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RFU's Gift Acceptance Policy

PURPOSE

Charitable gifts made to Rosalind Franklin University of Medicine and Science are deductible by the donor as charitable contributions under applicable law so long as the obligations imposed by those laws are fulfilled. This policy is intended to promote compliance with those obligations as well as fulfill the policy decisions of the University regarding these gifts. This policy includes guidelines that are designed to assist individuals within the University community who have been granted authority to accept charitable contributions to the University, individuals who wish to make charitable contributions to the University and individuals who provide advice and counsel relating to the gift planning process. Each case will be evaluated on its own merits.

POLICY STATEMENTS

Rosalind Franklin University of Medicine and Science appreciates the generosity of those who make charitable contributions to the University and thereby help ensure the continued growth of the programs, facilities and financial support of students.

It is the policy of the University to accept charitable contributions so long as the circumstances are such that:

  1. Acceptance of the gift would be consistent with relevant laws.
  2. Acceptance of the gift would reasonably be expected to further (and not be in conflict with) the University’s nonprofit and tax-exempt status and mission relating to education, research, and health care delivery.
  3. Acceptance of the gift would not be expected to result in an undue burden upon the person making the gift or create an undue burden upon the University.

The guidelines in this policy are designed to fulfill the policy statements. Those seeking permission to deviate from the guidelines should contact the Vice President for Institutional Advancement, who is authorized to permit a deviation from the guidelines so long as the circumstances are consistent with the policy statements.

The following have authority to accept, on behalf of the University, charitable gifts: the

President, Vice President for Institutional Advancement, staff of the Division of Institutional Advancement, and members of the President’s Cabinet. The Vice President for Institutional Advancement is the senior administration official responsible for overseeing the implementation of this policy and coordinating gift acceptance practices throughout the University. All gifts must be received and processed by the Office of Institutional Advancement.

GUIDELINES:

CASH

  1. All gifts by check shall be accepted by Rosalind Franklin University of Medicine and Science regardless of amount.
  2. Checks shall be made payable to Rosalind Franklin University of Medicine and Science. In no event shall a check be made payable to an individual who represents Rosalind Franklin University of Medicine and Science.

PLEDGES

Pledges may be payable in single or multiple installments and must have a value of at least

$2,500. A pledge may not exceed 5 years in duration. All donors must confirm their pledges in writing.

PUBLICLY TRADED SECURITIES

  1. Readily marketable securities, such as those traded on a stock exchange, can be accepted by Rosalind Franklin University of Medicine and Science.
  2. Gifts of securities may be made by electronic transfer to Rosalind Franklin University of Medicine and Science DTC account or may be made by stock certificate, in which case the stock certificate should be either duly endorsed or accompanied by a stock power and in each circumstance accompanied by an appropriate signature guarantee.
  3. It is the policy of Rosalind Franklin University of Medicine and Science that all readily marketable securities are sold immediately upon receipt in consultation with RFUMS’s investment advisors.
  4. For Rosalind Franklin University of Medicine and Science internal gift crediting and accounting purposes, the value of the securities is the average of the high and low on the effective date of the completed transfer to Rosalind Franklin University of Medicine and Science.
  5. For Rosalind Franklin University of Medicine and Science gift acknowledgement purposes, it is the advice of general counsel that Rosalind Franklin University of Medicine and Science acknowledge the number of shares received and the date received. Many donors request that a specific dollar value be acknowledged on the date of the gift. In those instances, RFUMS provides the donor with the high, low and mean trading price of the security on the date of transfer and calculates the value of the gift using the average trading price on that date.

CLOSELY HELD SECURITIES

  1. Non-publicly traded securities including membership interests in limited liability companies or partnership interests may be accepted after consultation with the corporate treasurer and/or general counsel.
  2. Prior to acceptance, Rosalind Franklin University of Medicine and Science shall, in consultation with RFUMS investment advisors, explore methods of liquidation for the securities through redemption or sale. A representative of Rosalind Franklin University of Medicine and Science shall try to contact the closely held corporation to determine: • An estimate of fair market value •Any restrictions on transfer
  3. For Rosalind Franklin University of Medicine and Science gift acknowledgement purposes, it is the advice of general counsel that Rosalind Franklin University of Medicine and Science state the number of shares received and the date received. No stated dollar value will be included on the acknowledgement letter.

