ACCEPTING UNIVERSITY GIFTS

Volume 3, Financial Management 
Chapter 1, Accepting University Gifts
Responsible Executive: Vice President for Alumni Affairs and Development
Responsible Office: Information Services
Originally Issued: November 1983
Revised: 6/01, 12/13/06
Errors or changes? Email us.

CONTENTS

REASON FOR POLICY

ENTITIES AFFECTED BY THIS POLICY

WHO SHOULD READ THIS POLICY

RELATED DOCUMENTS

CONTACTS

DEFINITIONS

OVERVIEW

Introduction
Fund Raising Responsibilities
Accepting New Pledges (Commitments)

REPORTING AND PROCESSING GIFTS

Reporting Monetary Pledges (Commitments)
Reporting Gifts-in-Kind
Processing Monetary Gifts
Processing Gifts-in-Kind
Processing Gifts of Securities
Issuing Gift Receipts

CANCELING AND DISPOSING OF GIFTS

Disposing of Gifts-in-Kind

SPECIAL SITUATIONS

Declining Gifts
Gifts of Service
Gifts Requiring Financial Commitment from the University
Matured Bequests
Naming a Building or Other Facility
Returning Gifts

RESPONSIBILITIES

FORMS

Capital Equipment Record
Commitment Tracking Form
Gift-in-Kind Form
Gift Transmittal Form
Pledge Card
Revised Transaction Tracking Form
Standard Gift Information Form
Online Gift Form

POLICY STATEMENT

REASON FOR POLICY

ENTITIES AFFECTED BY THIS POLICY

WHO SHOULD READ THIS POLICY

RELATED DOCUMENTS

CONTACTS

Direct general questions about University Policy 3.1, Accepting University Gifts, to your administrative office or your unit Alumni Affairs and Development Giving Officer. If you have questions about specific issues, call the following offices:

DEFINITIONS

These definitions apply to these terms as they are used in this policy.

OVERVIEW

Introduction

This policy governs how the university will accept and process different types of gifts. It is divided into four major sections: "Overview," "Reporting and Processing Gifts," "Canceling and Disposing of Gifts," and "Special Situations."

Fund-raising Responsibilities

The responsibilities for fund-raising are shared among administrators, Deans, and Alumni Affairs and Development staff. During university campaigns, all development efforts will be in support of the defined goals of the campaigns and will be directed and coordinated through the Office of the Vice President for Alumni Affairs and Development.

All gift solicitations should be made in support of university priorities as determined by the Provost, college Deans, and unit Directors. During university campaigns, gift solicitations should be in support of campaign priorities. Written approval from the Provost must be obtained before any solicitations outside of campaign priorities can be made.

Accepting New Pledges (Commitments)

Gift requirements must support the university's mission, and any restricted use stipulated for a gift must be consistent with prevailing laws and public policies.

Note: Any gift to a subsidiary corporation or affiliated entity of Cornell University cannot be considered a tax-deductible gift to Cornell University. Gifts to those other entities must be processed using those entities' policies and tax-exempt status.

Caution: Written approval of the Provost is required prior to making any solicitations for significant new programs, new positions, new facilities, or any other long-term obligations to the university.

See the "Special Situations" Section of this document for information on accepting gifts that require a financial commitment from the university, circumstances under which gifts may be declined or returned, gifts of service, matured bequests, and gifts that publicly honor an individual who has made extraordinary contributions to the university. Current minimum endowment levels are found in the "Appendix" Section of this document.

1. Contact your college or unit Alumni Affairs and Development Officer or the University Development Office as soon as you receive a verbal or written commitment of a gift.

2. The Alumni Affairs and Development Giving Officer reviews, accepts, and reports the commitment to the University Development Office.

REPORTING AND PROCESSING GIFTS

Reporting Monetary Pledges (Commitments)

All new monetary pledges (commitments) must be reported immediately through the University Development Office to Information Services. Alumni Affairs and Development Officers or their designees normally report the required information using a donor pledge card, an Individual Commitment Tracking form, or a Corporation or Foundation Commitment Tracking form.

