mirror those for Bequests.


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ACCEPTANCE POLICIES AND PROCEDURES FOR PLEDGES I. Pledges Definition A pledge is a written or oral agreement to contribute cash or other asset to St. Edward’s over a stated period of time (typically no more than five years). The source of the future asset to be received by St. Edward’s will determine whether the promise to give will be passed to St. Edward’s general ledger as a pledge receivable. St. Edward’s has four categories of pledges: receivable, statement of intent and annual fund.

Pledge Receivable Definition A pledge receivable is a gift commitment passed to the general ledger as a receivable and subject to review and verification by University auditors. Example • Joan Donor would like to fund a $1,000,000 endowment over a five year period to create a

named endowed scholarship at St. Edward’s. An intent form is prepared by the University Advancement Office detailing this commitment and signed by Jane Donor.

• James Donor pledges $4,000 per year for five years for a total of $20,000 to the capital priorities fund for St. Edward’s. He communicates this information to a gift officer via email from a verifiable address.

Acceptance Policy To enter a commitment as a pledge receivable, the pledge must meet the following criteria:

a. Be documented in writing with an intent form hand-signed by the donor or with an email from the donor with the donor’s verifiable email address clearly indicated. The document must stipulate the amount, purpose, payment period and who will be responsible for the payments. In the case of many foundation and corporate gifts, the award letter may be used.

b. Pledge must be fulfilled by the individual or legal representative of the entity that made the pledge. If the future pledge payments are going to be fulfilled by another entity that has not signed a gift agreement with St. Edward’s (e.g., donor advised fund, matching gift company), then the pledge or portion of that pledge to be fulfilled by another entity will not be recorded as a receivable.

c. Annual payments anticipated for the pledge must be $1,000 or more. d. Be unconditional or have it determined that the conditions are or will be met.

Processing Procedure a. The gift officer will prepare an intent form detailing the commitment amount, purpose for the

gift and anticipated payment schedule or provide an email from the donor’s verifiable email address with the same details. A donor signed document that has the commitment amount, purpose, payout schedule and who will be responsible for payment is acceptable if the University’s intent form was not used.

b. The document will be given to the Director of Advancement Services (DAS). c. The DAS will scan the document and send it to the Operations Manager who will attach it to

the donor’s database record in the Gift Documentation file.

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d. The DAS will give the original document to the Gift and Data Specialist who will enter the pledge in the database. The pledge batch will be passed to the general ledger via a nightly automated process.

e. The original document will be filed in the donor’s hard file.

Statement of Intent

Definition A statement of intent is a gift commitment or portion of a gift commitment made by a donor in which it is indicated that the fulfillment of that commitment will be made by an entity other than the donor signing the agreement (e.g., donor advised fund, matching gift employer). Statements of intent do not get passed to the general ledger as receivables. Example • Joan Donor would like to give $100,000 to the University over a five year period. She plans

to contribute $10,000 a year and have her gift matched by her current employer at $10,000 a year. An intent form is prepared by the University Advancement Office with these details and signed by Jane Donor. The donor’s portion of $50,000 will be entered as a pledge receivable and passed to the general ledger. The matching gift portion will be entered as a statement of intent (or soft pledge) and will not be passed to the general ledger.

• James Donor pledges $50,000 to be paid over five years. He indicates that the money will come from a donor advised fund. An intent form is prepared by the University Advancement Office with these details and signed by James Donor. The commitment will be entered as statement of intent (or soft pledge) and will not be passed to the general ledger.

Acceptance Policy A statement of intent must be documented in writing with an intent form hand-signed by the donor or with an email from the donor with the donor’s verifiable email address clearly indicated. The document must stipulate the amount, purpose, payment period and who, other than the donor, will be responsible for the payment or partial payment of the commitment. Commitments with conditions placed on them that prevent them from being entered as a pledge receivable, may be permitted to be entered as a statement of intent pending the meeting of the conditions (e.g., a challenge grant). Processing Procedure a. The gift officer will prepare an intent form detailing the commitment amount, purpose for the

gift, anticipated payment schedule and who will be responsible for payment or partial payment of the commitment or provide an email from the donor’s verifiable email address with the same details. A donor signed document that has the commitment amount, purpose, payout schedule and who will be responsible for payment is acceptable if the University’s intent form was not used.

b. The document will be given to the Director of Advancement Services (DAS). c. The DAS will scan the document and send it to the Operations Manager who will attach it to

the donor’s database record in the Gift Documentation file. d. The DAS will give the original document to the Gift and Data Specialist who will enter the

statement of intent (soft pledge) in the database. If the donor signing the intent form is personally responsible for any portion of the payment of the commitment, a pledge receivable will be entered for that portion and statement of intent (soft pledge) will be entered for the remaining portion. The statement of intent (soft pledge) will not be passed

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to the general ledger. The pledge receivable will be passed to the general ledger via a nightly automated process.

e. The original document will be filed in the donor’s hard file.

Annual Fund Pledges Definition An annual fund pledge is a gift commitment made through the University’s phonathon or direct mail programs or annual campaigns that typically is expected to be completed in the fiscal year received. Annual fund pledges may be documented with a response card returned by the donor or through an oral commitment made on the phone and entered by the caller in the University’s CampusCall database. Annual fund pledges do not get passed to the general ledger as receivables. Example • Joan Donor is called during the annual phonathon program. When asked to contribute, she

indicates that she will give a gift of $500. The caller enters the information in the CampusCall program and a pledge reminder for the $500 is sent to the donor the next business day.

Acceptance Policy A pledge received through phonathon, direct mail appeals or annual campaigns coordinated through the University will be entered as an annual fund pledge. Processing Procedure a. Phonathon pledges will be entered in the CampusCall database at the time of call. b. The phonathon pledges will be downloaded and reviewed the next business day morning

by the Database Coordinator. c. After reviewing, the Database Coordinator will upload the phonathon pledges to the

database. d. In general, direct mail appeals solicit gifts and not pledges. However, if a pledge is made

via a direct mail appeal, the response card will be given to the Gift and Data Specialist to enter the pledge database.

e. Pledges received through annual campaigns, such as the Faculty and Staff Campaign, are submitted to the Gift and Data Specialist to enter the pledge in the database.

f. These pledges are not passed to the general ledger as receivables.

Pledge Acceptance Considerations • Is the pledge unconditional? • Are there certain requirements that must be met in order for St. Edward’s to receive the

future asset? • What are the restrictions placed on the use of the future asset? • What kind of entity will fulfill the pledge? Stewardship See the Gift Acknowledgement and Stewardship section for details.

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Campaign and Annual Counting Guidelines • Pledge receivables and statements of intent (soft pledges) will be counted in campaign and

annual reports for public reporting purposes. Annual fund pledges will not be counted. Only pledge receivables will be used for reporting to CASE. Pledges are not reported to CAE.



Pledge Write-off Policy • In June of every fiscal year, the director of Advancement Services (DAS) reviews all

open pledge receivables. • The DAS compiles a list of pledge receivables that have not received a payment in

three or more years. • This list is reviewed by senior staff in the Office of University Advancement to determine

what type of communication will occur with these donors. • The donors will be contacted and asked if they intend to fulfill the commitment and the

fulfillment schedule they plan to employ. They will be informed that if a payment plan is not indicated and/or if the indicated payment plan is not implemented, the pledge will be written off. The impact on any recognition this commitment afforded them i.e. a naming opportunity in a building, a named scholarship and its purpose, etc. will be explained to the donor.

• The Vice President for University Advancement in consultation with the Vice President for Financial Affairs is the final decision maker regarding the write-off of a pledge.

• All unfulfilled annual pledges (commitments received through direct mail, phonathon and other annual fund appeals) which are not booked as receivables will be written off after the close of the fiscal year.

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GIFTS WITH ASSOCIATED BENEFITS Definition Any gift to St. Edward’s in return for which the donor receives associated benefits, including, for example, the purchase of tickets to events, the purchase of goods or services at auctions, purchase of a table or seat at a dinner, or memberships in University organizations that exceeds the current Internal Revenue Service (IRS) token exception threshold.

The IRS token exception threshold is updated annually. It states that insubstantial goods or services provided in exchange for contributions do not have to be described in the acknowledgement/charitable gift receipt. Goods and services are considered to insubstantial if the payment occurs in the context of a fund-raising campaign in which the charitable organization informs the donor of the amount of the contribution that is a deductible contribution, and:

• The fair market value of the benefits received does not exceed the lesser of 2% of the payment or the current IRS exception amount ($91 in 2010) or

• The payment is at least $45.50, the only items provided bear the organization’s name or logo (e.g. calendars, mugs or posters), and the cost of these items is within the limit for “low-cost articles,” as determined by the IRS token exception ($9.10 in 2010).

Fundraising Event

Definition

A fund raising event is an activity sponsored by St. Edward’s or any other group or organization for the purpose of fundraising to benefit the University. In exchange for the price of admission, the donor generally receives a benefit or privilege.

