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Gift Acceptance

Introduction

Guilford College (“Guilford” or “College”), a nonprofit organization as described in section 501(c)(3) of the Internal Revenue Code, encourages the solicitation and acceptance of gifts to the College for purposes that will help Guilford further its mission and core values. Thus, Guilford qualifies under both federal and state law as a tax-exempt non-profit organization in which charitable contributions are deductible to the full extent of the law for income, gift, and estate tax purposes. The College's federal tax identification number is 56-0529982.

This Gift Acceptance Policy (“Policy”) has been developed to outline clear and objective procedures for accepting charitable gifts to the College. While the procedures set forth are detailed and specific to the type of gift, they shall be interpreted considering the following overriding principles:

  1. A gift shall not be accepted unless there is a reasonable expectation that acceptance of the gift will benefit Guilford.
  2. A gift shall not be accepted if such acceptance imposes upon the College overly burdensome administrative costs, creates unacceptable liability or causes the College to incur future unanticipated or anticipated expenses. Guilford may agree to incur expenditures related to a gift arrangement prior to its execution.  As a matter of policy, the donor will be asked to cover such costs if, for any reason, the gift is not finalized.  Any costs incurred in realizing the gift will be netted against the gift revenue.
  3. A gift shall not be accepted if the gift was acquired by other than legal means, or if clear title to the donated asset does not flow directly from the donor to the College.
  4. A gift shall not be accepted if it violates a federal, state or other laws. 
  5. A gift shall not be accepted if it violates the College’s policies.
  6. This Policy is intended to provide guidance to the Guilford community regarding the acceptance of prospective gifts to the College. Donors are ultimately responsible for ensuring that the proposed gift furthers their own charitable, financial and estate planning goals. Therefore, each prospective donor is urged to seek the advice of independent financial and legal counsel in the gift planning process. It is not within the province of the College nor its staff to give legal, accounting or tax advice to prospective donors.
  7. All members of the College community are expected to clear any and all formal and/or informal gift solicitations with the Vice President for Advancement, or their designee, prior to making any such contact with current or prospective donors (this includes individuals, corporations, foundations and government bodies). Please see the Fundraising [by those outside Advancement Office] policy for guidance to engage in fundraising activities. 
  8. If, on behalf of the College, any member of the Guilford community receives any gift to the College (including but not limited to cash, checks, securities, property, or other items) it is essential that the Office of Advancement and Alumni Relations be notified immediately. It is also essential that all letters, certificates, or other documents relating to such gifts, including the envelope in which it arrived with postmarks intact, be saved and forwarded to the Office of Advancement and Alumni Relations. This is to ensure that all gifts are credited to the appropriate College  account, and to further ensure that the College complies with all legally-mandated gift acknowledgement procedures. If you have any questions or are in doubt about a particular point, please contact the Office of Advancement and Alumni Relations.

Specific campaign counting and reporting policies will be approved by the Board of Trustees when Guilford is conducting a fund raising campaign. Campaign counting and reporting policies may supersede specific or all policies herein during the campaign period.  

Tax-deductible donations to Guilford College are generally not refundable.  Refunds will be issued in the event of theft or unauthorized use of the instrument to make the charitable gift. The College reserves the right to return tax-deductible donations if a donor is convicted of illegal activity or otherwise engages in conduct that the College determines, in the sole discretion of the College, will materially damage the College’s reputation by virtue of the College’s association with the donor.

See the Council for the Advancement and Support of Education (CASE) Reporting Standards and Management Guidelines for Educational Fundraising (contact the Vice President for Advancement to view the publication) and Donor Bill of Rights for additional principles that guide the work of the College in accepting philanthropic gifts.

I. Purpose

The purpose of the Gift Acceptance Policy is to provide a set of standards by which gifts are reviewed, accepted, recorded, and receipted by Guilford College. The policy applies to all gifts of private support received by the College, including departments, programs and centers. This policy focuses on the Office of Advancement and Alumni Relations reporting, not financial accounting and reporting.

II. Ethical Standards

In addition to being guided by its core values, Guilford will comply with model standards and rules of ethics as adopted by the national fundraising and advancement organizations including, but not limited to, the Council for Advancement and Support of Education (CASE), Association of Fundraising Professionals (AFP), National Association of Charitable Gift Planners (NCGP), American Council on Gift Annuities (ACGA), Association of Professional Researchers for Advancement (APRA), National Association of College and University Business Officers (NACUBO), Financial Accounting Standards Board (FASB) and Association of Governing Boards of Universities and Colleges (AGB).

