Gift Acceptance

General Policy Statement

Gift Acceptance will be subject to the oversight of the Vice President for University Advancement (VPUA) and the Vice President for Business Affairs (VPBA).  The VPUA and the VPBA will, from time to time, as circumstances require, review their deliberations with the President.

There are two aspects of a gift that must be considered: the purpose of the gift (also known as the gift designation) and the type of asset.  Gift designations that can be accepted without further review are unrestricted gifts, gifts to scholarships, and gifts to stated fundraising priorities during an annual or multi-year campaign.  Restrictions that do not fall into one of these categories should be reviewed by the VPUA, the VPBA, the Director of Advancement Services and the Executive Director of Development (EDOD) to ensure that the following conditions are met before the gift is accepted:

• The gift must advance Bryant's strategic plan and/or stated mission.
• There must be no restrictions or limitations that would impede Bryant University from managing the asset or administering a proposed planned gift arrangement.
• The gift must not pose any potential hazards or legal liabilities for the University.

Bryant University, in consultation with the donor or the donor’s representative (when possible), will have the authority to make changes to restricted designations when necessary to ensure the fulfillment of the above-stated objectives.

The Associate Director of Stewardship will maintain a list of authorized named endowment opportunities and the gift levels required to name any endowed fund.  These will consist of high-priority funding objectives recognized as such by the Board of Trustees with the associated minimum gift required for naming. A written donative instrument is required for each new endowment fund established.  Pledges may be accepted to fund endowment; however, at least $50,000 must be in hand before the named endowment fund will be established.  Until that point, gifts and pledge payments will be entered into a holding account. Endowed funds may be established for scholarship support, faculty support and program or departmental support.

The Office of University Advancement, in the management and reporting of gifts to the University, shall be guided by the standards of accounting and reporting established by the Council for Advancement and Support of Education (CASE) as printed in the "CASE Reporting Standards and Management Guidelines for Education Fundraising".

Responsibility to Donors

Bryant University strives to ensure that all gifts are recorded in an accurate and timely way, that gifts are receipted properly, and that all contributed monies are managed in accordance with the donors’ original intentions.

In accordance with the provisions of the Internal Revenue Code and related regulations, proper records will be kept by the office of University Advancement and required tax returns filed by the Business Affairs Office or its designated agent for all gifts processed and/or administered by the VPUA.  After receiving confirmation of reported gifts and related details from the Director of Advancement Services, the VPUA is responsible for executing IRS Form 8283 (upon receipt of said form from the donor), that relate to noncash gifts processed and/or administered by the VPUA. 

While the University and its representatives will be sensitive to the tax issues affecting the donor, it will not provide advice on the tax position of any gift.  All prospective donors are advised to seek legal and/or tax advice from their own counsel. 

Bryant University shall respect the intent of donors wishing to support Bryant anonymously and will take reasonable steps to safeguard those donors’ identities.  Information concerning all specific transactions between a donor and Bryant University shall be held by Bryant University in strict confidence and may be publicly disclosed only with the permission of the donor or in accordance with IRS disclosure requirements.

Acceptable Transactions: Gift Types

Gift: A gift is an unconditional, voluntary, non-reciprocal transfer of assets to a not-for-profit organization.  This definition includes unconditional promises (pledges). 

Quid Pro Quo Gift / Payments for Which Donors Receive Goods or Services:  If a donor receives a benefit because of contributing to a qualified organization, s/he can deduct as a charitable contribution only the amount of the payment that is more than the fair market value of the benefit s/he receives.  Bryant University is required by the Internal Revenue Code to provide a written disclosure statement to donors who make payments more than $75 that are partly a contribution and partly for goods or services.  The disclosure statement must be furnished even if the amount that is allowable as a deductible charitable contribution is less than $75.00.  The statement must be provided in connection with either the solicitation or the receipt of the quid pro quo contribution.  The disclosure statement must inform the donor that s/he may deduct only the amount of the gift that is more than the value of the goods or services received. The document provides the donor with a good faith estimate of the value of those goods or services.  If the benefit received is inconsequential or insubstantial, then the full amount of the contribution is deductible.  Benefits received in connection with a payment to a charity will be considered to have insubstantial fair market value and the University need not provide disclosure statements if stated IRS conditions and limitations are met (subject to increase each year).