Example St. Edward’s holds an annual golf tournament. The cost to participate is $150. The participant receives a round of golf, golf cart rental and a lunch. The fair market value for these items totals $200. The participant received a benefit greater than the fair market value and therefore there is no charitable gift. Policy Generally, the Office of University Advancement does not use fundraising events as means for raising money. If such a decision is made, in accordance with IRS regulations, St. Edward’s will provide the donor with a receipt for a contribution with a statement as to whether any goods or services, i.e., benefits, were given to the donor in exchange for his or her contribution. A description and good faith estimate of the value of such goods and/or services will be provided. It is the responsibility of schools, departments or groups sponsoring events to submit to University Advancement information on the fair market value of such benefits provided, whether or not at a cost to St. Edward’s or the sponsoring organization. Processing Procedure a. Any school or unit sponsoring a fundraising event must contact University Advancement for

guidance and support in advance of the event. b. Any printed or web-based materials, including email, advertising the event must contain

language about the fair market value of the event. For example, the fair market value of

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concerts, theatrical performances and athletic events should be the price normally charged for admission. Dinners or dinner/dances should be valued for the total expense before underwriting. A reception or dinner plus performance should take both elements into account.

c. If the event has no counterpart by which the fair market value can be measured, then such value should be determined by reasonable estimate with the assistance of the Director of Advancement Services. Documentation as to how the fair market value was determined must be maintained on file at the department or school for a minimum of five years.

d. The purchase price of the ticket may be in excess of the fair market value. e. In some cases, a donor may wish to purchase a ticket for the event in order to contribute to

St. Edward’s. Whether or not a donor attends the event is irrelevant for IRS purposes if the donor does not specify at the time of purchase that he or she declines tickets to the event.

f. Printed or web-based materials, including email, used to market the event or invite attendees should contain the following clause so that St. Edward’s may provide charitable gift credit for the entire amount of the gift:

The fair market value of each ticket is $X.XX. The purchase price in excess of the fair market value shall be treated as a charitable contribution. If you prefer to not receive any tickets, and thus have the full value of the ticket treated as a charitable contribution, please check the box below: ( ) I do not wish to receive any benefits in exchange for my contribution.

g. All checks must be made payable to St. Edward’s University in order to provide a charitable gift receipt to the donors. If a third party check is endorsed over to St. Edward’s, a letter must accompany the check identifying the payment as a charitable contribution.

h. Checks, credit card charges or other forms of payment for events shall be transmitted to University Advancement with a list containing the following information: • the fair market value of the event • the name and contact information of the event attendee • indicate if the attendee opted out of the event • the fund the event is supporting and the corresponding cost center

Auctions Definition An auction is a fundraising event at which guests pay St. Edward’s or a support group for goods and services that have been donated by third parties. An auction that raises funds for St. Edward’s may offer the opportunity for two different donors to make a charitable donation. First, there is the donor of the item being auctioned. If the item sells, that donor has made a charitable gift. A second gift may be realized, provided the winning bid is in excess of the publicly disclosed fair market value for that item. The amount in excess of that value is recorded as a gift.

Examples Flavors Restaurant gives St. Edward’s a $100 gift certificate for dinner for a silent auction. Jamie Donor wins the item at auction and pays $75 for it. Flavors Restaurant receives legal and recognition credit for its $100 donation. Because Jamie paid less than fair market value for the item, he receives no gift credit at all.

Jazzy Jewels donates a necklace to St. Edward’s for a silent auction. The fair market value of the donation is $500. Julie Donor wins the item at auction and her winning bid is $750. Julie writes two checks to St. Edward’s. Her first is for $500 and reflects the fair market value of the item. She receives no gift credit for this amount. The second is for $250. She receives legal

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and recognition credit for this amount. Jazzy Jewels receives legal and recognition credit for its $500 gift.

Acceptance Policy Refer to the gift acceptance procedure for real and tangible personal property or gifts-in-kind for guidance on processing the gift to be auctioned. Once the item to be auctioned is received, the item should be held in a secure area until the auction. It only qualifies as a gift to the University if it is sold at auction.

Processing Procedure a. Any school or unit sponsoring an auction must contact University Advancement for

guidance and support in advance of the event. b. Donors making in-kind contributions of items that will be sold at auction may be credited as

making charitable gifts in accordance with IRS regulations depending on the nature of the gift. Refer to the relevant section of these policies for guidance and information.

c. Generally, unless the purchase price exceeds the fair market value of an auction item, no portion of the purchase price is considered a charitable contribution or is deductible.

d. If a purchaser is paying more than fair market value for an auction item, to distinguish the portion of the purchase price that is treated as a gift, a St. Edward’s representative should recommend that the purchaser write a separate contribution check, or make a separate credit card payment, for the amount over and above the fair market value of the item being purchased at auction.

e. No invitations, reply cards, tickets, letters, or other printed or web-based materials issued in relation to an auction shall indicate or imply that the price paid by a donor for goods purchased at the auction are either fully tax deductible or "deductible to the extent provided by law."

f. Upon completion of the auction, the University employee responsible for managing the auction must forward a list with the following information to University Advancement: • description of item purchased • the fair market value of the item purchased • the price paid for the items • the name and contact information of the purchaser • the cost center for non-contribution deposits • all payments received (checks, credit card statements, cash)

g. All items which are sold in an auction with a fair market value of more than $500 must be reported by St. Edward’s on IRS Form 8282.

h. University Advancement will deposit the funds and record each transaction in accordance with the information on the list.

i. Any auction item which sells for more than the publicly disclosed fair market value will constitute a charitable gift donation. The donor purchasing the item will receive a receipt for tax reporting purposes detailing the benefit received, i.e., the item purchased.

j. Gifts of tangible personal property to be sold at auction shall be counted at full market value based on either information supplied by the donor or, in the absence of such, by St. Edward’s.

k. Gifts with fair market values exceeding $5,000 shall be counted at values placed on them by a qualified independent appraiser, in accordance with IRS regulations.

Gift Acceptance Considerations • Does the item being donated for auction meet the guidelines of a charitable gift?

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• Is the item being donated a service or partial interest gift? These are not generally tax deductible contributions.

Stewardship Reference gifts of tangible property or gifts-in-kind for guide for items being donated for purposes of auction. See the Gift Acknowledgement and Stewardship section for details. Campaign and Annual Counting Guidelines • Reference gifts of tangible property or gifts-in-kind for guide for items being donated for

purposes of auction. • If the item bought at auction exceeds the fair market value of the item, then that portion

exceeding the fair market value will be counted at face value for internal reporting purposes and to CASE and CAE.

• A person’s or organization’s time or service is not considered a charitable contribution and is not countable, regardless of whether the assistance is as a volunteer or a professional specialized service (accounting, legal work, consulting.)



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ENDOWMENT POLICY Definition An endowment is a principal sum, permanently set aside and invested by a charity, with only the income used for charitable purposes. Investment and Spending Policy St. Edward’s manages the endowment by combining funds in a diversified investment pool wherein individual endowments maintain a unit value based on their relative share of the overall pool. This investment diversification helps minimize risks inherent to investing, such as market fluctuation, which can lower a fund’s market value below the funded principal. The University’s spending policy uses a portion of endowment earnings for scholarships, operating expenses or specific projects. Earnings in excess of the spending policy are reinvested to maintain the overall fund’s purchasing power. This policy ensures that the endowment principal is preserved over the long term and that the value of each endowment rises over time. The investment and spending policies are set by the Fiduciary Committee of the Board of Trustees. Donors may not advise or direct the University’s investment and spending policy. St. Edward’s endowment management is guided by the Uniform Prudent Management of Institutional Funds Act (UPMIFA) drafted by the National Conference of Commissioners on Uniform State laws. Establishment Policy a. A University staff member will make every effort to meet personally with the prospective

donor. b. All agreements entered into with the University must benefit the University and in every

instance must benefit exclusively charitable, religious or educational causes. c. Prospective donors will be urged to seek advice of their own legal and/or tax counsel. The

relevant University Advancement staff member will communicate clearly to the prospective donor that he/she represents St. Edward’s.

d. In working with a prospective donor considering an endowed gift, care will be taken to (1) assure that the person creating the fund fully understands that the fund is irrevocable and understands the process by which payments will be made to programs, scholarships or departments within St. Edward's and (2) inform them that if, in the future, the purpose designated for the spendable income from this endowment no longer exists, then at the direction of the Board of Trustees, the spendable income shall be used to further the objectives and purposes of St. Edward’s, giving due consideration to the donor’s intent

e. If the gift is to establish a new endowed fund, the proposed endowment gift should be at the funding amount required for the establishment of the type of endowed fund as outlined in the Naming Policy.

f. A University Advancement staff member will explain that an endowed fund will not receive its own unit value, accrue earnings, or produce a spending allowance until it is fully funded.

g. An endowment must be fully funded by September 30 of a given year in order to produce a spending allowance for the following fiscal year (e.g., ABC Fund is fully funded on Sept. 1, 2011, so a spending allowance will be available for fiscal year 12-13. DEF Fund is fully funded on Nov. 1, 2011, so spending allowance will be available for fiscal year 13-14). Market conditions may result in funds falling below their original gift amounts or going

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“underwater.” In these cases, an endowment may not produce an allowance for a given year.

h. If the endowment is not fully funded in the period of time stated (typically 5 years) in the Endowment Agreement, the University reserves the right, in consultation with the donor if possible, to extend the payout period or release the funds to be used for the specific purpose of the endowment if possible until funds are depleted, the qausi-endowment or the general endowment. If the funds are released, the University will notify the donor in writing that such action has been taken.