III. Assignment of Responsibilities

To ensure that the gift acceptance policies set forth by Guilford are consistently, effectively and fairly implemented, the Board of Trustees has designated the responsibility for monitoring compliance and review of each independent policy document, and charges those responsible for bringing forth revision recommendations when necessary.

1. The Board of Trustees authorizes College officers to accept gifts or bequests for and on behalf of the College as agents of the College, subject to board policy guidelines. The Trustees appoint the President, who in turn determines the authority and responsibilities of the Vice Presidents as noted in the Bylaws of Guilford College (Article 4, Sections 11 and 12). The Board of Trustees through the recommendations of the Council on Philanthropic Leadership establishes the gift acceptance policy of Guilford College.  The Board of Trustees, as recommended by the Council on Philanthropic Leadership, may approve a capital or comprehensive campaign to raise substantial funds to finance major building projects, supplement endowment funds and meet other capital needs that demand extensive outlays of capital.

2. Guilford College Board of Trustees Council on Philanthropic Leadership is responsible for reviewing and acting upon the Gift Acceptance Policy, as recommended by, and in coordination with the Office of Advancement and Alumni Relations. The Council on Philanthropic Leadership, in collaboration with the Office of Advancement and Alumni Relations, is authorized by the Board of Trustees to make non-material amendments to these gift policies and guidelines periodically.

3. The President is responsible for ensuring compliance with these policies.  Under the authority granted as principal executive officer of Guilford, the President delegates the acceptance of liquid assets to the Office of Advancement and Alumni Relations and its staff; the acceptance and liquidation of illiquid assets, as well as the acceptance, ongoing administration and ultimate liquidation of deferred gifts, to the Vice President of Administration and Finance, in consultation with the Vice President for Advancement.  The delegation of such responsibilities is subject to a right of review.  It is understood that the Vice President for Advancement will consult with the President and the Vice President of Administration and Finance prior to acceptance, should a particular gift be of transformational magnitude, or when the relationship with the donor is particularly sensitive.  

4. The Vice President for Advancement and Staff are responsible for raising private gifts to support the College’s mission.  Duties associated with such responsibilities include the identification, cultivation and solicitation of individual, corporate and foundation donors.  The Office of Advancement is also responsible for properly acknowledging all of Guilford’s benefactors and for building and maintaining strong relationships with them.  The Vice President for Advancement, with assistance from staff, is responsible for making sure that the use of restrictions and the structure of gifts are in accordance with the College’s policies and are properly documented.  This department is also responsible for gathering data from donors and providing analysis of offered assets to the Vice President of Administration and Finance.  The supporting staff is expected to review the Gift Acceptance Policy and to propose revisions to these policies when necessary.  When gifts are of a transformational magnitude or when the relationship with the donor is particularly sensitive, the Vice President for Advancement will consult with the President, the Chair of the Board of Trustees and other appropriate board council members as applicable, as well as the Vice President of Administration and Finance, before accepting or liquidating a gift. The Vice President for Advancement, in consultation with the President and the Vice President of Administration and Finance and General Counsel, as necessary, will make final decisions on all questions related to College gift agreements. The Vice President for Advancement is authorized to sign estate distribution receipts on behalf of Guilford College. 

5. The Vice President of Administration and Finance and Staff are responsible for accepting, managing and liquidating illiquid gifts, as well as accepting, administering and ultimately liquidating deferred gifts to Guilford College. In addition, the Vice President of Administration and Finance will be consulted on gifts that directly impact the campus master plan.  In exercising these responsibilities, the Vice President of Administration and  Finance, with assistance from staff, is responsible for reviewing the data, analysis and recommendations provided by the Office of Advancement and Alumni Relations, and supplementing this with appropriate due diligence procedures to determine whether a particular illiquid or deferred gift should be accepted or rejected.  

IV. Definition of a Gift

  1. A gift is defined as a complete voluntary transfer of assets from a person or an organization to the College where no goods or services are expected, implied, or forthcoming in return to the donor. Gifts usually take the form of cash, securities, real property, or personal property. The following criteria generally identify a gift:
    1. Gifts are motivated by philanthropic intent.
    2. Gifts are transfers of assets to the College’s control. The College is not obliged to return unexpended funds.
    3. Gifts are not generally subject to an exchange of consideration or other contractual duties between the College and the donor, except for certain planned gifts as outlined in this policy, although objectives may be stated and funds may be restricted to specific purposes.
    4. The donor may make a restricted use gift by designating a specific purpose. The donor may also designate a gift for unrestricted use by the College or a particular department, unit or program.
    5. Generally, funds received from individuals, family foundations, foundations, corporate foundations or corporations will be classified as gifts. 
  2. The College is guided by standards set forth by the CASE when questions of whether or not a particular transfer of assets counts as a gift.