REAL ESTATE

  1. Gifts of real estate must be reviewed by the Finance Committee of Rosalind Franklin University of Medicine and Science before acceptance.
  2. The donor is responsible for obtaining an M.A.I appraisal of the property satisfactory to Rosalind Franklin University of Medicine and Science. The cost of the appraisal is borne by the donor. The appraisal must be addressed to Rosalind Franklin University of Medicine and Science.
  3. Prior to presentation to the Finance Committee, an experienced member of the staff must conduct a visual inspection of the property. If the property is located in a geographically isolated area, a local real estate broker can substitute for a member of the staff in conducting the visual inspection.
  4. Due to the expenses associated with gifts of real estate, only gifts in excess of $250,000 will be considered, in most instances.
  5. Prior to presentation to the Finance Committee, the donor must provide, at least, the following documents:
    • Real estate tax bill
    • Current Plat of Survey
    • Current owner’s title policy or title commitment
    • Substantiation of zoning status
  6. Prior to presentation to the Finance Committee, a Phase I Environmental Site Assessment addressed to Rosalind Franklin University of Medicine and Science must be presented reflecting the current environmental condition of the real estate.
  7. Depending on the value and desirability of the gift, the donor’s connection with Rosalind Franklin University of Medicine and Science, and the donor’s past gift record, the donor may be asked to pay for all or a portion of the following:
    • Costs of environmental remediation
    • Maintenance costs
    • Real estate taxes
    • Insurance
    • Title insurance premiums
    • Survey costs
    • Real estate broker’s commission and other costs of sale
    • Appraisal costs
  8. In the event the Finance Committee agrees to accept the real estate, for Rosalind Franklin University of Medicine and Science internal gift crediting and accounting purposes, the value of the gift will be the appraised value of the real estate.

TANGIBLE PERSONAL PROPERTY/GIFTS-IN-KIND

Rosalind Franklin University of Medicine and Science may consider gifts of personal property, including but not limited to works of art, patents, copyrights, antiques, stamp and coin collections, jewelry, furniture, rare books, manuscripts, or any other item that has a determinable minimum value of $1,000. Such gifts may be approved only after a review indicates that the property is either readily marketable or needed by Rosalind Franklin University of Medicine and Science. It is the policy of the university to sell or otherwise dispose of all gifts of personal property, unless the items can be used by the university in a manner related to education and/or research with the policy relating to gifts-in-kind, as follows in this section. The intention of Rosalind Franklin University of Medicine and Science to either resell the property or to retain and use it to further its charitable activities shall be communicated to the donor in writing at the time of the gift.

Gifts-in-kind are similar to gifts of personal property, but include a greater category of donated items, or gifts of similar type and character. Gifts-in-kind will be reported as contributions at fair market value on the effective date of transfer. Fair market value will be determined as the price that an independent third-party would be willing to pay at in an arm’s length transaction. In some instances, the determination of fair market value may be made by an independent expert appraiser.

Rosalind Franklin University of Medicine and Science will only accept gifts-in-kind that can be:

  1. Readily converted to cash, or
  2. Utilized in the ordinary course of RFUMS business, items such as specialized research, education or medical equipment and the like. Valuation of gifts-in-kind shall be made consistent with the policies and procedures referred to above.

APPRAISALS

Qualified Appraisals are required of donors to support the allowance of specific income tax charitable deductions under certain circumstances. Individuals and corporations who donate property, other than money or publicly traded securities, with a claimed value exceeding $5,000 must obtain a qualified appraisal prepared by an independent appraiser.

LIFE INSURANCE

  1. Rosalind Franklin University of Medicine and Science will accept life insurance policies as gifts only when Rosalind Franklin University of Medicine and Science is named as the owner and beneficiary of 100% of the policy.
  2. If the policy is a paid-up policy, the value of the gift for Rosalind Franklin University of Medicine and Science gift crediting and accounting purposes is the policy’s replacement cost.
  3. If the policy is partially paid-up, the value of the gift for Rosalind Franklin University of Medicine and Science gift crediting and accounting purposes is the policy’s cash surrender value. (Note: For IRS purposes, the donor’s charitable income tax deduction is equal to the interpolated terminal reserve.)

PLANNED GIFTS

Rosalind Franklin University of Medicine and Science presently offers the following planned gift options:

  1. Charitable gift annuities
  2. Deferred gift annuities
  3. Bequests

Charitable Gift Annuities

  1. Administrative fees shall be paid from the income earned on the charitable gift annuity.
  2. There shall be no more than 2 income beneficiaries on a charitable gift annuity.
  3. The minimum gift accepted to establish a charitable gift annuity is $10,000.
  4. Rosalind Franklin University of Medicine and Science has established a restricted gift annuity fund for the investment of gift annuity amounts. RFUMS invests the entire gift in order to ensure adequate reserves to cover estimated future liabilities related to the annuity agreement.
  5. No income beneficiary for a charitable gift annuity shall be younger than 65 years old.

