GIFT ACCEPTANCE

2.a. Utah System of Higher Education, R530, Acceptance of Conditional Gift Policy

2.b. Gift Acceptance Committee

Before any gift is agreed upon or accepted, a review shall be conducted by the Office of Advancement Services. The Gift Acceptance Committee evaluates proposed gifts to ensure that their acceptance, use, and administration is consistent with the mission, operation, and goals of Utah State University and its schools and units. The University President shall have the final decision-making authority to accept or decline any gift.

Gifts requiring committee review include, but are not limited to:

  • Real property or an interest in real property, whether outright or by bequest
  • Personal property with no University-related use,
  • Personal property with a fair market value exceeding $100,000 (e.g., artwork or other objects, vehicles or equipment, manuscripts or literary works, or computer hardware)
  • Real or tangible personal property subject to donor restrictions regarding disposal
  • Mineral, water, or timber rights
  • Oil wells
  • Overseas investments
  • Intellectual property and patents
  • Stock options
  • Interests in closely held business entities (e.g., LLCs, partnerships, trusts, and corporations)
  • Items of uncertain value or purpose
  • Cash gifts (or pledges) >$1,000,000
  • Works of art
  • Items or funds potentially in conflict with the values and mission of Utah State University
  • Charitable gift annuities with rates exceeding those published by the American Council on Gift Annuities.
  • Conditional pledges, such as those with matching requirements
  • Cash gifts with significant donor restrictions
  • Donations requiring extraordinary due diligence
  • Term life insurance policies

Other considerations that may require committee review include exceptions to the University investment policy, gift restrictions, gift liquidation requests, or other circumstances that may complicate University solicitation strategies and fundraising initiatives.

2.c. Gift Acceptance Committee Members

The Gift Acceptance Committee shall consist of:

  • Vice President of Advancement (Chair)
  • Senior Director of Advancement Services
  • Representative of General Counsel
  • Executive Vice President and Provost
  • Vice President of Business and Finance
  • Vice President of Government Relations
  • Associate Vice President of Central Development
  • Associate Vice President of Collegiate Development
  • Senior Director of Gift Planning
  • Director of Real Property (as needed)
  • Solicitor of gift, non-voting (e.g., Development Officer, Dean)

2.d. Gift Acceptance Committee Meeting

Committee meets as needed. In preparation, the gift solicitor submits required documentation to Senior Director of Advancement Services to prepare for committee review. Documentation shall include:

  • Gift amount
  • Gift purpose
  • Gift terms
  • Gift conditions
  • Other relevant information (e.g., philanthropic history, capacity to give, recent contacts reports, real estate information)

The committee reviews material and accepts/declines the gift or postpones its decision pending review of additional information. The committee may consider expert advice to reach its decision. The committee may decline to decide and instead refer the proposal to the University President with its recommendation. Upon final determination, a member of the committee shall deliver the written decision to the gift solicitor who shall forward it to the donor.

Any gift determined that may pose a risk or financial exposure, as determined the Vice President of Advancement or University President shall be reviewed by the committee. The committee will deliver its recommendations to the University President, who may solicit discussion and recommendations from the USU Foundation Board. The University President shall deliver the written decision to the Vice President of Advancement who shall forward it to the donor.

When a proposed gift exceeds $10 million or has strategic implications for the University, the University President in consultation with the Vice President of Advancement may review the proposed gift with the Board of Trustees, USU Foundation Board, and/or the USU Executive Committee (acting for the USU Board of Trustees) prior to acceptance.

2.e. Conditions for Declining a Gift

While most gifts are accepted, the Gift Acceptance Committee may decline a gift for a variety of reasons, some of which may include:

  • Conditions that the university cannot honor or that would place a financial burden on the University (e.g., keeping the gift for a specified period or selling property to a specific individual or group)
  • Liens or encumbrances on real property
  • Criteria for use of funds that the university would deem to be contrary to public policy or in violation of any federal, state, or local law, statute, or ordinance
  • Limitations, beyond a general description of the subject area, on the research or work of a faculty member or student
  • Potential environmental liabilities
  • Restrictions that could negatively affect the University's public perception
  • Requirements that the donor or a designee select an individual recipient
  • Restrictions on the use or administration of a gift linked to the incumbency of any individual in a University position
  • Requirements for administration directed by the donor or other third parties
  • Revocability by the donor in any way
  • Unreasonable conditions
  • Excessive liquidation costs or administrative complexities
  • Criteria likely to render the use of the gift difficult or impossible (in such cases, donors should be encouraged to include language in the gift agreement that will permit an alternative use)

2.f. Appraisal and Determination of Fair Market Value

All appraisals should be performed in accordance with IRS Publication 561: Determining the Value of Donated Property . Valuations should be performed by a qualified appraiser who is acceptable to the University. Appraisal expenses are the responsibility of the donor(s). University staff may not provide a qualified appraisal to substantiate a donor's gift valuation. The University does not recommend appraisers to potential donors.

2.g. Use of Legal Counsel and Tax Advisors

The University does not provide legal or tax advice to donors. The Office of University Advancement urges prospective donors to seek the assistance of personal legal and financial advisers in matters relating to their gifts and the resulting tax and estate planning consequences.

The Office of University Advancement should seek the advice of the Office of the General Counsel in certain matters relating to the acceptance of gifts, including but not limited to:

  • Gifts >$5,000,000
  • Gifts of closely held stock that are subject to restrictions or buy‐sell agreements
  • Gifts, such as bargain sales, that require the University to assume an obligation
  • Transactions with a potential conflict of interest that may invoke IRS sanctions
  • Other instances in which the use of counsel is deemed appropriate

2.h. Exceptions to the Procedures

The University recognizes that future unforeseen circumstances may require amending the procedures. The Gift Acceptance Committee will review the amendment and deliver its recommendations to the University President for final approval. The review may involve the USU Foundation Board for discussion.