Processing Procedure a. Once establishment criteria is met, an Endowment Agreement will be prepared by a

University Advancement staff member and reviewed by the donor for comments or changes.

b. Once the Endowment Agreement has been finalized, the following steps are as follows: c. A University Advancement staff member will complete an Intent Form. d. The Endowment Agreement will be printed in duplicate on appropriate agreement paper

and signed by the Vice President for Financial Affairs e. Both the Intent Form and the Endowment Agreement will be provided to the donor for

his/her signature. f. Once signed by the donor, on original copy of the Endowment Agreement is given to the

donor and the other original copy Endowment Agreement and the Intent Form are given to the Director of Advancement Services (DAS).

g. The DAS will scan a copy of the Intent Form and Endowment Agreement to the Operations Manager to save in the documents folder in the donor’s database record.

h. The DAS will attach a scanned copy of the Endowment Agreement in the fund document and/or scholarship document folder of the database.

i. The DAS will send a scanned copy to the Business Office for their files. j. The DAS will make a paper copy to be filed in the donor’s hard file. k. The DAS will file the original agreement in the Endowment Binder. l. The processing procedures for the type of gift asset as outlined in this policy will be

followed to complete the transaction.

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RESTRICTIONS ON GIFTS Donors may direct their gifts to be used for specific purposes by the University. However, undue conditions may require that the University decline the gift. Restricted gifts will only be accepted if they support an established university initiative or program for which a gift fund already exists (e.g., golf team, general scholarships, building construction) or if the gift is at a level to fund the initiative or program in its entirety and the University agrees to implement the initiative or program. Donor restrictions will be limited to supporting the program or initiative as operated by the University and will have no authority to make decisions regarding the operation or implementation of the program or initiative or how the gift is invested or directed to support the program or initiative. The University reserves the right to make exceptions to these guidelines if and when it is deemed prudent to do so. Exceptions will require the approval of the Vice President for Advancement and the Vice President for Financial Affairs.

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GIFT ACKNOWLEDGEMENT AND STEWARDSHIP All Outright Gifts

Acknowledgement: Gift receipt meeting IRS substantiation and disclosure requirements Student profile insert Information: University magazine Recognition: Name listed on web

Outright Gifts of $100 - $499 All of the above, plus the following:

Other Stewardship: Electronic Christmas card from The St. Edward’s Fund if email is known.

Outright Gifts of $500 - $999 All of the above, plus the following:

Acknowledgement: A thank you letter from donor’s manager or from The St. Edward’s Fund if the donor is not managed.

Other Stewardship: Christmas card from The St. Edward’s Fund Outright Gifts of $1,000 or more and all gifts from current, former and emeritus trustees All of the above, plus the following:

Acknowledgement: VP for University Advancement acknowledgement letter President acknowledgement letter

Recognition: Name listed on web and in an annual print publication Other Stewardship: Electronically signed Christmas card from the President

Note that gifts of less $1,000 may be acknowledged by the Vice President for University Advancement and the President at their discretion. Payroll Deduction and Credit Card Installment Gifts • Donors who give $250 or more through payroll deduction will receive a letter of receipt

meeting IRS substantiation and disclosure requirements after the completion of a calendar year.

• Donors who give via credit card installments will receive a gift receipt meeting IRS substantiation and disclosure requirements for each installment unless requested otherwise as well as a letter of receipt meeting IRS substantiation and disclosure requirements after the completion of a calendar year.

Split-interest Gifts

Acknowledgement: Gift receipt meeting IRS substantiation and disclosure requirements as determined by the type and method of receipt of the split-interest gift. VP for University Advancement acknowledgement letter

President acknowledgement letter Information: Fall and spring gift planning newsletter/letter Recognition: Name listed on web as a member of the Mary Doyle Heritage

Society Other Stewardship: Membership in the Mary Doyle Heritage Society

Electronically signed Christmas card from the President

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Deferred Gifts Acknowledgement: VP for University Advancement acknowledgement letter

President acknowledgement letter Information: Fall and spring gift planning newsletter/letter Recognition: Name listed on web as a member of the Mary Doyle Heritage

Society Other Stewardship: Membership in the Mary Doyle Heritage Society

Electronically signed Christmas card from the President Pledges

Pledges will be acknowledged on a case by case basis. Other

All Faculty and Staff Campaign donors will receive an acknowledgement from the President for their outright gift or pledge to the campaign.

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NAMING POLICY St. Edward’s welcomes the opportunity to honor those who have rendered extraordinary support to the University. An array of possibilities exists for donors interested in naming opportunities. The financial requirements for naming opportunities differ, and donors are encouraged to discuss their ideas with a gift officer in the Office of University Advancement. The following offers a basic overview and guidelines for various naming opportunities. Principal administrative responsibility for soliciting and arranging naming opportunities resides with the Vice President for University Advancement, with the knowledge and consent of the President. While such funds should adhere to the funding minimums defined in this policy in their preliminary negotiations, there may be circumstances that warrant special consideration and that deviate from these guidelines. In such circumstances when the consideration of other funding arrangements will best serve the wishes of the donor and the needs of the university, the final approval of amounts is subject to the acceptance by the Board of Trustees upon the recommendation of the President of the University.

This policy applies to the naming opportunities available for charitable contributions to the University. For recognition or naming opportunities not driven by a charitable contribution, see the St. Edward’s University Commemorative Plaque and Naming Policy in the Appendices of this policy. NAMED ENDOWED FUNDS Named endowments create a lasting legacy for the donor and provide permanent resources to benefit donor-designated areas of the University. Irrevocable named endowed gifts will not be funded until such time as the university receives the endowment corpus, or annual restricted gifts sufficient to fund the operating costs of the purpose for which the naming option is created until the endowment corpus is reached. Amounts required for annual restricted gifts are listed below each endowed level where applicable. It is possible for donors to establish an endowed naming opportunity with an irrevocable estate provision if it is in conjunction with current outright annual gifts.

There is no minimum limit for donating gifts to already existing endowments. The following schedule lists the current minimum requirements for establishing new endowments. Minimum gift values may be changed at any time at the sole discretion of the University. Pending agreements may be subject to the new funding levels.

COLLEGE OR SCHOOL Associating an individual, corporation or foundation name with a college or school indicates great commitment on the part of the donor, acknowledging the highest level or partnership between the university and donor. These transformational gifts typically begin at $5,000,000 or more. The appropriate level for each college or school is negotiated based on the cumulative operating budget of the college or school.

CENTERS OF EXCELLENCE In general, a donor may establish a named center of excellence with an outright gift or irrevocable gift whose net present value equals or exceeds $3,000,000 or at least ¾ of the anticipated cost of operating the Center, whichever is higher. In addition to a fully endowed chair, the funds generated by the endowment will provide resources for

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student scholarships within the discipline, an annual symposium, research, library resources and equipment. Named endowed lectureships, faculty development funds, scholarships and lecture series may be named by additional donors within each Center.

Minimum Endowment Gift: $3,000,000 Minimum Annual Gift: $150,000

FACULTY CHAIR

A donor may establish a fully endowed chair with an outright or irrevocable gift whose net present value equals or exceeds $1,000,000. In addition to the salary provided for the incumbents, these funds provide additional support for the following (non-inclusive): • Teaching and research • Equipment, laboratory resources and computer resources • Library resources • Research assistants’ stipends • Conference attendance and travel • Course development • Relocation expenses • Publishing, patent application or artistic creation

Minimum Endowment Gift: $1,000,000 Minimum Annual Gift: $50,000 FACULTY PROFESSORSHIP

With a gift of $500,000 a donor may endow and name a distinguished professorship. These funds may provide a supplement to the available salary for an existing faculty member, or provide honoraria and expenses for visiting faculty lectures or extended residences of up to one academic year.

Minimum Endowment Gift: $500,000 Minimum Annual Gift: $25,000

FACULTY DEVELOPMENT FUND

Income is used to support the work of faculty members as they develop courses, strengthen teaching, and engage in other professional activities.


LECTURESHIP OR LECTURE SERIES

With a gift of $200,000 a donor may endow and name a visiting lecture fund to bring distinguished speakers to campus.


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SCHOLARSHIP These annual awards to a student are generally based on a combination of financial need and academic performance. A donor may state preferences for criteria under university guidelines, but may not select specific scholarship recipients.


PROGRAM

A variety of existing programs within each school may be named endowed. A donor may also give to currently established endowments that provide funds to the school and university. If the endowment is to establish a new program, the minimum amount would be determined by the estimated annual operating costs of that program.