Pledge: A pledge is a promise to make a gift over time.  All multi-year pledges must be bound by a pledge agreement that commits to a specific dollar amount or asset that will be donated according to a specified time schedule (email correspondence indicating same with stated agreement by both the University and the donor directly is acceptable).  The acceptance of conditional/challenge pledges will be at the discretion of the VPUA, if it does not add operational costs.  If adding operational costs, the acceptance will also be agreed upon by the VPBA.

Grant: A private grant is a voluntary transfer of assets or awards to Bryant University from a corporation, foundation, or association for instruction, research, public service, construction or other specified purpose. The difference between a private grant and a contract depends on the intention of the awarding agency, and the legal obligation incurred by an institution in accepting the award.  A grant, like a gift, is donative in nature; it is bestowed voluntarily and without expectation of any tangible compensation and should therefore be recorded as a gift. 

Corporate Matching Gifts: A corporate matching gift, unless otherwise directed by the donor and so long as it is consistent with company policy, will be credited to the account and purpose for which the donor's original gift was made.  Bryant University will adhere to the matching gift guidelines of each employer and to the policies that each company has established for its employees. When there is an ambiguity concerning any specific gift, the appropriate prospect manager will consult directly with the donor as to how the donor wants to handle the situation.  All corporate matching gifts will be entered on the company record, and a recognition credit entered onto the donor's record.  Corporate matching gifts count toward gift club membership for donors who secure them and will also be counted as part of their individual campaign commitments.  However, anticipated corporate matching gifts will not be included as part of an individual’s pledge.

Corporate Sponsorships: A qualified sponsorship is any payment made by a person or organization engaged in a trade or business for which the person or organization will receive no substantial benefit other than the use or acknowledgement of the business name, logo, or product lines in connection with the recipient organization's activities.  "Use" or "acknowledgement” does not include advertising the sponsor's products or services.  The organization's activities include all its activities, whether related to its exempt purposes.

Acceptable Transactions: Gift Tender

Cash Gift: As defined by the Internal Revenue Service, cash contributions include those paid by cash, check, credit card or payroll deduction. A contribution made by check is effective for income tax purposes when the check is unconditionally delivered or mailed, if the check subsequently clears the donor's bank.  Bryant University will absorb credit card fees and the donor will receive gift credit for the full amount of the credit card charge. The University will accept VISA, MasterCard and American Express, but not Discover.

Gift in Kind: Gifts in kind are generally defined as noncash donations of materials or long-lived assets, other than real and personal property, and include such items as equipment, printed materials, food, etc.  Gifts in kind usually (though not always) come from companies, corporations, or vendors, in contrast to individuals, who typically give personal property.  Except for publicly traded securities, all gifts in kind with a market value of $1,000 or more must be reviewed and approved by the VPUA before they can be accepted by the University.  Only gifts in kind that support the mission of the University will be accepted.  The VPUA (in consultation with the VPBA, when needed) will determine if the gift is to be kept or sold or raffled/auctioned at an event.

Gifts of Tangible Personal Property: The University may accept tangible personal property gifts with the approval of the VPUA. Donors should be advised of the related use rule and referred to their financial and tax advisors, as this could impact their decision.  In general, to obtain a charitable deduction for the full market value, the use must be related to Bryant’s charitable purposes. Otherwise, the deduction will be limited to cost basis.

If Bryant University disposes of the property within 3 years of the gift, the donor is subject to an adjustment of the tax benefit to the extent that the charitable deduction exceeds the donor’s cost basis. Bryant will be required to file Form 8282 at the time of disposal or sale, and must provide a description of the use of the property, a statement of whether the use of the property was related to Bryant’s exempt purpose and a certification that Bryant either used the property for such purpose or had intended to use the property for such purpose at the time of the gift, but such use became impossible or infeasible.

