stewardship plan examples
TRANSCRIPT
Stewardship Plan
Augsburg College Office of Donor Relations
June 2008
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Augsburg College – Office of Donor Relations Stewardship plan – June 2008
Table of Contents
Mission Statement……………………………………………………………… 3 Why Stewardship?.................................................................................................. 3 Donor Bill of Rights………………………………………………………………4 Gift Acceptance Policy……………………………………………………………5
I. Introductions 9 II. Guidelines for policy implementation 9 III. Coordination of appeals for funds and approaches to donors
10 IV. Receipting, processing, & acknowledgement of gifts & pledges
11 V. Types of gifts to be marketed and accepted 12-24 VI. Use of gifts 24 VII. Donor recognition 27 VIII. General policies 28
Gift Receipting and Acknowledgement Process…………………………………33 Fund reporting and Tax reporting……………………………………………37-39 Calendar of Endowment Stewardship Activities……………………………… 41 Giving Clubs………………………………………………………………… 43-44 Other Donor Recognition………………………………………………………...44 Volunteer Involvement…………………………………………………………..45 Program Assessment and Goals…………………. …………………...…………46
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Mission Statement The Stewardship Program’s mission is to sustain and nurture positive relationships between Augsburg College and its donors to positively impact their repeated giving. This is accomplished through every activity that provides information to donors about the use and impact of their gifts and provides recognition and thanks for their support. Ideally, donors will give repeatedly and at increasingly higher levels because they are connected to the mission of the College and have positive feelings about giving.
Why Stewardship? Donor stewardship means developing an ongoing relationship with donors, which includes thanking and recognizing them for their contributions, ensuring that the gifts are used in accordance with the donors’ wishes, reporting to donors what has been accomplished with their gifts, heightening their interest and involvement with the school, and soliciting additional and larger donations in keeping with the donors’ interests. Stewardship consists of three basic activities: to acknowledge, to recognize and to inform. Stewardship supports continued cultivation and fundraising, fosters institutional accountability in the use of gifts, and honors donors’ rights to accurate information pertaining to the administration and impact of their gifts. In short, the best givers are the donors we already have, and it is much more expensive to acquire a new donor than to retain an existing donor through effective stewardship of their gifts. According to Julia S. Emlen in her book, Intentional Stewardship
, a good stewardship program seeks to promote eight key behaviors among donors:
- Giving regularly - Giving to priorities - Giving in usable ways - Giving to capacity - Feeling recognized - Agreeing to participate - Spreading the message - Bringing others along
Furthermore, according to the book Intentional Stewardship
, stewardship activities can be classified into four categories: acknowledgement, reporting, recognition, and other activities that support general donor cultivation.
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Donor Bill of Rights
The Donor Bill of Rights was created by the American Association of Fund Raising Counsel (AAFRC), Association for Healthcare Philanthropy (AHP), the Association of Fundraising Professionals (AFP), and the Council for Advancement and Support of Education (CASE). It has been endorsed by numerous organizations.
I. To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To ensure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the nonprofit organizations and causes they are asked to support, we declare that all donors have these rights:
II. To be informed of the identity of those serving on the organization’s governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
III. To have access to the organization’s most recent financial statements.
IV. To be assured their gifts will be used for the purposes for which they were given.
V. To receive appropriate acknowledgement and recognition.
VI. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.
VII. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
VIII. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
IX. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
X. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.
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Augsburg College Gift Solicitation and Acceptance Policy As approved by the Augsburg College Cabinet and as reviewed by the Development Committee of the Board of Regents Created: August 19, 2007
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Table of Contents
I. INTRODUCTION ........................................................................................................ 9
Augsburg College Division of Instutional Advancement Purpose ..................................... 9
Solicitation and Gift Acceptance Policy Purpose ..................................................................... 9
II. GUIDELINES FOR POLICY IMPLEMENTATION ................................................ 9
Gift Acceptance Committee ........................................................................................................ 10
Use of Legal Counsel ..................................................................................................................... 10
III. COORDINATION OF APPEALS FOR FUNDS & APPROACHES TO
DONORS ..................................................................................................................... 10
Partnerships ...................................................................................................................................... 11
IV. RECEIPTING, PROCESSING, & ACKNOWLEDGMENT OF GIFTS &
PLEDGES .................................................................................................................... 11
V. TYPES OF GIFTS TO BE MARKETED & ACCEPTED ......................................... 12
Cash .................................................................................................................................................... 13
Publicly Traded Securities ........................................................................................................... 13
Closely Held Securities ................................................................................................................. 13
Real Property.................................................................................................................................... 13
Life Estate Gifts .............................................................................................................................. 14
Tangible Personal Property ......................................................................................................... 14
Memorabilia Gifts ........................................................................................................................... 15
Intangible Personal Property ...................................................................................................... 16
Gifts-in-Kind .................................................................................................................................... 16
Bequests ............................................................................................................................................ 16
Charitable Remainder Unitrusts ................................................................................................ 17
Determining the Unitrust Amount ............................................................................................. 18
Charitable Remainder Annuity Trusts ..................................................................................... 19
Determining the Annuity Amount ............................................................................................. 19
Revocable Trusts ............................................................................................................................ 19
Charitable Gift Annuities .............................................................................................................. 20
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Deferred Payment Charitable Gift Annuities ......................................................................... 20
Lead Trusts ....................................................................................................................................... 21
Life Insurance .................................................................................................................................. 21
Augsburg as Beneficiary ............................................................................................................. 21
Augsburg as Beneficiary and Owner ........................................................................................... 21
Retirement Accounts ..................................................................................................................... 23
Government Bonds ........................................................................................................................ 23
Donor-Advised Funds ................................................................................................................... 23
Donor-Directed Funds .................................................................................................................. 23
Royalties ............................................................................................................................................ 23
POD (Pay On Death)/TOD (Transfer On Death) ............................................................... 24
Exclusions......................................................................................................................................... 24
VI. USE OF GIFTS ............................................................................................................ 24
Unrestricted Gifts ........................................................................................................................... 24
Restricted Gifts ................................................................................................................................ 25
Temporarily Restricted Gifts ...................................................................................................... 25
Permanently Restricted Gifts ...................................................................................................... 25
Endowment Gifts ............................................................................................................................ 25
Building an Endowment ............................................................................................................ 25
Spending an Endowment ........................................................................................................... 26
Permanency Clause ........................................................................................................................ 26
Unrestricted Designated Gifts .................................................................................................... 26
Budget-relieving Gifts ................................................................................................................... 26
Budget-enhancing Gifts................................................................................................................ 26
Budget-creating Gifts .................................................................................................................... 27
VII. DONOR RECOGNITION ......................................................................................... 27
Annual Giving Clubs...................................................................................................................... 27
Milestone Recognition .................................................................................................................. 27
Planned Giving Recognition ....................................................................................................... 27
Named Recognition....................................................................................................................... 27
VIII. GENERAL POLICIES ................................................................................................ 28
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Guideline 1 – Gift Acceptance Committee .............................................................................. 28
Guideline 2 – Rights of Donors .................................................................................................. 28
Guideline 3 – Conflict of Interest ............................................................................................... 28
Guideline 4 – Undue Influence ................................................................................................... 29
Guideline 5 – Confidentiality ...................................................................................................... 29
Guideline 6 – Authorization for Negotiation .......................................................................... 29
Guideline 7 – Assignment of Fiduciary Responsibilities .................................................... 30
Guideline 8 – Drafting Documents ........................................................................................... 30
Guideline 9 – Investment of Funds ........................................................................................... 30
Guideline 10 – Disposition of Funds ......................................................................................... 31
Guideline 11 - Special Cases ........................................................................................................ 31
IX. RESOURCES ............................................................................................................... 25
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I. INTRODUCTION
Augsburg College Division of Institutional Advancement Purpose In the broadest sense, the purpose of the Augsburg College Division of Institutional Advancement is twofold: (1) to develop and implement a plan to strengthen the services provided by Augsburg College through private gift and public grant support, and (2) to maintain and strengthen the relationship between alumni and their alma mater, and between Augsburg College and its friends (including organizations). To fulfill these purposes, it is the responsibility of the Division of Institutional Advancement to institute an organized program for obtaining gift support from alumni, friends, faculty and staff, corporations, organizations, foundations and government granting agencies. Solicitation and Gift Acceptance Policy Purpose The primary purpose of this Gift Solicitation and Acceptance Policy manual is to ensure that the College can respond quickly and appropriately to all gift offers while protecting the interests of Augsburg College and the persons and other entities that support its programs. A secondary purpose is to serve to educate the College’s staff and Board about critical issues triggered by certain gifts. This policy shall also serve to maintain in one location master copies of disclosure statements and other important documents that may be required by state and federal regulatory authorities for certain gift planning arrangements. The Gift Solicitation and Acceptance Policy shall serve to define 1) the role of Institutional Advancement as the central coordinating department for all types of fund raising programs and for all solicitation of funds; 2) the types of assets and gift forms that are acceptable; and 3) the College’s role in gift administration and stewardship.
II. GUIDELINES FOR POLICY IMPLEMENTATION
This policy is established to govern the solicitation and acceptance of all gifts made to Augsburg College. This document focuses on both current and deferred gifts, with special emphasis on various types of deferred gifts and gifts of non-cash property. The goal is to encourage funding of Augsburg College without encumbering the organization with gifts that may prove to generate more cost than benefit, or that are restricted in a manner which is not in keeping with institutional goals. To optimize funding from individuals and other entities, Augsburg College must be capable of responding quickly, and in the affirmative where possible, to all gifts offered by prospective donors. It is understood that these policies are intended as a guideline, and that flexibility must be maintained because some gift situations can be complex, and decisions are made after careful consideration of a number of interrelated factors. Therefore, in some instances the President’s Cabinet and/or the Development Committee of the Board of Regents may consider the merits of a
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particular gift and reach a decision on whether or not to solicit and/or accept it. The College may also seek the advice of legal counsel when appropriate. To maximize the effectiveness and efficiency of the services provided by Institutional Advancement, the guidelines that govern fund raising for the benefit of Augsburg College and all its functional units follow.
President’s Cabinet and/or Development Committee The President’s Cabinet and/or Development Committee is authorized to review any gift that warrants consideration as per the stated policy guidelines. Such gifts may include tangible property or gifts with specific conditions and/or restrictions. The President’s Cabinet and/or Development Committee, upon referral by the vice president for advancement, may also review recommendations to recognize a donor with a naming opportunity not included on the current list of naming opportunities. Use of Legal Counsel The College reserves the right to seek the advice of legal counsel prior to accepting certain gifts/grants. The circumstances under which counsel could be engaged include, but are not limited to, the following examples: • The review of certain gifts, such as closely held stock, or closely held stock
subject to buy-sell agreements or other restrictions • The review of certain transactions governed by contracts or legal documents • The review of all transactions with potential conflicts of interest • Other circumstances in which College staff, the President’s Cabinet and/or
Development Committee or Board members believe the use of counsel is appropriate
These examples are not meant to restrict or force the College to use counsel, but rather to provide some guidance when the advice of an attorney might be prudent. Because it may be difficult to separate a board member’s role from his/her role as counsel, for the purposes of this policy, the use of a board member as legal counsel is prohibited.
III. COORDINATION OF APPEALS FOR FUNDS & APPROACHES TO DONORS
It shall be the responsibility of Institutional Advancement to serve as the coordinating department for all types of fund raising programs and for all solicitation of funds, to protect the interests of the donor and to avoid an excessive number of solicitations in the name of Augsburg College. Solicitation of gifts and grants, by any means (letter, phone, special event, etc.), made by anyone for the benefit of Augsburg College, or any agency thereof, shall be put in writing, prior to the solicitation of gifts, using the “Sponsored Project Support Request Form.” This form is to be reviewed and signed by the appropriate Vice President and then forwarded to Institutional Advancement for review and approval by the Vice President of Advancement. In certain circumstances, the President’s Cabinet and/or the Development Committee may be convened for a review
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and vote on approval of solicitation of gifts and grants on behalf of Augsburg College by others outside of Institutional Advancement. Programs to be coordinated through Institutional Advancement include: a. Plans to raise funds from alumni on an annual basis b. Establishment of an “associates,” “friends” or “membership” program
designated to solicit financial support c. Special fund raising efforts appealing to various Augsburg College constituencies
regarding scholarships, memorial funds, fellowships, aid programs, professorships, endowed chairs, etc.
d. Requests to private and public sources for the funding of new or existing academic programs
e. All other programs to raise funds in the private and public sector Partnerships When Institutional Advancement, on behalf of Augsburg College, enters into fund raising partnerships with other organizations, prior to the solicitation of gifts, a written memorandum of understanding will be established for each project that the partnership will undertake. This MOU should include details on 1) the timeframe for the fund raising partnership, 2) the types of gifts to be solicited and accepted, 3) the constituents who will be solicited, 4) the process by which gifts will be recorded and acknowledged, 5) the projected budgetary impact of the partnership initiative, 6) the final distribution (process and amount) of the funds raised among the partners, and 7) all other pertinent information.
IV. RECEIPTING, PROCESSING, & ACKNOWLEDGMENT OF GIFTS &
PLEDGES It shall be the responsibility of Institutional Advancement to record and acknowledge receipt of all grants, pledges and irrevocable gifts to Augsburg College or any agency thereof, including cash, life-income gifts, securities, trusts, insurance policies, real estate and other gifts-in-kind. Institutional Advancement works in conjunction with the College’s Administrative Accounting Department to enter and reconcile gifts and grants to the institution’s general ledger via the College’s Agresso and Raiser’s Edge databases, following established procedures. All gifts, along with their original correspondence, received by any campus, school, department or administrative office are to be transmitted to Institutional Advancement at the earliest possible opportunity for processing. A complete and accurate record of every donor to Augsburg College shall be maintained by Institutional Advancement and shall be kept strictly confidential. Donor anonymity in publications will be protected whenever desired by the donor. All gifts will be processed and acknowledged by Institutional Advancement in a timely fashion, following the procedures outlined in the Advancement Services “Gift and Pledge Entry Procedures.”