Reporting Gift-in-Kind

Alumni Affairs and Development Giving Officers or their designees normally report the required information to Information Services using an Individual Commitment Tracking form, or a Corporation or Foundation Commitment Tracking form.

During the process of accepting and reporting a gift-in-kind, the following considerations should be observed:

-   Gifts of tangible personal property must have a related use to the university to be accepted. These gifts should not be accepted with the intent that they be sold or disposed of within two years.

-   Gifts of real property, securities, and intangible property may be accepted with the intent that they be sold or disposed of, and are not subject to the "related use" test.

-   The official acknowledgment of gifts of property from Information Services should include an explanation of the Internal Revenue Service's reporting requirements on disposing of gifts-in-kind.

Processing Monetary Gifts

Information Services must be used to record and control all transactions of monetary gifts received by the university.

Gifts may be paid by cash or cash equivalents, including credit cards. Every effort must be made to deposit cash and cash equivalents on the day received. Same-day deposit is required for payments of $50,000 or more.

• PREFERRED METHODS
  

Donor sends or transmits gift:

Depending on the donor's choice of payment, the following information is provided to the donor:

Cash gifts are sent using electronic funds transfer to:

Tompkins Trust Company
ABA: 0213-0264-8
Cornell University Depository Account
01-101-000065
Attn: Cash Management Office
Reference: Donor name, purpose of gift

Mail checks or written credit card information to:

Cornell University Alumni Affairs and Development Lockbox
P.O. Box 2600
Ithaca, New York 14851-2600

Note: To process credit card charges, donors must provide the card number, expiration date, and amount, along with their signature authorizing the charge. For more information regarding credit cards, see University Policy 3.17, Accepting Credit Cards to Conduct University Business.


• Online credit card information:
  

- All university giving web pages must reside on the Alumni Affairs and Development web server.

- Information Services will supply all centrally needed data fields and formats to be used in online giving web pages.

- Information Services must approve all online giving web pages before they are put into production.

- The Cornell University online gift form is located at: http://www.alumni.cornell.edu/giving/giftcard.html


• OTHER METHODS
  Donations received by the departments:
  
  Cash:
  1. Cash should be delivered to Information Services at 130 E. Seneca St., Suite 400.
  
  2. Information Services will issue you a receipt for the cash received.
  
  Written Credit Card Information should be mailed or transmitted to:
  Information Services at 130 E. Seneca St., Suite 400.

  Note: To process credit card charges, donors must provide the card number, expiration date, and amount, along with their signature authorizing the charge.

  Checks:

  1. All checks should be endorsed immediately upon receipt. The endorsement should state "For Deposit Only to Cornell University." For both endowed and statutory units, write or stamp "Gift Lockbox Account" below the endorsement.
  
  2. When a check is not accompanied by a pledge card or letter, you should complete the Standard Gift Information form, which is available from Information Services.
  
  3. Place the check, letter, pledge card or Standard Gift Information form, and matching gift form if received, back in the original envelope. (Note: This is for donor protection, because the postmark is used for dating the gift.) If the original envelope is not available, use a new envelope for each. This ensures accurate processing of the gift by the bank.
  
  4. Write the amount of the check in the lower right-hand corner of the envelope.
  
  5. Sort through the envelopes and place those with checks of $5,000 or more at the top of the batch.
  
  6. Complete the Gift Transmittal form provided by Information Services.
  
  7. Run an adding machine tape of all envelopes in the batch, and attach it to the Gift Transmittal form.
  
  Caution: To make certain the checks are deposited to the correct project or program, use the Alumni Affairs and Development Designation/Fund code or the Accounting Office general ledger account number in the "Account #" section on the Gift Transmittal form. If you need to establish a new account, contact the Division of Financial Affairs. For new endowment accounts, contact Information Services.
  
  8. The Gift Transmittal form and gift checks, along with the appropriate tracking form (a pledge card, a green Commitment Tracking form for an individual donor or a yellow Commitment Tracking form for a corporation or foundation) must be sent to the Alumni Affairs and Development Lockbox at Tompkins Trust Company.
  