Minimum Endowment Gift: determined by the estimated annual operating costs Minimum Annual Gift: determined by the estimated annual operating costs

Named Annual Scholarship and Program Funds Named annual scholarship funds provide support for the academic year following the fiscal year in which the gift is received. The full amount contributed is channeled to the designated scholarship for distribution in the upcoming academic year. A pledge commitment of four years is recommended to establish a named annual scholarship fund. Named annual program funds provide support during the year in which the gift is received. The full amount contributed is channeled to its designation within the same fiscal year, providing immediate impact. A pledge commitment of four years is recommended to establish a named annual program fund. SCHOLARSHIPS

To name and restrict an annual scholarship in support of traditional undergraduates, the commitment needs to be at least $5,000 per year for four years ($20,000 total commitment). A commitment of $5,000 for one year may be considered.

To name and restrict an annual scholarship to other programs such as MAC, MAHS, MLA, etc., the $5,000 per year guideline for four years is the preferred choice, but the amount can be based on the value of the program it is sponsoring. For example, if an annual MAC fellowship is $1,800, the annual commitment can be $1,800 for four years ($7,200 total commitment).

The selection process must be coordinated through the Office of Student Financial Services. A donor may state preferences for criteria under university guidelines, but may not select specific scholarship recipients.

A scholarship agreement must be drafted and signed. The agreement must be reviewed by the director of advancement services who will notify the Office of Student Financial Services. Minimum gift values may be changed at any time at the sole discretion of the University. Pending agreements may be subject to the new funding levels.

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PROGRAM FUNDS

The naming of annual program funds will be considered and the gift level determined on a case by case situation.

Named Buildings and Physical Spaces

BUILDINGS In general, buildings will be named for an individual who provides the University at least 50% of the value of construction costs of the building. This will require an irrevocable agreement with the University assuring that the funds will be received in a reasonable period of time relative to the construction of the building. Minimum gift values may be changed at any time at the sole discretion of the University. Pending agreements may be subject to the new funding levels.

PHYSICAL SPACES

In establishing naming opportunities for space within buildings or centers or other physical spaces on campus (e.g., athletic fields, quads) discretion will apply within each component of the University recognizing that care should be given in establishing equity with similar projects in other parts of the University. Principal administrative responsibility for soliciting and arranging naming opportunities resides with the Vice President for University Advancement, with the knowledge and consent of the President.

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GIFT REFUNDING POLICY In the unlikely event that St. Edward’s may deem it necessary to refund a gift, either because it is in the best interest of the University to do so or because conditions agreed to in accepting the gift cannot or will not be met, a request for refund must be sent to University Advancement. The request will be reviewed by the Vice President for University Advancement and the Vice President for Financial Affairs. They may make the decision or refer the request to a committee of the board of trustees. All refunds are at the sole discretion of the University. If a refund is granted, the gift will be voided out of the donor’s advancement database record. The necessary paperwork will be prepared by Advancement Services and submitted to the Business Office to process the refund. If the donor has filed a tax return claiming a charitable deduction for the gift, the will need to contact their tax advisor to determine if they need to amend their tax return.

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AMENDMENTS TO POLICY Unless specifically stated within this policy, exceptions to policy will require approval by the Board of Trustees. The policy and procedures will be subject to review and change periodically and may be amended by a recommendation of the Development Committee, in concurrence with other board committees when necessary, to the full Board.

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APPENDIX

DONOR BILL OF RIGHTS

In a culture of philanthropic gratitude and mutual respect, we pledge to meet donor expectations and provide a positive giving experience through adherence to the Donor Bill of Rights. Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not for profit organizations and causes they are asked to support, we declare that all donors have these rights:

1. To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.

2. To be informed of the identity of those serving on the organization’s governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.

3. To have access to the organization’s most recent financial statements. 4. To be assured their gifts will be used for the purposes for which they were given. 5. To receive appropriate acknowledgement and recognition. 6. To be assured that information about their donations is handled with respect and with

confidentiality to the extent provided by law. 7. To expect that all relationships with individuals representing organizations of interest to

the donor will be professional in nature. 8. To be informed whether those seeking donations are volunteers, employees of the

organization or hired solicitors. 9. To have the opportunity for their names to be deleted from mailing lists that an

organization may intend to share. 10. To feel free to ask questions when making a donation and to receive prompt, truthful

and forthright answers.

Developed by American Association of Fund Raising Counsel (AAFRC); Association for Healthcare Philanthropy (AHP); Council for Advancement and Support of Education (CASE); and Association of Fundraising Professionals (AFP).

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CLUB, ORGANIZATION, DEPARTMENT OR TEAM FUNDRAISING POLICY AND GUIDELINES

St. Edward’s University depends upon the ongoing and generous financial support it receives each year from alumni, friends of the University, local businesses, foundations, and other donors. These gifts provide financial aid for our students, salaries for faculty and staff, and other crucial operation expenses.

To ensure that this support continues and grows, it is essential the University be aware of all fundraising appeals that are in any way connected to St. Edward’s – whether you may be fundraising for the University directly or fundraising through a student club or organization. This communication is essential to ensure that contact with various audiences does not inadvertently jeopardize our relationships with our important supporters. Students, faculty, staff, or University-affiliated organizations all play an important role in these relationships, and we ask that you work with others at the University to maximize the results for all of us.

The purpose of this policy is to coordinate all fundraising efforts and to ensure that communications from St. Edward’s with donors are consistent with our overall needs and priorities. All fundraising efforts must complement, and not compete with, the University's overall efforts to secure support for our annual operating needs and gifts to build the University's endowment and facilities.

Fundraising Policy and Guidelines

The Office of University Advancement is responsible for coordinating the cultivation, solicitation and stewardship of donors and, therefore, oversees all fundraising appeals to any University constituents: alumni, students, parents, faculty, staff, friends, local businesses, foundations, and corporations. Two fundamental principles guide Advancement efforts:

1. that the University's overall interests take precedence over the special interests of individual departments, organizations, teams, clubs, or other groups; and

2. that all fundraising on behalf of the University must be in compliance with Sec. 501(c)(3) of the Internal Revenue Code, which governs non-profit tax-exempt organizations.

The University recognizes that individual clubs, organizations, departments, or teams have a need for occasional fundraising activities for the group's benefit or for the benefit of designated charities; however, multiple and overlapping solicitations to the same constituents may have unintended negative consequences. All such efforts shall be coordinated through University Advancement.

Thank you for reading and abiding by this policy.

I. Submission of Fundraising Proposals by Campus Groups Any club, organization, department or team that plans to solicit among the University's constituents, whether for a gift for the University or for some other purpose, must, no later than two weeks before the solicitation is planned, submit the Club, Organization, Department or Team Fundraising Planning Form to the Office of University Advancement. Send the completed form to Michael Murphy, Director of Development, at CM 1028. Call him at ext. 1404 if you have any questions.

The form includes:

mailto:[email protected]

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1. The purpose of the solicitation. 2. The names of those who will be solicited by the group. 3. Information about how the group will make contact (e.g., direct mail, telephone calls,

personal visits, email, campus events, etc.) 4. The proposed timing for the solicitation. If the timing of the solicitation changes, the

planning form must be re-submitted for approval. 5. The dollar goal for the solicitation of the nature of the assistance desired (e.g., gift

certificates, door prizes, tickets, etc.) 6. If not receipted by the University, a sample of what the donor will receive from the club

or organization as a receipt.

If it is deemed that the fundraising activity is not to be receipted by the University, student clubs and organizations are fundraising for that organization and not for the University; therefore, the gifts will not be processed or receipted by the University and do not qualify under the University’s 501(c)(3) status. All correspondence with the potential donors must make it clear that it is a donation to the club or organization and not the University.

Student organizations may solicit St. Edward's University constituents (i.e. parents, alumni, corporate donors)with ties to the group/organization, provided the ask for funding is coordinated and approved through the Offices of Student Life and University Advancement.

Any non-solicited gift received by a club, organization, department or team must be sent to University Advancement to determine the appropriate processing procedure. The gift should be sent to the Director of Advancement Services, at CM 1028 and be accompanied by the Gift Information Form.

All clubs, organizations, departments, and teams must follow the procedures and timing listed above. University Advancement will approve the solicitation proposal as submitted or may deny permission to proceed at that time. If the request is denied, University Advancement will provide an explanation for why the request was turned down. Every effort will be made to respond promptly to inquiries, recognizing that there are times when University Advancement may need to obtain approval from other campus representatives.

II. Education and Campus Outreach University Advancement staff will communicate during each academic year with the heads and advisors of clubs, organizations, departments, and teams to review this fundraising policy and remind potential applicants of the deadlines and level of support that University Advancement can provide.

III. Exclusions from Policy Please note this policy does not prohibit or limit in any way fundraising efforts by clubs, organizations, departments, or teams that take the form of advertising in publications or programs; car washes; sales of baked goods, calendars, trinkets, t-shirts; ticketed performances; personal chore services, etc., in which the buyer of such goods or services receives a tangible benefit as a result of the transaction.

