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Donor Gift Agreements

09 Apr 2021 /

The days of “Take my money and do with it what you want” are fortunately behind us. Our charities do so much more when we have real partnerships with donors, because they have so much more to offer us than just their financial support. However, this more engaged relationship requires us to carefully review and document what the donor expects and for the charity to be engaged. Gift agreements, often referred to as declarations of intent, serve explicitly to achieve both objectives. Typical gift agreements provided by the Association of Donor Relations Professionals and Tulsa County. When a department or unit creates a quasi-foundation with donor money, it is strongly recommended that a Memorandum of Understanding be established to accompany the account application form and recall the unit`s intentions. For more information, see section 5.c. Quasi-Endowment. It is also understood and understood that gift funds received can be placed by a third party that best defines the investment options for this endowment fund (see #4 item below).

The Foundation`s spending policy will be the policy defined and approved by the Board of Directors, which probably includes only the use of annual interest and does not enter into the Fund`s capital to protect and immortalize growth. In 2017, Utah State University made an administrative decision to maintain scholarship criteria that could be problematic in gift contracts established before 2017. It was agreed that any agreement that will be amended after 2017 and that contains problematic scholarship criteria will be repealed or amended at the time of the amendment. If, at any time, the donor does not behave himself without due consideration of public morality and decency, or if the donor commits an act or is involved in a situation or is involved in a situation or event, which tends to degrade the donor in the Community, or which carries the donor in public contempt or public scandal or which seriously and negatively carries the reputation or activity of the charity, whether information is made public or not, the charity has the right to withdraw the donor`s recognition rights, as required by the donor. PNFs that accept cash gifts are required on IRS 990 Schedule M form to indicate whether they have a gift acceptance policy that requires verification of non-standard contributions. Non-solvency contributions include securities, real estate, vehicles, inventory, works of art, etc. Some donation schemes provide tax benefits to donors and require written agreements to support donor donation deductions. If an existing scholarship is difficult to award, the development manager works with the donor (if any) to release or modify the restrictions on gifts. All changes to a gift contract are counted as an amendment to the agreement. If several changes are expected, an amended and revised gift agreement will be implemented to ensure that the resulting agreement is isolated and provides a complete history of the Fund. In cases where the signatory to the agreement is no longer alive, the development manager contacts the senior director of advance services for instructions on the process. Where possible, the university should respect the original intent.

If this is not possible, disclosure or modification of the purpose of a gift is subject to The Utah Code 51-8-501 (Uniform Prudent Management of Institutional Funds Act). and eventually requires approval by the Generalbundesanwalt (AG) for permission to use the funds for other purposes. The procedure includes identification and documentation: if a gift contract requires information or measures that are not included in the approved model, the Senior Director of Advance Services and/or the Vice President of the Advance State should be consulted for recommendations.