V. Gift Designation and Restrictions

  1. All gifts must be directed to a specific gift fund in the Office of Advancement and Alumni Relation’s database of record. The choice of fund will be consistent with the written directions of the donor, which will be archived as substantiation. See Article VI below for information about gift agreements.

  2. A donor may designate both the College recipient (e.g., department or program) as the beneficiary of a gift and a purpose (e.g., scholarship, fellowship, professorship, etc.) for which the gift is to be used.
    1. If the donor does not designate a specific College recipient or purpose of a gift, the gift will be designated “undesignated” by the Office of Advancement and Alumni Relations. As necessary, the Vice President for Advancement will consult with the President and decide how the gift will be used by Guilford.
    2. If the donor designates a specific College recipient but not a specific purpose, the gift will be added to the College recipient’s general gift fund, or such other fund as directed by the person responsible for spending gifts to the College recipient.
    3. If the donor designates a specific purpose for a gift, the College will either add this restricted gift to a currently existing fund with the same purpose or create a new fund for the specified purpose, as appropriate.
  3. Please see the Naming Policy for information regarding naming opportunities.

VI. Gift Agreements

  1. General Information
    1. A gift agreement documents the mutual understanding between a donor and Guilford in relation to the donor’s charitable contribution. A formal gift agreement is generally required for new obligations entered into by the College, both for multi-year commitments and outright gifts. Examples include, but are not limited to: endowed funds; physical spaces (e.g., building, facility, or portion thereof); and academic units, programs, or centers. In general, the terms of any gift should be as flexible as possible to permit the most productive use of the funds over time, while clearly stating the intent of the donor.
    2. Information appearing in a gift agreement includes, but is not limited to: the dollar amount of the charitable gift/pledge; source of gift, the purpose and use of the fund if new and any restrictions; pledge payment schedule; information about the donor and recognition, as well as any other requirements or obligations agreed upon by the donor and the College.
    3. Gifts/pledges that are not documented by formal gift agreement generally need to be documented in some other way. A signed letter of intent or College gift/pledge form is generally sufficient documentation for gifts to an established fund where no specifications on how the money will be spent can be made (i.e. annual funds, existing endowed fund).The Vice President for Advancement, in consultation with the President and the Vice President of Administration and Finance and General Counsel, as necessary, will make final decisions on all questions related to College gift agreements.
  2. Gift Agreement Drafting
    1. Staff in the Office of Advancement and Alumni Relations draft gift agreements using templates approved by the Vice President for Advancement. Staff are not permitted to make any material changes to those templates without the permission of the Vice President for Advancement and such permission will only be granted in rare circumstances. Questions related to gift agreement templates should first be directed to the Associate Vice President for Philanthropy. In cases where a substantive deviation from a gift agreement template is requested by a donor, or a template does not exist for a particular gift, the staff member working with the donor must consult with the Associate Vice President for Philanthropy. The Associate Vice President for Philanthropy will assist the staff member in determining whether the gift meets College requirements for acceptance and, if it does, provide assistance in drafting a College approved gift agreement document, in consultation with the Vice President for Advancement. Any deviation from the standard gift agreement templates must be approved by the Vice President for Advancement and if necessary, General Counsel.
    2. A signed award letter from a foundation or corporation is an acceptable form of gift documentation if it accepts the terms of the original proposal in total and/or documents restrictions on the gift’s designation, use, reporting requirements, giving vehicle, contribution schedule, recognition, and/or other obligations agreed upon by the foundation or corporation and Guilford. If available, the gift award proposal and other documentation submitted to the foundation or corporation clarifying the use of the gift must also be attached to the gift record.
    3. Wills, trusts, or other estate planning documents are acceptable forms of gift documentation. However, to help ensure the donor’s philanthropic intent is fully realized, it is recommended that the donor also have a signed gift agreement or gift confirmation form on file with the College.
    4. There will be occasions where fundraising has been approved for an initiative where there is no lead donor. Examples of this include class gifts, honorarium or memorial gifts with the intention of establishing an endowed fund or capital gift, but are unable to reach the minimum required level to do so, and College crowdfunding efforts, among others. In these circumstances, internal fund memoranda will be drafted by the Associate Vice President for Philanthropy or their designee and signed by the Vice President for Advancement. The purpose of an internal fund memorandum is to document the fund’s purpose, fundraising requirements and deadlines, alternative uses if required gift minimums are not reached, restrictions on gift designation and/or use, and recognition, as well as any other requirements or obligations.
    5. In accordance with Guilford's commitment to non-discrimination, proposed gift restrictions on the basis of race, color, national origin, sex, handicap or disability, age, sexual orientation, gender identity, religion, creed, ancestry, belief, veteran status, or genetic information are not acceptable.
  3. Pledge Payments
    1. Pledge payment periods may be up to five consecutive years, with the first payment scheduled within one year of the date of the gift agreement’s execution.
    2. Pledges from individual donors that may be paid in full or part through a private family foundation must be written in the form of a non-binding statement of intention in order to prevent the donor or foundation from potentially violating certain provisions against self-dealing under the federal tax laws. 
    3. Corporate matching gifts cannot be applied as pledge payments to an individual’s personal pledge commitment.
    4. In the event that a donor is unable to fulfill a gift pledge, Guilford College shall have the authority, with the approval of the Board of Trustees as appropriate, to retract any naming rights associated with the gift, and shall have the authority to direct any remaining money in the donor’s fund to an alternative use which comes closest to the donor’s original intent. 
    5. Pledges to support capital or programmatic projects will be accepted, provided that, in each such case, at least 50% of the funds required to complete the project shall be received by the College prior to the commencement of work on the project. 
  4. Gift Agreement Signatures
    1. Prior to obtaining any College or donor signatures, an identical gift agreement draft must be approved by the Associate Vice President for Philanthropy and the Associate Vice President for Advancement Operations and if necessary, consult with the Vice President for Advancement.
    2. Gift agreement signing authority is designated to the President and the Assistant Secretary, Board of Trustees.
  5. Distribution and Storage of Fully Executed Gift Agreements
    1. In general, two original copies of the gift agreement will be prepared for signing: one for the donor’s records, and one for the College’s records. The College will also accept electronic copies of fully executed gift agreements.
    2. The College’s original copy and/or an electronic copy of the fully executed gift agreement will be stored securely by the Office of Advancement and Alumni Relations.

