Gift Acceptance Policy
St. Cloud State University Foundation
Gift Acceptance Policy
Foundation Board Approved 01/31/2025
Introduction
The purpose of this gift acceptance policy is to give guidance and counsel to those individuals within the St. Cloud State University Foundation, Inc. (the “Foundation”) concerned with the planning, promotion, solicitation, receipt, acceptance, management, reporting, use, and disposition of private sector gifts.
This policy must be viewed as flexible and realistic in order to accommodate unpredictable situations as well as donor expectations, as long as such situations and expectations are consistent with the Foundation’s mission, bylaws and other policies. Flexibility must be maintained since some gift situations will be complex, and proper decisions can be made only after careful consideration of all related factors. If necessary, appropriate Foundation staff and/or board committees along with legal council may require the merits of a gift be considered when applying this policy.
All fundraising activities and their day-to-day implementations, are designed, managed and must be approved by the executive director to protect the interest of the donor and to avoid an excessive number of solicitations in the name of St. Cloud State University. All philanthropic commitments to the University must be processed by and credited to the donor through the Foundation’s gift processing and data management system.
The board, through the executive committee and the executive director, is responsible for the gift acceptance policy. This responsibility cannot be delegated or waived. This policy and authorizations shall be reviewed by the executive committee on an annual basis or as circumstances warrant.
Gift Acceptance and Refusal
The Executive Director and the Board have the authority to solicit and/or accept gifts on behalf of the Foundation. Unrestricted, outright gifts or cash, check, credit card, and publicly traded securities do not require approval. Routine gifts are accepted and administered by the Foundation office, with final authority to accept routine gifts lying with the Executive Director.
The Foundation receives gifts in the form of cash, checks, and securities. Securities are received into the investment account maintained at a board-designated institution. Currently, this account is with US Bank. Gifts of securities will be receipted to the donor at the value received into the account, as of the day received.
Gift Acceptance Committee
The Foundation will have a Gift Acceptance Committee (GAC) consisting of the Executive Director, the Director of Finance and a member of the Foundation Senior Management Team. The GAC must have at least two members present (in person, by email, or zoom) in order to accept or decline a gift. The role of the GAC is to review proposed gifts of $25,000 or more. The GAC also must approve any gifts of real, tangible or intangible property, regardless of value. The committee will represent the University’s interest in evaluating the use and purpose of the gift related to the University’s mission. The GAC may also review unusual, questionable or potentially burdensome proposed gifts of any value. The GAC may, at its discretion, determine whether a proposed gift should be brought for review to the Foundation’s Executive Committee.
Gifts will only be accepted where there is charitable intent on the part of the donor. The Foundation is unable to accept gifts that are overly restrictive in purpose. The most desirable gifts are those with the least restrictions, as unrestricted funds allow the organization to address the University’s most pressing needs. Unless the board grants a specific exception, the Foundation will not accept any gifts that:
- Contain a condition that requires any action on the part of Foundation that is unacceptable to the board or St. Cloud State University administration
- Contain a condition that the proceeds will be spent by the organization for the personal benefit of a named individual or individuals
- Require the Foundation and the University to employ a specified person now or at a future date
- Inhibit the Foundation from seeking gifts from other donors
- Expose the Foundation or the University to adverse publicity, litigation, or other liabilities
- Require undue expenditures, or involve the Foundation in unexpected responsibilities because of their source, conditions, or purpose
- Involve unlawful discrimination based upon race, religion, gender, sexual orientation, age, national origin, color, disability, or any other basis prohibited by federal, state, and local laws
Noncash gifts will be accepted only when it is reasonably expected they can be converted into cash within a reasonable period of time or when the Foundation can utilize the property in its operations. Generally, one year shall be considered reasonable for conversion to cash. All noncash gifts to the Foundation will be sold at the discretion of the Foundation, whose express policy will be to convert the property to cash at the earliest opportunity, keeping in mind current market conditions and the potential use of the property in the accomplishment of the mission of the Foundation.
Property encumbered by a mortgage or other indebtedness cannot normally be accepted as a gift unless the donor agrees to assume all carrying costs until the property is liquidated. Exceptions to this guideline can be made when the value of the property exceeds the anticipated exposure, or will produce income, or will be used by the Foundation or University in its programs.