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CLUB, ORGANIZATION, DEPARTMENT AND TEAM FUNDRAISING PLANNING FORM

Required for all club, organization, team and department fundraising and philanthropy. Turn this form in as soon as you make a plan to raise money, and at least two weeks prior to the start of your campaign. Fundraising includes solicitations for cash gifts, sponsorships, gifts of prizes, gift certificates, merchandise and services. Before you fill out this form, you should read the Club, Organization, Department or Team Fundraising Policy and Guidelines.

Organization(s): ___________________________Campaign/Event Title: ____________________

Organization Representative(s): ____________________________________________________

Fundraising Start Date: ___________________ Fundraising End Date: _____________________

Submission Date:_________________________

Gifts to Benefit: __________________________________________________________________

How will you raise gifts? ___________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

What is your dollar goal? __________________________________________________________

Or, are you seeking gift certificates or merchandise? How much? __________________________

______________________________________________________________________________

Please attach the list of businesses you plan to solicit. If gifts do not qualify to be receipted by University Advancement, please attach a copy of the receipt you will provide to the donors. Submit this form to the Office of University Advancement, Attn: Director of Advancement Services, CM 1028. Within two weeks, your organization’s representatives will receive either an approval of your plan or a request to meet with the Office of University Advancement.

____ Approved

____ Requires Meeting w/ University Advancement

____Denied Reason:____________________________________________________________

Date:_________

Approved by:____________________________

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COMMEMORATIVE PLAQUE AND NAMING POLICY Individuals or groups wishing to place a plaque or recognition signage on University property or name a facility or space in honor or memory of any person(s) or group(s) and the plaque/sign or naming is not part of a charitable gift naming opportunity, the following policy must be followed:

• The request must be submitting in writing to the Executive Vice President or a Vice President of the University. The request must include the name(s) of those to be honored or memorialized, the reason for wanting it to be placed/named on campus and the preferred location of the plaque or space.

• The request will be submitted to the President’s Office by the Executive Vice President or Vice President for review at an upcoming Administrative Staff Meeting.

• Administrative Staff will determine if the plaque/naming should be placed on University property and approve the location.

• If approved, the cost of the plaque or signage is to be covered by the individual or group requesting the plaque or naming recognition. The University will determine through its servicescape policies the design and style of the plaque or sign based on the location in which it will be placed.

The review and approval process may take up to eight weeks. The production schedule for the plaque or sign depends on the project.

In rare and special circumstances the Administration may request that the Board consider a naming opportunity for religious or lay faculty or administrators who have performed extraordinary service to further the mission and goals of the university.

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Environmental Assessment Policies The following policies apply to all gifts and proposed gifts relating to or subject to real property or mineral interests. No real property or mineral interests may be accepted for ownership or control until compliance with the following policies and the procedures have been achieved. a. The policy of the University is to minimize and, when possible, avoid environmental liability

arising from the ownership or control of real property, mineral interests, or other real property or mineral interests (hereinafter referred to collectively as “real property”) by taking actions that are reasonably appropriate to determine the extent of any environmental contamination before accepting ownership or control of the real property. At a minimum, a Phase One environmental study will be done on any gift of real property to St. Edward’s. Residential real estate is the only possible exclusion.

b. Gifts of real property are generally acceptable only after a determination that no reasonable possibility exists that any environmentally-related liability to the University could arise out of, or from, any activity or condition on, in, under, or of the real property. The actions to be taken in making this determination include inspections and environmental assessments, as appropriate, of the real property. The inspections and environmental assessments will be tailored to meet the specific characteristics of the real property.

c. Notwithstanding the provisions of Paragraph (b) immediately above, a gift of real property may be accepted even if a reasonable possibility exists that environmentally-related liability to the University could arise out of, or from, any activity or condition on, in, under, or of the real property if the Vice President for Financial Affairs for the University determines that the exposure can clearly be contained and the cost of remediation is reasonable.

d. Even if a proposed gift of real property satisfies the University environmental assessment policies and procedures, the Vice President for Financial Affairs for the University has final authority whether to accept or reject a proposed gift of real property. No real property may be accepted for ownership or control until the acceptance is agreed to and approved by the Vice President for Financial Affairs for the University.

Procedures

The following procedures have been developed to assist staff members of St. Edward’s in assessing the potential environmental liabilities of real property being offered to the University in order to recommend to the Vice President for Financial Affairs of the University whether to accept or reject the proposed gift of real property, and to minimize and, when possible, avoid liabilities on real property owned by, or under the control of, the University:

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a. An initial personal inspection of the real property shall be made by the Vice President for Financial Affairs or the Director of Physical Plant. This inspection shall include both a physical inspection and an investigation of the ownership history and past and present uses of the property. A staff member must complete an Inspection Checklist on each proposed new asset (sample attached). Persons who provide information for the Inspection Checklist are not considered and are not intended to be environmental experts. Instead, they are fact finders and the information is intended to enable St. Edward’s to make more informed decisions.

b. When a contemplated transaction involves a transfer of real property to the University, the donor must complete an Environmental Questionnaire. (samples attached)

c. The Inspection Checklist and Environmental Questionnaire will not be all inclusive of every circumstance that may arise. Staff members should identify any situation that would appear to fall outside the scope of the checklist and questionnaire.

d. The staff member dealing with the donor or the donor’s representative(s) will be responsible for ensuring that the Inspection Checklist and Environmental Questionnaire are completed timely.

e. The Vice President for Financial Affairs for the University should evaluate the completed Inspection Checklist and Environmental Questionnaire.

f. While the known presence of hazardous materials or other substances on the real property may, alone, determine that St. Edward’s will not accept a property, the apparent absence of hazardous materials or other substances will not, alone, be sufficient reason for accepting the real property.

g. If, after inspection of the real property, the staff member determines that the real property is contaminated by hazardous materials or other substances, or there is a substantial likelihood that the real property is contaminated by hazardous materials or other substances, the real property generally should not be accepted unless no reasonable possibility exists that any environmentally-related liability to St. Edward’s could arise out of, or from, the actual or potential contamination. Notwithstanding the foregoing, a gift of real property may be accepted even if a reasonable possibility exists that environmentally-related liability to the University could arise out of, or from, any activity or condition on, in, under, or of the real property if the Vice President for Financial Affairs for the University determine that the exposure can clearly be contained and the cost of remediation is reasonable.

h. After completion of the Inspection Checklist and Environmental Questionnaire, but before St. Edward’s may take ownership or control of any real property, an inspection and assessment of the real property, including all appropriate inquiry into the previous ownership and uses of the real property consistent with good commercial or customary practice, must be made by a licensed, independent environmental professional. The inspection and assessment must, at a minimum, meet the American Society for Testing and Materials’ (“ASTM”) standards for such assessments. The expense of the inspection and assessment by the environmental professional must be borne by the donor unless an exception is approved by the Vice President for Financial Affairs for the University for amounts less than $100,000 and duly with the Fiduciary Committee of the Board of Trustees for amounts in excess of $100,000. After review of the Inspection Checklist, Environmental Questionnaire, and the inspection and assessment conducted by the environmental professional, the Vice President for Financial Affairs for of the University will determine whether to order additional inspections, assessments, subsurface investigations and/or analytical tests by licensed, independent environmental professionals.

i. Based on available information, including the questionnaires, inspections, assessments, subsurface investigations and/or analytical tests, the Vice President for Financial Affairs for the University shall decide whether or not to order a title review for the real property. Before St. Edward’s may accept ownership or control of any real property, however, an

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appropriate title review for the real property shall be conducted. Any title review conducted shall include an evaluation of whether any environmental liens exist on the real property.

j. Insurance policies pertaining to the real property shall be obtained and reviewed by the Vice President for Financial Affairs for the University.

k. Copies of all information, including questionnaires, inspections, assessments, subsurface investigations and/or analytical tests, concerning real property not accepted will be retained by St. Edward’s for four (4) years.

l. Copies of all information, including questionnaires, inspections, assessments, subsurface investigations and/or analytical tests, concerning real property accepted by St. Edward’s will become part of the permanent record of the gift and will be filed with the legal documents of the University.

m. University will prepare or authorize the preparation of an appropriate environmental Inspection Checklist and Environmental Questionnaire to be used in the performance of these Environmental Assessment Procedures. The Vice President for Financial Affairs for the University shall approve the Inspection Checklist and Environmental Questionnaire before use.