VII. Gifts from Guilford Faculty and Staff

The College is grateful for gifts from faculty and staff members. Due to IRS regulations, in order for a gift to qualify for a charitable deduction, the donor must not personally benefit from or control the use of the funds. As such, College faculty and staff members cannot designate a gift to a fund from which they, spouse/partner or close relative can authorize expenditures for personal benefit, or in such (or similar) cases where the fund:

  1. Supports the donor’s salary
  2. Pays for consumer goods to be used by the donor
  3. Pays for the donor’s professional activities
  4. Pays for the donor’s travel
  5. Provides scholarship or fellowship assistance to the donor or to a close relative.

VIII. Anonymous Gifts

As a general rule, Guilford does not accept anonymous gifts. However, a donor's record may be marked anonymous upon approval of the Vice President for Advancement. Anonymity of a gift might be granted for a donor who wishes to protect their privacy; however, these donors are not anonymous to College leadership. In addition, a gift might be marked temporarily anonymous until such time as it is publicly announced or recognized.

IX. Gift Entry Receipts

  1. All philanthropic commitments to Guilford must be processed by and credited to the donor through the Office of Advancement and Alumni Relations gift processing and data management system.
  2. The Office of Advancement and Alumni Relations will issue a written receipt to every donor no matter the gift amount. The Office of Advancement and Alumni Relations will provide donors a gift receipt that is prepared in accordance with requirements to which donors are subject in connection with documenting their charitable contributions. No other College department/unit should issue a gift receipt.
  3. Gift Administration must have, at a minimum, the following information to record a gift and issue a receipt:
    1. Name of the donor(s)
    2. Address of the donor(s)
    3. Date of the gift
    4. Description of the gift property
    5. Statement of donor intent
  4. In addition to a tax receipt, gifts of certain types and levels will also be acknowledged with thank-you communications (e.g., letter, phone call, or other means) as defined in the Advancement Plan.
  5. The College does not record unreimbursed expenses incurred by volunteers as gifts. The Office of Advancement and Alumni Relations will provide a letter acknowledging a person’s volunteer role, with dates of service, and with a statement that expenses might have been incurred that were not reimbursed and might be tax deductible.