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V. TYPES OF GIFTS TO BE MARKETED & ACCEPTED
Augsburg College, in keeping with the regulations of the Internal Revenue Service and laws of the State of Minnesota in which it is situated, may solicit and accept the following types of gifts: a. Outright gifts of Cash, Checks and Credit Cards b. Securities (marketable and closely-held) c. Certain Real Estate
• Personal Residence • Land • Life Estate Agreements • Undivided Interest in Property • Vacation home/time share
d. Tangible Personal Property (anything other than real property that is subject to personal ownership) • Personal collections of art, books, coins or movies • Cars, boats and aircraft • Equipment • Software, software licenses • Printed materials • Food or other items used for hosting dinners, etc.
e. Intangible Personal Property • Intellectual property (patents, copyrights of cultural, artistic and literary
works and computer software under development) f. Gifts-in-Kind of Materials or Long-Lived Assets (usually come from companies,
corporations, or vendors, in contrast to individuals, who typically give personal property, both tangible and intangible) • Equipment • Software, software licenses • Printed materials • Food or other items used for hosting dinners, etc.
g. Bequest or devise by will h. Life Income Agreements
• Charitable Gift Annuities • Charitable Remainder Unitrusts • Charitable Remainder Annuity Trusts
i. Charitable Lead Trusts j. Life Insurance k. Distributions from qualified retirement plans l. POD delivery of bank account, mutual funds, certificates of deposit m. Retirement Accounts n. Government Bonds o. Donor Advised Funds p. Donor Directed Funds q. Royalties
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r. Other gifts as approved by the President’s Cabinet and/or the Development Committee
Cash Cash gifts of money (including cash, money orders, wire transfers, direct deposit/EFT, etc.), checks and credit/debit card charges (Visa, MasterCard and Discover) will be accepted for restricted and unrestricted purposes. Online gifts via credit card are accepted on the college website www.augsburg.edu/giving. Publicly Traded Securities Securities which are traded on the New York, NASDAQ and American Stock Exchanges, or other readily marketable securities, shall be accepted by Augsburg College. It is anticipated that such securities will be immediately sold by Augsburg College. In no event shall an employee or volunteer working on behalf of Augsburg College commit to a donor that a particular security will be held by the college unless authorized to do so by an officer of the college. Advancement Services is responsible for notifying both the donor and the office of Administrative Accounting of receipt of all gifts of marketable securities and providing a value based on the average of the high and low quoted selling prices on the date the donor relinquished dominion and control of the assets in favor of the institution (as per the CASE Management & Reporting Standards). Closely Held Securities Non-publicly traded securities, such as those from closely held businesses, may only be accepted after approval of the President’s Cabinet and/or the Development Committee of the Board of Regents. Such securities may be subsequently disposed of only with the approval of the President’s Cabinet and/or the Development Committee. No commitments shall be made by Augsburg College concerning the repurchase or resale of such securities prior to completion of a gift of securities. Real Property No gift of real property (also called real estate or realty) shall be accepted without prior approval of the President’s Cabinet and/or the Development Committee. The college reserves the right to reject any gift of real property. Before accepting any gift of real property whether outright, in trust, or a remainder interest, Augsburg College will examine its potential liability under environmental impact laws. Therefore, in advance of gift acceptance, a completed “Real Property Donor Disclosure Form” (copy of form in Appendix) must be completed by the donor and a qualified appraisal that meets the requirement under the Internal Revenue Code must be received by Augsburg College. No gift of real estate shall be accepted without first being appraised by a party chosen by Augsburg College who shall have no business or other relationship to the donor. This appraisal serves three purposes: to 1) establish the donor's tax deduction, 2) give the university a reasonable value to report as part of its assets, and 3) establish an asking price for the property. It is the donor’s responsibility to pay
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for this appraisal (donors are encouraged to check with their tax advisor to determine the deductibility of this expense). Augsburg College also reserves the right to perform an on-site inspection to complete a “Field Checklist for Initial Determination of Possible Presence of Hazardous Waste on Property to be Acquired by Augsburg College” (copy of form in Appendix). After review of the “Real Property Donor Disclosure Form”, the qualified appraisal, and all property inspections required by Augsburg College, a decision will be made according to “Guideline 6-Authorization for Negotiation” of the "General Policies" section (in Section VIII. below). Gifts of real property that qualify as a charitable deduction for a donor should be counted at fair market value regardless of the value the donor may be able to take as a charitable deduction. IRS requirements for gift substantiation note that the donor has the responsibility for valuing property for tax deduction purposes. Gifts of real property with a fair market value greater than $5,000 should be counted at values placed on them by qualified independent appraisers. Gifts of real property with a fair market value of $5,000 and less may be reported at the value: • declared by the donor, or • determined by a qualified expert on the faculty or staff of the institution or a
qualified independent appraiser, or • established by the purchaser’s winning auction bid, if the fair market value of the
item has not been published prior to the auction.
Life Estate Gifts In a life estate gift, a donor deeds personal residential property (or a farm) to a charitable organization. While the donor is still living, s/he has a legal interest in the life estate with full rights to live there or to rent or sell those rights. The donor continues to take care of the property, pay the taxes, and receive any income the property generates. The donor receives an immediate income tax deduction for the present value of the remainder interest of the residence. Any appreciated value of the property avoids capital gains taxation. Since the transfer occurs outside the donor’s will, it will not pass through probate. Augsburg College shall accept Life Estate Gifts only with the approval of the President’s Cabinet and/or the Development Committee. The committee will make every effort to ensure that there has been full disclosure to the donor of the possible future ramifications of the transaction. Tangible Personal Property No personal property shall be accepted by Augsburg College unless there is reason to believe the property can be used by Augsburg concert with the College’s mission or sold within a reasonable timeframe. Prior approval of the President’s Cabinet and/or the Development Committee is required before accepting any gift of
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perishable property or personal property that will require special facilities or security to properly safeguard. No personal property shall be accepted that obligates Augsburg College to ownership of it in perpetuity. No gift of tangible personal property with a fair market value greater than $5,000 shall be accepted without first being appraised by a party chosen by Augsburg College who shall have no business or other relationship to the donor. This appraisal serves three purposes: to 1) establish the donor's tax deduction, 2) give the university a reasonable value to report as part of its assets, and 3) establish an asking price for the property. It is the donor’s responsibility to pay for this appraisal (donors are encouraged to check with their tax advisor to determine the deductibility of this expense). Only the President’s Cabinet and/or the Development Committee, or persons authorized by the committee to do so, may represent to a donor that property will or will not be held by Augsburg College for a specific period of time or for purposes related to its tax-exempt status. Augsburg College will, as a matter of corporate policy, cooperate fully in all matters related to IRS investigations of non-cash charitable gifts. Gifts of real property that qualify as a charitable deduction for a donor should be counted at fair market value regardless of the value the donor may be able to take as a charitable deduction. IRS requirements for gift substantiation note that the donor has the responsibility for valuing property for tax deduction purposes. Gifts of personal property with a fair market value greater than $5,000 should be counted at values placed on them by qualified independent appraisers. Gifts of personal property with a fair market value of $5,000 and less may be reported at the value: • declared by the donor, or • determined by a qualified expert on the faculty or staff of the institution or a
qualified independent appraiser, or • established by the purchaser’s winning auction bid, if the fair market value of the
item has not been published prior to the auction. Note that if the donor is the creator of a piece of donated artwork, the donor’s deduction is limited to the cost of materials. Memorabilia Gifts Memorabilia Gifts are defined as personal property offered by a donor that uniquely reflects an aspect of the College’s past. Memorabilia hold sentimental value to the donor, the institution, or both. All of the gift acceptance procedures set forth in the Tangible Personal Property section of this document apply to gifts of memorabilia. Once memorabilia is donated, it cannot be reclaimed by the donor or any family member or designee of the donor. Augsburg College reserves the right to determine the display type, location, and duration of display. Memorabilia not currently on
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display will be held in storage in the College archives. The College will make reasonable efforts to maintain and repair all displayed memorabilia. Augsburg College cannot be held responsible for theft or damage to any item on display or in storage. Intangible Personal Property Intellectual property is an intangible asset that has been produced through creativity and innovation. Examples of intellectual property include patents, copyrights of cultural, artistic and literary works and computer software under development. All of the gift acceptance procedures set forth in the Tangible Personal Property section of this document apply to gifts of intellectual property/intangible personal property. If the fair market value of intellectual property is not known and cannot be readily determined, Augsburg College will report the asset in the year the value becomes known. Gifts-in-Kind Gifts-in-kind are generally defined as non-cash donations, other than real or personal property, of materials or long-lived assets, that usually (although not always) come from companies, corporations or vendors, in contrast to individuals, who typically give personal property. Gifts-in-kind might include such items as equipment, software, software licenses, printed materials, food or other items used for hosting dinners, etc. Advancement Services has developed a "Gift-in-Kind" form and donors are encouraged to use it for non-cash donations. Gifts of materials or long-lived assets that are directly related to the mission of the College should be reported at face (fair market) value. If an educational discount is offered, Augsburg College will record the educational discount value for gifts-in-kind, especially items such as equipment and software (regardless of the estimated value a vendor may place on a gift-in-kind). An educational discount value is defined as the price the College would have paid had it purchased the item outright from the vendor. The “CASE Management & Reporting Standards (Third Edition)” provide examples of the various types of gifts-in-kind and guidance on how to count each (see pgs. 34-37 and 41-43). As a matter of policy, Augsburg College will follow CASE’s guidance on matters related to gifts-in-kind in those instances when they have been appropriately addressed within the Management & Reporting Standards. Note that the value of a person’s or organization’s time is NOT considered a charitable contribution and will not be counted or recorded in the Advancement Office fund raising totals. Bequests Bequests are provisions in a will, trust, or other testamentary legal document providing a gift to charity pursuant to applicable state law. The gift may be designated as a percentage of the donor’s estate, a specific dollar amount, specific property (such as securities, real estate or other assets), or as residual (whatever remains after specific bequests have been fulfilled).
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Augsburg College shall count and record irrevocable bequest expectancies at present value in the Development/Alumni Office fund raising totals. They shall be counted and recorded on the date the donor irrevocably establishes the instrument. For campaign counting purposes, Augsburg College will count revocable bequest intentions or those that are not legally enforceable according to the following schedule:
70+ years old = 100% Age of Donor % of Bequest Intention
60-69 years old = 75% 50-59 years old = 25% Under 50 years old = 0% Bequest intentions in which the donor does not complete the proper documentation or does not wish to disclose the specific amount of the bequest will be recognized, but not valued, for campaign counting purposes. Gifts from the estates of donors consisting of property that is not acceptable shall be rejected only by action of the President’s Cabinet and/or the Development Committee. Augsburg College shall expeditiously communicate the decision of the President’s Cabinet and/or the Development Committee to the legal representatives of the estate. If there is any indication that the representatives of the estate or any family member of the deceased is dissatisfied with the decision of the President’s Cabinet and/or the Development Committee, this fact shall be communicated to the Gift Acceptance Committee or to the appropriate member of the Advancement Office staff as quickly as possible. Charitable Remainder Unitrusts A charitable remainder trust is an irrevocable qualified trust in which a donor gives cash or assets to the trust, allowing the payment of income to one or more persons for their lives or a term of years. At the end of this time, the trust’s assets are given to one or more charities designated by the donor. Charitable remainder trusts are usually in one of two major forms—a charitable remainder unitrust, or CRUT, (described here) or a charitable remainder annuity trust, or CRAT (described next). Each provides periodic payments during a specified term, but each determines the payment amounts differently. In a charitable remainder unitrust, the donor receives variable income from the trust for the rest of his or her life. The income to the donor is based on a specified percentage of the trust principal, revalued each year, reflecting any increases or decreases in the value of the trust’s assets. More than one person may also receive income. The donor may make additional contributions to the trust as well. Income tax deductions for the donor are based on the present value of the remainder interest going to the charitable organization. There are three variant forms of CRUT’s, called “income exception CRUT’s.” For more information on “income exception CRUT’s”, please consult page 49 of the “CASE Management & Reporting Standards (Third Edition).”
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When establishing a legally enforceable and irrevocable CRUT donors must irrevocably assign the remainder of the trust to one or more charitable institutions for it to qualify as a charitable remainder trust. The donor, however, may retain the right to change the charitable organization that will ultimately benefit from the trust. It is the policy of Augsburg College that the trust must have wording that makes the assignment to the institution irrevocable for the institution to count and report the trust as a gift. If Augsburg College does not have the opportunity to be involved in the creation of the trust and/or the donor(s) or a third party externally manage it, the donor typically does retain the right to change the beneficiary. In such cases, it is the policy of Augsburg College to enter into a written pledge agreement with the donor that states that it is the donor’s intent not to change or reduce the provisions of the trust. Once the letter of agreement is executed, the College will count the gift. If Augsburg College is to serve as trustee without compensation, it will have a remainder interest in the trust and the donor does not reserve the right to change the charitable remainderman to the exclusion of Augsburg College. If Augsburg College is to serve as trustee without compensation and the trust names additional charities as beneficiaries, reasonable management fees will be deducted on behalf of the other charities prior to distribution. No Charitable Remainder Unitrust shall be entered into with a donor when Augsburg College’s portion is less than $100,000. There is no maximum amount restriction. In no event shall a transfer be accepted if the value of the charitable remainder computed using government tables is less than $50,000. Recognizing that it is not the only methodology for calculating the value of CRUT’s, the Advancement Office will count the value of a CRUT in its fund raising totals based on the amount of charitable tax deduction that the donor is entitled to. For the purposes of this policy, there is no maximum age restriction or minimum or maximum number of beneficiaries for CRUT’s, as long as the parameters/stipulations of the trust fall within IRS regulations. The number of beneficiaries shall be negotiated by the Advancement Office.
Each donor is responsible for setting the percentage for the unitrust amount. The percentage must be at least 5% of the initial trust value (the amount required by law) and it must be set so that the present value of the remainder interest payable to the College or other charitable organizations is at least 10% of the initial trust value. The upper limit shall be negotiable by the Advancement Office. These restrictions might limit the number of income recipients the donor can name when the trust term is based on the recipients’ lifetimes.
Determining the Unitrust Amount
Another factor for determining the Untrust payments is the timing of the payments to the recipient(s)—monthly, quarterly, semi-annually, or annually. The amount and timing of the Unitrust payments affects the amount of the donor’s charitable tax deductions and the amount of the taxable gift to the recipient(s), if any.
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Augsburg College reserves the right to assign management to an outside trustee. Charitable Remainder Annuity Trusts A Charitable Remainder Annuity Trust (CRAT) is similar to a unitrust except that the donor and second beneficiary (if one is named) receive a fixed income form the gift for the rest of their life. The income amount is based on the original value of the trust’s assets and no future contributions can be made to this type of trust. If Augsburg College is to serve as trustee without compensation, it will have a remainder interest in the trust and the donor does not reserve the right to change the charitable remainder to the exclusion of Augsburg College. If Augsburg College is to serve as trustee without compensation and the trust names additional charities as beneficiaries, reasonable management fees will be deducted on behalf of the other charities prior to distribution. No Charitable Remainder Annuity Trust shall be entered into with a donor when Augsburg College’s portion is less than $100,000. For the purposes of this policy, there is no maximum age restriction, maximum amount restriction, or minimum or maximum number of beneficiaries for CRAT’s, as long as the parameters/stipulations of the trust fall within IRS regulations--CRATs must have less than a 5% probability of exhaustion. The number of beneficiaries shall be negotiated by the Advancement Office. In no event shall a transfer be accepted if the value of the charitable remainder, computed using government tables, is less than $50,000.
Each donor is responsible for setting the percentage for the annuity amount for a Charitable Remainder Annuity Trust. The percentage must be at least 5% of the initial trust value (the amount required by law) and it must be set so that the present value of the remainder interest payable to the College or other charitable organizations is at least 10% of the initial trust value. The upper limit shall be negotiable by the Advancement Office. These restrictions might limit the number of income recipients the donor can name when the trust term is based on the recipients’ lifetimes.
Determining the Annuity Amount
Another factor for determining the annuity payments is the timing of the payments to the recipient(s)—monthly, quarterly, semi-annually, or annually. The amount and timing of the unitrust payments affects the amount of the donor’s charitable tax deductions and the amount of the taxable gift to the recipient(s), if any. In no event shall a transfer of mortgaged property be accepted. Revocable Trusts Augsburg College will not serve as trustee for any revocable will or trust, nor will it count revocable intentions in official fund raising totals.