Associated expenses of a gift made to the Foundation are to be borne by the donor, unless waived by the Foundation’s executive committee.
Donors of property gifts over $5,000, except for gifts of publicly traded stock, must obtain an appraisal by an independent third-party appraiser in accordance with current tax law requirements.
To avoid conflicts of interest, the unauthorized practice of law, the rendering of investment advice, or the dissemination of income or estate tax advice, all donors of noncash gifts must acknowledge that the Foundation is not acting as a professional advisor and/or rendering opinions on the gift. All information concerning gift planning from the Foundation is to be for illustrative purposes only and is not to be relied upon in individual circumstances. The Foundation may require a letter of understanding from a donor of a property gift, along with proof of outside advice being rendered, before such a gift will be accepted.
All gifts of life insurance must comply with applicable state insurance regulations, including insurable interest clauses.
All gifts and gift considerations must meet all applicable local, state and federal laws and regulations.
Gift and Fund Agreements
The Foundation will set up a new fund to receive charitable contributions when it determines that there is a need for said fund and that minimum funding requirements have been or will be met by the donor or department seeking to establish a fund. A fund agreement will be signed and executed by the donor(s) and the Foundation when the gift commitment has terms, restrictions or conditions for the use that should be preserved. A donor and the donor’s family or designee who establishes a scholarship, award or fund may not participate in the selection of recipients or the administration of the award or fund. Final decision on the allocation of funds is the responsibility of the Foundation and/or its designees. Philanthropic gifts are given to the Foundation and are no longer the property or in control of the donor. Any donor requested modifications from the original agreement are not advised. Modification to the original agreement must be agreed to by the Executive Director and/or Foundation Board.
Per the SCSU Foundation bylaws, the Foundation reserves the right to broaden or alter the purpose of a gift, as well as gift restrictions and gift administration details, should the original purpose of the gift no longer meet the needs or serve the mission of the University or Foundation. The Foundation may exercise this right with the approval of its Executive Director and/or Board of Directors and in adherence to applicable laws and regulations.
Restricted and Unrestricted Gifts
Unrestricted gifts shall be encouraged unless:
- The donor is only willing to make a restricted gift
- The option of a restricted gift will otherwise significantly increase the chances of obtaining the donor’s gift
- The gift is solicited to address a specific need
In drafting instruments for the gift of restricted funds to the Foundation, donors and their advisors shall be encouraged to use language that would permit application of the gift to a more general purpose.
If within 30 days of gift acceptance, the SCSU Foundation or St. Cloud State University is unable to facilitate the stated gift usage, a conversation will be had with the donor about identifying alternate mechanisms to facilitate the gift. If alternative mechanisms cannot be identified, or there is not agreement with the donor, the SCSU Foundation Board authorizes the Executive Director to return the original principal of the gift to the donor.
Any gifts that fall outside of the 30-day window of gift acceptance will be handled according to stated policies and procedures of the SCSU Foundation.
Types of Gifts Marketed and Accepted
The Foundation must receive all philanthropic commitments to St. Cloud State University. Outright gifts to the Foundation shall be reported when assets are actually and irrevocably transferred to St. Cloud State University Foundation.
Irrevocable deferred gifts shall be reported as a pledge at face value. Revocable deferred gifts documented by provisions in wills or other revocable instruments shall be reported for recognition purposes only and are not treated as charitable gifts for accounting purposes until the gift is received.
For recognition purposes only, revocable gifts may be recognized in campaign totals at face value if reported separately from outright gifts and irrevocable deferred gifts.
Total fundraising progress will be the sum of all new gifts (outright and irrevocable deferred) and new pledges against a stated goal. Verbal pledges or commitments may not be counted in gift totals. Non-gift revenue will not be reported in the Foundation’s reported fundraising progress.