X. Gift Counting and Reporting

  1. Adherence to Industry Standards
    1. To ensure the highest possible gift crediting and campaign counting integrity, all charitable contributions to Guilford will be counted and recorded in the Office of Advancement and Alumni Relations database of record in accordance with the standards set forth by the Council for Advancement and Support of Education (CASE).
  2. Types of Gift Reporting
    1. Fiscal Year Cash and New Fundraising Commitments Reporting
      1. These reports display year-to-date cash and/or new fundraising (commitments) for a specific fiscal year only (June 1 to May 31).
      2. Fiscal year cash reports reflect tangible asset transfers to the College (e.g., outright cash gifts, pledge payments, and realized bequests).
      3. New fundraising commitment reports reflect outright cash gifts and new pledges to the College, including planned gifts. These reports highlight the impact of donor commitments to Guilford, including those that will be realized in the future.
    2. Campaign Reporting
      1. Campaign reporting differs from fiscal year reporting, and will be governed by a Board of Trustees approved campaign counting and reporting policy during periods of approved campaigns. 
    3. Gift Recognition Reporting
      1. The Office of Advancement and Alumni Relations also produces reports demonstrating the impact donors have beyond the amount of the donor’s charitable contribution deduction based on IRS regulations. These reports may include all of a donor’s cash gifts, as well as pledges and soft credit (e.g., donations through donor-advised funds, matching gift companies, and related family foundations). In addition, the face value of documented bequest intentions may be included regardless of the donor’s age. These reports may be used to help determine donor eligibility for various forms of recognition (e.g., giving societies), among other purposes.
  3. Clarification on Differences between Financial Accounting and Reporting and Advancement Reporting
    1. It is important to clarify the distinction between financial accounting, which underlies the financial reporting of gifts following accounting principles generally accepted in the United States of America (“US GAAP”) established by the Financial Accounting Standards Board (FASB), and Advancement reporting, which is a measure of fundraising activity in accordance with standards set forth by the Council for Advancement and Support of Education (CASE) and approved by the Vice President for Advancement. This policy focuses on Advancement reporting, not financial accounting and reporting.
    2. The Office of Advancement and Alumni Relations tracks all outright gifts, pledges, and planned gifts. The intent of Advancement reporting is to reflect the total impact of fundraising efforts by representing all gifts, including the value of pledges and planned gifts, at both face and present values.
    3. Gift revenue accounted for in the College’s financial accounting system and presented in the College’s audited consolidated financial statements is in accordance with US GAAP and may differ from gifts included in Advancement reporting for a number of reasons, including but not limited to: transfers of assets not recognized as gifts in the College’s financial accounting system; gifts recognized in different periods than in Advancement reporting; and gifts reported at different amounts based on differing methodologies used to value gifts in the College’s financial accounting system and Advancement reporting.

XI. Endowed Gifts

  1. Endowed funds are designed to provide perpetual support to a designated area. To establish an endowed fund, a gift must meet the funding minimum set by the Board of Trustees. For current College named endowed fund minimums, contact the Office of Advancement and Alumni Relations.
  2. A named endowment fund may be established over a maximum of five years with a pledge payment.  The Vice President for Advancement must approve this arrangement and the donor must indicate a payment schedule.  The first payment must equal 20% of the value of the total amount being endowed. A named endowment fund may be established by an irrevocable donor agreement through a planned gift.  No funds will be accepted for programs or activities that do not have recognized academic and administrative approvals.
  3. If for any reason the donor is unable to meet the minimum gift levels by the end of the five-year period, the funds may be reallocated as outlined in the donor agreement.  Endowment gifts under this threshold shall be added to general endowments with comparable use restrictions.  Advancement staff shall obtain and maintain adequate documentation of the use restrictions associated with each gift.  The gift terms and documentation thereof shall allow the greatest possible flexibility to ensure that the funds remain useful over time and do not become obsolete, inappropriate, or impractical.  If, in the opinion of Guilford College, all or part of an endowment cannot be usefully applied to the purpose originally designated (or in the manner requested), the Board of Trustees shall have the authority to use the endowed funds for any purpose within its corporate powers that will most nearly accomplish the purposes, wishes and intent of the donor.  The College seeks to balance the following objectives in the management of endowment funds:  1) maintain principal balances; 2) utilize investment earnings prudently and 3) demonstrate stewardship and preservation of the College.