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FORMS Gift Transmittal Form Currency Acceptance Form Intent Form – Outright Gifts Intent Form – Split-interest Gifts Intent Form – Deferred Gifts Mary Doyle Heritage Society Endowment Agreement Template Endowed Scholarship Agreement Template Annual Scholarship Agreement Template Donor Letter of Transfer

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GIFT TRANSMITTAL FORM

1. DONOR Name: ________________________________________________________________

Title of position (if appropriate): ____________________________________________

Organization or company (if any): __________________________________________

Address (number and street): ______________________________________________

City, State, Zip: __________________________________

Phone:_______________________

2. CLASSIFICATION OF DONOR (check one)

� Alumnus � Corporation � Foundation � Friend � Parent � Other (please explain): _________________________________

3. GIFT (attach any correspondence received from donor) Date Received: ________________________ Amount: _________________________

a) Type of gift (check one) � Cash � Check � Pledge � Letter of intent � Securities � Gift-in-kind* (describe): __________________________________________________

4. PURPOSE OF GIFT

� Unrestricted by donor � Restricted by donor (specify): ____________________________________________

______________________________________________________________________

5. GIFT RECEIVED BY:

Your name: ____________________________________________________________

Signature: _____________________________________________________________

School or Department: ________________________________ Extension: __________

*If valued under $5,000, please attach information stating donor’s reported value or information stating a qualified staff or faculty member’s reported value for the item(s).

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CURRENCY ACCEPTANCE FORM

I, ______________________, a University Advancement staff member, received (print name)

$_______________ in the form of ______________from _____________________________. (check, cash, stock) (print name)

If receiving checks, please list names and amounts on each check.

____________________________________________________

____________________________________________________

____________________________________________________

____________________________________________________

Signature of Deliverer: ___________________________

Signature of Recipient: __________________________

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DONOR LETTER OF TRANSFER

St. Edward’s University provides this form letter to assist the donor in instructing his/her broker to transfer securities as a donation to the University. To assure that the donor receives proper credit for his/her gift, please provide Cheri Sullivan, Director of Advancement Services, with a copy of this letter by mail or fax, including the name and telephone number of the donor’s broker.

Mail copy to: Cheri Sullivan Fax copy to: Cheri Sullivan St. Edward’s University (512) 416-5845 University Advancement Telephone (512) 448-8430 3001 S. Congress Ave. Austin, TX 78704

Date: _____________________

To: _________________________________________________________________________________ Contact Name

__________________________________________________________________________ Brokerage House __________________________________________________________________________ Broker Telephone Number Broker Fax Number __________________________________________________________________________ Address __________________________________________________________________________ City State Zip Re: Account Number: __________________________________________________________ Securities: ________________________________________________________________ Number of Shares: _____________________ Estimated value at $_______________

Please accept this letter as your authorization to deliver the securities from my account, referenced above, to the account of St. Edward’s University, per the following instructions:

Company Name: State Street Corporation DTC#: 0997 Account Name: Saint Edward’s University, Inc. Account No.: STUG Tax ID No.: 74-1109641 This gift is designated to ___________________________________________________________________ _______________________________________________________________________________________ Grantor Signature(s) _______________________________________________________________________________________ Address Telephone Number _______________________________________________________________________________________ City State Zip

INTENT FORM – OUTRIGHT GIFT

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I/We, {Donor Name(s)}, have the desire to support the distinctive higher education at St. Edward’s University and thereby extend its promise for generations to come. To assist the university with resource allocation planning, I/we pledge $____________to St. Edward’s University in support of: {Enter what they are supporting} I/We signify the desire to fulfill the intentions stated above according to the following schedule, but state that these intentions are contingent on the continued ability to fulfill them.

Pledge Fulfillment Schedule Gift Amount Gift Date Would you like to receive a reminder for your pledge?* Yes or No If gift is other than cash, please specify type: Please note that a pledge can be made only by the individual exercising legal control over the assets to be given. Therefore, if the above commitment includes anticipated matching contributions from an employer or some other source or from a donor-advised fund or foundation, please indicate below.

I/we intend to recommend _____________________________ consider an annual gift to St. Edward’s (donor-advised fund or foundation) of $_____________ each year for ____ years.

I/we anticipate our above intention to be matched with a gift of $____________ from my company or my spouse’s company.

_______ Matching Gift Company Spouse Matching Gift Company Please send acknowledgement of this gift to the following: ____________________________________________________________________________ Name(s) (please print) ____________________________________________________________________________ Street City State Zip Code

Donor Date *Reminders will be sent if payment is not received by fulfillment schedule date indicated.

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INTENT FORM – SPLIT-INTEREST GIFTS

I/We, {Donor Name(s)}, have the desire to support the distinctive higher education at St. Edward’s University and thereby extend its promise for generations to come. To assist the university with resource allocation planning, I/we commit $____________to St. Edward’s University through the following type of split-interest agreement:

_____Charitable Gift Annuity

_____Charitable Remainder Trust

_____Charitable Lead Trust

_____Other

When St. Edward’s receives the remainder interest from this agreement, we would like it to support the following:

{Enter what they are supporting}

I/We signify the desire to fulfill the intentions stated above, but state that these intentions are contingent upon the completion and execution of the appropriate gift agreement with St. Edward’s.

Please acknowledge and credit this gift in the following way:

Name (please print):

Street:

City, State, Zip Code:

Donor Date

Donor Date

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INTENT FORM – DEFERRED GIFT

I/We, {Donor Name(s)}, desiring to support the distinctive higher education at St. Edward’s University thereby extending its promise for generations to come, make the following intention to St. Edward’s University in order to assist the University with the resource allocation planning. I/We have made a gift intention through my/our estate plan to benefit the University, in an amount of $___________________________. This gift will be made by: _____Bequest Expectancy _____Life Insurance Beneficiary Designation _____Retirement Plan/IRA Beneficiary Designation

_____Retained Life Estate Agreement _____Payable-On-Death/Transfer-On-Death Beneficiary Designation

_____Other It is my/our intent to make a good faith effort to fulfill the intentions stated above, but these intentions are contingent on my/our continued ability to fulfill them. Should I/we at any time in the future, elect to either increase or decrease the amount of this gift, I/we will notify you so that you may continue to be informed concerning my/our intentions. Please acknowledge and credit this gift in the following way: Name (please print): Street: City, State, Zip Code: Donor Date Donor Date

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SPLIT-INTEREST GIFT INFORMATION FORM

DONOR(s): ____________________________________ _____________________________________ (LAST NAME, First) (LAST NAME, First) DONOR’S ADDRESS: ____________________________________________________________________ (Street, City, State, Zip) BIRTH DATE(s): ____________________ ________________________ SOCIAL SECURITY #(s): ___________________________ ___________________________ HOME PHONE: (_____) __________________ BUSINESS PHONE: (_____)__________________ TYPE OF GIFT: Gift Annuity Deferred Gift Annuity CRAT CRUT, Type _____________ Lead Trust

Is donor the life income recipient? Y N FREQUENCY OF PAYMENTS: M Q S A EOP OR BOP PAYOUT RATE: _____ 1ST PYMT DATE: _________ 1ST PRO-RATA PYMT: ________ REGULAR PYMT AMT: __________ PAY TO: _________________________________________________________ TRUSTEE: _______________________________________________________ FUNDED BY: Cash IRA Life Insurance Stock Real Estate (Long Term Capital Gain Property?) REMAINDER BENEFICIARIES: _______________________________________________________ ______________________________________________________________________________________

IS DONOR ANONYMOUS? Y N WILL DONOR ALLOW ST. EDWARD’S TO SHARE STORY OF GIFT WITH OTHERS? Y N

RESTRICTED FUND ______ EQUITY FUND _____ FIXED INCOME FUND ______ OTHER ______ (INVESTED IN RESTRICTED FUND, UNLESS OTHERWISE SPECIFIED) STATEMENTS: (Trust or Unitrust ONLY. NONE for Gift Annuities) FREQUENCY: M Q S A ___________________________________________________________________________________________

(Name, Street or P. O. Box, City, State, Zip) PAYMENTS: ____________________________________________________________________________________________

(Name, Street or P. O. Box, City, State, Zip) 1099 –R or K-1’s’s: ____________________________________________________________________________________________

(Name, Street or P. O. Box, City, State, Zip)

Community Property Separate Property

Tax Bracket: 15%, 28%, 33%, 36%, 39.6% Circle One

Do You Itemize on your Tax Return? Y N

ADDRESSES FOR FUND SET UP :

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THE MARY DOYLE HERITAGE SOCIETY

Designed to honor and thank those with the foresight, wisdom and generosity to plan a gift that will ensure the continued excellence of St. Edward’s University.

Welcome to the Mary Doyle Heritage Society. Please take a moment to complete this membership form and return it to St. Edward’s in the enclosed envelope.

1. Please indicate the type of gift you have planned (check all that apply). I have: Included St. Edward’s University in a will or living trust. Established a gift annuity that names St. Edward’s University as charitable beneficiary. Named St. Edward’s University as □owner □beneficiary of a life insurance policy. Named St. Edward’s University as beneficiary of retirement plan assets. Made other estate provisions for St. Edward’s University. Please describe below:

_____________________________________________________________________________

2. Please briefly describe how you would like St. Edward’s University to use your gift when the proceeds are received.

_________________________________________________________________________________

3. Please list the approximate amount of your gift to St. Edward’s University: __________________

4. Provide your name and your spouse’s name, if this is a joint gift.

___________________________________________________________________________________ Name(s)

___________________________________________________________________________________ Address

___________________________________________________________________________________ City, State, Zip

_________________________ ___________________________________________________ Phone E-mail

5. May St. Edward’s publish your name(s) in the Mary Doyle Heritage Society Honor Roll (no details of your gift will be disclosed)?

