Body
Introduction
This policy is designed to assure that all gifts to the University of Georgia Foundation (Foundation) or the University of Georgia (University) are structured to benefit the University while ensuring fidelity to donor intent. Because some gift opportunities may be complex, more costly than beneficial, or restricted in a manner inconsistent with the Foundation’s goal of philanthropy in support of the University, the Foundation has outlined the following procedures for assessing and accepting gifts to the Foundation, the University, or the University’s other cooperative organizations, for the University’s benefit.
The Foundation and University shall not encourage any gifts that are imprudent in light of the donor’s personal or financial situation. While this document provides guidance to the University, Foundation, and the Board of Trustees regarding acceptance of prospective gifts, donors are ultimately responsible for ensuring that a proposed gift furthers their charitable, financial, and estate planning goals. Therefore, the donor should be encouraged to seek the advice of independent legal and financial counsel in the gift planning process. It is not within the province of the Foundation or the University to give legal, accounting, tax or other advice to donors or prospective donors.
Procedures - General
Overall responsibility for assuring compliance with the requirements of this policy is assigned as follows:
- Gifts deeded to the Foundation: Foundation Board of Trustees (“Board”)
- Gifts deeded to the University and other cooperative organizations: University President (“President”) or his/her designee
The Board and the President shall delegate certain responsibilities relating to the evaluation and acceptance of proposed gifts to the Gift Acceptance Committee (GAC) or to University staff, whether on behalf of the Foundation or the University, as provided in this policy.
In the normal course, University Development staff must initially screen all gift proposals. If a gift proposal would benefit a specific program, unit or department at the University, the leadership of such program, unit or department must also screen the gift proposal.
However, for moderate risk and material risk gift proposals the Gift Acceptance Committee, the Board of Trustees, and the University President must also screen as outlined herein.
Risk Categories for Gifts
All gifts and commitments are subject to review for reputational and collectability risk through established internal control procedures, including consideration of donor reputation. Gifts identified as presenting elevated risk may be referred to the Gift Acceptance Committee for further review and consideration.
Gifts of Moderate or Material Risk will only be accepted after consideration of the financial, reputational, and other risks of accepting the gifts.
1. Marginal Risk
This category of gifts presents very little risk to the Foundation and the University. All proposed gifts that are not considered as moderate or material risks per this policy are considered as marginal risks and may be accepted by University staff. Gift Accounting may record and receipt all gifts of marginal risk accepted by University staff after receipt of any necessary documentation per applicable Foundation policy. Please see the Foundation policy for Authority, Responsibilities, and Duties of Gift Accounting.
2. Moderate Risk
This category of gifts presents an identifiable level of risk to the Foundation and/or the University. Gifts considered to present moderate risks may be accepted by University staff after approval by the Gift Acceptance Committee. Please note that a pledge or other commitment to give is considered a gift for the purposes of this policy. Gifts of perceived or real moderate risk include:
- Gifts of personal property with a fair market value exceeding $500,000*
- Gifts of real property that do not include restrictions on use or disposal**
- Gifts of life insurance naming the Foundation as owner
- Charitable gift annuities exceeding $1 million
- Charitable lead trusts naming the Foundation or University as trustee
- Any gift regardless of type or value that may present unusual risk, including concerns related to marketability, collectability, valuation, timing, storage, maintenance, or legal or environmental liability
* Refer to the UGA Foundation Personal Property Policy for further guidance related to marketability and inventory control.
** Refer to UGA Foundation Real Property Policy which references a threshold for donations of real property.
The Gift Acceptance Committee shall make the final determination for gifts of moderate risk, in accordance with applicable Foundation Policy. The Committee, at its discretion, may determine whether the offer of a gift of moderate risk should be forwarded to University of Georgia Foundation’s Executive Committee for review and final decision
3. Material Risk
This category of gifts presents a material risk to the Foundation and/or the University. If it determines a proposed gift of material risk should be considered, the Gift Acceptance Committee will recommend this type of gift to the Executive Committee of the Foundation for review and approval. Committees of the Board of Trustees may advise the Executive Committee as deemed appropriate.
- Gifts of non-publicly traded securities. From time to time, the Foundation receives non-publicly traded securities with a clear, cost-effective, and certain means of disposition. The Committee may provide a standing approval by issuer when appropriate.
- Gifts of real property with restrictions on use or disposal
- Non-cash gifts that are illiquid in nature and/or may obligate Foundation or University resources.
Gift Acceptance Committee
The role of the Gift Acceptance Committee (the “Committee” or “GAC”) is to evaluate gifts that present moderate or material risk, as defined in this policy, and determine whether acceptance is in the best interest of the institution. This includes conducting appropriate due diligence to support informed decisions and assessing any donor restrictions, obligations, or costs associated with acceptance.
