2.21 Gift Acceptance Policy

Central Piedmont Community College ("the College") seeks and values philanthropic support to help achieve and deliver exceptional student learning, success, and completion; maintain and grow its dynamic faculty; and enrich its thriving communities.

Contents

Statement of Purpose/Introduction

The College Gift Acceptance Policy has been developed for the purpose of providing:

  1. complete and accurate reporting of gifts and pledges
  2. guidance for compliance with IRS regulations and best practices
  3. guidance for persons involved in gift solicitation, acceptance, recording, and management for the College

The Gift Acceptance Policy ensures that gifts:

  1. are appropriate to the mission and needs of the College
  2. impose no undue financial burdens on the College
  3. if restricted, are written in a manner that maximizes their usefulness to the College, and include language that permits the College to apply the gift to a related purpose in the event that the designated purpose is no longer practical, necessary or able to be performed.

The Gift Acceptance Policy applies to the College and the Central Piedmont Community College Foundation, Inc., a North Carolina nonprofit corporation described in Internal Revenue Code section 501(c)(3) (“the Foundation”).

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Gift Acceptance Committee

The Gift Acceptance Policy outlines specific types of gifts that can and cannot be accepted, however there are often gifts which should be considered by a committee to determine acceptability and to ascertain the appropriate dollar value for counting and recognition purposes.

The Gift Acceptance Committee (the “GAC”) may be convened by the Vice President of Institutional Advancement if a specific gift constitutes an exception to the standards as outlined by the Gift Acceptance Policy. The GAC will endeavor to promptly review the information presented and respond in a timely manner. Reasonable effort will be made among the members of the GAC to reach a consensus on actions and recommendations. Should the GAC be unable to reach consensus, a vote will be taken and the majority position will be the Committee’s recommendation to the College President.

The GAC will review all gifts of significant risk. All such gifts shall be documented by a written agreement and must be approved by the GAC before accepted.

Gifts of Significant Risk include but are not limited to:

  • non-publicly traded securities
  • gifts of real property
  • gifts of tangible personal property if not to be used by the College
  • gifts of real or tangible personal property subject to donor restrictions
  • regarding the disposal of such property
  • bargain sales of property
  • gifts with significant donor restrictions, including endowments
  • gifts of unusual items or gifts of questionable value

The GAC shall consult with legal counsel as deemed necessary.

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Gift Solicitation & Acceptance

The Foundation is the chartered body specifically established and authorized to accept gifts from private sources for the benefit of the College. Gifts donated are not held by a single individual, department, or administrative unit, but by the Foundation or the College. References in this Gift Acceptance Policy to the College or the Foundation shall apply to both entities unless otherwise specified.

The Office of Institutional Advancement (“Advancement”) can accept all philanthropy on behalf of the Foundation, provided such gifts are in alignment with the Gift Acceptance Policy. Charged with overseeing fundraising activities, Advancement develops and maintains positive relationships throughout the College's broad range of constituents in order to encourage and facilitate financial support of the College's mission.

Employees involved in the activity of seeking and securing gifts are guided in their work by adherence to the "Donor Bill of Rights", the principles of ethical conduct as put forth by the Association of Fundraising Professionals (AFP), and the Standard of Ethics as put forward by the Council for the Advancement and Support of Education (CASE).

The College, the Foundation, and Advancement do not provide legal, accounting, tax, or other advice to prospective donors. Each prospective donor should be urged to seek the advice of independent legal counsel in the gift planning process.

Advancement oversees data management to ensure accuracy and completeness of gift records in accordance with state and federal requirements.

For gifts that seek naming rights, refer to College policy 2.07 and consult the Office of Institutional Advancement.

Unless otherwise permitted by the Vice President of Institutional Advancement or his/her designee:

  • No general or group solicitation of funds may be undertaken by any individual, department, or division on behalf of the College.
  • No approach outside of approved funding priorities may be made to a donor, whether an individual, foundation, corporation, federation, association, other donative entity, or to grant-making entities.
  • No fundraising consultants, individuals or firms will be hired to work on behalf of the College or any center, program, or division of the College.
  • No information regarding donor gift histories, lists of donors, and all related materials will be disclosed to others. Requests for donor information from the President, Vice Presidents, Provost, General Counsel, and College auditors or tax return preparers as required by law are exempt from this formal approval process.
  • No staff, faculty or College representatives are permitted to take possession, accept, or receive gifts (tangible or otherwise) on behalf of the College.