Valuation of Non-cash Gifts for Donor’s Tax Purposes: It is the donor's responsibility to establish the value of a non-cash gift for tax purposes.   All donors who are contemplating non-cash gifts, except publicly traded securities, should be urged to consult their financial advisors regarding possible tax consequences of those gifts.  In general, the University will accept the donor’s estimated value for gifts ranging up to $2,500 if such estimates appear reasonable.  For gifts valued above that amount, the University may choose to accept the value placed upon them by the qualified independent appraiser who signs form 8283 or may opt to seek a second appraisal.  In some instances, valuations may be adjusted upon the advice of a staff member of the institution with some expertise — such as a librarian or professor of art — and that informal valuation may be used for institutional reporting purposes.  Gift receipts and acknowledgements will include only a description of the gift, not the internal valuation placed on it.

A gift of property will not be accepted if the acceptance would cause the University to incur a financial or other obligation (to display, store, insure, clear of legal restrictions, sell, etc.) which the VPUA and/or VPBA deems to be burdensome.

Publicly Traded Securities: Publicly traded stocks, bonds and mutual fund shares are those for which, as of the date of the contribution, market quotations are readily available on an established securities market.  The value of a gift of securities is determined by calculating the mean of the high and low prices (or, in some cases, the bid and ask prices) of that security on the effective date of transfer.  If the security was not traded on that date, then the value is set according to the mean of the high and low prices on the date when the shares were most recently traded. As a rule, it is the policy of Bryant University to sell all marketable securities upon receipt.

The effective date of gift for securities varies depending on the method by which ownership is transferred; however, donor intent should also be considered before assigning any gift value:

• If held at a bank or brokerage firm, the date of gift is the date of transfer into a Bryant University account.
• In the case of physical delivery, the effective date is the date upon which the endorsed certificate accompanied by a stock-power is received at Bryant.
• If the certificate and stock power are mailed, the postmark on the stock power envelope is the effective date of gift.  If the certificate is mailed to a transfer agent for reissue to Bryant, the effective date of gift is the date on the new certificate.

Closely-Held Stock: Closely-held stock is any stock of a corporation, evidenced by a stock certificate, that is not a publicly traded security, or for which there is no public market. Gifts of closely held stock exceeding $10,000 in value should be reported at the fair market value placed on them by a qualified independent appraiser as required by the IRS for valuing gifts of stocks that are not publicly traded.  Gifts of $10,000 or less may be valued at the per-share cash purchase price of the most recent transaction.  Normally, this transaction is the redemption of the stock by the corporation.  If no redemption is made a gift of closely held stock may be captured in the fundraising database at the value determined by a qualified independent appraiser.  An independent certified public account (CPA) who maintains the books for a closely held corporation is deemed to be qualified to value the stock of that corporation. 

Criteria to be applied in evaluating closely held stock includes the long-term prospects of the company and the opportunity for Bryant to sell the shares in a reasonable period. For Subchapter S Corporations, the UBTI consequences should also be considered. It is the responsibility of the donor to obtain the necessary appraisals.  The acceptance of a gift of closely-held stock must be approved by both the VPUA and the VPBA.

Limited Partnerships:  Gifts of interests in limited partnerships may be accepted, subject to a review of all available information, and approval by the VPUA and the VPBA.  At a minimum, the University should receive copies of the limited partnership agreement, the proposed assignment of interest, and financial documentation sufficient to describe the assets of the partnership and their valuation.

• Exception:  Interests in general partnerships, limited partnerships, and working interests ordinarily will not be accepted as assets in a charitable remainder trust if the University is the trustee.  Ownership of these assets could create unrelated business income tax liability for the trust.  However, the University may accept wholly owned charitable trusts administered by others that are funded with such assets, and only upon approval of both the VPUA and the VPBA.

In analyzing a proposed gift of an interest in a limited partnership, the intent is to confirm that there is a real benefit to be derived by the University that is commensurate with any potential liabilities associated with the gift. Among the factors that will be considered are the following:

• Is there a presently calculable guaranteed minimum amount intended to be distributed to the University during the existence of the limited partnership?
• What administrative obligations, if any, would be assumed by the University?  For example, would any of the activities of the partnership require Bryant to track for additional unrelated business income tax reporting?
• Will Bryant receive a guaranteed annual income from the partnership interest sufficient to defray administrative costs?  In lieu of an annual income payment, is there a cumulative payment made in the form of a preferred return before distributions to other partners at the termination of the partnership?
• Does the partnership agreement provide for a defined distribution/termination event or date?
• Does Bryant have any obligation to make capital contributions to the partnership?
• Can the University be held liable for debts of the partnership?
• Does the partnership appear to be adequately capitalized considering its activities?
• Does it maintain liability insurance?