  There are three ways to send the checks to the bank:
  

  - Drop off the deposit, in a locked bag, at the Cashier's Office in 260 Day Hall;
  - Drop off the deposit, in a locked bag, at the University Budget Office in Surge III;
  - Arrange for a pick-up of the deposit, in a locked bag, by AMSA (Armored Motor Service of America) at your department.
  

To obtain locked bags or to schedule an AMSA pick-up, contact the Cash Management Office at (607) 254-1594.

Note: If you have advance notice that a gift of $50,000 or more is coming in, notify the Cash Management Office.

Processing Gifts-in-Kind

The university receives many Gifts-in-kind. The following options describe how to process the most frequent types of gifts-in-kind. When you are unsure of how to handle a particular gift-in-kind, call Information Services or the designated office listed in the "Contacts" Section of this document.

You should protect against loss of any gift-in-kind, immediately contact the Department of Risk Management and Insurance to obtain appropriate insurance coverage.

Caution: When a gift-in-kind has not been previously recorded as a commitment, you must receive approval to accept the gift from the Director of University Development or the Director of Information Services

• Art

Contact the Johnson Museum Development Office for instructions on processing gifts of art.

• Equipment
  

1. Complete a Gift-in-kind Information Form and create a New Capital Equipment Record. (See Forms)

2. Send to Information Services the Gift-in-kind Information Form, the original Capital Equipment Record, and any documentation that describes the equipment. Information Services will record the gift, and forward information to the Cost and Capital Assets department in the Division of Financial Affairs as required for recording a gift of a capital asset. Cost and Capital Assets must record in the capital equipment inventory system all moveable equipment with a useful life of over two years and a value of $5,000 or greater, and software valued at $100,000 or greater.

Note: Recording gifts of equipment promptly is necessary so that the university may report its asset value and depreciation expense accurately.

3. Complete the required information on donor-supplied acceptance forms or Internal Revenue 8283 forms. Send the completed forms to Information Services to be reviewed and mailed to the donor (contact the Tax Compliance Office for additional information).

Note: It is important to record gifts of equipment promptly because their omission would understate the university's asset value and depreciation expense.

4. Donors may supply you with their acceptance form and Internal Revenue form 8283. Complete the required information on these forms and send them to Information Services for review, approval, and mailing to donor (contact the "Tax Compliance Office" for additional information).


• Intellectual Property
  

  Contact Corporate Relations.

• Life Insurance
  

Contact the Trusts, Estates and Gift Planning Office.

• Livestock
  

  Contact the College of Veterinary Medicine Development Office or
  
  Contact the Department of Athletics Development Office .

• Rare books and other gifts of library materials
  

1.     Contact the University Library Development Office for instructions on processing a gift of rare books.

2.     Contact Collection Development and Preservation for instructions on processing other gifts of library materials.

• Real Estate
  

  Contact the Real Estate Office for instructions on processing real estate gifts.

Note: Only the Vice President for Alumni Affairs and Development and the Vice President for Administration and Chief Financial Officer have the authority to accept real estate gifts from estates.

•  Real Estate Trusts
  

  Contact the Trusts, Estates and Gift Planning Office for instructions on processing gifts of real estate trusts.

Note: Only the Vice President for Alumni Affairs and Development, after consultation with the Chief Investment Officer and University Counsel, has the authority to accept gifts of real estate trusts.

• Real Estate Gifts from Estates
  

Contact Trusts, Estates and Gift Planning for instructions on processing real estate gifts from estates.

Until title has been transferred from the estate to the university, the Vice President for Administration and Chief Financial Officer represents the university's interest in the property.

Note: Only the Vice President for Alumni Affairs and Development and the Vice President for Administration and Chief Financial Officer have the authority to accept real estate gifts.

• Trusts

  1. Contact the Trusts, Estates and Gift Planning Office in University Development.

2. The Trusts, Estates and Gift Planning Office provides payout rates for charitable remainder unitrusts and annuity trusts in compliance with relevant laws, regulations, and donors' wishes. The Vice President for Administration and Chief Financial Officer must approve any special circumstances of rates different from those set by the Investment Office.

• Other Gifts-in-kind
  

Contact Information Services for instructions on processing other gifts-in-kind such as copyright interests, mortgage rights, notes, patents, royalties, and software licenses.