Advancement will accept only gifts and grants that are consistent with the core education values of the College and are:

  • compatible with the missions of the College and of its individual programs;
  • in compliance with the Internal Revenue Code (the "IRC") and other federal statutes, regulations, rulings, or relevant court decisions; and
  • in compliance with North Carolina statutes and other regulations that stipulate the conditions under which contributions can be given and received.

Unless a specific exception is granted by the GAC, Advancement will not accept any gift that:

  • violates any federal, state or local statute or ordinance;
  • creates a fund to provide for programmatic support, scholarships, fellowships, professorships or lecture series with restrictive clauses that could cause embarrassment to the College, or that reserve to the donor or his/her representative the right to designate the use of funds or recipient(s);
  • contains a condition that requires any action on the part of the College that is unacceptable to College administration;
  • commits the College to name a fund where the gift is potentially revocable;
  • requires the College and its administration to employ a specified person at a future date;
  • contains unreasonable conditions (i.e., a lien or other encumbrance) on gifts of partial interests and property;
  • requires admission to the College or tuition payments for the donor or a family member of the donor;
  • exposes the Foundation or College to potential litigation or other liabilities;
  • requires the payment of maintenance costs or other expenses (e.g. debt service) for which no specific provision has been made;
  • generates unrelated business income tax; or
  • appears to be financially unsound.

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Gift Documentation & Recording

Gift records are confidential and may only be accessed or disclosed to employees who need to know the information in order to perform their respective job duties.

All gifts, pledges, and bequest distributions to the College will be recorded in accordance with relevant Financial Accounting Standards Board (FASB) or Governmental Accounting Standards Board (GASB), Council for Advancement and Support of Education (CASE) Guidelines, and the pledge rules and procedures prescribed by Advancement.

Gifts will be recorded by donor and purpose. Counting conventions for purposes of reporting fundraising results, including Designation Pending gifts, may differ from conventions used in the audited financial statements. Therefore, the Vice President of Finance and the Vice President of Institutional Advancement will designate representatives to develop procedures to reconcile these respective reports and statements on at least a quarterly basis. Gifts to the College require written documentation before being "counted" toward college fundraising goals.

Pledges are established for a payment period of five years or less from signing. The Vice President of Institutional Advancement or his/her designee in consultation with the President may make exceptions for large or unusual gifts, at the specific request of a donor, or under other extenuating circumstances at his/her discretion.

Pledge commitments must be written, signed by the donors, and include the amount of the pledge, the pledge period, the date of the first payment, and the frequency of payments. In addition, the written pledge must contain a statement of the gift's designation, purpose, and any restrictions.

Other acceptable documentation:

  • deeds or other forms of conveyance or assignment
  • insurance policy conveyance or assignment
  • completed wills, excerpts therefrom or by completing a bequest intention form
  • revocable and irrevocable trust agreements in which the College is named beneficiary
  • copies of electronic correspondence from the donor confirming pledge
  • commitments made via personal conversation with a development officer
  • endowment and/or restricted gift fund agreements signed by the College and the donor

Gifts directed to be added to an endowed fund or to be used to create an endowed fund will use the current "spending rate" authorized by the Foundation Board of Directors for a given fiscal year. Endowed funds must be fully endowed within 5 years plus a 5 year sliding rule from the last scheduled date of pledge payment.

Pledge payments made with a gift of an asset that cannot be easily converted to cash-such as real estate or closely held securities- may pay on a pledge but require additional review before recording.

A donor's pledge cannot be paid in the gift system with a payment by a third party such as a community foundation, donor-advised fund, or matching gift. Any exceptions must be approved by the Vice President of Institutional Advancement.

Central Piedmont (Annual) Fund pledges that are not fulfilled within the agreed upon time period are marked as un-honored commitments. Major gift pledges that are not fulfilled within the agreed upon time period must be reviewed by the Vice President of Institutional Advancement in consideration of any applicable fund agreements signed by the donor and the Foundation. In the absence of such an agreement, if the gift total does not reach the specified level and the gift in question does not meet the minimum level to endow a fund within five years from the date of commitment, the College or the Foundation, as applicable, will make a reasonable effort to spend the gift in a manner that is consistent with the gift's documented purpose and on a schedule determined by the College or the Foundation, as applicable.