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Charitable Gift Annuities In the charitable gift annuity transaction, a person irrevocably transfers to Augsburg College some property (cash, securities, etc.) and the College agrees in a contract to pay the donor or other beneficiaries a guaranteed annuity for life. Because the transferred property has a value larger than the value of the annuity, the transaction is in part the purchase of an annuity from the College and in part a gift. An income tax deduction (at the present value for counting and reporting purposes) is allowed for the difference between the gift value and the amount required to fund the annuity (actuarial value). Only gifts of cash or publicly traded securities will be accepted for the issuance of a gift annuity unless express written consent is given by the President’s Cabinet and/or Development Committee. No Charitable Gift Annuity shall be issued for an amount less than $5,000. No Gift Annuity shall be issued to any individual under sixty-five (65) years of age without the approval of the Gift Acceptance Committee. No Gift Annuity shall be issued for more than two lives. No exception shall be made to this requirement; otherwise Augsburg College will be liable for taxation according to federal regulations. No Gift Annuity shall be issued unless the charitable gift, computed using the government tables, exceeds ten percent (10%) of the amount transferred for the annuity. No exception shall be made to this requirement otherwise Augsburg College shall be taxed on a large part of the gift's earnings. Augsburg College shall follow the rates recommended by the American Council on Gift Annuities, unless following those rates does not allow the ten percent (10%) test to be met. A donor may, however, elect to receive a rate less than those recommended by the American Council on Gift Annuities. The president or a designee shall sign the annuity agreement in the name of Augsburg College. Deferred Payment Charitable Gift Annuities A deferred payment charitable gift annuity is almost identical in construct to the charitable gift annuity. The significant difference is that the contract stipulates some date in the future when payments to the donor or other beneficiaries will begin. This result is a larger income tax deduction to the donor in the year in which the transfer is made to the institution. In addition, because the principal compounds between the date of gift and the date the donor first receives income, the amount of income can be significantly larger than that of the standard charitable gift annuity. No Deferred Payment Gift Annuity shall be issued for an amount less than $5,000 or for the life of any individual under fifty (50) years of age. The period
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of deferral between the date of transfer and the date the annuity payments start shall he no more than fifteen (15) years. No Deferred Payment Gift Annuity shall be issued for more than two lives and no exception shall be made to this requirement otherwise under the tax law, Augsburg College may be taxed on a portion of the gift's earnings. Only gifts of cash and publicly traded securities will be accepted for the issuance of a Deferred Gift Annuity unless express written consent is given by the Gift Acceptance Committee. Augsburg College shall follow the rates recommended by the American Council on Gift Annuities, unless following these rates does not allow the ten percent (10%) test to be met. A donor may, however, elect to receive a rate less than those offered by the American Council on Gift Annuities. The president or a designee shall sign the annuity agreement in the name of Augsburg College. Lead Trusts Augsburg College encourages lead trusts as part of a comprehensive estate plan. The Gift Acceptance Committee will review lead trusts on a case by case basis in those instances in which Augsburg College is named trustee. Life Insurance
Augsburg College will accept gifts of whole life insurance policies. A new policy may be taken out on the life of a younger donor to create a future major gift to Augsburg College, with the cost of the premium being a small fraction of the value of the policy. Recognizing the vast amount of life insurance already in force for many individuals, some of which is no longer needed for its original purpose, Augsburg College will also encourage interested donors to simply name the College as the beneficiary (or one of the beneficiaries) of an existing life insurance policy. One advantage of this form of giving is that it can be accomplished with a simple change of beneficiary form available from the insurance company.
Augsburg College as Beneficiary
Augsburg College will not count/report gifts of insurance prior to settlement unless it is named both owner and irrevocable beneficiary of the policy. In instances where Augsburg College is named beneficiary, but not owner of an insurance policy, the full amount of the insurance company’s settlement at the death of the donor shall be reported as a gift on the date the College receives the proceeds. Augsburg College may be named the beneficiary of a life insurance policy with or without its knowledge.
Gifts of life insurance policies can be considered a gift only if Augsburg College has been named both owner and irrevocable beneficiary of the policy. When the College is named owner and beneficiary of the policy, the donor will be asked to make
Augsburg as Beneficiary and Owner
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payments to Augsburg College for the full amount of the premium payment(s). The College will then in turn make the premium payments to the insurance provider. This usually allows the donor to take a charitable contribution deduction for the full amount of the premium(s). It also provides confirmation to the College of who is making a premium payment since it will actually be receiving it, which is important because the College is obligated to provide an IRS-acceptable receipt to the donor. If the donor discontinues making the premium payments, the decision regarding the policy continuance may be made by President’s Cabinet and/or Development Committee. Additionally, the ownership of a paid-in-full policy may be transferred to Augsburg College. In order to maximize the benefits of gifts of life insurance for both the donor and the College, the following guidelines shall be adhered to: • For Augsburg College to accept a gift of life insurance, the minimum death
benefit value shall be at least $100,000 • The policy shall be fully paid within five years • Annual lump-sum premium payments shall be made no later than 30 days before
the insurance carrier’s due date • The donor, working with a qualified representative of Augsburg College, shall
specify in writing the school/college, program, project or area to benefit when the death benefit is realized
• In instances when the ultimate purpose of the death benefit is to establish an endowment, the face value of the policy shall meet the minimum funding requirements for that type of endowment (exceptions will be made to grandfather in gifts that do not meet new minimum funding requirements that have increased)
Augsburg College will adhere to the following standards in reporting gifts of life insurance: • Partially or fully paid-up life insurance policies shall be reported as outright gifts
at the cash surrender value as identified in writing by the insurance provider • If the policy is new or not fully paid-up at the time of the gift, then any premium
payments the donor makes to Augsburg College (which in turn pays the premium to the insurer) shall be reported as outright gifts at the full value of the premiums paid
• Realized death benefits shall be reported as gift income for fund-raising purposes only if the College has never previously recorded the policy value or any donor-paid premiums as gift income and if Augsburg has not been paying the premiums. If the values have already been reported, Augsburg College shall not report as a gift the difference between the previously reported values and the amount of the insurance company’s settlement at the death of the donor (this is a gain on the disposition of the College’s assets)
Augsburg College shall not enlist the services of any insurance agent to approach its prospective donors for insurance gifts.
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Retirement Accounts A donor may not make a gift of retirement plan assets while alive. Under current tax laws, there is no tax-advantaged way to transfer such assets directly to a charity. While some plan assets may be transferable directly, such a transfer is treated the same as a withdrawal, and taxed to the plan recipient as ordinary income. Of course, a subsequent outright gift of cash to an organization will usually provide an income tax deduction that can offset most, although sometimes not all, of the ordinary income tax liability. Government Bonds Augsburg College will accept U.S. Treasury securities issued by the U.S. Department of the Treasury, Bureau of the Public Debt. Donor-Advised Funds A donor-advised fund is an account that has a registered charitable organization sponsor, which can be an established public charity, a local charitable foundation or a charitable organization established by a financial firm. A donor’s contributions to donor-advised funds are irrevocable and unconditional. Donated assets are usually invested and/or distributed according to the donor’s recommendations, although the fund, a charity itself, has the ultimate control. However, contributions through donor-advised funds shall not be permitted to be applied to satisfy an individual donor’s pledge(s) for the following reasons: 1) the individual donor will take a deduction when the gift to the conduit foundation is made; 2) the individual donor cannot take a double deduction and therefore does not need a receipt; 3) if the College has recorded a pledge by the donor, then while that pledge is on record, a gift from a 3rd party (the conduit foundation/donor advised fund) which satisfies that pledge is in effect a gift to the donor by the 3rd
party, which may be treated as an improper transfer by the non-profit foundation to the donor (a non-qualified donee) and may also be treated as income to the donor.
It is the responsibility of Augsburg College Advancement employees to make sure individual donors with donor-advised funds understand that a pledge may not be satisfied except by a direct gift. Donor-Directed Funds With a donor-directed fund, the donor sends an asset to a financial institution for investment and safekeeping. The assets remain in the name, and under control of, the donor. The donor contacts the financial institution and directs it to issue a check in the name of the qualified non-profit. It is the responsibility of Augsburg College Advancement employees to determine whether a gift was made through a donor-directed fund or a donor-advised fund. Royalties Augsburg College shall accept gifts of royalties from property it does not own (such as patents), or from property that could not be valued and thus was not counted at the time of the gift each time a payment is received. Royalties from vendor affinity
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agreements, such as alumni credit card programs, are exchange transactions and are not countable. POD (Pay On Death)/TOD (Transfer On Death) Immediate transfer of assets upon death can be accomplished by titling bank accounts, certificates of deposit, automobiles and certain other assets with a POD or TOD designation. These gifts can be completed without associated legal expenses. Exclusions Following is a list (not comprehensive) that delineates many of the types of transactions occasionally misidentified as gifts or specifically disallowed for CASE and CAE reporting purposes: • Revocable and legally unenforceable gifts, pledges and bequest expectancies • Advertising revenue • Alumni membership fees/dues • Appraisal costs • Contributed services • Discounts on purchases (not to be confused with “bargain sales”, which are
countable gifts) • Expenses associated with transferring a gift to an institution • Government funds • Investment earnings on gifts • Monies received as a result of exclusive vendor relationships • Non-gift portions of quid pro quo transactions • Royalties from affinity agreements • Tuition payments
VI. USE OF GIFTS Many options are available for donors to direct how their contributions may be used for greatest benefit to the College. Gifts to the College can be divided into three classes - unrestricted, temporarily restricted and permanently restricted. Additionally, gifts may be budget-relieving, budget-enhancing or budget-creating. Unrestricted Gifts Unrestricted gifts are gifts for which the donor designations have been satisfied because the College is already meeting the designation at the time the donor makes the gift. For example, a gift designated to “The Augsburg Fund” is considered unrestricted because the College has a budget for the use of those funds. With these gifts, the funds must be spent in the fiscal year in which they are received. Any gift less than $100,000, received from any source, excluding planned gifts, not restricted by the donor, will be applied to the Augsburg Fund. Unrestricted gifts greater than or equal to $100,000 or any gifts received through bequests or other estate gifts will be applied to long term investment in the General Endowment Fund
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unless otherwise designated by the President’s Cabinet and/or the Development Committee. The president will make recommendations to the Board of Regents for alternate designation as he/she deems necessary. Restricted Gifts Restricted gifts impose a legal obligation on Augsburg College to comply with the terms established by the donor. Therefore, it is necessary that the nature and extent of this obligation be clearly expressed in writing. For this reason, the terms of each restricted gift will be reviewed by Institutional Advancement with the utmost care to ensure that they do not hamper the usefulness and desirability of the gift. Potential gifts/pledges with complex restrictions will be referred to the President’s Cabinet and/or the Development Committee, prior to acceptance, for review and a determination. If a gift is deemed unacceptable because of a donor's restrictions, the donor will be counseled to remove or modify the restrictions. Gifts will be refused or returned when the purpose 1) is inappropriate or not in the best interest of the College, 2) is clearly a commercial endeavor, or 3) would obligate Augsburg College to undertake responsibilities, financial or otherwise, which it may not be capable of meeting.
These are contributions with donor restrictions that can be satisfied by board action, the passage of time, or expenditure for a specified purpose. With these gifts, the fund balance is rolled over from year to year until the fund is depleted.
Temporarily Restricted Gifts
These are contributions with donor restrictions that will never expire. With these gifts, the fund balance is rolled over from year to year; only a portion of the fair market value is spent annually. Permanently restricted gifts are more commonly known as endowed gifts.
Permanently Restricted Gifts
Endowment Gifts Endowed funds may be established with gifts of cash or negotiable securities. Gifts of personal property, real property and closely-held stock may be accepted only if the Gift Acceptance Committee approves the gift prior to receipt. The minimum amount required to establish an endowment fund is $25,000.00.
Augsburg College may establish an endowment fund with amounts less than those stated in the appendix, provided that within a reasonable time (three years) from the date of the receipt of the first resources, the original and additional gifts, shall equal at least one half of the stated minimum. If one-half of the minimum fund has not been provided in three years, the fund may be terminated, as determined by the President’s Cabinet and/or the Development Committee, and the amounts given used for the general purposes of the institution nearest to the donor’s. If the minimum level of funding has not been reached in five years, the fund will be terminated by the President’s Cabinet and/or the Development Committee and the
Building an Endowment
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amounts given used for the general purposes of the institution nearest to the donor’s. A full disclosure of these terms shall be included in the endowment agreement provided to the donor. Income from an endowment may be distributed before the pledge amount is fulfilled, assuming that the stated minimum for the endowment has been reached.
Spending is defined as the rate at which funds are released to the designated purpose of the endowment. The rate of spending is determined by the Board of Regents. The current spending rate is 4 percent of portfolio market value as of May 31.
Spending an Endowment
Permanency Clause As appropriate, the terms of any restricted or endowed fund must include language to permit the Board of Regents to assign different, alternative, modified but related use of such funds as conditions dictate in some distant future. Such action should be authorized by the donor by including a variation of the following clause in the transfer of assets while living or by bequest: “If, in the opinion of the Augsburg College Board of Regents, all or part of the earnings of the fund cannot be usefully applied to the purpose designated (or in the manner requested), the Board may use the same for any purpose within its corporate powers to decide or for any other purpose which, in its opinion, will most nearly accomplish my purposes, wishes and intent.” Unrestricted Designated Gifts Unrestricted designated gifts are gifts designated to a special project, academic department or program, the athletic department or fine arts, etc. One hundred percent of designated monies will be available to the designated division (budget-enhancing). These designated funds are available in the fiscal year in which they are raised, and can be accumulated from year to year. These funds cannot be spent on wages, benefits or other ongoing obligations, such as lease or rentals, which have terms crossing over fiscal years. Designated funds will be allocated to the appropriate sub-fund at the time the gift is made through the gift entry process. Budget-relieving Gifts Budget-relieving gifts are gifts that offset the cost of general College operations. The reallocation of this relief is at the discretion of the President. The following types of gifts shall be considered budget-relieving: • All undesignated, unrestricted gifts. • Gifts that are designated for programs or initiatives that have a current operating
budget, except in the case where the donor explicitly states that the gift is intended to be budget-enhancing.
• The distributions received from permanently restricted gifts that endow existing programs or initiatives.
Budget-enhancing Gifts
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Budget-enhancing gifts are gifts that add to one or more current operating budgets of the College. The following types of gifts shall be considered budget-enhancing: • Gifts that are designated for programs or initiatives that have a current operating
budget, and the donor explicitly states that the gift is intended to be budget-enhancing.
• Temporarily restricted gifts. • In accordance with the Unrestricted Designated Gift Policy, gifts designated to a
specific department, academic program, athletic team, etc.
Budget-creating Gifts Budget-creating gifts are gifts that are restricted for programs or initiatives that do not have a current operating budget. The President’s Cabinet and/or Development Committee will assure the College’s approval of the creation of these programs or initiatives prior to gifts being accepted.
VII. DONOR RECOGNITION
It is the policy of Augsburg College to appropriately recognize all gifts to the College. For the purposes of recognition, corporate matching gifts will be credited to the donor securing the gift. Maroon and Silver Society Augsburg College’s Maroon and Silver Society include donors who make a commitment to contribute $1000.00 or more to the College over four consecutive years. These donors are recognized in an annual listing of donors and through invitation to special events throughout the year. Lifetime Donors In addition to annual gifts, Augsburg College recognizes donors who have reached milestone marks in their cumulative giving (minimum $25,000.00). Each donor who reaches this level will be appropriately recognized by the College.
Heritage Society Augsburg College also values gifts planned through a donor’s estate and recognizes these gifts through the Heritage Society. Society members can be recognized for either: 1) Future gifts planned by bequest, beneficiary designation or POD (pay upon death) designation, or 2) Split Interest Gifts (charitable remainder trusts, charitable lead trusts, charitable gift annuities, etc.). Named Recognition In the event of meaningful philanthropic contributions to the College, Augsburg may choose to recognize a donor’s generosity by naming a part of the College in honor of the donor. Recommendations to recognize a donor with a naming opportunity not included on the current list of naming opportunities are made to the Vice President for
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Advancement who refers the matter to the President’s Cabinet and/or Development Committee. Naming opportunities include, but are not limited to, buildings, property, or any space therein (classrooms, laboratories, lounges, etc.); schools or colleges, departments, titled positions (i.e., chairs, professorships), lectureships, scholarships, travel and research funds, academic programs and endowment funds. Criteria to be used to determine which naming opportunity will be used to recognize the donor include the size of the gift, the prominence of the space or program, and the importance to the College. While a donor selected for named recognition will have the privilege of choosing the name associated with the recognition, the College reserves the right to approve the chosen name.