1. Committee Members
The committee shall consist of the following voting members:
- University of Georgia Foundation’s Executive Director (This person shall serve as the Chair of the Gift Acceptance Committee)
- University of Georgia Associate or Assistant Vice President for Development
- A representative of UGA’s Office of Finance and Administration
- University of Georgia Foundation’s Chief Financial Officer
- University of Georgia Foundation’s Designated Representative as assigned by the Chief Financial Officer
- University of Georgia Associate Vice President for Academic Fiscal Affairs
- University of Georgia School, College, or Unit Chief Business Officer
The Committee shall select a Chief Business Officer (CBO) from one of the University’s schools, colleges, or units to serve a two-year term assigned on a rotating basis. An alternative CBO shall be selected to serve as needed to consider gifts benefiting the primary CBO’s school, college, or unit. The chair shall select a Secretary to record meeting minutes. The Secretary is a non-voting member of the Gift Acceptance Committee and does not count towards quorum. The Committee will consult with UGA and UGAF counsel and subject matter experts when appropriate. Upon their admission to the Committee, Committee members will be apprised of their responsibility to uphold professional discretion and standards in reviewing and advising on proposed gifts to the Foundation, University, or other cooperative organizations of the University.
2. Committee Meeting
The Committee shall have regularly scheduled meetings, therefore minimizing ad hoc approvals. If no agenda items are presented for the meeting, a meeting can be cancelled.
3. Quorum Required
The Committee must have a quorum of all seven members (or identified proxy) in attendance in order to vote to approve or decline gifts. It may be necessary on occasion for a member’s proxy to attend in order to consider a gift, but every effort must be made for members to represent and vote for themselves. In the rare occurrence that a member is absent from a meeting and a proxy could not be identified, the Secretary can provide meeting minutes to all members of the Committee and request a vote following the meeting.
The Committee will make every reasonable effort to review and consider gifts during a scheduled meeting to promote discussion and deliberation among its members. When a meeting cannot be scheduled within the timeframe necessary to consider a gift, the Secretary may distribute the relevant materials electronically and request a vote by email.
4. Super Majority Vote Required
Decisions of the Committee must be made by a super majority vote of five members. If a super majority decision cannot be reached, the acceptance of the gift will be declined.
Appraisals
The donor is solely responsible for conducting any appraisals of the gift for purposes of the donor’s federal, state, or local gift tax or income tax reporting and shall bear the entire expense of such appraisals. The Committee or the Foundation shall obtain such appraisals as deemed necessary or useful for accounting or other purposes of the Foundation.
Evaluation of Costs Associated with Acceptance of Certain Gifts
The Foundation may incur and pay reasonable fees for professional services rendered to or for the benefit of the Foundation in connection with the completion of a gift to the Foundation. Where advisors retained by the Foundation prepare documents or render services of any kind to the University, Foundation and/or to a donor on behalf of the Foundation, the donor shall be informed that the professional involved is retained by the Foundation and is not acting on behalf of the donor and that any advice given or documents prepared should be reviewed by donor’s counsel prior to completion of the gift.
Acceptance and Administration of Restricted Gifts
Frequently, donors require that gifts be used by the University and/or Foundation in particular ways. It is the responsibility of the University and/or the Foundation to comply with such requirements if the gift is accepted. The Vice President for Development and Alumni Relations, or designee, is responsible for assuring arrangements are made to achieve compliance with such requirements. It is the responsibility of donors to inform the Foundation of their wishes to restrict gifts. Restrictions must be documented in writing by a donor in a Gift Agreement. Gifts with restrictions that do not further the University’s mission will not be accepted.
Additional Duties of the Gift Acceptance Committee
All gifts, pledges, and planned gifts to the University of Georgia Foundation, University of Georgia, and other cooperative organizations will be counted towards annual fundraising totals in accordance with the Fundraising Counting and Reporting Guidelines.
The Gift Acceptance Committee is responsible for the review and approval of any gifts that are exceptions to the University’s Fundraising Counting and Reporting Guidelines. Exceptions to the Guidelines will be presented to GAC for approval prior to the gift counting in annual fundraising totals.
The Fundraising and Reporting Guidelines are maintained by Gift Accounting. Any changes to the Fundraising Counting and Reporting Guidelines must be proposed to and approved by GAC before the update becomes effective.
Board Oversight of Committee Decisions
GAC shall report gifts approved by the Committee to the Audit Committee of the UGA Foundation Board of Trustees at each regularly scheduled Audit Committee meeting. The report shall contain sufficient detail to identify each approved gift and the Committee's action.