Gift Acceptance Policy

Reviewed By: Anthony Evans, President
Approved By:
Reviewed By: Administrative Council on April 29, 2002
Approved By: Albert K. Karnig, President on April 29, 2002
Reviewed By: Administrative Council on May 13, 2002
Approved By: Albert K. Karnig, President on May 15, 2002
Reviewed By: Administrative Council on January 25, 2016
Approved By: President Tomas D. Morales on January 25, 2016

Source / Authority

FOR INTERPRETATION OF THIS POLICY, PLEASE CONTACT: Office of Associate Vice President for University Advancement, 909/537-5004

Policy

Overview

The Division of University Advancement at California State University, San Bernardino (CSUSB), enhances the awareness of and support for the University among its diverse constituencies.

The University Advancement staff is responsible, along with other campus units, for coordinating the University's outreach programs to alumni, the community, business and industry, the media, and private agencies. These separate but interdependent functions are carried out by offices such as Strategic Communications, Alumni Relations and Annual Giving, Special Events and Guest Services, and Development under the leadership of the Vice President for University Advancement. The University Advancement staff is committed to helping the University achieve its goals so that academic quality and service to the region can be maintained and advanced.

The Development Program

The Development Office at CSUSB strives to maintain a professional, donor-centric fund-raising program that seeks funds and gifts-in-kind to enhance the quality of CSUSB’s programs as well as the student’s educational experience. The program follows a traditional model in which fundraising activities evolve from needs and priorities established by the University’s senior leadership.

Fundraising Guidelines

Divisions and/ or departments who wish to solicit funds or property in the name of or for the benefit of the University must communicate their idea and intention to members of the University Development staff, under the leadership of the Associate Vice President for Development, prior to any approach to a specific prospect such as individuals, foundations, or corporations. This requirement, which applies to all friends, volunteer groups, intercollegiate athletic programs, as well as to student and alumni groups, is intended to protect existing relationships between donors and campus representatives and to avoid over-solicitation of any individual, corporation, or foundation. In cases where a conflict appears to exist (e.g., two different academic units wishing to solicit the same individual or organization), the Vice President and the parties involved will work together to arrive at a satisfactory solution.

The CSUSB Philanthrophic Foundation

The CSUSB Philanthropic Foundation (Foundation) was incorporated in 2011 as the charitable successor to The Foundation for California State University, San Bernardino. The Foundation is a non-profit corporation chartered solely to support, benefit and advance the mission of CSUSB. The Foundation will actively pursue opportunities to promote the University, support fundraising and build strong community relationships.

The Foundation board is comprised of volunteer directors, including community members, faculty and University leadership. The directors provide CSUSB with expertise, regional knowledge, fiduciary oversight and advocacy focused on enhancing the role of private giving in achieving the mission of the University.

Of increasing importance is the CSUSB Philanthropic Foundation's responsibility for the fiscal administration of all contributions received on behalf of the University from private citizens, companies, corporations and foundations. All monies and gifts-in-kind received into the Foundation from these sources are routed through the Development Office to provide for proper recording and acknowledgment. Funds are invested according to policies established by the Foundation Board and disbursed according to donor specifications provided that these do not conflict with Foundation and University policies.

Gift Acceptance

The Gift Acceptance Policy provides a set of standards by which gifts are reviewed, accepted, processed and receipted by the Foundation. Except for those gifts that are required to be authorized by the Gift Acceptance Committee, the Vice President for University Advancement or his/her designee, is the delegated authority to accept gifts. 

The Foundation recommends that all donors and prospective donors seek legal advice to ensure their proposed giving meets their own charitable, financial and estate planning goals. It is not within the purview of CSUSB or Foundation staff to provide legal, accounting or tax advice to prospective donors. 

The Foundation may accept unrestricted gifts and gifts designated towards specific programs, scholarships and purposes, provided that such gifts are consistent with the mission, purposes and priorities of CSUSB and the Foundation and its bylaws. 

Types of Gifts

A gift is defined as any contribution received by CSUSB for either unrestricted or restricted use in the furtherance of CSUSB’s mission that involves a transfer of money or property without the receipt of consideration or economic benefit. 