VIII. GENERAL POLICIES
Guideline 1 – Gift Acceptance Committee The President’s Cabinet and/or Development Committee is established and authorized to review any gift that warrants consideration. Such gifts may include tangible property or gifts with specific conditions and/or restrictions. The President’s Cabinet and/or Development Committee, upon referral by the vice president of institutional advancement, may also review recommendations to recognize a donor with a naming opportunity not included on the current list of naming opportunities. Guideline 2 – Rights of Donors The role of Institutional Advancement is to serve as an advocate for the donor, and in doing so, adheres to the Donor Bill of Rights (copy of form in Appendix). Guideline 3 – Conflict of Interest The interests of the donor shall have priority over the interests of Augsburg College. No program, agreement, trust, contract or commitment shall be knowingly urged upon any prospective donor that would benefit Augsburg College at the expense of the donor's interests and welfare. No agreement shall be made between Augsburg College and any agency, person, company, or organization on any matter related to investments, management, or otherwise, which would knowingly jeopardize the donor's interest. When deemed necessary by the vice president of institutional advancement, the Board of Regents authorizes the use and advice of legal counsel in all matters pertaining to its planned giving program. Charitable Gift Annuity agreements can be executed utilizing agreements approved by counsel as exhibited in the Appendix of this document (agreements updated as necessary).
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All agreements in which Augsburg College is trustee shall follow the format of the specimen agreements approved by applicable federal and state laws, subject to final approval by counsel. Prospective donors shall be urged to seek their own counsel in matters related to planned giving instruments such as drafting of wills, trusts, agreements, contracts and others. They will be advised to consult with their attorney or accountant on matters related to the tax implications and estate planning aspects of a planned gift agreement. If a representative of Augsburg College makes a referral to an attorney, it shall be understood that the attorney is retained to represent the donor-client's interest. When making such referrals it is advisable to provide the donor with a list of at least three attorneys, in alphabetical order, allowing the donor to make the selection. A representative of Augsburg College shall never provide legal or financial advice to its donors or prospective donors. Guideline 4 – Undue Influence Representatives of the Augsburg Advancement Office shall exercise extreme caution to avoid the use of any undue pressure or persuasion when dealing with prospective donors. The role of such a representative is to inform and assist the donor in estate planning concerns, including the exercise of prudent consideration of the donor's personal interests as well as in fulfilling charitable objectives. No person employed by Augsburg College to contact prospective donors or to promote the gift planning program shall receive commissions or other payments that would give such personnel a beneficial interest in any agreement. The Philanthropy Protection Act of 1995 specifically prohibits the marketing of certain gift plans by persons not regularly engaged in the overall development activities of the College (as paid staff or volunteer) or by persons receiving any form of commission based on the number or the size of such gifts. Guideline 5 – Confidentiality Biographical and financial records stored in any computer data base or written file will be treated as confidential information and will not be released or accessed without specific written approval of the president, vice president for advancement or designated officials in the Advancement Office. Selected information for purposes of referral, testimonial or example will be used only with the permission of the donor. Augsburg College will not sell address lists to outside vendors. Guideline 6 – Authorization for Negotiation The president and only those others specifically authorized to do so shall negotiate planned giving agreements with prospective donors following these guidelines.
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In accordance with the College’s corporate resolution, the president or his/her designee shall have the authority to sign legally-binding gift agreements on behalf of Augsburg College. Guideline 7 – Assignment of Fiduciary Responsibilities It shall be the responsibility of the Advancement Office to procure and acquire gifts for Augsburg College. It shall be the responsibility of the Board of Regents to administer any assets accepted in keeping with the guidelines for investment. When necessary, it shall be the responsibility of Institutional Advancement to procure, acquire and report to donors such information that is required by the donor or granting agency. It shall be the responsibility of Administrative Accounting Office to prepare and issue all reports due to the Internal Revenue Service. Preparation of reports, checks, etc. may be accomplished by outside professional firms on behalf of Augsburg College. Payments on life income obligations shall be made monthly, quarterly, semiannually, or annually at the donor's choice. The final determination regarding the frequency of payments will be made after considering the amount of the annual payment since checks will be issued only for the amount of $100 or more unless the payment is to be made annually. Guideline 8 – Drafting Documents As the Charitable Gift Annuity Agreement has been previously reviewed by counsel, future gifts, with identical terms, can be made to these funds without further review. When documents are prepared by the donor's legal counsel that require an Augsburg College signature, Augsburg College’s legal counsel shall review the documents prior to execution. When providing wording for a bequest it is also necessary to include a disclaimer indicating that Augsburg College and/or its representatives are not providing legal advice. Guideline 9 – Investment of Funds Funds received in exchange for a life income contract, and funds placed in split interest trusts administered by Augsburg College or any of its appointed agencies, shall be managed under the jurisdiction of the Board of Regents. Investment practices shall comply with the guidelines established and approved by the Board to achieve the objectives, first for the life income beneficiaries and secondly, of the remainder beneficiary(ies). All funds received for Gift Annuities and income from said funds shall be invested and retained in reserve until the demise of the life income beneficiaries. Invested
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funds that have an obligation to a life income beneficiary shall not be hypothecated or used for self-dealing. If state law should require that investment of funds for certain life income gifts follow certain restrictions, Augsburg College shall comply with such law. Guideline 10 – Disposition of Funds Upon the demise of the last life income beneficiary, the principal amount of an annuity or CRT shall be released to or for the use of Augsburg College and always in accord with the wishes of the donor if specific designation has been made. A donor can, through legal documentation, give up all or a portion of income otherwise due through a life-income arrangement. In this event, the donor will normally be entitled to an additional charitable tax deduction. Guideline 11 - Special Cases Any deviations from the listed guidelines shall require approval of the President’s Cabinet and/or Development Committee.
IX. RESOURCES
The following organizations, publications, regulations and forms helped in formulating this Gift Acceptance Policy: • Association of Fundraising Professionals • Council for Advancement and Support of Education (CASE) Management
Reporting Standards. Revised November 2003. • The National Committee on Planned Giving • United States Department of the Treasury, Internal Revenue Service
http://www.irs.gov/charities/ - IRS Form 8282: Disposition of Certain Charitable Deduction Property
Made Within 2 Years… http://www.irs.gov/pub/irs-fill/f8282.pdf - IRS Form 8283: Noncash Charitable Contributions. Required for Donation
of Property between $500 and $5,000 http://www.irs.gov/pub/irs-pdf/f8283.pdf
- IRS Publication 526: Charitable Contributions http://www.irs.gov/pub/irs-pdf/p526.pdf
- IRS Publication 544: Sales and Other Disposition of Assets (includes “bargain sales”) http://www.irs.gov/pub/irs-pdf/p544.pdf
- IRS Publication 561: Determining the Value of Donated Property http://www.irs.gov/pub/irs-pdf/p561.pdf
- IRS Publication 1771: Charitable Contributions Substantiation and Disclosure Requirements, Exempt Organizations http://www.irs.gov/pub/irs-pdf/p1771.pdf
- IRS Publication 4302: A Charity’s Guide to Car Donations http://www.irs.gov/pub/irs-pdf/p4302.pdf
- IRS Regulation: Taxation of Tax-Exempt Organizations’ Income from Corporate Sponsorship. Federal Register. Vol. 67 No. 80. April 25, 2002.
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http://frwebgate.access.gpo.gov/cgi-bin/getpage.cgi?position=all&page=20433&dbname=2002_register
- IRS Updates on Disclosure and Substantiation Rules http://www.irs.gov/pub/irs-tege/topic-g.pdf
- IRS Application of IRC 6700 and IRC 6701 to Charitable Contribution Deductions http://www.irs.gov/pub/irs-utl/topicm.pdf
- IRS Taxation of Tax-Exempt Organizations’ Income from Corporate Sponsorship. Federal Register Vol. 67, No. 80, April 25, 2002. http://www.gpoaccess.gov/fr/index.html
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Gift Receipting Policy
All gifts are to be received and held in Advancement Services for safekeeping until processed. The policy of Advancement Services is to process gifts within 48 hours of receipt. This time standard is measured from when the gift is received to when the gift receipt letter is mailed to the donor. All designations of gifts are to be determined independently of Advancement Services. If the donor has not designated a gift, a gift officer or advancement services staff may contact them to ascertain the proper designation of a gift. In the rare instances when a gift designation cannot be determined within the 48 hour standard, the check is processed and deposited, and the gift receipt letter is held until the designation is finalized.
Gift Processing Overview
1. Mail is delivered to Institutional Advancement Suite 2. All mail is opened to determine if there are gifts in the envelopes 3. Checks are copied with accompanying gift documentation 4. New batch(es) is/are created 5. Gifts are entered into gift batch(es) 6. Batch(es) are committed 7. Letters
a. Gift receipts are created for each gift using RE mail merge program b. Gift processor will fix formatting errors and missing addresses. c. Gift documentation is given to Donor Relations to proof. d. Gift documentation is returned to gift processor with notes on errors that need to
be fixed. e. Go through the gift documentation and fix all noted errors. f. Remove the incorrect Gift Receipt letter and reprint a corrected letter. g. Print letters once all are correct h. Give letters along with gift documentation to Advancement Services Director (2
separate stacks) for signing. i. Advancement Services Director will sign letters and return. j. Letters are then run through the folding/envelope stuffing machine. k. Each letter needs a buck slip stuffed in it if supplied by the Annual Fund
department. l. Check gift documentation to see who needs matching gift forms stuffed in the
envelopes as well. m. Rubber band the stack of letters and put mailing cost center # on the top envelope. n. Letters can go in the mail bin. Gift documentation should go to the students to be
checked and filed. 8. Deposit
a. Checks and check copies should be totaled separately on the adding machine to make sure the check totals match the totals of copies and amount listed on the batch commit report
b. Stamp the back of each check with the “Pay to the Order of” stamp
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c. Group all batch commit reports together (Be sure all online gifts & Event Registrations have been processed)
d. Run the Gift Validation Report e. Make sure Batch commit reports total to the same amount on the Gift Validation
Report. f. Fill out the Deposit Form with the appropriate information. g. Copy the Deposit form along with the gift validation report and batch commit
reports. h. Attach the adding machine tape with the check totals to each set of deposit
reports. i. Paper clip the checks to the original deposit form, and put it in a sealed envelope
for the Gift Accountant in the Business Office at CB# 308 j. Put envelope in mail bin k. Put Copy of Deposit into the appropriate month’s file folder.
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Gift Acknowledgment Tree
Gift Amount
New
Don
or
New
$1,
000
+ do
nor
$0 -
$99
$100
-$49
9
$500
-$99
9
$1,0
00-
$2,4
99
$2,5
00-
$4,9
99
$5,0
00-
$9,9
99
$10,
000
+
Annual Fund Report of Measurable Results of Gift All Donors
Student Thank You Email/Note x x Low Priority x x x x x x
Student Volunteer Phone Call x x If Possible Case by Case Basis Personal DLG Contact (if assigned)
(Preference: Phone call, e-mail, note) x x x x x
Personal AF Staff contact (if not assigned)
(Preference: Phone call, e-mail, note) x x x x x Case by
Case Basis
VP Contact (if not assigned) (Preference: Phone call, e-mail, note) x x
President Letter x x x x x President Phone Call x x x
President’s Circle Welcome Packet and Lapel Pin x
Thank you letter, note or call from Regent x x x
Insiders Newsletter x x x x x Exclusive Event
(dinner with President and/or Regents?)
x
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Development of “Stewardship” Level donors
Determine which donors are no longer major gift prospects, but need special stewardship Determine which donors who are not yet major gift prospects but need cultivation prior to work with Directors of Leadership Giving Assign those donors as Stewardship Level donors Bi-Monthly communication strategy Purpose - Additional correspondence that extends the message of how important gifts are used and describes the impact of the philanthropy on achieving the mission of the College can increase the sense of recognition that donors feel. Ideas to pursue for bi-monthly mailing:
Use concept like Bill Frame used in his “In the Loop” letters Generic statements about the impact of their giving across campus with pictures and stories of students and professors Opening convocation sermon and convocation series speeches Programs and flyers for events Special news releases and announcements – printed and mailed if no e-mail is available Birthday cards Anniversary cards of gifts Music, theatre and athletic event calendars Campaign updates and progress reports
Phone conversations with donors who cannot attend events Send out programs of events to people who could not attend
“Insider” communications, such as President’s Updates, Board of Regent news Informing donors about new initiatives on campus Reprints of articles
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Calendar for Communications June Topic is graduation – pictures and articles August Information for start of school year – to include sports schedules, event
schedules, convocation schedules, fine arts schedules October Thanksgiving stories – excerpts from thank you notes of students, pictures
of student scholars, stories of Homecoming, December Advent vespers highlights, Augsburg For Adults stories, Christmas wishes February Upcoming convocations, scholarship and donor event, fine arts events April Preview graduation success stories, review who will go to seminary, what
student plans are after graduation, numbers of students going to graduate school
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Fund reporting
Scholarships Scholarship reports are sent to donors who fund scholarships or their family members once they are deceased. Reports are sent each year, after the audited financial statements of the college have been approved by the Board of Regents. The fiscal year end is May 31 of each year. The scholarship reports include the beginning balance, gifts and transfers to the fund, realized and unrealized gains allocated to the fund from the endowment portfolio, the amount available to spend on scholarships each year, and the ending balance. Student recipient names and home addresses are included on the report if they are available, as well as a report of the investment performance of the total endowment of the college. Below is a sample of the report format for endowed scholarships. Beginning Fund Balance on 06/01/06: $68,040.69 Total Gifts and Transfers 6/1/06-5/31/07 $0 Net Realized and Unrealized Gains on Endowment $8,631.58 Endowment funds available for the 07-08 school year* *(4% draw for scholarships on beginning fund balance)
$2,721.63
Ending Fund Balance on 5/31/07: $76,672.27 Students receiving the scholarship for the school year 2006-2007 John Smith, Minneapolis, MN Debbie Johnson, Duluth, MN Augsburg College Endowment Fund Portfolio May 31, 2007
Portfolio Value $35,902.407.00 Twelve Month Return through May 31, 2007 14.96%
Questions about this report may be directed to Kevin Healy, Director of Advancement Services, 612-330-1619, [email protected]
E573
Article I. Endowment Summary Report Article II. Fiscal Year June 1, 2006 to May 31, 2007 XXXXX and XXXXX XXXXX Scholarship
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Program Endowments More extensive reports are created for selected endowments of the college. If a gift officer determines that endowment donors would benefit from an endowment report the following format is used to gather information. These reports are written in collaboration with the program staff or department faculty. The Marketing and Communications Office assists in writing and creating the format for the reports, to include 4 color templates and pictures as appropriate.
Annual Endowment Reports for Donors
Suggested Outline
I. Purpose – originally stated in agreement II. Financial Report
III. Budget summary for stated year
IV. Accomplishments/Highlights V. Current Student Profiles – a few examples
VI. Graduating Student Profiles – a few examples VII. Profile of faculty/staff
VIII. Short-term plans for current year IX. Long-term plans/dreams for the program
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Tax reporting of K-1 and 1099 forms Charitable Remainder Trusts, Charitable Unitrusts, and other annuity gifts to the college require that we report K-1 or 1099 income to donors. These should be sent by the Business Office of the college, along with letters created by the Donor Relations Office each January. The 1099 forms must be sent by the end of January, and the K-1 forms are sent as soon as we receive the tax information from the trustees for the account and can have the tax forms prepared. Annual report of donors Annual reporting to donors is important to show the use of the gifts given by donors. In the past our reporting has been in the form of a donor listing or honor roll. It is our desire to move towards a narrative form of reporting by featuring student stories, biographies of students, and messages of thanks from students and faculty. Our reporting format will include:
o Giving Clubs o Two page Financial Report of the College o Report of class years overall giving and participation that will be included in
the alumni magazine in the fall edition o Storytelling, testimonies, student stories o PDF web listing of honor roll
Campaign Reports Other campaign reports will be designed to report on the overall progress and success of any fund raising campaign. These reports will be designed for the general donor audience, as well as for the campaign donors. These will include separate mail pieces, posting on the Augsburg web pages, and stories in the NOW magazine.