Real Property: Bryant University may accept gifts of real estate as outright gifts, to fund a charitable trust or in the form of a life estate.  Before accepting the real estate, Bryant University and the donor must agree in writing on the arrangements for paying expenses associated with the property prior to sale such as taxes, environmental inspections, insurance, maintenance and other expense. As a rule, the University will not accept real estate to fund an immediate charitable gift annuity. The University will not be legally obligated as to the disposition of the property following the gift.  Both the VPBA and the VPUA must approve the acceptance of real property as a gift to the University.

 For these policy guidelines, "real estate" is defined as all surface and/or mineral assets other than campus land which is donated or bequeathed to the University regardless of type, location, or designated use of the funds to be derived there from. The VPUA and the VPBA should be contacted immediately upon identification of a potential gift of real estate.  They will determine whether to proceed to a formal review of the property.  If such a review is agreed upon, the EDOD will ask the donor and/or legal counsel to obtain a title report, title policy or abstractor's certificate on each potential gift of real estate to insure that there are no recorded liens or encumbrances on the proposed gift, as well as a copy of the deed, current property tax bill, a copy of promissory note or mortgage, a copy of any lease/rental agreements, homeowner’s insurance policy, and current market analysis. 

After preliminary discussions with the donor about the proposed gift, an initial inspection of the property shall be made by the University or a designee, to assess its marketability. A licensed real estate professional or home inspector may accompany the University’s representative or perform this inspection on behalf of the University. The University and the donor will negotiate who will pay the costs, if any, of this initial inspection. 

Additionally, an initial environmental inspection of the property at the donor’s expense shall also be made, including but not limited to a review of relevant wetlands issues and applicable environmental regulations. These inspections should include both a physical inspection of the property and an investigation of the existing and previous ownership and use of the property. If, after these inspections, it is determined there is likelihood that the property is contaminated by hazardous waste, has had water damage or is subject to other environmental concerns, the property will not be accepted at that time and consideration will be given to having an EPA Phase I environmental inspection performed. The expense of the Phase I assessment will be paid by the donor unless the VPUA and VPBA approve an exception. Based on the results of a Phase I assessment, a Phase II assessment may be required. 

Gifts of real estate are ordinarily acceptable only after it has been determined that the property is not subject to environmental concerns and no reasonable possibility exists that the property is contaminated by hazardous waste or mold.

Gifts of mortgaged or encumbered property, as well as gifts of real estate of which Bryant would not be sole owner, may be accepted by the University upon review and approval by the VPUA and the VPBA of the terms and conditions of the gift.

The University will not accept gifts of time share property.

Realized Bequests: A realized bequest is a gift by will of cash or personal or real property.  Realized bequests should be counted at fair market value at the time the proceeds are received by the University.  Realized bequests received during the campaign will be included in campaign totals only if the expectancy of said bequest was not previously counted in a prior or current campaign. If a realized bequest is designated for a specific purpose other than a previously established endowed fund, the acceptance of said bequest must be reviewed and approved by the VPUA and the VPBA in consultation with the University’s President.

Life Income Gifts

The University will offer donors life income vehicles, primarily charitable remainder trusts and charitable gift annuity contracts, to encourage and facilitate giving. The EDOD and the Vice President of University Advancement will maintain detailed descriptions of the various types of deferred gift arrangements.  The University may use legal, tax accounting, estate planning, and investment services as needed and appropriate to establish deferred gift arrangements.  Prospective donors should be advised to consult their own financial advisors in all matters related to planned gift instruments such as the drafting of wills or trusts, and the review of annuity contracts.  In the case of charitable gift annuities and deferred gift annuities, a standard contract will be drawn up by the EDOD (samples available).  Once approved by the VPUA and VPBA, these standard contracts will be the only approved vehicles for establishing charitable gift annuity contracts.