XII. Specific Types of Gift Assets

  1. The College will accept gifts of cash, marketable securities, non-marketable securities, real estate, and gifts of tangible or intangible personal property (gifts-in-kind).
    1. Cash Gifts
      1. Outright cash gifts can take the form of checks, credit cards, wire transfers, or payroll deductions.
      2. Cash gifts are credited to the donor’s giving record at actual cash value.
      3. Cash may be delivered in person, by mail, by electronic funds transfer (EFT), or by wire transfer.
      4. Cash gifts are complete on the date the cash is physically transferred to a representative of the College, and will be reported by the Office of Advancement and Alumni Relations on the date the cash is processed.
      5. Gifts of foreign currency will be valued at the U.S. dollar equivalent on the date the gift is received.
      6. Recurring credit card payments can be set up online.
    2. Marketable Securities (Stocks and Bonds)
      1. The College’s preferred broker provides the value of the gift by using an average of the high and low trading price on the date of the gift. 
      2. In most cases, gifts of marketable securities will be sold in due course in accordance with established College practice. It is the College’s practice to dispose of marketable securities as expeditiously as possible.
      3. The Vice President for Advancement in consultation with the Vice President for Administration and Finance must approve any request by a donor that Guilford hold and refrain from selling a marketable security. Marketable security gifts are sold as soon as reasonably possible to reduce the impact of any gain or loss on the transaction.
      4. The Office of Advancement and Alumni Relations will issue a gift receipt reflecting the value of the shares on the date of the gift, as well as a description of the securities received.
      5. Gifts of mutual fund shares are also acceptable. Transfers of this type may take longer to complete, and the date of the gift will be determined by the date of receipt by the College.
      6. In cases where a stock gift is submitted to pay off a documented commitment, realized funds in excess of that commitment will be allocated to the same purpose and booked as an outright gift.
    3. Non-marketable or Closely Held Securities
      1. These securities include: partnerships, limited partnerships, limited liability companies, closely held companies, stock of entities that fall under SEC Rule 144, legend stock or bonds of entities that are thinly traded, and stock of entities held for sale at the request of a donor. These securities should be readily convertible into cash within five years or less.
      2. The Vice President for Advancement, in consultation with the Vice President for Administration and Finance and General Counsel, as necessary, coordinates acceptance of all gifts of non-marketable or closely held securities and should be notified prior to the acceptance of any such gifts. Because of the unique nature of these securities, special due diligence review will be required prior to acceptance.
      3. The value of these securities as reported by the Office of Advancement and Alumni Relations will be determined based on the fair market value of the securities on the date of gift, using an appraisal or alternative method of valuation acceptable to the Vice President for Advancement and Vice President for Administration and Finance. 
    4. Virtual Currencies
      1. The College may accept gifts of virtual currencies, including cryptocurrencies, subject to the conditions outlined below.
      2. Potential gifts of virtual currencies are evaluated on a case-by-case basis.
      3. As a condition to accepting the gift of virtual currency, the donor must first confirm to the College that it is owned by the donor (and not a third party) and was not derived from unlawful sources or activities.
      4. Typically, a charitable gift of virtual currency is only complete once the currency has been successfully paid to and accepted by the College's designated currency processor on behalf of the College.
      5. Upon payment/acceptance, the College will provide the donor with a gift acknowledgement or receipt that substantiates receipt of the virtual currency as a charitable gift. The acknowledgement shall not state the value of the gift.
    5. Real Property
      1. The College may accept gifts of many types of real property valued at $50,000 or more, such as residential, commercial, rental, vacation properties, farms, timberland and developed or undeveloped land. Gifts of real property shall be free of encumbrance, and carrying costs, such as property taxes, owner/neighborhood association dues, etc., shall not be overdue.
      2. Gifts of real estate require careful advance review and planning. All gifts of real estate must be reviewed and approved by the Vice President for Advancement in consultation with the Vice President for Administration and Finance, the President and General Counsel, as necessary. Guilford College shall perform analysis and seek consultation to determine that the gift is: a) needed by the College to further its educational purpose; and/or b) readily marketable.
      3. In general, a donor is responsible for all expenses related to protecting their interests in gifts of real estate (such as obtaining a qualified appraisal). The donor is further expected to pay for all expenses associated with the College's due diligence process.
      4. In certain cases, the College may elect to bear the cost of conducting the due diligence necessary to accept a gift of real estate. In order to do so, the Vice President for Advancement, the Vice President for Administration and Finance and the President shall develop and deliver to the Board of Trustees Council on Philanthropic Leadership a memo indicating the rationale to bear the costs. The Council on Philanthropic Leadership will approve or deny the accepting costs to conduct due diligence.  Proceeds from the sale of a gift of real estate may be used to reimburse due diligence expenses incurred by the College, provided that there is no gift agreement term precluding this.