I/We would be pleased to be included in the Mary Doyle Heritage Society Honor Roll. The name(s) should appear as follows:

______________________________________________________________.

I/We prefer not to be listed.

____________________________________________ ___________________________________ Signature Date

mailto:[email protected]

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ENDOWMENT AGREEMENT TEMPLATE

The {Named} Endowment

The {Named} Endowment is being established through the commitment and generosity of {Donor Name}. {Information about donor, organization or memorial information and why they are establishing the scholarship can be included here.} {Do NOT put payout information here. Outline that on the gift intent form.} {The below paragraph must be included in all agreements.} The gifts in payment of this commitment as outlined in the gift intent agreement may, for investment purposes, be merged with the general investment assets of the University, but the gift shall be entered in the University’s books and records as The {Named} Endowment. The fund shall be subject to general guidelines and policies adopted by the Board of Trustees of St. Edward’s University for the management of endowed funds. Stability of endowment support and preservation of purchasing power against inflationary pressures shall be achieved by limiting spendable income to a specified percentage of the annually-determined market value of the fund. As authorized by the Board of Trustees, the University’s financial officers monitor and administer annual endowment spending. Any investment returns in excess of the designated spending rate are reinvested in the principal of the fund. If, in the future, the purpose designated for the spendable income from this endowment no longer exists, then at the direction of the Board of Trustees, the spendable income shall be used to further the objectives and purposes of St. Edward’s University, giving due consideration to the Donor’s(s’) intent. The {Named} Endowment will provide financial support for {specific details about what the endowment supports}. The {SEU position responsible for the spending allowance} or his or her appointee shall determine spending of the annual endowment. {You may add in any other details about who is responsible for allocating the income.} APPROVED: ___________________________________ ____________________________________ {Donor Name} Date Rhonda Cartwright Date Vice President for Financial Affairs

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ENDOWED SCHOLARSHIP AGREEMENT TEMPLATE

The {Named} Endowed Scholarship

The {Named} Endowed Scholarship is being established through the commitment and generosity of {Donor’s Name}. {Information about donor, organization or memorial information and why they are establishing the scholarship can be included here.} {Do NOT put payout information here. Outline that on the gift intent form.} {The below two paragraphs must be included in all agreements.} The gifts1 in payment of this commitment as outlined in the gift intent agreement may, for investment purposes, be merged with the general investment assets of the University, but the gift shall be entered in the University’s books and records as The {Named} Endowed Scholarship. The fund shall be subject to general guidelines and policies adopted by the Board of Trustees of St. Edward’s University for the management of endowed funds. Stability of endowment support and preservation of purchasing power against inflationary pressures shall be achieved by limiting spendable income to a specified percentage of the annually-determined market value of the fund. As authorized by the Board of Trustees, the University’s financial officers monitor and administer annual endowment spending. Any investment returns in excess of the designated spending rate are reinvested in the principal of the fund. If, in the future, the purpose designated for the spendable income from this endowed scholarship no longer exists, then at the direction of the Board of Trustees, the spendable income shall be used to further the objectives and purposes of St. Edward’s University, giving due consideration to the Donor’s(s’) intent. The {Named} Endowed Scholarship will provide financial support to students who meet the following criteria2:

1. 2. 3.

Recipients of this scholarship shall be selected by a scholarship committee or procedure determined by the Associate Vice President of the Office of Student Financial Services or his or her appointee. In the absence of a candidate who fulfills all of the criteria stated above, the Office of Student Financial Services is directed to award the scholarship to a worthy candidate who most closely fits the criteria. The Office of Student Financial Services is responsible for ensuring compliance with regulations concerning federal, state, and other aid in accordance with University policy regarding academic scholarships under University control. APPROVED: _________________________________________ _________________________________________ {Donor Name} Date Rhonda Cartwright. Date Vice President for Financial Affairs

1In an effort to contain endowment management costs and to maintain a meaningful level of funding, the University requires that scholarship endowments be created with a gift of at least $100,000. This minimum can be fulfilled over a stated period of time. In the event that the minimum level of commitment cannot be reached by the stated time, the University reserves the right, in consultation with the donor if possible, to extend the payout period or release the funds for the specific purpose of the endowment if possible until funds are depleted, or to the qausi-endowment or the general endowment.

2Donors may indicate criteria for student recipients but may not select specific students to receive the scholarship.

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ANNUAL SCHOLARSHIP AGREEMENT TEMPLATE

The {Named} Scholarship

The {Named} Scholarship is being established through the commitment and generosity of {Donor Name(s)}. This scholarship honors {insert whatever memorial or other information explaining why the scholarship is being established.} The gifts in payment of this commitment as outlined in the gift intent agreement shall be entered in the University’s books and records as The {Named} Scholarship. The scholarship will be awarded annually beginning {state in what fiscal year the scholarship is to begin being distributed} in accordance with university policy for as long as funds are contributed. The {Named} Scholarship will provide financial support to students who meet the following criteria1:

• • • •

Recipients of this scholarship shall be selected by a scholarship committee or procedure determined by the Associate Vice President of the Office of Student Financial Services or his or her appointee. In the absence of a candidate who fulfills all of the criteria stated above, the Office of Student Financial Services is directed to award the scholarship to a worthy candidate who most closely fits the criteria. The Office of Student Financial Services is responsible for ensuring compliance with regulations concerning federal, state, and other aid in accordance with University policy regarding academic scholarships under University control. APPROVED: _______________________________________ _______________________________________ Donor Date Michael F. Larkin Date Vice President for University Advancement

1Donors may indicate criteria for student recipients but may not select specific students to receive the scholarship.

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LIFE ESTATE AGREEMENT

This agreement is made on this {________} day of {____________}, 20{__} by and between St. Edward’s University, Inc. (the “University”), a private university in Austin, Texas and {Donor Name} of {City and State donor resides} (the “Donor”). This agreement is governed by the laws of the state of Texas.

The Donor has executed a deed giving to the University a remainder interest in Property located at {address or specific location of property} (the “Property”), reserving a life estate for himself/herself.

The Donor and the University hereto desire to enter into an agreement establishing certain rights and responsibilities of each with respect to the Property.

1. The Donor shall have the sole and exclusive right to occupy the Property during his/her lifetime.

2. During the Retained Life Estate term, the Donor shall be solely responsible for:

a. maintaining the Property (reasonable use, wear and tear excepted); b. paying real estate taxes, and if the expiration of the Donor’s Retained Life Estate is on a date

other than the last day of any tax fiscal year, the taxes for such year shall be apportioned between the Donor and the University;

c. paying water and sewer charges, utilities and all other assessments assessed against the Property;

d. insuring the Property against fire, vandalism and other hazards [in accordance with terms to be determined and agreed upon]. The Donor shall provide the University with an annual certification that the insurance described above is in effect and that the premiums have been paid.

e. The Donor shall not, without the consent of the University, suffer any lien or mortgage and shall not, without the consent of the University, permit the amount of any mortgage now existing to increase.

3. In the event of any damage to the Property (other than ordinary wear and tear), the Donor at his/her sole expense, shall promptly repair such damage at his/her expense, unless the Donor and University agree that it is impractical to do so, in which case, any insurance proceeds resulting from such damage shall be divided between the Donor and the University in accordance with the value of their respective interests as of the date such damage occurred.

4. The Donor agrees to indemnify and hold the University harmless from all loss, costs, damages, claims and liabilities that are caused by any act or omission of the Donor (including, without limitation, any such loss, costs, damages, claims or liabilities that arise out of the presence or release on the Property of hazardous or toxic materials in violation of applicable local, state or federal law) to the extent that such claims arise during the Retained Life Estate Term, except to the extent caused by any act or omission of the University or any of its agents, employees or contractors.

5. If the property should be vacated, the Donor consents to having the property leased out on a year to year basis. This does not apply to vacation homes.

6. The University shall have the right to:

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a. enter the Property from time to time to inspect the Property. The right to inspect the Property shall not be exercised unreasonably. The University shall give at least twenty-four (24) hours prior notice of any proposed inspection, except in the case of emergency, where prior notice (which may be no notice) that is appropriate in the circumstances shall be given;

b. make any reasonable repairs that are reasonably necessary to protect its interest in the Property in the event that the Donor has not made such repairs within a reasonable time after notice from the University to the Donor of the need for same. In such case, the University shall have the right to seek reimbursement of the expense for such repairs to the extent that the repairs are the responsibility of the Donor under this Agreement.

7. The Donor shall have the right, at any time and from time to time, at his/her sole cost and expense and without the need for consent or approval from the University, to make cosmetic improvements and alterations to the Property, provided that such improvements, in the reasonable judgment of the Donor, do not materially reduce the value of the property. Donor must get University consent for alterations that are more than cosmetic.

