All gifts, grants, estate notes, pledges, and other written commitments toward the fundraising campaign objectives shall be counted toward the achievement of the campaign’s total goals. (June 1, 2008 through May 31, 2015)
The campaign pledge total will be the combined sum of all commitments to the college during the campaign period. Valuations of various commitments are outlined in the giving chart (page 4).
No agreement shall be presented to, urged upon, or entered into with a donor, which knowingly benefits the College to the detriment of the donor. Subject to reasonable protection of the College’s interests, the rights and interests of the donor will always come first. Representatives of the College, in communicating with prospective donors shall exercise caution in urging the donor to take action. Each representative is obligated, before a gift is made, to provide the donor with as much information as possible regarding the benefits, limitations, and tax implications with respect to the agreement, preferably in writing.
It shall be the policy of the institution to apply all unrestricted gifts in the amount of $25,000 or more from unrestricted bequests and from matured deferred gifts to the College’s fund’s functioning as endowment or for physical plant improvements, unless otherwise authorized by the Board of Trustees. All unrestricted bequests or unrestricted estate gifts under $25,000 shall be included in the Gustavus Annual Fund.
Gifts for an endowment for specific restricted purposes must equal the amount of the capital required to produce annual income adequate to fulfill the donor(s) purposes over an indefinite period of time. To help assure the integrity of such endowment funds, a substantial portion of the fund income should be returned to the principal of the fund rather than expended. Therefore, calculations to determine the amounts necessary to endow particular purposes will normally assume a “spendable” income return of four and one half percent, with the balance being reinvested to perpetuate the fund.
Gifts to establish named endowment funds will vary according to the purpose of the fund but shall in no case be in an amount of less than $25,000. The names of such funds shall be listed regularly in the official publications of the College.
Gifts to the institution shall be reported in a manner consistent with the standards recommended by the joint Council for Advancement and Support of Education (CASE) and the National Association of College and University Business Officers (NACUBO) committee’s report on “Gift Reporting Standards and Management Reports for Educational Institutions.”
The legal documents prepared for the use of the College in support of its institutional advancement program will first be reviewed and approved by the College’s attorneys and will be in full compliance with IRS regulations. The College’s representative will urge every prospective donor to have a similar review performed by the donor’s attorney and to seek counsel in matters relating to taxes and estate planning.
All gifts from living donors to an endowed (minimum of $25,000) or capital purpose will be documented through a properly executed gift agreement. The President of the College and the chief financial officer have the authority to sign gift agreements on behalf of the College. The gift agreement will describe the gift and provide a name for the fund created by the gift. The gift agreement will provide the College with any specific guidelines for use of the gift, based upon criteria provided by the donor. The gift agreement will include a change of purpose clause to provide the College ultimate flexibility in rare circumstances.
The College will not under any circumstance knowingly or through negligence be a party to inflating the value of a gift above the true fair market value to obtain a tax advantage for a donor.
All information obtained from or about donors or prospective donors shall be held in strictest confidence by the College.
The College will abide by IRS Publication 526 (Appendix C) in determining the date upon which a gift has been made.
The College recognizes that the accurate and timely processing of gifts is important to both the donor and to the College. The College records gift and commitment receivables in accordance with Financial Accounting Standards Board (FASB) Rules 116 and 117. The Director of Advancement Services assumes primary responsibility to ensure gifts and commitments are recorded correctly.
The College promptly provides a gift receipt in accordance with IRS regulations. The donor is informed of any quid pro quo arrangements in the gift transaction, if applicable.
The Board of Trustees shall periodically review and approve schedules of purposes and projects, together with specified gift amounts, through which donors may create named funds or facilities.