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Types of Gifts and Valuation of Gifts

Gifts to the College with the exception of government grants, are processed through the Office of Institutional Advancement and managed by the Foundation. In all cases gifts should be made as payable to the "Central Piedmont Community College Foundation."

A. Cash or Cash Equivalent
Cash gifts include cash and cash equivalencies including checks, credit cards, EFT, wire transfers, and payroll deduction. Gifts may be delivered in person, by mail, by Electronic Funds Transfer (EFT), or by wire transfer. Cash gifts are complete on the date the cash is provided physically to a representative of the Foundation or a College designated representative. Gifts by cash or cash equivalents will be credited at full face value.

B. Cryptocurrency
All cryptocurrency gifts will be reviewed and accepted upon approval by the GAC. It is the policy of the College that all cryptocurrency contributed to the Foundation will be converted to U.S. Dollars as quickly as practicable. The College does not accept gifts of cryptocurrency from anonymous donors but will permit donors to request anonymity in publications or gift announcements.

For tax purposes, cryptocurrency is treated as property. In order to be tax deductible, the IRS requires the donor of a gift valued at more than $5,000 to obtain a qualified appraisal and file an IRS Form 8283 completed by the qualified appraiser and signed by the donee of the gift; however, it is the responsibility of the donor to obtain the appraisal and the Form 8283.

Upon the sale or other disposition of a gift of cryptocurrency within three years of the date of receipt of the gift, a Form 8282 must be filed with the IRS and a copy of the Form 8282 provided to the donor indicating, among other things, the date of sale or other disposition of the item and the sale price if a Form 8283 was required because the value of the gift was more than $5,000.

C. Publicly Traded Securities
The College will accept marketable securities as outright gifts or payments toward pledges or life income gifts. Such gifts will be valued at the mean market value on the date of the gift, in accordance with IRS regulations.

Acceptable forms of public securities include: stocks, municipal and corporate bonds, treasury bills and notes, warrants, and stock options that are:

  • listed on an exchange in which quotations are published daily;
  • regularly traded in national or regional over-the-counter markets for which published quotations are available; or
  • shares of a mutual fund for which quotations are published on a daily basis in a newspaper of general circulation throughout the United States, will be accepted as outright gifts or payments toward pledges.

The value of securities is determined on the recognized gift date, which is established when the donor relinquishes control of the securities. The average of the high and low trading prices on the gift date determines the value of securities for recording and reporting purposes.

D. Closely Held Businesses or Securities (non-public)/Tangible Personal Property/Gifts-in-Kind
The Foundation will examine any gift of property that is not publicly traded securities prior to its acceptance as a gift and may decline a gift of such securities if it deems them difficult to value or not easily marketable. Securities not traded on an exchange or over the counter and gifts of interests in closely-held businesses (S Corporations, partnerships, or limited liability companies) may only be accepted at the discretion of the GAC. Any restrictions sought by a donor on the disposition by the College of such securities must receive specific approval of the GAC. It is the practice of the Foundation to dispose of gifts of closely held securities as promptly as feasibly possible.

The College may consider gifts of other personal property and tangible personal property (often used interchangeably with "gifts-in-kind"), including but not limited to works of art, antiques, automobiles, boats, stamp and coin collections, jewelry, furniture, rare books, manuscripts, or any other item that has a determinable value.

Before accepting gifts that would cause significant facilities and installation issues, the President of the College must be consulted.

The Vice President of Institutional Advancement or his/her designee in alignment with the Vice President of the appropriate department(s) receiving the property may approve the acceptance of such contributions only after an internal review indicates that the property is either readily marketable or needed by the College. Only after internal review and approval by Vice President of Institutional Advancement or his/her designee can the property be received by a College representative.

The IRC and underlying regulations limit a donor's deduction for a gift of tangible personal property to the donor's basis if the property's intended use is not related to the Foundation's tax-exempt purpose. In the case of gifts of tangible personal property unrelated to the Foundation's tax-exempt purpose, it is the practice of the Foundation to sell or otherwise dispose of such gifts of personal property. The intention to sell or retain the property shall be communicated to the donor in writing at the time of the gift and recommend that the donor seek outside tax advice regarding the amount of the donor's income tax charitable deduction for the gift. The College reserves the right to dispose of the tangible gifts at any time, in accordance with law, unless otherwise agreed to with the donor.