8. This Agreement may only be amended by an instrument in writing executed by both parties, and it shall be binding upon and inure to the benefit of the parties hereto and their respective successors, distributees, heirs, legal representatives and assigns.

In witness whereof, the parties have duly executed this instrument at {________________}, State of Texas, as of the date appearing in the heading.

Donor:

__________________________________________ Date:_______________________ {Donor Name}

St. Edward’s University, Inc.:

By: _____________________________________ Date:_________________________ Rhonda Cartwright Vice President for Financial Affairs

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BEQUEST CHECKLIST

Donor Name: ___________________________________ Address: ___________________________________ ___________________________________ Phone : ___________________________________ Fax: ___________________________________ Email: ___________________________________ Expectancy Information Type of Bequest: Documented or Known Documented: ____ Copy of will or portion of the will ____ Date received:______________ ____ Letter of acknowledgment from St. Edward’s University Known: ____ Copy of document informing of intention (Intent Form – Deferred Gift or Mary Doyle Heritage Society Form) ____ Date received: ______________ ____ Letter of acknowledgment from St. Edward’s University Relevant Contacts Attorney Name: ____________________________________ Address: ____________________________________ ____________________________________ Phone : ____________________________________ Fax: ____________________________________ Email: ____________________________________ CPA Name: ____________________________________ Address: ____________________________________ ____________________________________ Phone : ____________________________________ Fax: ____________________________________ Email: ____________________________________ Executor Name:____________________________________ Address: ____________________________________ ____________________________________ Phone : ____________________________________ Fax: ____________________________________ Email: ____________________________________

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Heir Name: ____________________________________ Address: ____________________________________ ____________________________________ Phone : ____________________________________ Fax: ____________________________________ Email: ____________________________________ Realized Bequest Information Date of death: ________________________ Date of application for probate filed: ______________________ County and state of probate: _______________________________ Inventory date filed: _________________ Inventory amount: _________________ ____ Copy of Inventory ____ Copy of Estate Tax Return Reserve being held? ____ Amount: _____________________ Beneficiaries: __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Distributions: Date Type Amount ______________ ________________________ ________________ ______________ ________________________ ________________ ______________ ________________________ ________________ Total Distribution: __________________

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GLOSSARY OF FUNDRAISING TERMS 501(c3): the section of the Internal Revenue Service Code designation that exempts certain types of organizations (charitable, religious, scientific, literary, and educational) from federal taxation and permits these organizations to receive tax-deductible donations. Advance Gift: a donation, often from a trustee or director of an organization that demonstrates a commitment to a campaign and provides momentum at the outset before external solicitations are undertaken. Annual Fund: gifts made on a yearly basis to support (in full or in part) yearly budgets or general operations. For St. Edward’s it includes annual scholarship support too. Annual Fund Pledge: a gift commitment made through the University’s phonathon or direct mail programs or annual campaigns that typically is expected to be completed in the fiscal year received. Annual Gift: a donation given annually, usually without restriction. Appreciated Property: property (securities, real estate, tangible personal property) whose current fair market value is greater than its original tax basis. Appreciated Security: a security with a market value greater than the donor’s original tax basis. Beneficiary: a person, organization, or institution that receives or is entitled to receive benefits (property or money) from a will, insurance policy or other deferred gift. Bequeath: to give or leave (personal or real property) by means of a will when one dies. Bequest Expectancy: a provision in a will, trust or other testamentary legal document providing a gift to charity pursuant to applicable state law.

Budget: a planning document projecting the income and expense necessary to accomplish an objective. Challenge Gift: a gift commitment made on condition that other gifts or grants will be obtained on some prescribed formula, usually within a specified period of time, with the objective of encouraging others to give. Charitable Deduction: the portion of a gift to a qualified charity that is deductible from a person’s or corporation’s federal income tax, a person’s gift tax, or a person’s estate tax. Charitable Gift Annuity (CGA): a transaction where a person irrevocably transfers to an institution some property, such as cash or securities, and the institution agrees in a contract to pay the donor or other beneficiaries (maximum allowable of two beneficiaries) a guaranteed annuity for life. Charitable Lead Trust: trust from which a charity receives income for the duration of the trust, after which the principal is returned to the donor or distributed to other beneficiaries. Charitable Remainder Trust (CRT): an irrevocable trust established to provide payments for the life of one or more people or for a term of years or lives, with the irrevocable remainder being distributed to one or more qualified charities.

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Closely Held Stock: shares of securities in entities which have been organized for profitmaking purposes and are rarely traded on stock exchanges. Commemorative Gift: a donation given to honor or remember a person. Comprehensive Campaign: an intensive fundraising effort to meet a specific financial goal within a specified period of time for all of the organizations identified fundraising priorities, including the annual fund. Deferred Gift: a gift (such as a bequest, life insurance policy, charitable remainder trust, gift annuity, or pooled income fund) that is committed to a charitable organization but is not available for use until some future time, usually upon the death of the donor. Deferred Payment Charitable Gift Annuity: almost identical in construct to the charitable gift annuity. The significant difference is that the contract stipulates some date in the future when payments to the donor or other beneficiaries will begin. Endowment: a principal sum, permanently set aside and invested by a charity, with only the income used for charitable purposes. Estate: everything a person owns; a person’s possessions. Feasibility Study: an objective survey of an organization’s fundraising potential. The study assesses the strength of the organization’s case and the availability of its leaders, workers, and prospective donors. The written report includes the study findings, conclusions, and recommendations. Gift-in-Kind: a non-cash donation of material or long-lived assets, other than real and tangible or intangible property. Gifts-in-kind might include such items as equipment, software, printed materials, food or other items used for hosting dinners, etc. Grant: an allocation of assets to the University from a foundation, corporation, or nonfederal government agency. Usually, a grant is made for a specific purpose, for a defined period of time, and delineated by a formal agreement between the University and the donor. It is usually subject to reporting requirements. Intangible or Intellectual property: assets produced through creativity and innovation such as inventions, patents and copyrights of literary or artistic works.

Interest: money paid for the use of money. Irrevocable Trust: a trust that cannot be changed or terminated by the person creating it. Joint and Survivor Annuity: an annuity from which two people (normally husband and wife) receive the income during their lifetimes. Upon the death of one, payments continue to the other. Leadership Gift: a gift, donated at the beginning of a campaign that is expected to set a standard for future giving. Life Insurance Gift: a policy that will pay a specified sum to beneficiaries upon the death of the insured.

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Marketable Securities: stocks, bonds and other financial instruments that are regularly listed for sale on public exchanges. Matching Gift: a gift by a corporation matching a gift contributed by one or more of its employees. Mineral Rights: the ownership of all rights to gas, oil or other minerals as they naturally occur in place, at or below the surface of a tract of land. Mutual Fund: an open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. There are many different types of mutual funds. Not-For-Profit: qualified by the Internal Revenue Service as a tax-exempt organization. Payable-On-Death (POD) or Transfer-On-Death (TOD): a beneficiary designation that allows individuals to direct that the assets in a particular account be transferred to another individual or to a charity upon death without having to go through probate.

Planned Gift: a commitment established legally during the donor’s lifetime, but on which principal benefits usually do not accrue to the charitable recipient until some future time. Annuities, gifts of insurance, trusts, and commitments through estate plans are all usually referred to as planned gifts. Pledge: a written or oral agreement to contribute cash or other asset to the University over a stated period of time (typically no more than five years).

Pledge Receivable: a gift commitment passed to the general ledger as a receivable and subject to review and verification by University auditors. Pooled Income Fund: a program maintained by charity that provides a donor with income in exchange for a contribution to the fund. Contributions from several donors are combined to produce an investable amount. Income realized through the fund’s investments is distributed to donors in proportion to their respective contributions. Publicly Traded Securities: securities regularly traded on a public stock exchange. The value of a gift will be the mean of the highest and lowest selling prices quoted for the security on the day of the gift. Quasi-Endowment: a fund sequestered and invested with other University endowments, but on which principal may be invaded at the discretion of the University. Real Property: land, its natural resources, and any permanent buildings on it. Restricted Gift: a gift made with conditions imposed by the donor; such a gift may be for current, endowment, or capital use. Undue conditions may require that the University decline a restricted gift. Retained Life Estate: a gift plan defined by federal tax law allowing the donation of a personal residence or farm with the donor retaining the right to life enjoyment. Retirement Plan: a plan that provides people with income, or a pension, after they retire when they are no longer earning regular income from employment.

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Statement of Intent: a gift commitment or portion of a gift commitment made by a donor in which it is indicated that the fulfillment of that commitment will be made by an entity other than the donor signing the agreement (e.g., donor advised fund, matching gift employer). Tangible Personal Property: an asset that can be touched, handled, or moved by an individual, as opposed to intangible assets. Tangible personal property includes automobiles, art, furniture, jewelry, coin or stamp collections, boats, and similar assets.

Unrestricted Gift: a gift made without any condition or designation imposed by the donor and may be used for the general purposes of the University.