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Calendar of Endowment Stewardship Activities June
Corrections and adjustments to endowments made in consultation with Donor Relations and Business Office. Transfers and back-dating of large gifts can affect the allocation of earnings for all endowments and must be done before the endowment statements are audited.
July • Financial audit of College • Creation of Student Profile Biographical pages on Augsburg College Website
for inclusion in thank you notes to scholarship donors • Creation of survey to include with scholarship reports • Design of report and photography for inclusion on the report
August and September
• Scholarship report preparation and distribution done in conjunction with student recipient information from the Enrollment Center
• Letter drafted from Vice President for Institutional Advancement with marketing message to donors of scholarships
• Determine which reports will be mailed and which will be hand-delivered. Set and enforce a deadline after which all reports will be mailed.
• Begin new endowment fund summaries for selected large program endowments
October and November
• Thank you notes from students to donors of scholarships • Distribution of student profiles to scholarship donors
January
• Endowment reports created for specific program endowments • Oversee process of student awards by Financial Aide and Business Office to
ensure compliance with donor intent • 1099 forms for Charitable Gift Annuities are prepared and mailed from the
Business Office. These should be mailed with a letter from the Vice President of Institutional Advancement.
• K-1 forms are prepared and mailed from the office of Institutional Advancement
February and March
• Scholarship and donor brunch planning • Connect students with donors who are attending brunch
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April
• Music High Tea and Department year end celebrations that invite scholarship and endowment donors to participate
• Year end recitals, research presentations, honors convocations that donors may be invited to
May Fiscal year end for the College. Earnings posted to endowment funds and Board
of Regent approved drawdown of endowment spending is calculated.
Donor Recognition and Cultivation Events
Events to be considered for combination: Scholarship Event President’s Circle Donor Dinner – Advent Vespers Heritage Society Events
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Giving Clubs
The President’s Leadership Societies The President’s Leadership Societies would be an umbrella group over the President’s Circle, the Sven Oftedahl Heritage Society and the Bernhard Christensen Lifetime Giving Society.
Auggie Circle
The Auggie Circle is being studied as a method to recognize young alumni who give to the Augsburg Fund at a significant level for their peer group. Auggie Circle members give a gift of $100 their first alumni year, $200 the second year, $300 the third year, $400 the fourth year, and $500 each subsequent year through their ninth year as an alumni
President’s Circle The President’s Circle will include all donors who give $1000 or more to the
Augsburg Fund, which is an unrestricted fund. The college uses this fund for spending on the immediate priorities of the College. The recognition will be with a special lapel pin, and invitation to events such as the Advent Vespers dinner and the Scholarship and Donor Brunch. A decision was made to include donors who give $1000 annually to restricted funds and endowments in the President’s Circle.
The Maroon and Silver Society is to be discontinued effective 5/31/08.
Effective 6/1/08 the President’s Circle will have the following levels: Regents’ Fellows ($50,000 and above) Regents’ Society ($25,000 and above) President’s Executive Cabinet ($10,000-$24,999) President’s Council ($5,000-$9,999) President’s Associates ($1,000-$4,999) Auggie Circle – Young alumni level ($100 x years since graduation for 1-4 years,
or $500 for years 5-9) President’s Circle Communication and Roll-out Plan Early June 2008 – Final thank you to all who were ever Maroon & Silver
members Late June/Early July 2008 – President’s Circle Announcement to $500+ donors
from the past 5 years plus selected prospects Fall 2008 – President’s Circle piece in the NOW magazine Early October 2008 – Targeted Solicitation Mid-November 2008 – Calendar year-end mailing Early February – Spring second chance solicitation Mid-April – Last chance solicitation
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Welcome packets with Maroon & Silver cross-A lapel pins President’s Quarterly E-newsletters Sven Oftedahl Heritage Society The Heritage Society is being re-branded and renamed with a historical name
of an important figure at Augsburg College. The name under consideration is the Sven Oftedahl Heritage Society. The Heritage Society members pledge to give to Augsburg in their estate/will/insurance policy/Charitable Gift Annuity, etc. These gifts need to be tracked and recognized so that revocable gifts continue to be designated to the College, and so that we don’t lose contact with donors who have pledged support to the College.
Lifetime Giving Society
The Lifetime Giving Society will recognize donors who have reached significant cumulative giving goals during their lifetime. The proposed thresholds are $50,000 in gifts per household.
Scholarship Society The Scholarship Society will recognize donors who contribute to endowed or
non-endowed scholarships, or who have a scholarship agreement that will be funded at their death with a bequest, insurance policy or charitable gift annuity.
Other Donor Recognition Distinguished Alumni Awards at Homecoming Celebrations Ground breaking/Dedications Named Spaces and Naming Opportunities Signing ceremonies with President and photography sessions with President Presentation folders for new scholarships and endowments Plaques and Displays of donor lists NOW Magazine articles Personal visits and campus involvement New Endowed Fund Certificates Holiday Cards from the President’s office and from Directors of Leadership Gifts
Sympathy cards and birthday cards are sent regularly by the Alumni office staff. If a donor is chosen to receive flowers or other baskets of fruit or plants these come from the budget of the person making that decision.
Presents - premiums
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Volunteer Involvement
Student thank-a- thon
Thank you letters from students Invitations to recitals and other campus events by staff and faculty
Hosting events for other prospects or regional get-togethers Faculty visits to donor prospects and current donors
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Program Assessment and Goals
Methods to measure program success Surveys De-brief on events Focus Groups Short term Goals 2008-2009 1. Plan and oversee the annual Scholarship Brunch for donors and recipients
Measurement: Measure scholarship gifts from donors who attend and who don’t attend event. Student attendance increases to 150% of donor attendance. Spending kept within budget
2. Prepare and distribute scholarship reports to donors
Measurement: Accurate reports sent to all donor contacts for scholarships, Donor satisfaction measured by repeating survey from 2 years ago. Time period to complete: August 2008-September 2008
3. Create and implement endowment reports for large endowments
Measurement: Accurate and comprehensive reports on endowments are available to deliver to key donor prospects for program endowments. Eleven program endowments to be reported on in this fiscal year.
Time period to complete: September 2008 – December 2009
4. Develop stewardship pieces for individual portfolio of managed donors Measurement: All stewardship donors have bi-monthly information from the college
Time period to complete: May – December 2008 5. Create year end gift summary for donors with multiple yearly gifts
Measurement: All donors with multiple gifts will receive a summary of their annual giving to the college which will show gifts to different funds. Time period to complete: January 2009 – February 2009
6. Create process to send year end tax forms from the Development Office
1099 forms for Charitable Gift Annuities are prepared and mailed from the Business Office. These should be mailed with a letter from the Vice President of Institutional Advancement. Time period to complete: January 2009
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Long term Goals 1. Improve donor satisfaction with reporting on how gifts to the college are used.
Measurement: Increased annual giving to the Augsburg Fund and Scholarship and program endowments. Improve fund-raising capacity for future campaigns by increasing total number of donors available for gifts.
2. Stewardship is practiced through-out the college by faculty, staff and students. Measurement: Increased annual giving to the Augsburg Fund and Scholarship and
program endowments. Improve fund-raising capacity for future campaigns by increasing total number of donors available for gifts.
3. Creation of personalized stewardship events for top tier of donors. This could include
dinners with Regents and the President, or inclusion at Board of Regent meetings and working sessions.
Measurement: Improved donor satisfaction of top tier donors as measured by informal surveys. Current donors increase giving and give to more projects and to the Augsburg Fund.
4. Assist with roll-out of Auggie Circle, President’s Circle, Lifetime Giving Society,
Sven Oftedahl Heritage Society and Scholarship Society. Measurement: Donors motivated to reach new levels of giving, and participation grows in giving societies.
Donor Stewardship
Policies and Procedures
Office of University Advancement
P.O. Box 4094, Flagstaff, AZ 86011-4094
Phone: [928] 523-3152 Fax: [928] 523-8877
www.nau.edu
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2
Table of Contents
Section 1 Deceased Spouses 3.6
Purpose 1.1 Corporate and Foundation
Stewardship
3.7
Section 2 Section 4
Gift Acknowledgment and
Recognition
Gifts-In-Kind [GIK]
Foundation Protocols 2.1 Gifts of Tangible Personal
Property and Real Property
4.1
Gift Alerts ~ Units’ Responsibilities 2.2 Requirement for Accepting GIK 4.2
Foundation’s Role in Gift
Acknowledgement
2.3 Procedures for Titling 4.3
Stewardship and Recognition
Standards
2.4
Customized Stewardship Plans 2.5 Section 5
Personalized Stewardship 2.6 Memorial Gift Policy 5.0
Know Your Donor 2.7 Protocols for Establishing
Memorial Accounts
5.1
Press Releases 2.8
Section 3 Appendices
Procedures for Anonymity 3.0 Authorization Form to Access
Reports
A
Anonymous Donors 3.1 Sample Thank You Letter B
Levels of Anonymity 3.2 Sample Event Invitation to
Stewardee
C
Initiating Anonymity 3.3 Sample Student Thank You Letter D
Revoking Anonymity 3.4 Anonymous Gift Worksheet E
Stewardship within Families ~
Second Generation
3.5 Memorial Notification Form F
RESOURCES
From the Association of Donor Relations Professionals http://www.adrp.net
“How to Make Donors Glad They Gave and Eager to Give More: 12 Tips” R-1
“Special Stewardship for High-end Donors” R-2
“Individualized Stewardship Plans” R-3
“Thanks in Advance: The Dynamics of Stewarding Planned Gifts” R-4
“How I Built An Award-Winning Stewardship Program” R-5
“Adding Phone Calls to the Acknowledgment Process” R-6
“Lights, Camera, Action: Using Digital Technology for Innovative Ways to Say
Thank You”
R-7
“Stewarding Bequest Donors” R-8
“Get it Right, Make it Tight, Keep it Bright: Useful Writing Resources” R-9
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Donor Stewardship
Policies and Procedures
1.1 Purpose
The purpose of this Donor Stewardship handbook is to provide resources for development staff
to creatively, appropriately and consistently build donor relations into their daily operations.
These guidelines are intended to ensure that the donors’ intentions are honored and their gifts are
properly acknowledged.
As stewardship ambassadors we embrace a philosophy that reflects our role to sustain and
nurture the university’s relationships with its donors. By working collaboratively we provide
exemplary service to all of our constituents and build relationships that are sustained through
quality service, mutual trust, commitment, and loyalty, and we increase lifetime involvement and
financial investment to NAU.
Stewardship at NAU consists of three objectives:
1. Prompt acknowledgment of gifts, including the specific designation of the gift;
2. Privacy protection and confidentiality; and
3. Gift recognition that is personalized and appropriate.
Stewardship, also known as donor relations, is acknowledgement and recognition of donors. It is
the process whereby the university cares for and protects its philanthropic supporters - its gifts
and those who give them - in a way that responds to donor expectations and respects donor
giving.
2.0 Gift Acknowledgment and Recognition
A gift acknowledgment is the official “thank you” for a donation intended to benefit NAU. It is
distinguished from the gift receipt issued by the NAU Foundation (NAUF) to acknowledge
receipt of cash, stock, real property, gifts-in-kind, etc. which can be used for tax purposes.
It is a priority to make our donors feel appreciated and recognized so that we can maintain their
connection and giving to NAU. University Advancement (UA) is charged with oversight for
communications to the university’s donors – alumni, friends, parents, faculty, staff, retirees,
corporations and foundations – that NAU is an institution worthy of both their financial
commitment and loyal support. It facilitates the acknowledgment of all gifts to the Foundation in
a timely, accurate and appropriate manner, recognizing donors in meaningful ways while
complying with requests for anonymity.
Courtesy dictates the parameters for our gift acknowledgment process. Specific protocols, based
on the value of the gift, are in place to ensure that proper acknowledgment occurs as quickly as
possible. UA, in coordination with the NAUF, manages a particular subset of the gift
acknowledgment process; the units, departments and programs manage the remainder.
2.1 Foundation Protocols
All gifts to university in the form of cash, checks, on-line gifts, securities, gifts-in-kind, and
planned gifts are generally received directly by the Foundation.
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2.2 Gift Alerts ~Units’ Responsibilities
A weekly record of gifts received is available at UA’s web site
www.advancement.nau.edu/reports.shtml to designated staff. The Director of Development
(DD) may request that support staff person be given access via the Authorization Form for
Access to NAU Foundation and University Advancement Report.
www.advancement.nau.edu/reports.shtml. (Application does not infer approval.) A sample of
this form is located in Appendix “A”.
A thank you (acknowledgement) letter from the dean or director, as appropriate, should be
mailed to the donor within five days of the current week’s gift alert. In instances where the
department chair and/or faculty member were involved with the solicitation of the gift or directly
benefit from it, they should also write a letter or call the donor to express appreciation. When
preparing the thank you letter, be sure to let the donor know why this gift is important, and
include a newsworthy item about your unit. There are sample letters in Appendix “B” which can
be customized. Gift letters should be updated at least annually, perhaps at the beginning of the
new fiscal year, so that donors do not continue to receive the same letter.
For those donors that give repeatedly throughout the year, establish a system to modify their
letter regularly. UA’s Information Support Team (IST) will be developing a database so units
can track acknowledgement letters.
Data Entry updates current gift information at the Weekly Gift Alert for each unit. Access is
available at www.advancement.nau.edu. Go to Additional Quicklinks pull down menu, then to
NAUF Fund Reports; then select your unit and login. The report does not capture donors that
have notified us of their intention to give a gift through their estate. The address data is pulled
from our Advance database and is set up to conform to the U.S. Postal Service mailing
instructions.
2.3 Foundation’s Role in Gift Acknowledgment
Thank you letters for gift of below $250 are sent on NAUF letterhead with an electronic
the NAUF President’s electronic signature within 48 hours after the gift has been
received.
Thank you letters for gifts of $250 or greater are sent on NAUF letterhead with the
NAUF President’s real signature within 48 hours after the gift has been received.
Donors who give $1,000 or more in a fiscal year receive a thank you letter signed by
NAU’s President welcoming them to the President’s Associates Gift Club. They will
also receive a letter from the Director of the NAU Fund.
Donors of gifts-in-kind will receive an acknowledgement letter describing the gift, but
not its value. Refer to Section 4 explaining the process for accepting gifts-in-kind.
Documented planned (i.e. irrevocable) gifts and expectancies (revocable) will be
acknowledged by the Director of Gift Planning within one week of written confirmation.
Within two weeks, the President of NAUF will send a thank you letter.
Donors of documented planned gifts and expectancies valued at $25,000 or more
will also be sent a thank you letter from the university President within two weeks
of the gift notification.
The Office of Gift Planning overseas the acknowledgement to donors of
revocable gifts and planned gifts not resulting in receipt of funds at the time of
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gift notification (i.e., gift of real estate through a charitable remainder unitrust
must be sold in order for the money to be received).
It is recommended that DD’s arrange for thank you calls to donors of gifts valued at
>$xxxx or more.
Each summer NAUF sends letters to the stewardees of endowed scholarships providing
them an update of the status of their fund, i.e. market value, award amount, and recipient
name and their program of study (if a scholarship).
There is much that can be done to provide guidance and insure consistency in stewardship.
Standards for stewardship are divided into two categories: minimum standards that must be met
by all staff members and ideal standards that will be met by staff once current limitations have
been addressed. Some units already fulfill the entire minimum and many of the ideal standards.
It is important that one person in each unit has oversight for insuring that consistent and
appropriate stewardship is maintained.
2.4 Stewardship and Recognition Standards It is important that one person in each unit has oversight for insuring that consistent and
appropriate stewardship is maintained. In the chart below, standards for stewardship are divided
into two categories: minimum standards that must be met by all staff members and ideal
standards that will be met by staff once current limitations have been addressed.