Gifts of property of $5,000 or more require an independent appraisal of fair market value obtained by the donor for tax purposed. All gifts of tangible personal property of $500 or more also require the completion of IRS document 8283. The Vice President of Institutional Advancement or his/her designee will be responsible for signing form 8283 for gifts of Tangible Personal Property of $5,000 or more on behalf of Central Piedmont.

Upon the sale or other disposition of gifts-in-kind within three years of the date of receipt of the gift, a Form 8282 must be filed with the IRS and a copy of the Form 8282 provided to the donor indicating, among other things, the date of sale or other disposition of the item and the sale price if a Form 8283 was required because the value of the gift was more than $5,000.

If the donor does not supply a value, someone in the receiving department who has knowledge of the general type of item may provide a value for internal purposes only. This substantiation of value can also be provided by other experts or other process as defined by IRS publication 561. Internal values of donated items are not to be shared with donors unless included in external audit reports.

The Foundation is able to accept gifts-in-kind only if the following conditions apply:

  • The gift shall not require of the College to commit significant additional expense for its present or future use, display, maintenance, or administration.
  • The gift shall not commit the College to any financial or other burdensome obligation, either directly or indirectly.
  • There shall be no expectation, understanding or condition that gifts such as books, paintings, or other tangible property will be loaned back to the donor or his designee for life or for extended periods of time determined by the donor.

E. Real property
The Foundation may accept gifts of real property, both improved and unimproved, only after review and approval by the GAC in consultation with legal counsel where deemed appropriate. Real estate gifts can include personal residences, rental properties, office buildings, land, leasehold interests and other structures. Such gifts may be outright gifts, installment sales, or part of a charitable life-income plan. As real estate can be costly to maintain until liquidation and can have pre-existing conditions attached to it, any offer of real estate will be carefully scrutinized and information gathered on the property will be provided to the GAC before acceptance by the Foundation. Due to the expenses associated with gifts of real estate, only gifts valued in excess of $25,000 will be considered. A proposed gift of real estate valued under that amount will be evaluated individually. The Foundation does not accept gifts of time share interests. In most cases, gifts of real property are deeded to the Foundation to be held on behalf of the College.

A potential contribution of real property requires a thorough evaluation of the condition and characteristics of the proposed gift before it is formally accepted. The donor must provide a legal description and location of the property; copies of all relevant and available information about the property including evidence of clear title; zoning restrictions; a copy of the most recent appraisal, if available; and information concerning any environmental problems on the property including the most recent environmental assessment if available. In some instances, the Foundation will commission an environmental assessment and appraisal of the property for its own use before accepting the gift.

The GAC may require the following items in order to review a gift of real property:

  • basic information from county tax assessor's office (PIN, tax history, etc.)
  • a preliminary title report clear of unacceptable encumbrances, performed by a reputable title insurance company
  • current plot or survey
  • an appraisal by a qualified, independent appraiser (MAI preferred)
  • a phase one environmental audit indicating that ownership will not expose the Foundation to environmental liabilities (the GAC may waive the phase one requirement for non-farm residential properties)
  • a market feasibility study for purposes of liquidation
  • an on-site evaluation by member of GAC
  • evidence of compliance with ADA (when applicable)
  • a structural engineering report (when applicable)
  • a review of leases (for commercial properties)
  • a disclosure statement for residential properties (when applicable)
  • substantiation of zoning status

Unless waived by the GAC, it is the responsibility of a donor to cover all the costs involved in an environmental impact study, title search and any other related studies.

It is the responsibility of the Foundation to determine the liabilities associated with the
acceptance of any gift. A site inspection may ascertain the probable potential for
environmental risk. Unless otherwise waived, the GAC requires that an outside technical consultant be engaged to complete a Phase I Environmental Site Assessment report, as a minimum, for each property contributed to the Foundation.

Depending on the value and desirability of the gift and other factors, the donor may be
asked to pay for all or a portion of the following:

  • Costs of environmental remediation;
  • Title insurance;
  • Survey costs;
  • Real estate broker's commission and other costs of sale; and
  • Appraisal costs.

Property must have a "clear and marketable" title. Easements and/or restrictions must be disclosed (and acceptable to the College). Title to property contaminated with hazardous waste will not be accepted. Exceptions must have the unanimous approval of the GAC or Presidential approval.