      5. A gift of real estate may be declined by the College if it is deemed unfeasible. Feasibility will be determined through the College's due diligence and review process and will be at the sole discretion of the College. The College may deem a potential gift of real estate unfeasible as a result of a number of factors the College must consider, including but not limited to:
        1. Foreign ownership laws
        2. Estimated costs to evaluate and accept the real estate (exceeds a net value threshold)
        3. Environmental or other liabilities
        4. Condition of real estate
        5. Estimated carrying costs for the real estate (exceeds net value threshold)
        6. Lack of marketability of the real estate
        7. Low valuation of the real estate
        8. Tainted property
        9. Conflict of interest
      6. A gift of real property with a retained life interest is a full transfer of the title of a personal residence or farm to the College, with the donor or other person(s) retaining use of the property for a term of years or for the life or lives of the donor and/or other person(s).
        1. The agreement creating the life interest must provide, at a minimum, that the donor and/or life tenant will remain responsible for the payment of mortgages, taxes, insurance (property insurance with the College as loss payee; general liability insurance with the College as additional insured; and other appropriate insurance as determined by the College); utilities; maintenance, repairs, and general upkeep; and all other costs associated with the property, unless other specific provisions are made for the payment of these expenses.]
        2. Periodic proof of payment for applicable items and certificates of insurance may be required by the College from time to time.
      7. See Procedures Regarding Acceptance of Gifts of Real Property for additional information. 
    6. Bargain Sale
      1. In limited circumstances, the College may purchase an asset for less than its fair market value. This bargain sale results in a gift from the owner of the property in an amount equal to the difference between the fair market value and the purchase price by the College.
      2. The College will generally not pay more than 50% of the fair market value of an asset when participating in a bargain purchase.
    7. Gifts of Tangible and Intangible Personal Property (Gifts-in-Kind)
      1. The College may accept gifts of many types of tangible and intangible personal property. Examples of gifts of tangible personal property include, but are not limited to: automobiles, boats, art, jewelry, furniture, antiques, rare books, manuscripts, and lab equipment. Examples of gifts of intangible personal property include, but are not limited to: computer software, royalties, patents, and copyrights.
      2. Before recording a gift-in-kind, the College is required to obtain documentation from the donor stating that the gift has been given to the College and will not be required to be returned. Typical documentation includes: a signed and dated letter from the donor acknowledging the gift, including fair market value (FMV); a full description of the item; a completed and signed Internal Revenue Service (IRS) Form 8283 (for gifts with a FMV of $500 or more); and a completed appraisal from a qualified outside appraiser if the value of the gift is $5,000 or more.
      3. The Office of Advancement and Alumni Relations will determine if the gift meets IRS regulations for tax deductibility. If a gift does not meet IRS regulations for tax deductibility, the donor will be thanked for the gift, but no gift credit will be recorded on the donor’s giving record.
      4. The gift acknowledgement issued to the donor for a gift of personal property will not show a value for the property. The receipt will describe the property received, and the donor’s giving record will be credited with the estimated fair market value of the item, if appropriate. It is the responsibility of the donor to determine the value of a gift of personal property for tax purposes.
      5. Gifts of artwork are subject further to the Procedures for the Art Gallery Collections.
      6. All gifts of software must be coordinated through the Information Technology and Services Department. Though useful and appreciated, generally gifts of software licenses are not countable as charitable donations as they are considered partial interests by the IRS. To be considered a charitable donation, software must be irrevocably transferred to the College (not licensed) with no restrictions, no expiration nor requirement of renewal, no implicit or explicit exchange or purchase of services, nor any provisions to share exclusive information.
      7. The College’s legal counsel will be consulted prior to gifts of intellectual property being accepted. 
      8. The IRS has specific reporting requirements for the disposal of property received as gifts. Specifically, gifts valued at $500 or more, which are disposed of within three years of the date of the gift, are subject to reporting to the IRS on Form 8282.
      9. If there is any question about the acceptability of a potential gift of tangible or intangible personal property, the Vice President for Advancement should be consulted before proceeding.
  2. Employer-sponsored Matching Gifts
    1. A matching gift may be received from a company or a company funded foundation, matching a gift given to the College by a donor or donor’s spouse who is eligible for this benefit under their company’s matching gift policy.
       