Type of Stewardship Minimum Ideal
◊ Send a thank you letter within five days of the gift being listed on
the web Weekly Gift Alert at
www.advancement.nau.edu/reports.shtml. See sample thank you
letters in Appendix “B.”
√
◊ Include donors on the invitation lists for unit/department events
such as the students’ capstone projects (depending on the gift
circumstances and where the donor lives.) Be sure to include
donors who have remembered the unit in their estate plan.
√
◊ Include the donor’s name on unit and or department newsletter
mailing or e-newsletter list. √
◊ Invite scholarship donors (stewardees), in a timely manner, to
award events where they can meet the award recipients. Refer to
Appendix “C.”
√
◊ Invite general scholarship recipients (who are majors in your
unit) and donors to attend scholarship events.
√
◊ Share biographical information about the award founders with
scholarship recipients. Information can be found in scholarship
documentation.
√
◊ Notify scholarship recipients in writing of their award, and
include a requirement that the student write a thank you letter to
the donor and bring it to the unit for mailing before the funds will
be released to their account. If necessary, provide paper,
envelope and postage and help the student write the letter. Please
see Appendix “D” for a sample student thank you letter.
√
◊ List scholarships and other types of endowments and non-
endowed awards on your web site.
√
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◊ Type of Stewardship Minimum Ideal
◊ Include donor stories and gift impact in your unit newsletter after
you have obtained their written permission to do so. √
◊ Depending upon the size of the gift, and/or the impact of a gift,
publish a press release. Refer to paragraph 2.8, Press Releases. √
◊ Invite current President’s Associates (gifts of $1,000+), President’s
Circle (gifts of $10,000+) and Heritage Society members [donors
that plan to give an estate gift], to receptions in their region hosted
by NAUF and/or the Alumni Association.
√
◊ Includes donors that have surpassed a lifetime giving threshold of
$X to the President’s Annual State of the University. √
◊ Send an annual letter from the dean and the current appointee with
updates on the prior fiscal year’s accomplishments to the founders
of endowed distinguished chairs and professorships.
√
Will we post a plaque in the unit to recognize the
founder and the recipients? √
When the person holding the chair/professorship steps
down, the dean or director will send a letter to the founder
announcing the new appointee.
√
Distribute a press release and other appropriate publicity to
recognize founder and appointee. Refer to paragraph 2.8,
Press Releases.
√
Host a reception to honor newly established endowed
position. √
All newly endowed distinguished professorships/ chairs
should be profiled in the unit/departments publications. √
It is recommended that a listing of all endowed
distinguished professorships/chairs and their appointees
be included on the unit’s web site.
√
Should the University host an event every X years to
honor founders of all endowed distinguished
professorships and chairs?
√
There are other stewardship tips available from the Association of Donor Relations Professionals
located under the Resources section at the back of this handbook.
2.5 Customized Stewardship Plans
A customized stewardship plan is one that is developed for a particular individual, corporation,
or foundation entity. It takes into consideration the donor’s interests, personal philosophies, and
friends. It binds the donor’s university connections and relationships with the donor’s personal
interests and philosophies.
By creating a customized stewardship plan for donors whose cumulative gifts and pledges are
$XXX or greater, we ensure that these high-level donors are interacting with the university and
its representatives in the most effective and strategic way possible. DD’s will coordinate with
the Associate Vice President for UA to develop these plans.
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2.6 Personalized Stewardship UA is responsible for university level stewardship for donors whose cumulative giving reached
levels as identified in NAU’s gift club criteria. Donors at higher levels should already be
receiving current updates about the latest news at NAU, are invited to special events, and interact
with university officials. However, these types of recognitions may not necessarily be integrated
into the fundraising cycle.
2.7 Know Your Donor
It is important to document as much information as possible about a donor so that the university
can become more strategic in how it cultivates and stewards its growing donor pool. UA’s data
on an individual donor might be extensive. However, for corporate and foundation entities, this
data tends to be less comprehensive. DD’s are encouraged to work with the Office of Prospect
Research to gather the following types of information:
NAU connections
NAU affiliations
Community and professional affiliations
Personal friends
Business acquaintances
NAU event attendance history
2.8 Press Releases
UA deeply appreciates the time and efforts of faculty and staff that have developed relationships
with alumni and friends resulting in a gift to NAUF. There are instances where it is appropriate
to acknowledge the donor publicly, and UA would like the opportunity to work with staff in that
effort.
One of the approaches utilized in stewarding donors is to distribute a press release
acknowledging the gift to publications on and off campus. There are many strategic
considerations in order to ensure that we are sending the right message to the reader. It is also
important that donor permission be obtained before publishing any information about them, their
gift, or its impact.
Please send a draft of your press release to the Development Coordination in UA, Box 4094.
The article will be edited, donor approval will be obtained, and arrangements will be made for
publication.
3.0 Procedures for Anonymity
3.1 Anonymous Donors
Anonymous donors pose a particular challenge to the principles of good stewardship because
they fall outside the university’s standard gift acknowledgment and stewardship protocols. It is
vital that UA maintains a systematic and comprehensive process by which anonymous donors
are recognized and stewarded.
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3.2 Levels of Anonymity
It is helpful to know a donor’s intent regarding anonymity before a gift or pledge document is
received. DD’s are responsible for understanding the levels of anonymity and explaining them
to potential anonymous donors.
The following levels of anonymity are guidelines and may be designed for customized
stewardship in coordination with UA.
a) Complete anonymity: The donor does not want to be associated in any way with a
particular gift. The donor will receive a thank you letter; no recognition will occur.
There name will appear on lists run for data requests; it is the responsibility of the DD to
be aware of the donor’s status.
b) Limited anonymity:
i. The donor may accept private acknowledgement without public recognition.
ii. The donor may be willing to accept public recognition without divulging his/her
name.
Whenever a donor has requested anonymity, in any form, an Anonymous Gift Worksheet must
be completed and forwarded to NAUF. Please refer to Appendix E, and go to S:\Central
Information\Forms to retrieve the form.
When a donor has requested anonymity, the DD should contact one of the team members in
UA’s Information Technology Services to have an “Alert” placed on the donor’s entity record in
Advance. Before anyone can access the screen, they will see an “alert” message such as, “Ms.
X is an anonymous Planned Gift Donor. Please communicate with the Director of Gift Planning
for additional information.” To ensure that anonymity is always observed, a specific request for
anonymity should be made with each gift.
3.3 Initiating Anonymity The DD obtains donor information regarding a request for anonymity.
The appropriate “Alert” is placed on the donor’s computer record by Data Entry.
The DD provides written notice of anonymity that will be scanned into KwikTag.
A verification of anonymity is sent to the donor by the requesting DD.
3.4 Revoking Anonymity
A donor or a donor’s representative must request revocation of anonymity in writing..
The DD will forward the revocation request to Data Entry to update the entity record in
Advance.
Upon completion of the record change, a confirmation letter will be sent to the donor or
donor’s representative by the DD.
Although a donor may wish that some gift transactions be anonymous, it is possible to steward
the donor in a way that honors his or her wishes while acknowledging and strengthening the
donor’s ties to the university. In these circumstances, UA will work with the unit to determine
the stewardship protocols for their anonymous donor. Coordination must occur between offices
if the university is to honor the donor’s wishes.
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3.5 Stewardship within Families ~ Second Generation A number of university donors have children that are tied to gifts. It will be necessary to tailor
an appropriate plan for whom the university will steward and how the university will recognize
these individuals.
3.6 Deceased Spouses
Generally, the surviving spouse would be given the same level of recognition as the primary
donor. However, we need to adapt practices for stewarding surviving spouses who are not
necessarily part of the donor’s gifts (i.e., second marriage, etc.). This situation will be driven by
discussions with the surviving spouse.
3.7 Corporate and Foundation Stewardship Customized stewardship plans will also be created for companies and foundations with
cumulative contribution reach the $XXX,XXX threshold. This allows the university to
appropriately steward the contact that had an instrumental role in securing the gifts. This is
particularly sensitive because the corporation or foundation gets credit for the gifts.
4.0 Gifts-In-Kind [GIK]
4.1 Gifts of Tangible Personal Property and Real Property
Gifts-in-kind are gifts of tangible personal property such as equipment, art objects, furniture,
instruments, books, valuable papers, or real estate, etc. These may be useful gifts, if they are of
value to the unit. Because a gift may not be usable, or may be too costly to maintain, acceptance
requires the approval of the dean/director.
Once the decision is made to accept the gift, a Gift-in-Kind form located at
advancement.nau.edu/foundation2.shtml must be completed, along with the donor’s estimated
value of the gift. For gifts valued at $5,000 or above, an independent qualified appraisal is
required, along with Internal Revenue Service form 8283 Non-cash Charitable Contributions
which is available at www.irs.gov.
The completed Gift-in-Kind form must be returned to NAUF (Box 4094) where it will be
recorded. A thank you letter will be sent to the donor describing the property, but not the value
as the Internal Revenue Service requires this to be established by the donor. This process
enables NAUF to track these types of gifts and ensure appropriate stewardship.
The NAUF’s Board of Directors has approved “Requirements for Accepting Gifts-in-Kind” that
below. A gift of tangible personal property may be accepted on behalf of the university by
NAUF provided that:
4.2 Requirements for Accepting Gifts-in-Kind – (GIK)
Before any such gifts-in-kind will be received in the foundation, the following will be
determined:
(a) The user unit, department, or program at Northern Arizona University must declare that
the gift-in-kind will be useful to meet its stated objectives and goals.
(b) The donor must make provisions for a qualified appraisal by a certified or qualified
appraiser which will satisfy his or her needs for tax purposes.
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(c) Arrangements must be made in advance to transport, ship or deliver the gift-in-kind to
Northern Arizona University.
(d) Arrangements must be made in advance for space to house the gift-in-kind at Northern
Arizona University.
(e) Provisions must be made in advance for installation costs, if any, for the gift-in-kind at
Northern Arizona University.
(f) Arrangements must be made in advance for insurance coverage, if any, for gifts-in-kind
during shipping and when housed at Northern Arizona University.
(g) Arrangements for maintenance costs, if any, for the gift-in-kind must be made in
advance.
(h) Determination must be made if there is any liability associated with receiving the gift-in-
kind by the Foundation.
(i) Final determination regarding acceptance of any gift-in-kind will be made the President
of the foundation. The President may consult with the Executive Committee if necessary on
acceptance.
(j) The donor will be notified of the foundation’s intent to maintain or dispose of the
property.
(k) All real estate gifts offered to the foundation are to be reviewed by the appropriate gift
acceptance committee and presented to the Executive Committee or the Board of Directors with
the committee’s recommendation to accept, reject or refer to the university. The committee will
also make recommendations regarding environmental assessment requirements.
4.3 Procedures for Titling
(a) If title to the gift-in-kind is retained in the foundation, the item(s) will be placed on the
inventory list of foundation assets with all appropriate information. An annual inventory check
will be completed certifying the gift-in-kind is still the possession of the user department at the
university. At this time, a depreciation or appreciation schedule will be provided.
(b) If the gift-in-kind is declared of no further benefit to Northern Arizona University, and
there was no restriction placed on the item(s) by the donor, the gift-in-kind may be sold, traded
or discarded, but only with the expressed written permission of the President of the foundation.
(c) Title to the gift-in-kind may be transferred from the foundation to Northern Arizona
University at any time, but only with the expressed written consent of the President of the
foundation. The item(s) will then be placed on the inventory list of the university and the
foundation will have no further concern or responsibility.
5.0 Memorial Gift Policy
5.1 Protocols for Establishing Memorial Accounts
A memorial gift may be made in memory of a deceased individual. The memorial gift policy is
managed through UA for the following purposes:
Coordinates gift designation with family and/or friends;
Coordinates the university’s and unit’s response to the death of a university friend
(alumnus, employee, retiree) through representation at memorial services, if appropriate,
letters from university officials, sympathy cards, flowers, etc.;
Provide family and/or friends (involved in establishing the memorial gift) with gift
account totals and donors to the fund; and
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Creates a central point of coordination for university departments.
Prospect Research scans news sources for the obituaries of individuals connected to the
university. Any calls from family and/or friend indicating that NAUF is a recipient organization
for memorial gifts should be directed to the Project Coordinator [PC]for Gift Planning and
Stewardship for follow up.
When University Advancement receives a call from the deceased individual’s family or other
contact, the following procedures are in place to establish a memorial account for funds if it is
appropriate:
The PC completes the Memorial Notification Form, Appendix “F”, with family or
contacts determining gift designation and the expected dollar amount to be donated
toward the account ([i.e., whether it will be an endowed or current fund).
If the contact/family wishes to give to an existing scholarship fund, the default fund will
be #4426, unless they have another existing fund in mind. The contact/family will be
instructed to provide the fund designation on the memo section of the check.
The PC notifies the DD in the appropriate unit/department/program and Data Entry of the
death. If the fund is to establish a named account, the DDt will prepare an Account
Application located at advancement.nau.edu/foundation2.shtml to be submitted to NAUF.
If checks are received by the Data Entry without any prior instructions, Prospect
Research will be contacted. The PC will contact the family.
Family members of the deceased may publish an obituary instructing people to send a “gift to
NAU in lieu of flowers.” These gifts will be directed to the PC.
Individuals wishing to purchase a memorial or honorary bench or book plate may be referred to
the PC for assistance.
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Appendix “B”
Sample Event Invitation to Stewardee
The College of xxx at Northern Arizona University is currently planning its scholarship
program for the 2006-2007 academic year. This year, the [name of your scholarship event]
will be xxxxday, month x, 200X, at (location).
The [unit] and our students are most grateful for your support toward the education of our
students through the [name of scholarship]. The amount available for your scholarship this
year will be approximately [$payout]. This amount is determined by a 4% payout
(established by the NAU Foundation Investment Committee) from the principal of the fund.
The exact amount will be known in February, and should be close to this estimate.
Please let me know by [date] if we may count on your continued participation in the
program. Additional gifts to endowed funds are always welcome, or you may wish to
supplement this year’s scholarship award with an additional contribution. The competition
for scholarships continues to increase as federal aid funds decrease and the expense of a
college education increases. Following is a summary of the cost of attendance:
Student Costs 200X – 200X
Average for a full-time, on-campus Arizona resident:
*$ Tuition Fees
Room and Meal Plan
Estimated Personal Expense
Books
Transportation
Total
*Represents projected increase.
Non-Arizona residents pay an additional $x,xxx in tuition for a total of $xx,xxx.
As you can see, your scholarship support is meeting an important financial need for the next
generation of business leaders. We invite you, or a representative, to present your scholarship(s)
at the [breakfast, lunch, reception]. Please indicate the name of the person you would like to
present your scholarship(s) on the enclosed card.
Your generous support is an important contribution toward the success of [unit] students, and
future [scientists, educators, etc.]. We appreciate your assistance and continued support.
D R A F T- Revised 5/29/2008
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Appendix “C”
Sample Thank You Letters
The NAU Foundation has informed me of your recent gift of $xxxxx for the xxx fund in the
Department of Biological Sciences. On behalf of all of us in the Department, a hearty thanks for
your loyalty to NAU and support of biology. As I enter my eighth and last year as Chair of this great
group, I continue to find that there are so many good people like you among our alumni and friends.
NAU is a unique place and one that engenders a strong sense of place and a long-term bond. I am
pleased to report to you that our programs are doing extremely well and there are some exciting
developments in progress.
This past year we shifted the departmental alignments at Northern Arizona University so that we now
have a College of Engineering and Natural Sciences. The transition process moved along smoothly,
in part because the engineers are currently housed in a building adjoining biology while their
building on south campus is undergoing a complete renovation. In addition, as of July 2005, the
Program in Exercise Science, which was part of the College of Health Professions, has merged with
our Department of Biological Sciences. Both of these developments lead to enhanced collaborations
between faculty and new cross-disciplinary course offerings, which benefit both undergraduate and
graduate students.