The marketability of a property must be considered before a gift is accepted. The cost to hold the property for sale is important in deciding whether or not to accept the gift. Carrying costs may include property taxes, mortgage payments, maintenance, insurance, and association or membership fees. Unless otherwise agreed to by the GAC, the carrying costs shall be borne by the donor through additional contributions to the Foundation until the donated property is sold. All direct expenses related to outright gifts of real estate will be charged to the project, and only the net proceeds will benefit the gift purpose.

No financial or other burdensome obligation or expenses shall be incurred directly or
indirectly by the Foundation or the College as a result of a gift of real property without the prior approval of the GAC.

The basic practice of the Foundation is to sell all gifts of property as soon as advantageous. The GAC or its approved designees are responsible for the sale or disposal of property on behalf of the Foundation. The donor may assist in locating a buyer for the property, but under no circumstances should the donor have established a marketing or sales agreement with any agent or principal, nor should the buyer have a signed sales agreement on the property prior to the gift. The Foundation will seek to obtain the best possible price to meet its fiduciary responsibility to the Foundation, the College, and the donor. In most cases, the Foundation will receive a copy of the donor's appraisal utilized to establish the fair market value of the contributed property. This appraisal will aid the establishment of a market price for the property.

Gifts of tangible property of $5,000 or more require an independent appraisal of fair market value obtained by the donor for tax purposed. All gifts of tangible personal property of $500 or more also require the completion of IRS document 8283. The Vice President of Institutional Advancement or his/her designee will be responsible for signing form 8283 for gifts of Tangible Personal Property of $5,000 or more on behalf of Central Piedmont.

F. Remainder Interests in Property
The Foundation will accept a remainder interest (with a retained life interest) in a personal residence, farm, or vacation home or property subject to the provisions of the above section on real estate. The donor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the life tenant, the Foundation may use the property or reduce it to cash. Where the Foundation receives a gift of the remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary and should be addressed in a separate agreement with the donor. All gifts of such remainder interests shall be made only in accordance with the acceptance procedures set forth above for gifts of real estate.

G. Intellectual Property
The Foundation may accept gifts of intellectual property that can be used in furtherance of the College's purposes or provide a source of funds to the Foundation to further its purposes. Intellectual property, which is not tangible, but consists of certain rights or privileges, includes, but is not limited to, inventions, patents, copyrights, and trademarks. After review of a potential gift of intellectual property, the GAC will determine if the property would be retained for use by the College, sold, or otherwise monetized through a shared licensing or other arrangement for the benefit of the Foundation. The Foundation's intention to obtain value for the property and use the proceeds to further its charitable and educational purposes shall be communicated to the donor in writing at the time of the gift.

H. Bargain Sale Arrangements
A bargain sale is a sale of property for less than its fair market value. A bargain sale may be utilized when the donor wants to maximize the charitable deduction, and the donor needs some funds or an installment income stream from the sale. If the property or item is desired by the Foundation or the College, a bargain sale is one means to acquire the property that may be advantageous for the donor and the College. A gift of this type must be reviewed by the GAC before acceptance.

In addition to the procedures set forth generally in the procedure for the type of property being purchased, factors used in determining the appropriateness of the transaction include:

  • The Foundation must obtain an independent appraisal substantiating the value of the property (in addition to any required appraisal that must be obtained by the donor to substantiate the donor's federal income tax charitable deduction).
  • If the Foundation assumes debt with the property, the debt ratio must be less than 50 percent of the appraised market value.
  • The Foundation must determine that it will use the property, or that there is a market for the sale of the property, allowing sale within 12 months of receipt.
  • The Foundation must calculate the costs to safeguard, insure, and expense the property (including property tax, if applicable) during the holding period.

I. Bequests and Estate Distributions
Gifts received by the Foundation through an individual's estate plan may involve a devise by will (commonly called a bequest) or a distribution from a trust. Bequests should be directed to the Foundation. Distributions from estates and trusts received by the Foundation will be credited toward the purposes set forth by the relevant documents. The Foundation should obtain a copy of a bequest designation to ensure that the devise is properly described and directed.