    2. Matching gifts will be credited to the same account(s) in the Office of Advancement and Alumni Relations database of record as the original gift unless restricted by the matching company.
       
    3. Matching gifts cannot be entered as a payment on a personal pledge made by an individual, as the funds are not under direct control of the donor, but may be soft credited to the donor.
  3. Donor-Advised Funds
    1. Donor-advised funds (DAFs) are philanthropic vehicles established at public charities that allow donors to make charitable contributions, receive immediate tax benefits, and then recommend grants from the funds over time.
       
    2. Gifts to the College from DAFs are typically accepted in the form of checks or electronic fund transfers and processed accordingly.
       
    3. No gift receipt will be issued to the individual who recommended a College gift to the DAF; however, the individual’s giving record will be soft credited with the value of the gift.
  4. Planned Gifts
    1. These gifts are either irrevocable (cannot be changed by the donor once the gift is made) or revocable (can be changed by the donor at any time). 
    2. Charitable Gift Annuities
      1. A charitable gift annuity provides fixed payments to one or two annuitants for life in exchange for a gift of cash or securities. The payments are backed by the general resources of the College. Upon the death of the annuitant(s), the residuum of the annuity will be used by the College as directed by the donor.
      2. The required gift minimum to establish gift annuities is $25,000.
      3. The required minimum age of the annuitant(s) for a charitable gift annuity is 70.
      4. The required minimum age of the annuitant(s) for a deferred or flexible charitable gift annuity is 60 and the annuity cannot begin making payments until the annuitant(s) reaches age 70.   
      5. The College will follow the gift annuity rates suggested by the American Council on Gift Annuities (ACGA) as a maximum. However, for ages where the suggested ACGA rate is significantly higher than the rate of return on the College’s gift annuity pool, donors may be asked to accept a rate lower than the suggested ACGA rate in order to maximize the residuum.
    3. Charitable Remainder Trusts
      1. A charitable remainder trust provides payments for either the life of the beneficiary or for a set period of time. The trust payments are either the same amount each year for a charitable remainder annuity trust, or, for a charitable remainder unitrust, the payments will fluctuate from year to year based on the value of the trust’s assets. When the trust term ends, its remaining assets are transferred to the College for use as directed by the donor.
      2. The College may accept gifts of a remainder interest in charitable remainder trusts.
      3. The College may serve as trustee of a charitable remainder trust with the following provisions:
        1. Guilford College is named as a beneficiary of at least 50% of the remainder.
        2. The required minimum to establish a charitable remainder trust is $250,000.
        3. The maximum number of beneficiaries in addition to Guilford College is two (2).
        4. The maximum annuity or unitrust rate is 6%. 
    4. Charitable Lead Trusts
      1. A charitable lead trust provides annual payments to the College over a set period of time. Income may be designated to facilities or endowment and will be recognized and credited at the full payout value for the entire period during which the income is pledged and paid to the College. The remaining trust assets are transferred at the end of the trust term to the donor or whomever the donor chooses.
      2. The required minimum to establish a lead trust is $500,000. 
      3. The College may accept designation as the beneficiary of a charitable lead trust.
      4. Due to the potential for liability, the College may accept an appointment as trustee of a charitable lead trust only upon review of all relevant circumstances and approval by the Vice President for Advancement and the Vice President for Administration and Finance. 
    5. Life Insurance
      1. The College may accept a designation as beneficiary and owner of a life insurance policy.
      2. Fully paid life insurance policies assigned to the College will be credited at the full net face value of the policy as irrevocable gifts.
      3. The College will not accept policies where the College is obligated to make any future premium payments unless the donor commits to making annual gifts to cover such payments and/or understands that the College may unilaterally exercise its right to surrender the policy for its cash surrender value. Irrevocable gifts of life insurance with ownership transferred to the College will be credited the net cash value of the policy with future premiums paid by the donor credited annually. 
    6. Bequest Intentions
      1. The College will accept and retain documentation of bequest intentions regardless of revocability or the age of the donor.
      2. Revocable and irrevocable bequest commitments of those 55 and older will be recorded and credited as a good faith estimate of the bequest amount; however, written documentation from the donor or donor’s attorney is required. 
      3. Realized bequests will be credited at the value established during the administration of the estate or the fair market value on the date of the payment.
      4. Unrestricted realized bequests with a market value of $100,000 or less may, at the discretion of the President, be transferred to the operating or capital budget or designated as a board-designated endowment in the College endowment. Any unrestricted gift or realized bequest exceeding $100,000 in total market value must be transferred to the College endowment as a board-designated endowment, and any exceptions must first be reviewed by the by the Council on Philanthropic Leadership in conjunction with the Finance Council and approved by the Board of Trustees. 

XIII. Special Circumstances and Exceptions

Any special circumstances or requests for exceptions must be referred to the Vice President for Advancement, who will determine the course of action, which may include consultation with the President, Council on Philanthropic Leadership and/or Board of Trustees.

Responsible Office: Ara Serjoie, Vice President for Advancement, Hendricks Hall 115, 336.316.2320, serjoiea@guilford.edu

Revision History: 

Original approval date June 8, 2013

May 2020 -  Policy approved by Board of Trustee