Cash – gifts may be accepted in the form of cash, checks or credit cards. The Foundation accepts the following credit cards: Discover, Visa, MasterCard and American Express. Credit card fees are at the expense of the Foundation. 

Tangible Personal Property/Gifts-in-Kind – Acceptance of all gifts of tangible personal property shall be governed by CSUSB’s Gifts-in-Kind Acceptance Procedure. The final determination on the authorization to accept tangible property gifts may be made by the Gift Acceptance Committee. 

  • Once gifts-in-kind have been valued and processed, those items will then be transferred to the appropriate stateside campus organization, depending on the gift, in partnership with the Procurement Office in the Division of Administration and Finance. This would include the Robert and Frances Fullerton Museum of Art (for works of art to be held in the museum’s permanent collection), John M. Pfau Library, colleges, divisions and the CSUSB Palm Desert Campus.
  • Gifts of Software – In accordance with the California State University Chancellor’s Office policy, for the Foundation to accept a gift of software, the donor must irrevocably transfer ownership of the property to the University. There must be no implicit or explicit statement of exchange, purchase of services, or provision of exclusive information. 

Publicly Traded Securities – Gifts of securities shall be sold upon receipt unless otherwise agreed by the Gift Acceptance Committee. In some cases, applicable securities laws may restrict the sale of marketable securities; in such instances, the Gift Acceptance Committee shall make the final determination on the authorization to accept the restricted securities. 

Closely Held Securities – Closely held securities include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms. These gifts must be reviewed prior to acceptance to determine that: 

  • There are no restrictions on the security that would prevent ultimately converting these assets to cash; 
  • The security is or will be marketable; and 
  • The security will not generate any unacceptable tax or other consequences or liabilities for CSUSB and the Foundation 
  • Upon consultation with investment advisors, efforts will be made to sell non- marketable securities to maximize return on investment. The final determination on the authorization to accept closely held securities shall be made by the Gift Acceptance Committee. 

Real Estate – The Foundation, upon authorization of the Gift Acceptance Committee and in consultation with external advisors, has authority to accept real estate gifts, either outright or in trust, and whether or not intended for prompt conversion to cash, subject to the following parameters: 

  • The title is in a form satisfactory to the University and/or the Foundation. A current (within 60 days) qualified appraisal has been received from the donor. 
  • The donor confirms that the donor is not under any legal obligation to sell or otherwise convey the property to a third party. 
  • The donor confirms that the donor is not aware of any leases, easements, encumbrances, or other restrictions that would decrease the value of the property. 
  • A review of the history of the property, known occupants and a site inspection conducted by a qualified business reveals no uses, conditions or circumstances that suggest the existence of environmental or other risks that warrant obtaining an external assessment of environmental or other risks. 
  • If the review performed in the preceding paragraph notes the potential existence of environmental risks, a Phase I environmental impact study is conducted and the results of that study conclude the property does not present an unacceptable level of environmental risk. 
  • Donor has acknowledged and concurred regarding any holding or other administration costs that may be deducted from the sale of the property before the net proceeds are distributed in accordance with donor restrictions. 
  • Donated real property may be sold or otherwise conveyed at fair market value, consistent with any gift restrictions and upon concurrence by the University President’s designee. Generally, donated property will be sold at the first opportunity. 

Gifts of real estate are limited to the following:

  • Donated real property that may be sold or otherwise conveyed at fair market value; 
  • Donated real property that generates an income stream to support the educational mission; and, 
  • Donated real property used for programmatic purposes. 

Remainder Interests in Property – The Foundation may accept a remainder interest subject to the provisions herein. Where the Foundation receives a gift of a remainder interest, all expenses for maintenance, insurance, real estate taxes, other carrying costs, and any property indebtedness are to be paid by the donor or primary beneficiary. 