The EDOD will work with the VPUA and the VPBA or their designees to establish procedures related to accounting, stewardship reporting, payment schedules, methods of tax reporting, trust administration and accounting, and all business procedures related to planned gift agreements. The cardinal consideration in structuring any planned gifts is that the University can expect to realize a minimum yield of at least 50% of the original contribution for the gift annuity.  Toward this goal, the University will use the maximum payout rates set by ACGA, with rates based on the assumption that target residuum should be 50% of the original contribution for the gift annuity.  All other factors may be adjusted to meet this requirement. As a rule, the University will not enter into deferred gift arrangements that include more than two income beneficiaries.

Charitable Gift Annuities:  In the case of charitable gift annuity contracts, the University is required by the Philanthropy Protection Act of 1995 to issue a disclosure statement prior to execution.  Such disclosure statements are not ordinarily required for charitable remainder trusts, which are individually invested, unless they are commingled with the investments of others.  In that case, a disclosure statement is required and must be approved by the VPUA and the VPBA.  The University will ordinarily comply with rates and procedures recommended by the American Council on Gift Annuities.  The payment of rates higher than the maximum recommended rates set by the American Council on Gift Annuities shall be extremely rare but may be granted on a case by case basis as determined by the VPUA and the VPBA, upon recommendation by the EDOD. The payment of a lower rate is acceptable upon the approval of the VPUA and the VPBA, and if it is documented that the donor was informed of the higher rate but chose to accept a lower rate to make a larger charitable gift and secure a higher charitable income tax deduction.

Cash or marketable securities may be used to fund a charitable gift annuity. Real estate and other illiquid assets are generally not acceptable for the establishment of an immediate charitable gift annuity. The acceptance of these assets for a deferred payment annuity may be granted on a case by case basis as determined by the VPUA and VPBA, upon recommendation by the EDOD. Such exceptions will be rare and will usually involve the negotiation of a lower rate.

The minimum contribution for a charitable gift annuity shall be $10,000. Individuals named as current income beneficiaries must be at least 65 years of age. Gift annuity agreements are limited to two income beneficiaries, unless an exception is granted by the VPUA and VPBA.

Charitable Remainder Trusts:  Bryant University will conform to IRS regulations governing charitable remainder trusts under the Tax Reform Act of 1969 and subsequent Revenue Rulings.  When Bryant agrees to serve as Trustee of a charitable remainder trust, as a rule, the donor will be responsible for costs, including the legal fees associated with the preparation of the trust document and the Phase I and Phase II Environmental Assessments, if necessary. Ongoing costs for investment, administration or tax preparation will be subject to review. Prior to agreeing to serve as Trustee, Bryant may have the trust document reviewed by its legal counsel and the VPBA at the donor’s expense. The University will ordinarily serve as trustee of a charitable remainder trust benefiting more than one charity so long as the percentage of the remainder interest provided to the University is 51% or greater, there are no more than three charitable beneficiaries to the trust, and Bryant’s charitable interest in irrevocable. All proposals for trusts that will include other charitable beneficiaries, especially those involving less than a majority share, must be reviewed and approved by the VPUA, the VPBA, and the EDOD.

The University will only consider serving as Trustee of a charitable remainder trusts funded with a minimum of $100,000. Individuals named as current income beneficiaries must be at least 65 years of age. The minimum payout rate required by law for a charitable remainder trust is 5%. Rates are negotiated with donors on a case by case basis, but as a rule, shall not exceed 6%. 

It is the policy of the University that we shall not serve as Trustee of a charitable lead trust.

Life Insurance:  With the exception of realized death benefits, life insurance may be accepted and recorded as a gift only when the University is both the owner of the policy and the irrevocable beneficiary.  The preferred form of insurance gift is a paid-up whole life policy.  The discounted present value will be carried on the University's financial statements; however, the gift can be recognized at its full death benefit value and included in campaign totals for that amount. Upon the approval of both the VPUA and the VPBA, Bryant may also accept policies that are not paid up.  A life insurance policy that is not fully paid up on the date it is contributed should be recorded as an outright gift at the existing cash value.  In addition, if the donor pledges to pay the premiums over a five-year pay-out period, these payments may be treated as ordinary gifts/pledge payments.  If the University elects to pay the premiums, those payments are considered operating expenses and increases in cash surrender value and are not reported as gifts.  In some cases, donors may be asked to make an annual gift to the University in the amount of the yearly premium.

