Issued: April 3, 1989
Latest Revision: February 7, 2000
SOLICITATION AND ACCEPTANCE OF CERTAIN TYPES OF GIFTS
This policy describes the circumstances under which the University may accept gifts of tangible, intangible, and real property.
2.0 Policy [Top]
2.1 Gifts of Tangible Personal Property
It is mandatory that all gifts of tangible personal property conform with current Internal Revenue Service (IRS) regulations. IRS regulations should be discussed with all potential donors and/or their legal and financial advisors.
An offer of a gift to the University of intangible personal property may be recommended for acceptance on behalf of the University by deans, directors of libraries and museums, and other authorized officers.
The recommendation for receipt and acceptance of such tangible gifts with estimated value of $500 or more will be submitted to the Vice President for Development for confirmation and formal acceptance by the Board of Visitors. Such recommendations must be submitted in writing (letter or memorandum from an authorized person) and accompanied by a "Deed of Gift" and a verification of the gift's value.
See Procedure 9-5, "Processing Gifts in Kind."
Small gifts of personal property, such as rare books and prints, with an apparent worth of less than $500 may be unofficially valued by a staff member of the University with expertise related to the gift. Librarians, professors of art, etc. may provide an informal evaluation to record the gift for University purposes only, and to aid the Vice President for Develoment and the Secretary of the Board of Visitors. Cash is the only type of gift which may be received at face value.
Gifts to the University of tangible personal property such as paintings, other works of art, furniture, or collections should not be accepted if made on the condition or expectation that the items will be permanently exhibited, or that the collections will be maintained and shown as such. Any gift offered with such a restriction or condition will be reported to the Vice President for Develoment and may be accepted only by action of the Board of Visitors.
The University may sell a non-cash gift and place the proceeds in a specific fund of the University, as requested by the donor, or as approved by the Board of Visitors. Exceptions to this policy must be approved by the Board of Visitors.
The Vice President for Development, deans, or a director of a University related foundation may recognize a valuation for purposes of appropriate donor recognition, such as gift clubs, plaques, and listings of contributors by gift levels when such can be reasonably ascertained. The University WILL NOT accept responsibility for establishing gift value with a donor.
2.2 Restrictions on Gifts in Kind
The following restrictions or considerations in connection with gifts in kind will prohibit their acceptance by the University:
2.3 Gifts of Intangible Personal Property
Gifts of stocks, bonds and all securities, including partnership interests, royalties, etc., involve complicated technical considerations and may have very special tax consequences to the donor. The University Planned Giving Office is a resource to assist all University schools and foundations by answering questions regarding gifts of securities, working with financial and legal advisers of University benefactors and coordinating gift acknowledgements, as well as contacts with the Office of the Treasurer. All transactions will be administered by the Office of the Treasurer and reported to the Office of University Development Gift Accounting.
2.4 Gifts of Real Property
All gifts of real estate, including commercial, industrial and income-producing property will be considered for acceptance.
All offers of real estate gifts shall be reported to the Vice President for Development. It is recommended that gifts of real estate to the University be processed through the University of Virginia Real Estate Foundation, in accordance with federal and Commonwealth of Virginia regulations and requirements. All gifts must be reported within 24 hours to the Director of Gift Accounting.
No financial or other burdensome obligation or expense shall be incurred directly or indirectly by the University as a result of a gift of real property. The University will not pay for appraisal expenses, and any gift of real property valued at $500 or more must meet Internal Revenue Service regulations which apply to the donor and to the University. Restrictions as to the ultimate sale of real property received as a gift will not be accepted by the University. On the other hand, designating a purpose within the University for a fund created by the assets received from a sale of such property is permissible. If under extraordinary circumstances, exceptions to the above policies need to be considered, approval by the Vice President for Development and the Executive Director of the University of Virginia Real Estate Foundation is required.
Donor interest in retaining a life estate in property will be directed to the University Planned Giving Staff. The Planned Giving Staff will coordinate with the University of Virginia Real Estate Foundation. It is University policy that all expenses for maintenance, taxes, and other carrying costs shall be borne by the tenant where a life estate is retained in such property.
2.5 Gifts of Life Insurance
Gifts of life insurance to the University take many forms. Depending on the type of life insurance gift, numerous University departments may be involved. It is therefore necessary that when a gift to the University involving life insurance is being considered by a potential donor, the Planned Giving Staff should be notified. Planned Giving will coordinate appropriate contacts with the Office of the Treasurer, the Department of Financial Analysis, Development Gift Accounting, appropriate stewardship officers, development officers and deans, as well as the Offices of the Vice President for Development and University Relations when appropriate.
A Planned Giving officer will assist donors with the process of assigning ownership and beneficial interest to the University and will coordinate documentation, when necessary, regarding the cash surrender value or replacement value of a life insurance policy gift. The Department of Financial Analysis will verify the exact cash surrender value or replacement value as of the date of gift and report the gift value to the Office of the Treasurer and Development Gift Accounting.
Coordination of gifts that potentially involve the University purchasing a life insurance contract on an individual's life will be coordinated through the Planned Giving Office and the Office of the Treasurer. If the University accepts a policy with the understanding that the donor will make ANNUAL contributions equal to the premium payments, it will be based on the understanding that the annual contributions will be received by the University in advance of the due date of the premiums. The policy must have a minimum face value of $25,000. It also must be made clear to the donor that the Office of the Treasurer may allow the policy to lapse if donor contributions are not received by the premium date. Similarly, if the University is to purchase a life insurance policy based on a donor gift, the contract will not be purchased until sufficient contributions have been received. Only the Vice President for Business and Finance and the Assistant Vice President for Finance, in consultation with the Vice President for Development and University Relations, have the authority to execute these contracts.
2.6 Authorized University Agents
A gift to the University of tangible personal property may be recommended for acceptance on behalf of the University by:
3.0 Definitions [Top]
4.0 References [Top]
Gifts in Kind Policy (pdf)
5.0 Approvals and Revisions [Top]