In many cases the Foundation is not aware of a bequest or trust distribution until notice is received from the personal representative or trustee of a deceased donor. In some cases, it may be best for the Foundation to disclaim a bequest or distribution upon institutional concerns of liquidity, marketability, holding costs, environmental contamination, liability, or the existence of unacceptable conditions or restrictions pertaining to the utilization of the funds. If the bequest involves securities, real estate, or personal property, the GAC will follow the appropriate guidelines for acceptance of those items.

If the Foundation is the recipient of undesignated bequests, these gifts will be deemed
unrestricted and therefore will be utilized in order to address the greatest needs of the
College. Whenever possible, unrestricted Major Gifts, as defined in Appendix A, received from estates or trusts will be invested with Foundation endowment funds at the recommendation of the GAC and the approval of the Vice President of Institutional Advancement. Gifts that do not qualify as a Major Gift may be allocated at the discretion of the Vice President of Institutional Advancement.

While it is customary that no College staff member serve as Executor, Personal
Representative, or Successor Trustee for an estate of an individual not related to him/her and of which the College or Foundation is the beneficiary, in select cases where the College or the Foundation is the sole beneficiary, the GAC may permit a College representative to serve in these roles on the condition that a qualified and appropriate outside counsel or agent will be secured to provide all necessary services.

During the probate of estates containing a devise to the Foundation or College and during the post-death administration of revocable trusts containing dispositive provisions benefiting the Foundation or College, the Vice President of Advancement, or his/her designee, in consultation with legal counsel, shall represent the Foundation in dealings with the attorney and personal representatives of the estate.

J. Life Insurance Gifts
The Foundation will accept whole life policies, either new, partially paid-up or fully paid-up policies. Term insurance policies provide few options if the donor is unable to continue paying the premiums and therefore ownership of the term life insurance is not accepted by the Foundation unless otherwise approved by the GAC.

In instances where donors of non-paid-up policies discontinue making gifts that satisfy
premium payment requirements, the GAC retains the option of cashing in the policy or
continuing premium payments from other Foundation assets if circumstances warrant.

K. Corporate Matching Gifts
Gifts received in cash from organizations or corporations to match gifts of cash or securities by individuals associated with the organization or corporation will be credited to the individual donor's gift record (soft credit) and allocated to the same purpose of the donor's gift, unless corporate rules specify otherwise.

L. Donor Advised Funds
The Foundation will accept grants from a Donor Advised Fund (the “DAF”).

The grant does not entitle the adviser or any other person to an income tax
charitable deduction or other impermissible benefits (e.g., tuition, membership fees with more than incidental benefits, dues, or admission to events).

M. Additional Gift Types
Charitable Remainder Trusts (CRT): the establishment of such an irrevocable trust at the College or at another trust institution where the Foundation is the irrevocable remainderman will be credited at the fair market value of the assets received. A minimum gift value of $100,000 must be met. Remainder beneficiaries may include other charities, as long as the Foundation or College entity collectively receive no less than 50% of the remainder.

Charitable Lead Trusts (CLT): Income produced by a charitable lead trust (CLT) for the
benefit of the Foundation may be restricted by the donor and designated in accordance with policies established for any other contribution. The Foundation does not serve as trustee of CLTs. Any exception to this policy must be approved by the GAC.

Charitable Gift Annuity (CGA): a gift annuity may be funded with a gift of cash or securities. Gift annuities are governed by state regulation. The Foundation will issue gift annuities in compliance with appropriate regulations. A minimum gift value of $100,000 must be met.

Individual Retirement Account (IRA) Gifts: a charitable IRA rollover, or qualified charitable distribution (QCD), has been permitted by the IRS to allow certain donors to exclude from taxable income certain transfers of Individual Retirement Account (IRA) assets that are made directly to public charities, which would include the Foundation. An IRA Qualified Charitable Distribution can be given through the office of Advancement in coordination with the planned giving officer. 

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Gift Acknowledgement

All gifts to the College or the Foundation are acknowledged in writing. Acknowledgements may be delivered electronically at the donor's request or according to College practice.

The Foundation’s receipt for gifts of cash is provided to donors to establish the receipt of a gift for tax purposes. A confirmation of gifts of "publicly traded securities" stating the date of the gift, the securities being donated, and the number of shares of said security will be sent to the donor. Gift acknowledgements for gifts-in-kind will include a description/name (type) of gift-in-kind and the date received. No stated dollar value will be included on the acknowledgement letter for gifts-in-kind. The letter will also indicate if any goods or services were provided to the donor in return for the gift, and a good faith value of such goods or services.