We are starting the process of building the new $35 million Biology and Chemistry Teaching
Laboratory and Research Building. Construction is slated to start in July, with completion just 18
months later in early 2007. There are also construction projects ongoing in several other campus
areas leading to new and renewed venues for instruction and scholarly activity. I’ll provide more
details on these construction efforts in the annual newsletters.
Your continued support of NAU and our programs is a valuable contribution to the development of
new talent and furthering our scholarly work that has such a wonderful mix of faculty,
undergraduates, and graduate students. For those of you who are making contributions to the
Development fund, we use these monies to benefit undergraduates through improvements in the
Biology Advisement Center, and aiding undergraduates making presentations of their research work
at meetings. Other funds have specific purposes, including the new Biology Scholarship and Award
fund that contains several sub-funds including the Russ Balda undergraduate travel award and the
Annual Peter Price Endowed Lecture.
Please do stop by the office to say hello when you pass through Flagstaff.
Sincerely,
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I am writing to express our sincere gratitude for your gift $xxx designated for the XXX. Our
college is reaching across disciplines to find answers to complex and challenging problems in
twenty-first century science and technology. For students, this diverse research community
provides a vibrant teaching and learning environment that redefines possibilities, encourages
critical thinking, and develops creative leaders. Thank you for contributing to our future.
We are enthusiastic about the opportunities afforded by our cross-disciplinary research and
instructional activities. We are more capable than ever before of preparing students for scientific
and technical careers in Arizona and beyond. Some of the major initiatives we are pursing
include:
Renovation and expansion of the engineering building to provide modern instructional
methods, interactive learning activities and innovative research;
A new laboratory building for biology and chemistry, featuring state-of-the-art research
and teaching laboratory facilities;
Collaborative, cross-disciplinary research programs (in areas such as bio-engineering and
water resources) that help faculty provide advanced, real-world training for
undergraduate and graduate students.
I invite you to visit our web site at www.nau.edu/cens for the most recent news from the college.
Once again, on behalf of our students and faculty, I thank you for your generous contribution.
Your support is critical to our success.
Sincerely,
************************************************************************
Letter for all contributions:
We recently received your gift of XXX to support XXX. Thank you for your willingness to
assist the Franke College of Business at Northern Arizona University in fulfilling its mission and
meeting the needs of a growing student body.
The FCB ~ NAU is dedicated to helping prepare the next generation of business leaders to
succeed in today’s changing business world. Our commitment to business education is evident
in our students’ proficiency in core competencies, deep understanding of business principles, and
their ability to solve problems using the latest technology
We invite you to visit the Mountain Campus to experience firsthand the impact of your gift and
to see the newly constructed FCB building. This building fosters the community atmosphere for
which NAU is well known by encouraging faculty and student interaction and learning outside of
the classroom. The outcome of the design process is an open, welcoming building with 110,000
square feet, 32,000 of it designated as space for students to study, meet in groups, meet with
faculty, or just relax and network. To learn more about the new building, please see:
http://www.cba.nau.edu/newbuilding.
If you have any questions about the FCB ~ NAU, please contact us at your convenience. Thank
you for your generosity and ongoing support.
D R A F T- Revised 5/29/2008
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Sincerely,
************************************************************************
Letter for gifts of $500 or more
Thank you for the generous gift of xxxx to support the Franke College of Business CIS
Discretionary Fund. On behalf of the college, I want to express our gratitude for your support.
To continue its tradition of excellence into the foreseeable future, Northern Arizona University is
turning to private, corporate and foundation support for those special ingredients that determine
excellence. Now more than ever, your gift provides the Franke College of Business students the
opportunity to succeed in an ever-changing world.
FCB ~ NAU strives to be the leading provider of personalized business. We are dedicated to
helping prepare the next generation of business leaders to succeed both in and out of the
classroom. Our focus on professional leadership skills, entrepreneurial programs, and
experiential education enhances the fundamentals of our quality curriculum while pursuing
emerging opportunities and innovative programs.
Your generosity, interest, and support of the FCB ~ NAU make a real difference to our students.
We hope you will take the time to visit the Mountain Campus, tour the college, and meet our
faculty. If you have an opportunity to visit the school, please let us know and we will be
delighted to share with you our programs and initiatives. To see the latest with the College,
please visit our website: http://www.franke.nau.edu.
Thank you again for supporting the Franke College of Business.
Sincerely,
************************************************************************
All contributions to accounting funds:
On behalf of the accounting faculty and students at the Franke College of Business, Northern
Arizona University, we appreciate your financial support through your recent gift of $xxx to the
xxx. Your gift enables us to provide the highest quality, personalized accounting education to
our students and to foster continuous improvement and innovation in our program. Our
successes can be directly attributed to the generosity of friends and donors, like you, who are
instrumental in the FCB ~ NAU’s commitment to creating tomorrow’s accounting professionals.
Once again, my colleagues and I are grateful for your support of the accounting area at FSB ~
NAU.
Sincerely,
************************************************************************
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Oftentimes letters of thanks are received for generous donations that fail to accurately reflect the
depth of appreciation for one’s kindness. We sincerely hope that this letter of thanks truly
captures our sincere gratitude for your generosity.
The DeRosa Partners in Physical Therapy Endowment is an original and innovative opportunity
to not only support, but to actually become part of collaborative research and creative efforts that
are designed to optimally position the profession of physical therapy in today’s health care arena.
Thanks to you, the profession can continue to engage in endeavors that most accurately describe
and define our societal value which ultimately better positions us collectively and individually.
Thank you again for joining us in this important effort.
Sincerely,
************************************************************************
Let me take this opportunity to thank you for your donation to the Northern Arizona University
Foundation, in particular, to the Department of Physical Therapy. Your generosity is greatly
appreciated.
In our constant quest to provide excellence in education, gifts such as your enable us to be
leaders in the field. The end results are well advertised in our students who go out to all ends of
the country and practice this art with precision, pride and confidence that our program has
instilled. We strive to exceed all expectations of the field and we feel that with your help we can
continue to do so.
Thank you again for your most generous contribution and for taking an interest in our program.
Sincerely,
************************************************************************
I would like to take the time to personally thank you for you donation to the Northern Arizona
University Class of 2000 Legacy Scholarship. The Department of Physical Therapy appreciates
your thoughtful gift.
As a former student you understand the financial hardship being a full-time graduate student can
cause. Consequently, I am sure any physical therapy student lucky enough to receive funds from
this scholarship will be extremely grateful. We are very proud of the Class of 2000 for their
thoughtful and useful gift to the Physical Therapy department.
Thank you again for your generous contribution that will affect so many students lives over the
years.
Sincerely,
************************************************************************
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On behalf of the Philosophy Department, I send thanks for your continued financial support of
the Wood Professorship Fund. It is through the efforts of dedicated alumni like yourself that we
were able to make this professorship a reality.
As of this last week, the department received the go ahead from the College of Arts and Letters
Dean, Dr. Susan Fitzmaurice, and the hiring process has officially begun. In the upcoming
months we expect a large array of applicants and hope to find someone that can fill the bill to the
best standards that the Philosophy Department reputation boasts in regards to teaching. This
statement is made without hesitation because of the recent seven year self-study completed on
the department, and the impressive numbers it reflects.
We hope you are doing well with all your endeavors, both personally and professionally, and
anticipate hearing more about your goings on. Thank you again for your support.
Sincerely,
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APPENDIX “D” Example of a heartfelt thank you letter written by a student
I would like to thank the contributors from the class of 1957 for their donation to the XXX
Scholarship fund. My name is xxxxxx and my life has been profoundly affected because of this
scholarship and the generous people that support it!
I moved from xxx to Flagstaff during my sophomore year of high school after losing my father to
cancer. My mother was unprepared financially to finish raising six children alone. Two of my three
older siblings joined the military after high school to ease some of the burden my mother was
struggling with. When my senior year rolled around at xxx High School, I knew that the only way I
would be able to realize my dream of going to college was if I paid for it myself or received
scholarships. I worked at part time jobs and tried to save what I could, but my mother was fighting
clinical depression and the responsibility for taking care of the household, paying for some of the
necessities such as food and utilities plus caring for my two younger siblings fell to me. I had almost
given up on the idea of college due to finances, but then I received notification that I was being
awarded the XXX Scholarship. Along with that scholarship, I felt renewed hope and determination.
I attended NAU full time during the fall and spring semesters, pursuing a degree in elementary
education. I love children and I can’t imagine a better way to be a positive force in society other than
through the education of a child. During the school semesters I work part time for the Coconino
National Forest Service. During summer I work full time. This summer, I have had the opportunity
to work in our fire dispatch center as an Expanded Dispatcher. It has been challenging due to the
drought conditions in Flagstaff and surrounding forest lands, but I continue to learn and enjoy my
job. Working full time in the summers affords me to continue to help my mom when she needs some
extra money and also save for the next school year’s expenditures.
The costs of college continue to rise. Tuition for full time students at NAU is about $2,400 a
semester. My text books usually cost between $300 and $450 a semester. The XXX scholarship
helps meet those expenses; working part time helps me to meet other financial obligations. Working
and going to school is sometimes a juggling act, but I have been able to maintain a cumulative GPA
of x.x I expect to graduate in May 2009.
There is no way to explain fully in words the possibilities your generosity has afforded my life and
my future. My mother is so proud of me, because I am the first member of my family to attend
college. I hope to blaze a trail for my younger siblings and my nieces and nephews to seek a college
education. It has been a worthwhile endeavor one of which I know would have made my father
proud also.
Again, thank you for making a life changing impact for good in my life! Your investment in my
future will not be wasted. I hope one day to invest in someone’s potential through education and
continue your legacy of hope and faith in people.
With gratitude,
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APPENDIX “E”
ANONYMOUS GIFT WORKSHEET
This worksheet is to be completed each time an anonymous gift is received from the same
donor[s].
Date Gift Amount Donor Name 1 Entity # Donor Name 2 Entity # Prepared by: Phone #
Please indicate all who currently know about this gift.
Name
NAU President
VP Univ. Adv.
Assoc VP Univ. Adv.
Dean/Director
Department Chair
Development Director
Other
Level of anonymity requested by donor
1. Show donor name, not gift amount
2. Don’t show donor name or gift amount
3. Show gift amount, not donor name
Does the donor require anonymity for a limited period of time, such as until s/he retires or
become comfortable with publicity about their philanthropy. It is critical that these specific
requests are documented by the donor? Yes No
If yes, please explain and provide an estimated time to follow up with the donor to confirm a
change in his/her restriction status.
PO Box 4094 Flagstaff, AZ 86011 www.nau.edu/naufo
928-523-2012 928-523-8877 fax [email protected]
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APPENDIX “F”
MEMORIAL NOTIFICATION FORM
Decedent’s name
Entity I.D. #
Date of death
Date of notification
Relationship to University
Designation of gifts to:
Obituary posted at:
Caller’s name
Address
City, state, zip code
Phone
Relationship to decedent
Other
Route to:
Prospect Research________________________________
Date _____________________________
Development Director: ____________________________
Date:_____________________________
Scan original to decedents file
PO Box 4094 Flagstaff, AZ 86011 www.nau.edu/naufo
928-523-2012 928-523-8877 fax [email protected]
Yeshiva University Donor PROPOSED Recognition and Stewardship Plan
Donors Value: Access, Recognition, Accountability, Information
Donors want to know that:
1. The gift was received and you were pleased to get it
2. The gift was set to work as intended
3. The project or program the gift was sent to is having the desired effect
Plaques, Items and certificates:
76 percent receive them
5 percent display them
73 percent throw them out immediately or store them then throw them out
From Donor Centered Fundraising, Penelope Burk,Cygnus Applied Research, Inc., 2003 www.donorcentered.com
Gift Acknowledgements and Leadership Acknowledgments • All gifts receive a receipt from the Advancement Services Office. Receipts include a thank
you message and a Donor Bill of Rights. • For gifts greater than $5000 but less than $25,000, the Donor Relations Office prepares an
acknowledgement letter signed by the Vice President for Institutional Advancement. • For gifts of $25,000 or greater, the Donor Relations Office prepares an acknowledgement
letter signed by the President. • Signed letters from the Vice President and President’s office are kept digitally on the shared
drive and mailed within one day of receipt. In addition, the donor relations office will record the mailing date of the letter in the acknowledgment database and record the contact in the AMACONT form in Banner within three days of receipt of the signed letter.
Acknowledgements and receipts should be sent as soon as possible noting the purpose of the gift, even for small gifts. All acknowledgements should be customized based on the gift amount and designation, and standard acknowledgement templates should be changed at least annually.
If all gifts are stewarded correctly, some donors may turn out to be major contributors over time. If a gift has a restriction or is conditional, or if the donor has indicated stipulations concerning reports, these should be noted in detail in the donor’s file, in Banner, and stored and up kept in the stewardship database.
Affirmation of Donor Intentions Once accepted, gifts must be used in the way and for the purpose the donor intends, with scrupulous attention being paid to the donor’s wishes and stipulations. In evaluating the acceptance of a proffered gift, care should be taken to consider whether the donor’s wishes and stipulations are feasible before
a gift agreement is drafted. Advancement files should contain all the details of restricted gifts and gift agreements should be recorded in Banner.
Fund Management Resources provided by the donor must be invested, conserved, and utilized soundly and wisely in the best interests of the University and the particular unit that is benefiting from the gift. Currently there is no financial reporting on the expenditure of funds on an annual basis unless requested by the donor and the report is prepared by the finance office. Once the finance office integrates to Banner, this process should be available for every fund, restricted and endowed.
Reporting
Reports to donors will be prepared by the Donor Relations Office for the following types of gifts:
Scholarship Funds:
The minimum amount to establish a scholarship fund is $50,000.
• Accompanying the scholarship report is a cover letter explaining the report and thanking the donor(s) again for establishing an endowed scholarship. Reports are sent annually. The first year of the redesigned reports we will send a satisfaction and metrics survey for all donors.
• The Donor Relations office is expected to have student recipients write thank-you notes. Please note that donors’ addresses are not given to students. These letters are a most valuable and meaningful stewardship tool. Donors of scholarships enjoy hearing from students who receive the scholarship to find out from where they hail, what they are studying, and what their plans are after graduation.
• In addition, the Donor Relations office drafts a cover letter from the school fundraiser to accompany the thank you notes from students, sometimes twice a year depending on the number of scholarship recipients.
• Online biographical forms will expedite annual reports to donors. In addition, the creation and maintenance of a scholarship stewardship database will aid with fund and student information and will pull all data from Banner.
Endowed Chairs and Deans— In addition to implementing a new endowed chair and dean reporting, maintenance, and upkeep that will be detailed at a later time, the donor relations department will help with the induction and installation of new endowed chairs. Donor Recognition Donor recognition takes many forms at Yeshiva University, such as special events; gift societies; naming opportunities; magazine, newspaper and newsletter article(s); and small gifts of appreciation.
• Special Events On occasion the office of Donor Relations is asked to coordinate Donor Recognition events and other events ranging in size and scope.
• Naming/Renaming Opportunities
Depending on construction costs of buildings, naming opportunities provide ways for donors to give more (i.e. naming of building/wing, room inside building, stained glass windows, classrooms, apartments, etc.). By having their name displayed, donors feel a sense of ownership and pride in their facility. It is also the role of the Donor Relations Office to keep donors informed of what is happening in their spaces and be invited to special events held in those spaces. The primary fundraiser for the project and the Vice President for administrative services will coordinate donor levels and naming opportunities. Some of the items of stewardship may include the following: • Donors of $25,000 and above should receive a stewardship report—first about building
progress and then about the happenings within the space. • Donor Relations staff are encouraged to seek letters from students, faculty, and/or staff
who use the space thanking and explaining how this positively affects their work at Yeshiva University.