The following are assets accepted by the St. Cloud State University Foundation (see addendum for definitions):
- Cash and Cash Equivalents
- Publicly Traded Securities
- Closely Held Securities
- Real Estate, Mineral Interests
- Personal Property
- Gifts-In-Kind
- Deferred Gifts (include bequests through wills or living trusts, retirement plan designations, life income plans, charitable lead trusts and retained life estates)
- Charitable Remainder Unitrusts
- Unitrusts
- Charitable Gift Annuities
- Charitable Lead Trusts
- Life Insurance
- Remainder Interest in Real Property
- Retirement Accounts
- Donor-Advised and Donor-Directed Funds
- Royalties
- Alternative Assets (with GAC approval)
Administrative Expenses
The Foundation will not pay commissions or finder’s fees as consideration for directing a gift to the Foundation.
Donors are responsible for obtaining their own appraisals for tax purposes of real property or tangible or intangible personal property being given to the Foundation and for any fees or other expenses related to such appraisals.
The Foundation retains the right to obtain its own qualified appraisals of real property or tangible or intangible personal property being offered as a gift at its own expense.
The Foundation will acknowledge receipt of gifts of tangible personal or real personal property in accordance with the federal tax law and will sign any IRS form or other documents necessary for the donor to obtain a tax deduction for such gifts, so long as such acknowledgement does not entail valuing the gift.
Stewardship
The Foundation will be responsible for good stewardship toward its donors by following these guidelines:
- All gifts will be acknowledged and receipted within the required, or otherwise reasonable period of time.
- All gift acknowledgement communications or receipt letters will be prepared by the executive director or his or her designee.
- Gifts to the Foundation shall be reported in a manner consistent with industry best-practices and recommendations by financial auditors.
- Files, records, and mailing lists regarding all donors are maintained and controlled by the Foundation. Maximum use will be made of information and contacts that board members, various volunteer groups, or the staff have with donors. Written reports of interactions will be maintained in the donor’s file. Currently, this is the Raiser’s Edge database.
- This information is confidential and is strictly for the use of the Foundation board and staff. Use of this information shall be restricted to the Foundation purposes only.
- The Foundation will provide endowed fund donors with financial balances of their fund(s) on an annual basis through the endowment fund letter.
- The Foundation will update donors on the impact of philanthropy on an annual basis.
- Gifts to the Foundation and accompanying correspondence will be considered confidential information, with the exception of the publication of donor recognition societies, and/or annual listings. All donor requests for confidentiality will be honored.
- Names of donors and contact information will not be provided by the Foundation to other organizations, including the University, nor will any lists be sold, given or traded with other organizations. To facilitate stewardship of donors at appropriate levels (President’s Club of $1,000/year and above), the Executive Director has discretion to engage University officials in stewardship activities which may reveal donor names, excluding those who have requested anonymity. A donor may be listed as anonymous in Foundation publications and materials.
Professional Advice
Donors or prospective donors shall be strongly encouraged in all cases to consult with their own independent legal and/or tax advisors about proposed gifts, including tax and estate planning implications of the gifts. No Foundation representative shall provide legal or tax advice to any donor or prospective donor.
Upon request, Foundation representatives may provide to the donor sample bequest language for restricted and unrestricted gifts to ensure that a bequest is properly designated. The Foundation may also provide upon request, IRS-approved prototype trust agreements for review and consideration by the donor and their advisors. The sample nature of such language or agreements shall be clearly stated on all documents given to donors, and donors shall be advised that consultation with their own legal advisors is essential prior to use of such standard language or specimen agreements.
Confidentiality
All information about donors or prospective donors, including but not limited to their names, the names of their beneficiaries, the nature and amounts of their gifts, and the sizes of their estates will be kept confidential by the Foundation and its representatives, unless the donor grants permission to release such information. All requests by donors for anonymity will be honored, except to the extent that the Foundation is required by law to disclose the identity of donors.
Terminating a Donor Relationship
The Foundation Board has the authority to end a relationship with donors. The Foundation Board may also remove visible donor recognition such as the donor wall or website listings. Based on advice from accounting professionals and other stakeholders, the Foundation Board will also make decisions about the donation itself.
Authority
The Executive Director or their designee is authorized to enter into gift agreements, including planned gifts, on behalf of the Foundation and to execute any and all documents necessary or appropriate to consummate such agreements.
Any exception to this gift acceptance policy may be made only in exceptional circumstances, on an individual basis, and shall require the approval of the Executive Director.
This gift acceptance policy may be amended by the Board of Trustees.