Mineral, Oil, and Gas, (MOG) Interests – The Foundation may accept oil, gas and mineral property interests, when appropriate. Prior to acceptance of an oil, gas and mineral interest the gift shall be authorized by the Gift Acceptance Committee, and if necessary, by appropriate legal counsel and external advisors. Criteria for acceptance of the MOG interest shall include: 

  • Gifts shall have specified minimum values and yearly income. 
  • A review of the history of the property, known occupants and a site inspection conducted by the Division of Administration and Finance (or designee), reveals no extended liabilities or other considerations that make receipt of the gift inappropriate. 
  • A working interest is rarely accepted. A working interest may only be accepted where and when there is a plan to minimize potential liability and tax consequences. 
  • The property must undergo an environmental review to ensure that neither CSUSB nor the Foundation has any current or potential exposure to environmental liability. The cost of this review may be paid by the donor(s) or the Foundation, subject to negotiation at the time of gift review. 

Bargain Sales – The Foundation may enter into bargain sale arrangements. All bargain sales, including the source of funds to complete the sale, must be reviewed and recommended by the Gift Acceptance Committee and approved by the Foundation board, as appropriate. 

Life Insurance – The Foundation must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. A gift of a life insurance policy will not be accepted unless there is a clear and enforceable plan for payment of future premiums. 

Charitable Gift Annuities – The Foundation’s gift annuity program is administered through The CSU Foundation. The CSU Foundation uses rate tables prepared by the American Council on Gift Annuities, a national non-profit organization. Annuity rates are determined by the age of the annuitant(s). The minimum age of annuitants is fifty-five years of age at the time income payments begin. 

Charitable Remainder Trusts (CRT) – The Foundation may accept designation as Trustee of a CRT with the approval of the Gift Acceptance Committee if at least 50 percent of the trust remainder is designated irrevocably to the Foundation. If less than 50 percent the delegated authority for the Foundation may accept a designation as a beneficiary for a CRT. 

Charitable Lead Trusts (CLT) – The Foundation may accept a designation as income beneficiary of a CLT and may accept an appointment as Trustee of a CLT on a case-by-case basis as approved by the Gift Acceptance Committee. 

Retirement Plan Beneficiary Designations – Donors and supporters of CSUSB may name the Foundation as beneficiary of a retirement plan. Such designations will be recorded as a gift expectancy to CSUSB at the present value. 

Bequests – Donors and supporters of CSUSB may make bequests to the Foundation through wills and trusts. Such bequests, revocable or irrevocable, will be recorded as a gift expectancy to CSUSB at the present value. 

The Foundation will not accept gifts that are determined to be too restrictive in purpose. Gifts that conflict with the terms of the Foundation’s charter, gifts that are too difficult or costly to administer, gifts that are for purposes outside the mission of CSUSB or those that diminish the academic integrity of the institution will not be accepted. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be directed to the Gift Acceptance Committee. 

The Foundation Gift Acceptance Committee shall consist of: 

  • The Vice President of University Advancement (chair) 
  • The Vice President for Administration and Finance 
  • University Provost 

The committee is responsible for authorizing the acceptance of gifts that fall outside the purview of standard Development operations. Examples of such gifts may include: 

  • Outright gifts of real property or an interest in real property 
  • Gifts that require construction/renovation of facilities not previously authorized by the University 
  • Gifts of real property when a bequest is realized 
  • Gifts of personal property with a fair market value exceeding $5,000 if not to be used by the University in accordance with the educational mission 
  • Gifts of artwork, archives, literary collections, historic papers and other creative gifts, other than those accepted with the intent to market and convert to cash. (The Art Acquisition committee will recommend to accept/not accept works of art to the gift acceptance committee.)

Fundraising Expenses

A percentage of all undesignated income is identified each year to promote the success of the Development program. In an effort to secure a permanent and reliable source of funding for the University's development and related programs, all private gifts received by the Foundation are required to provide a one-time amount equivalent to five percent (5%) of the principal of the total gift. These monies are directed to a dedicated fund to support campus-wide University Advancement and Development efforts. The Vice President of University Advancement and/ or the AVP for Development may choose to waive or reduce the fee in the best interest of CSUSB's University Advancement program.

Annual Review

The Gift Acceptance Policy will be reviewed by University Advancement every year to determine if any amendments are needed to reflect changes in law or to address new scenarios not referenced above.