In all cases other than gifts of cash or cash equivalents it is the responsibility of the donor to secure independent expert appraisals, if required by law, to establish the valuation of the gift for tax purposes. The College, as donee, is not regarded as "independent" by the Internal Revenue Service. It is the policy of the Foundation not to pay for appraisals unless the appraisal is for the benefit of the College.

Receipts will not be issued for gifts of service. (Service is not recognized by the Internal Revenue Service as a constituting a gift.) Recognition for service is determined at the discretion of the Vice President of Institutional Advancement. 

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Refunds

It is the practice of The College Office of Institutional Advancement that charitable gifts
received by the Foundation shall not be returned to the donor, except in the following limited circumstances:

  1. A payment to the Foundation which is clearly made in error, such as (A) an
    erroneous duplicate payment, or (B) a payment in which the donor clearly intended to make to another individual or entity. Payments within this category will be returned to the donors upon the approval of the Vice President of Institutional Advancement.
  2. The Foundation is required under a legally binding contract to refund a charitable gift to the donor. The classic example is a circumstance under which a donor makes a charitable gift to a charitable organization to construct a building, and the building is never constructed, and there is a provision in the applicable binding contract which requires the charitable organization to return the funds to the donor. Returns to a donor that meet the criteria of this category will be processed upon approval by the Vice President of Institutional Advancement and the President. Legal counsel advice will be sought as necessary.
  3. A court orders the Foundation to refund the gift to the donor (or to transfer the fund to another charitable organization), in a court proceeding in which the Office of the Attorney General of North Carolina has been given an opportunity to be heard. Legal counsel will consult with the Board of Directors of the Foundation as necessary, in connection with any gift which may become, or which becomes, the subject of such a court proceeding.
  4. The GAC has reviewed the request and supporting documentation and has
    made a determination that the refund of a gift is the most appropriate course of action. This decision should take into account the legal, financial, and donor relations implications to the College and the Foundation.

Foundation staff and management shall consult with legal counsel, as necessary, as to the tax reporting obligations, if any, with respect to a returned payment or gift. The donor should also be made aware of potential tax reporting obligations and informed that they should seek their own advice / counsel. 

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Return of a Gift

The College may return a gift to the donor if the GAC determines that the gift could cause damage to the College's reputation, standing or integrity through its association with the donor or by using the gift for its intended purpose. Any member of the GAC may bring forward to the GAC a recommendation to review a previously accepted gift that they deem to be potentially problematic. Reasonable effort will be made among the members of the GAC to reach a consensus on actions and recommendations regarding the disposition of a potentially problematic gift. Should the GAC be unable to reach consensus, a vote will be taken and the majority position will be the Committee's recommendation to the President, who is ultimately responsible for the acceptance of all gifts to the College. 

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Responsibilities

The responsibilities of each department or employee of the College in connection with this Gift Acceptance Policy are as follows:

  1. Development officer and other College representatives involved in cultivation and solicitation must follow procedural clearances for fundraising. AIl development officers, vice presidents, deans, assistant deans, and faculty who are so involved must:

    1. read and understand the Gift Acceptance Policy and related policies
    2. report gifts and pledges promptly
    3. route checks and other monies to Advancement Services promptly
    4. understand and use gift and pledge recording forms and systems
    5. understand and use prospect tracking systems to maintain accurate and timely prospect status and tracking
  2. Departments, Centers, Institutes, Libraries, and other Academic Units:
    1. Director, Department Head, or Dean to communicate the Gift Acceptance Policy and related policies to faculty and staff (an annual distribution is recommended)
    2. establish appropriate review procedures to ensure compliance with the Gift Acceptance Policy
    3. Follow guidelines and procedures set forth by the Office of Institutional Advancement.
  3. College/GAC
    1. recommendations for gift policies and acceptance are the responsibility of the GAC
    2. final responsibility for acceptance of all the gifts rests with the President
  4. Institutional Advancement Vice President
    1. Valuation of gifts
    2. Developing due diligence procedures and conducting due diligence for accepting gifts and real property
  5. Advancement Services
    1. Gift recording, recognition and accounting
    2. Recommendations regarding the minimum funding levels and naming opportunities
    3. Updating appendices to the Gift Acceptance Policy as necessary 

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Appendix: Definitions

Administrative Fee: to the extent permitted by law, the Foundation reserves the right to levy an administrative fee on endowment accounts or restricted gifts, where appropriate, pursuant to its policies in effect at the time the fee is to be charged.