Acceptance of Deferred Gifts:  All deferred gifts must be reviewed and approved by EDOD and/or the VPUA before they are accepted or executed.  Deferred gifts that will be funded with real estate or hard-to-value assets, such as limited partnerships, must be reviewed and approved by the VPUA and VPBA. 

The University will not agree to serve as Executor or Co-Executor of an estate.

Gifts to Establish Endowed Funds

The Associate Director of Stewardship will maintain a list of authorized named endowment opportunities and the gift levels required to name any endowed fund.  These will consist of high-priority funding objectives recognized as such by the Board of Trustees with the associated minimum gift required for naming.  A written donative instrument is required for each new endowment fund established.  Endowed funds may be established for scholarship support, faculty support and program or departmental support.  However, because the naming of endowed chairs, titled positions, departments or program is a permanent and public act, approval by the VPUA, VPBA, and the University’s Board of Trustees is required for the naming of such funds.  

Bryant University, in consultation with (donor) when possible, will have the authority to make changes in endowed fund guidelines which are necessary to ensure the fulfillment of the stated objectives of each endowed fund agreement.  Any request to amend the terms or purpose of an endowment or to terminate an endowment must be sent to the VPUA for review and recommendation before being forwarded to the VPBA and the University’s President, who will determine whether to propose the change to the Board.

Funding:  The minimum funding level for an endowed fund is $50,000.

Restrictions:  Bryant University prefers that donors of endowed scholarships set only minimal restrictions or criteria for selecting recipients to give the University the flexibility to award the scholarship on a consistent basis.  The donor may, however, wish to identify certain preferential characteristics for the award of scholarships and fellowships.  In discussing preferences or conditions for scholarship funds, Development Office staff should keep in mind that Bryant University policy states that no person shall be excluded from participation in, denied the benefits of, or be subject to discrimination under any program or activity sponsored or conducted by Bryant University based on race, color, national origin, religion, sex, age, veteran status or disability.  Recipients of endowed scholarships will be selected by the Director of Financial Aid.  The Office of Financial Aid, which is responsible for ensuring compliance with regulations concerning federal, state and other aid in accordance with University policy regarding academic scholarships, will then inform the student as well as the office of University Advancement which will then inform the donor. 

Awards:  The language used to establish an endowment for scholarships should not include the specific dollar amount of an annual award, but rather state that the fund will be invested for one full fiscal year within the University’s endowment and must accrue a minimum of 5% interest before the scholarship is awarded.  In accordance with the University’s spending policy established by the Board of Trustees, five percent of the prior 12 quarters’ average endowment market value at December can be expected for the scholarship awards.  No awards from an endowed fund can be made until the minimum funding level ($50,000) has been collected.  Also, if the endowment is funded via a CGA/CRT, no awards will be made until final payments to annuitants have been disbursed.

The Uniform Prudent Management of Institutional Funds Act (adopted by the State of Rhode Island in 2009) permits the University to make annual awards out of a donor’s endowment, subject to certain criteria being met, even if the market value of the investment is lower than the historical book value of the donor’s gift.   However, should the donor fund’s market value fall below historical gift value (principal), Bryant University reserves the right to withhold awarding from the fund until the fund returns to historical gift value.  This allows Bryant to assure intergenerational equity and provide the best protection of the purchasing power of the endowment funds in the future.

Investment:  Donors may not direct the investment transactions or holdings or approve investment policy or strategy.  Restrictions by the donor on the sale or timing of the sale of donated property will be reviewed by the VPUA and approved by the VPBA.  Should circumstances warrant, e.g. a gift of closely-held stock the donor intends to buy back, the Committee may agree to the donor’s request.  Except for unitrusts, which are ordinarily individually invested, it is the specific and strong preference of the University that all endowment gifts be eligible for commingling for investment purposes with other endowment funds.  This commingling permits enhancement of long-term investment programs, affords appropriate risk control through diversification, and provides for optimization of asset mix through time.  Specific language which allows endowment funds to be pooled for investment purposes should be included in all donative instruments.