• Weill Medical College Gifts

  Contact the Weill Medical College Vice Provost of Development.

Processing Gifts of Securities

Process gifts of securities by putting the donors or their agents in direct contact with the Trusts, Estates and Gift Planning. The Trusts, Estates and Gift Planning will work with the donor to transfer ownership of the securities to the university. Gifts of unregistered, restricted, or closely held stock, or gifts of securities with limited marketability require the prior approval of the Investment Office, the Vice President for Alumni Affairs and Development, and the Vice President for Financial Affairs and University Controller.

Do not send stock or bond certificates through campus mail. You should attach all supporting documentation to the certificate, including the envelope in which the securities were mailed to you, and immediately call Trusts, Estates and Gift Planning to arrange for proper handling.

Issuing Gift Receipts

Information Services is responsible for issuing all official university gift receipts. However, Information Services has authorized the Office of Trusts, Estates and Gift Planning to issue the official receipt when the gift is in trust or is a security. All official gift receipts are in compliance with United States and certain other countries' gift substantiation rules for tax purposes. Contact Information Services for information on a specific country.

Caution: Departments may issues acknowledgments or thank-you notes, but must not issue official receipts.

CANCELING AND DISPOSING OF GIFTS

Disposing of Gifts in Kind

Information Services and the Division of Financial Affairs are responsible for meeting these reporting requirements based on information received from departments.

Caution: Due to the potential sensitivity of the transaction, you must contact both Information Services and Capital Assets in the Division of Financial Affairs before making any arrangement for disposing of a gift-in-kind (see University Policy 3.9, Capital Assets for further information).

Declining Gifts

Contact the Director of University Development for questions or considerations regarding the declining of gifts. Gifts may have to be declined under certain circumstances, including, but not limited to, the following:

-   The gift is restricted and would require support from other resources that are unavailable, inadequate, or may be needed for other institutional purposes.

-   The gift is restricted and would support a purpose or program peripheral to existing principal purposes of the institution, or create or perpetuate programs or obligations, which would dissipate resources or deflect energies from other programs or purposes.

-  The gift would limit, or tend to limit, the academic freedom of the university.

-    The gift would injure the reputation or standing of the university, or generate such controversy as to substantially frustrate and defeat the educational purpose to be served.

-   To provide matching funds.

-   To continue a project after the gift has terminated or been exhausted.

-   To finance a construction project.

-   To establish a permanent, interest-bearing fund when the gift amount is
xxxnot large enough to carry out its specified purpose.

-   To finance and/or administer a project outside of the routine functioning
xxxand operation of the university.

 

1.    The naming of any building, part of a building, road or facility for a person or organization is a high honor and should not be done casually. This honor should be reserved for those who have made extraordinary contributions to the university and its life through their achievements in the service of the university or in other ways

2.     Buildings or other facilities or parts thereof, whether new or existing, are named or renamed only by action of the Board of Trustees on recommendation of the President.

3.     The State University of New York must be notified of action of the Board of Trustees in naming any building or facility of a contract college before the building is publicly identified by the name or before any sign with the name is attached to the building.

4.    The proposed naming of any building or facility or the memorializing of any individual or organization by a plaque or any other physical device is referred to the Committee on Memorials and Named Facilities which reports its decision on the propriety of the proposed name or memorial to the President.

In the instance of a proposed plaque, the Committee on Memorials and Named Facilities must be given a recommendation for plaque wording, size, material, and method of attachment as suggested by the supervisory university department. Approval of these matters is at the discretion of the Committee on Memorials and Named Facilities.

To qualify for consideration of an honorific plaque, the Committee stipulates a minimum of a $25,000 gift to the university or to benefit a building, structure, room, or other unit of a building.

To qualify for consideration of an honorific plaque, the Committee stipulates a minimum of a $10,000 gift to the university for items such as a bench or an honorific plaque to be mounted on a stone boulder, a marker, a wall, or fencing material.

5.     Contact the Committee on Memorials and Named Facilities through the Office of the Vice President for Alumni Affairs and Development for all issues related to naming a building or other facility

RESPONSIBILITIES

Last Updated 12-13-06