Deferred Gift Annuities

  1. Administrative fees shall be paid from the income earned on the charitable gift annuity.
  2. There shall be no more than 2 beneficiaries on a deferred gift annuity.
  3. The minimum gift accepted to establish a deferred gift annuity is $10,000.
  4. No income beneficiary for a deferred gift annuity shall be younger than 35 years old.
  5. Rosalind Franklin University of Medicine and Science follows the American Council on Gift Annuities suggested rates. Rates are capped at 6%.

Bequests

  1. Assets transferred through bequests that have immediate value to Rosalind Franklin University of Medicine and Science or can be readily liquidated shall be encouraged by the development staff. Gifts that appear to require more cost than benefit shall be discouraged or rejected.
  2. Donor restrictions and designations on the use of bequests will be followed under all reasonable circumstances. Ultimately, decisions on use are made by the Board of Trustees of Rosalind Franklin University of Medicine and Science. Where no restrictions or designations exist, the proceeds of wills and bequests valued at more than $50,000 will be utilized as follows: A portion of bequest income received will be allocated for operating use using a spending rule equal to 20% of the average of the prior three-year total annual bequest income.
  • The remainder of bequest income will be restricted to investment in Rosalind Franklin University of Medicine and Science’s reserve fund.
  • Additionally, Charitable Remainder Trusts will be considered on a case by case basis.

ENDOWMENT FUNDS

  1. Rosalind Franklin University of Medicine and Science accepts gifts and bequests restricted to endowment.
  2. Rosalind Franklin University of Medicine and Science uses a Total Return Spending Policy, as defined in the University’s Investment Policy, for allocating endowment investment income to annual operations. The minimum endowment gift accepted is $10,000.
  3. Rosalind Franklin follows the principles and guidelines of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) of 2006 governing the investment, management and expenditure of donor- generated endowment funds.
  4. Rosalind Franklin follows the principles and guidelines of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) of 2006 governing the investment, management and expenditure of donor- generated endowment funds.
  5. Donors shall receive, upon request, an annual report detailing the performance and use of the fund.

ADMINISTRATIVE ISSUES

Rosalind Franklin University of Medicine and Science shall not act as an executor for a donor’s estate nor shall it act as a trustee for any trust other than in an appropriate circumstance, such as a charitable remainder trust, when Rosalind Franklin University of Medicine and Science is the sole remainder beneficiary.

GIFTS OF SIGNIFICANT RISK

Rosalind Franklin University of Medicine and Science shall closely review all gifts of significant risk prior to acceptance of the gift. All such gifts shall be acknowledged when received, with written notice to the donor that due to the nature of the gift and its inherent risks, review is necessary prior to final acceptance. Such gifts include, but are not necessarily limited to, the following:

  • Non-publicly traded securities;
  • All gifts of real property;
  • Gifts of personal property if not to be used by Rosalind Franklin University of Medicine and Science;
  • Gifts of real or personal property with donor restrictions pertaining to disposal;
  • All bargain sales of property;
  • Cash gifts with significant donor restrictions; and
  • All gifts of unusual items or gifts of questionable value.

SPECIAL SITUATIONS

Rosalind Franklin University of Medicine and Science has developed the following policies with respect to atypical gifts and situations outside of the normal course of donor/donee relations.

Conditional Gifts

Conditional gifts are those gifts that, because of some qualifier or restriction, are considered non-routine. Conditional gifts may commit Rosalind Franklin University of Medicine and Science to act within a specified time or use a gift for a specific purpose. If, in any instance, a gift offered by a donor would put Rosalind Franklin University of Medicine and Science in an embarrassing or untenable position with the general public, Rosalind Franklin University of Medicine and Science will decline acceptance. Gift acceptance agreements should specify a time period for meeting any condition for the gift and should also indicate what will happen to the gift if the conditions are not met.

Refunding of Gifts

Under rare circumstances, Rosalind Franklin University of Medicine and Science may deem it necessary to return or refund a gift. For example, when it is in the best interest of Rosalind Franklin University of Medicine and Science or because conditions agreed to in accepting a gift cannot or will not be met. Requests for refunds may come either from the donor or from the Board of Trustees of Rosalind Franklin University of Medicine and Science. RFUMS strives to meet all donor restrictions and/or designations. In the rare instance that a disagreement arises between the University and donor regarding the fulfillment of restrictions, the University may engage the services of an outside party to resolve the dispute.