Bequest: a gift through an estate or trust.

Designation Pending: a term used to describe a gift that is held in a temporary fund while discussions continue with the donor to determine the purpose for which the gift may be used. Designation pending may also be used to hold a gift prior to a College decision as to usage. A gift in designation pending for more than two years will revert to general institutional purposes unless specific arrangements have been made with the donor and the GAC has approved.

Donor Advised Fund: a separately identified fund or account that is maintained and operated by an external IRC section 501(c)(3) organization, which is also known as a sponsoring organization. Each account is composed of contributions made by individual or other donors. Once the donor makes the contribution, the DAF has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. The legal donor is the DAF making the contribution to the Foundation, and the person advising is known as the adviser.

Endowment: a fund that is not wholly expendable by the Foundation on a current basis under the terms upon which the fund was established. The minimum required to establish an endowed fund is established by GAC and may be updated from time to time. The fund is invested "in perpetuity" and a portion of the fund's earnings, based on the spending policy approved by the Foundation Board of Directors, is available to support the fund's purpose. The Foundation may charge an administrative fee on endowment funds.

An endowment may be restricted or unrestricted as follows:

  • unrestricted endowment: an endowment fund from which earnings may be applied at the discretion of the College
  • restricted endowment: an endowment fund which earnings may be applied only for a specific purpose, such as scholarships or programs

Expendable Fund: This Fund is not an endowment and will be spent on a current basis in accordance with the terms set forth in the fund agreement or applicable gift instrument. A named expendable fund can be established for a minimum gift amount determined by the GAC, which may be updated from time to time. Fund agreements are written for named expendable funds. A donor may make additional gifts to the fund; however, when the money in the fund is fully depleted, the fund will terminate. The Foundation is not required to account for any short-term earnings which may
result from investment of the fund, and any such earnings may be used to benefit the general fund of the College.

Gift: a voluntary, irrevocable transfer of cash or other assets to the College without
consideration of compensation at the time of transfer or any time in the future.

Gift-in-Kind: an irrevocable non-cash contribution of tangible property. It may consist of, but is limited to, equipment, art, books, collectibles, antiques, or other tangible property.

Grant: an allocation of assets to the College from a foundation, corporation, or government agency. Usually, a grant is made for a specific purpose, for a defined period of time, and delineated by a formal agreement between the College and the donor. It is usually subject to reporting requirements.

Major Gift: a major gift is a gift of $25,000 or more from an individual, organization, foundation, or corporation.

Matching Gift: matching gifts are usually provided by corporations. They are most frequently dollar for dollar but may be other ratios that match an employee's gift to a non-profit organization. Matches are most commonly found within the Central Piedmont Fund but may follow donor intentions should corporate guidelines permit. Matching Gifts received may count toward the minimum required contribution level to establish named Endowed or named Expendable Funds. Matching Gifts may not be recorded as a part of a donor's pledge.

Planned Gift: a planned or deferred gift is a commitment established during the donor's lifetime, but whose principal benefits usually do not accrue to the charitable recipient until some future time. Annuities, gifts of insurance, trusts, and commitment through estate plans are all usually referred to as planned gifts.

Pledge: a signed and dated commitment to make a gift over a specified period, generally two or more years, payable according to terms set by the donor and accepted by the College. During a campaign, pledge payments may extend up to seven years. The Vice President of Institutional Advancement or his/her designee in consultation with the President may make exceptions for large or unusual gifts, at the specific request of a donor, or under other extenuating circumstances at his/her discretion.

Restricted Gift: a gift made with conditions imposed by the donor; such a gift maybe for current, endowment, or capital use. Burdensome conditions may require the College decline a restricted gift. The Foundation may charge an administrative fee on restricted gifts.

Unrestricted Gift: a gift made with no conditions imposed by the donor on spending and may be used by the College for any purpose.

Central Piedmont (Annual) Fund: the organized effort by the College to obtain gifts (primary unrestricted) on a yearly basis in support of the annual operating budget.

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Approved by the Foundation Board on November 17, 2023

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