• Invite facility donors to campus to see finished product—a one-day touring event hosted by the appropriate University official.
• A scrapbook/ blurb book could be developed and given to the person whose name is on the building.
Giving Society Donors- President’s Society, Chai Society and Benefactors
• Twice a year in March and October current giving society donors will receive notecards with a campus scene or building on them and a thank you note.
• Two VIP mailing to all assigned prospects will go out in August and January, featuring Community News.
• Listed in and receive annual honor roll of donors
Special Donor Recognition
At present, continuous major givers are not being recognized in a special way by the Yeshiva University. The following is proposed:
• Partner with Research and Institutional Advancement Directors to identify the top 50 donors to the institution. Work with Vice President, Research and Director of Donor Relations to produce personalized stewardship plans for these individuals.
Package Stewardship plans at levels and Individual Stewardship Plans
All donors at certain levels mutually agreed upon should receive certain types and items of stewardship and recognition throughout the year. These packages should be appropriately leveled and portioned, combining already existing items with additional new items that can be created en masse.
Recognition efforts should:
• Make donors feel sincerely thanked for their generosity and support for your mission. • Deepen donor commitment to and understanding of your mission and organization. • Provide donors with the public recognition they desire and value. • Inspire donors to give again-at higher and higher levels of support. • Encourage or challenge other donors or potential donors to match the giving of their
peers. • Set benchmarks for giving to your organization. • Reinforce a culture of philanthropy, rather than setting a tone of quid pro quo. • Keep you within your budget limits --while not compromising the tax deductibility of
your donor’s gift.
Some Items we may include:
• Links to email newsletters and programs that occur on campus • Mail specific periodicals and letters of interest as needed. • Invitations to pertinent events on campus and in the community.
• Send photos and follow up from events. • Include special recognition in honor roll of donors. • Have certain donors featured in publications and have their stories told. • Annual state of the university reports or state of their project reports
Individualized plans: A good stewardship plan is personalized and tailored to an individual donor’s interests or expectations can be adapted to include whatever constituency is appropriate (organizations, trustees, foundations) and is timely and detail oriented. This could include any of the following items or other items as needed and should be determined by the Donor Relations Office in conjunction with the primary relationship manager of the donor.
• Meeting with Leader or high level volunteer • Induction and initial membership gift • Event for gift or recognition event • Invite to guest lecture, guest conduct • Invite to host an event • Arrange meeting with beneficiary • Invitations for interest topic events, concerts, exhibitions • Hand-written note from significant insider • Press releases, emails or articles about donor interest topics or their fund beneficiaries • Press release, newsletter/web feature on donor • Nominate for philanthropic award • Book or catalog collection
Blanket Stewardship Plan and Calendar
This stewardship plan will consist of items that are already produced in combination with new efforts to steward and cultivate donors. The donors that qualify fall into one of two brackets
A. Donors of 25K- 100K TPF for the previous FY or Cumulative TPF 100K to 1 Million B. Donors of 100K-500K TPF for the previous FY or Cumulative TPF of 1 Million plus
a. Donors of level B will also be included in the new and more robust Benefactors Society.
Here is the Calendar of Proposed Touches in the mail, digital touches are to be determined
July-
August- Champions Gate Wrap up Piece
September- YU Tomorrow Mailing, Rosh Hashanah email greeting
October- Hanukkah Dinner Invite, Medical Ethics Conference Wrapup, Invitations to YU Museum Event
November- Report of Donors/ Honor Roll and Donor Recognition Event
December-
January- Soy Sepharim Sale Announcement and Follow Up
February-
March- YU Tomorrow Mailing
April- Impact of Giving Report
May- Commencement Invitation and Special Opportunity, Scholarship Student Highlight Piece
June-
One Page Description of New Stewardship and Donor Relations Opportunities
• More robust student scholarship reports • Enhanced and more robust Benefactor society • Endowed chair reporting and maintenance • Enhanced Commencement Award Stewardship • Leveled, blanket Stewardship Packages for donors at the following level:
o Donors of 25K- 100K TPF for the previous FY or Cumulative TPF 100K to 1 Million o Donors of 100K-500K TPF for the previous FY or Cumulative TPF of 1 Million plus
• Comprehensive Individualized top donor stewardship plans
• Gift and Leadership Acknowledgment process and execution
• Underwater Fund communication
Office of Donor Relations Principles July 2010
University of Colorado Foundation Boulder Campus
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Office of Donor Relations
Mission, Vision and Values 3 Table of Contents
Why Stewardship? 3 Department Goals 3 Stewardship Principles and Policies 4 Personal Visits and Campus Involvement 4 Staffing 5 Donor Recognition Events 5 Gifts to Donors/Premiums 6 Donor Bill of Rights 7
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Office of Donor Relations CU-Boulder
Mission
Strategically envision, plan and execute successful donor related events and donor stewardship activities which promote generation of private support for the University of Colorado at Boulder, by creating positive interactions and connections with major donors in support of the VP of Development, the Chancellor and CU-Boulder’s fundraising goals.
Vision
To be a donor relations team which leaves a legacy of excellence in accomplishing our mission statement and does our part to facilitate a successful comprehensive campaign.
Values
A professional, supportive environment of teamwork and creativity and affinity for our CUF and CU-Boulder partners.
Why stewardship?
The standard “gift cycle” involves four primary stages: prospect identification, prospect cultivation, solicitation, and stewardship. Stewardship consists of three basic activities: to acknowledge, recognize, and inform. Stewardship supports continued cultivation and fundraising, fosters institutional accountability in the use of gifts, and honors donors’ rights to accurate information pertaining to the administration and impact of their gifts.
Department Goals: The primary goal of the Office of Donor Relations is to increase the personal involvement of donors and volunteers in the life of the university. Achieving this goal will necessitate addressing the following important factors:
⇒ Personal situation and personality of the donor or volunteer (individuals) ⇒ Size, designation, or stated purpose of the gift ⇒ Previous giving history and past relationships with the University ⇒ Current or future proposals or strategic major gift initiatives under consideration
Attention to good stewardship enables CU-Boulder to:
⇒ Develop repeat gifts from satisfied donors ⇒ Make new friends from relatives and associates of the donors and from others
in the community who observe the University’s stewardship activities ⇒ Ascertain that the intentions of the donors are followed
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⇒ Involve students, faculty, and other administrators and volunteers in the process of expressing thanks and appreciation
⇒ Confirm CU-Boulder’s reputation for good management, integrity, responsibility and caring
Stewardship Principles and Policies
1) Effective, comprehensive stewardship is vital to the continued growth of
fundraising at CU-Boulder. To be effective, stewardship must be tailored to fit the nature of the gift and the needs of the donor, whether the donor is an individual, family, foundation, or corporation. CU-Boulder’s goal is to provide meaningful stewardship to donors, enhance the commitment to the University, and motivate the involvement and investment of others to CU-Boulder. Emphasis is placed on extending the University’s gratitude in appropriate, very distinctive, visible, and memorable ways.
2) The Office of Donor Relations seeks to build ongoing relationships with donors,
to show CU-Boulder is a sound investment, and to maintain donor involvement outside the context of a formal solicitation.
3) Recognition is based upon the gift type as well as gift level.
4) The primary responsibility for stewardship lies within the development unit. The
Office of Donor Relations is a service unit with responsibility for facilitating ongoing, coordinated stewardship activities.
5) The office of Donor Relations focuses on stewarding three major categories of
donors. The categories of donors below are strategically included in the donor recognition events and stewardship communications listed on page 5.
a. Million dollar plus lifetime donors b. One hundred thousand dollar plus lifetime donors c. Annual donors of $2500+ d. Loyal donors of 10+ years
Personal Visits and Campus Involvement A significant component of stewardship is personal contact with donors and prospects. Development officers manage their individual prospects and define cultivation and stewardship strategies. The Office of Donor Relations supports these strategic efforts. Occasionally, the Office will either consult on or coordinate one-on-one visits and small group gatherings for the Chancellor or Vice President. It will never be the intent of the Office of Donor Relations to circumvent a prospect manager in communication with a donor/prospect; contact will be coordinated with all necessary parties.
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Staffing The Office of Donor Relations has a fulltime staff of three, a Director, a Program Manager and an Administrative Assistant. In addition the office relies upon the assistance of student hourly support. The director leads the in team in developing, implementing, and maintaining a sophisticated donor-centric donor relations program for CU-Boulder to promote and enhance campus interactions and connections with current and potential donors to the university. This includes events and communication with CU Boulder’s key donors and VIPs.
Donor Recognition Events There are basically two types of events: cultivation events held mostly for prospects and events held to recognize donors for their generosity towards the University of Colorado at Boulder. The Director of Donor Relations has responsibility for both categories of events. The following list outlines major annual events and categories of events planned by the Office of Donor Relations on behalf of the University of Colorado Foundation. Events Annual Basketball home games January - March UCB Development Retreat January CU in the Desert February Faculty Staff donor recognition April CU Seminar Spring Spring Chancellor's Colorado travel May Football training Spring Loyal Donors/Heritage Society Dinner June UCB Development Kickoff August Artist Series opening night Fall Artist Series September - April Away football game Fall Football suites September-November Football ticket requests non suite September-November CU Seminar Fall Fall Chancellor's Celebration of Donors Fall Holiday Concert and Tea Winter One on one donor dinners Approximately 2 per month Biotech dinners Year round Stewardship/Communication Date Birthday cards monthly Chancellor's e newsletter quarterly e Holiday Card late November
In addition to the events listed above, the donor relations office frequently coordinates unique donor recognition events such as dedications, visits to campus, dinners, lunches, receptions, etc. The office is responsible for planning special events on behalf of the Chancellor that further the Boulder Campus Flagship 2030 vision and strategic goals.
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Gifts to Donors
The CU Foundation must comply with the IRS rules regarding gifts to donors. See the rules below. Note that these rules pertain to gifts given to donors as part of solicitation. For other types of stewardship involving gifts to donors, the development officer should discuss a reasonable approach with his/her manager, especially in situations that appear to be or could appear to be exceptions to the norm.
PREMIUMS
EXCERPTS FROM CHARITABLE CONTRIBUTIONS- SUBSTANTIATION AND DISCLOSURE REQUIREMENTS
Publication 1771, 2008 - 2009 EXCERPTS FROM CHARITABLE CONTRIBUTIONS-
SUBSTANTIATION AND DISCLOSURE REQUIREMENTS Publication 1771, 2008 – 2009
Goods and Services A charitable organization is required to provide a written disclosure to a donor who receives goods or services in exchange for a single payment in excess of $75. It must also provide a good faith estimate of the value of such goods or services because a donor must generally reduce the amount of the contribution deduction by the fair market value of the goods and services provided by the organization. Goods or services include cash, property, services, benefits or privileges. However, there are important exceptions as described below: Token Exception — Insubstantial goods or services a charitable organization provides in exchange for contributions do not have to be described in the acknowledgment. Goods and services are considered to be insubstantial if the payment occurs in the context of a fund-raising campaign, in which a charitable organization informs the donor of the amount of the contribution that is a deductible contribution, and: 1. The fair market value of the benefits received does not exceed the lesser of 2 percent of the payment or $91, or 2. The payment is at least $45.50, the only items provided bear the organization’s name or logo (e.g., calendars, mugs, or posters), and the cost of these items is within the limits for “low-cost articles,” which is $9.10. Free, unordered low-cost articles are also considered to be insubstantial. Example of a token exception: If a charitable organization gives a coffee mug bearing its logo and costing the organization $9.10 or less to a donor who contributes $45.50 or more, the organization may state that no goods or services were provided in return for the $45.50 contribution. The $45.50 is fully deductible.
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Donor Bill of Rights
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:
∗ To be informed of the organization’s mission, if the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purpose
∗ To be informed of the identity of those serving on the organization’s governing
board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
∗ To have access to the organization’s most recent financial statements. ∗ To be assured their gifts will be used for the purposes for which they were
given.
∗ To receive appropriate acknowledgement and recognition. ∗ To be assured that information about their donations is handled with respect
and with confidentiality to the extent provided by law.
∗ To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
∗ To be informed whether those seeking donations are volunteers, employees
of the organization or hired solicitors.
∗ To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
∗ To feel free to ask questions when making a donation and to receive prompt,
truthful and forthright answers.
Stewardship Plan Last Updated Page 1 of 7 February 2008
The Rollins College Comprehensive Stewardship Plan
As illustrated above, stewardship is an integral component of the donor cultivation cycle. It is the glue that holds this cycle together, playing a role from the beginning to the end of the gift giving continuum. It is key to ensuring a strong, long-term relationship with donors. Rollins’ best prospects are its past donors, and it is essential that Rollins demonstrates appreciation of donors through a variety of means and that it accurately communicates to donors how their gifts are being used, whether the donor is an individual, a corporation, a foundation, or an organization. The goal of stewardship, therefore, is two-fold: • to ensure meaningful and competent gift fulfillment as well as recognize donors and • to provide donors with continued involvement by showing measurable results of the gift.
Both of these goals convey appreciation for the gift, which over time enhances the relationship between donors and Rollins. Bringing recognition and showing appreciation to major donors, as well as witnessing their satisfaction in giving, is the greatest reward of the fundraising effort. Stewardship should be viewed as a responsibility that all Advancement staff and the institution itself incur when a gift is accepted for some purpose. Each individual within the Advancement must commit to working as a team to ensure accurate recording of gifts, appropriate acknowledgement of gifts, sufficient documentation of gift restrictions, and tracking and monitoring fund usage data. These individuals must also work closely with the College Events staff to ensure that donors are included in major donor relations events and recognition activities. The following are procedures that govern stewardship activities at Rollins.
Stewardship Plan Last Updated Page 2 of 7 February 2008
MISSION STATEMENT
To foster positive feelings regarding donor gifts, to help donors recognize the importance of their giving, to strengthen donor alliance with the mission of Rollins, and to develop and strengthen, through the sharing of information and appropriate recognition, life-long relationships between the donor and Rollins.
GOAL The goal of the Rollins Comprehensive Stewardship Plan is to enhance the long term cultivation process. Ideally, donors will give repeatedly and at increasingly higher levels because of their sense of feeling connected and their positive feelings about giving. Receipt and Deposit of Gifts All gifts to Rollins are processed through the Advancement Services Office. This office is charged with the appropriate recording, reporting, and receipting of gifts, and a continuing goal is to have all gifts deposited in a timely fashion consistent with available resources for processing gifts. Good stewardship begins with the initial listing and recording of the gift. Accounts should be established using the name the donor wishes or specifies. The donor’s name, spouse’s name, and other contact information must be recorded precisely. Everyone on the Advancement Services office staff must be vigilant and attentive to timeliness, thoroughness, accuracy, and detail. Mishandling a gift or misspelling a name can undo everything that has gone into developing a donor’s major gift. To demonstrate to donors a commitment to stewardship, timely receipting of gifts of cash and stock transfers should be the goal of all Advancement staff members. It is essential that gifts and checks are forwarded to Advancement Services as soon as possible, especially in the busy months of November through February and May. Timely deposits of checks and transfers of stock keep donors from becoming irritated at an apparent lack of stewardship. We are all stewards, and appropriate offices should be notified of incoming gifts and copied on correspondence with donors. Gift Acknowledgements • All gifts receive a receipt from the Advancement Services Office. Receipts include a thank
you message and a Donor Bill of Rights. • For gifts greater than $500 but less than $1,000, the Development Office prepares an
acknowledgement letter signed by the Vice President for Institutional Advancement. • For gifts of $1,000 or greater, the Acknowledgment Coordinator prepares an
acknowledgement letter signed by the President. That is reviewed prior to submittal by the Director of Development and the Vice President for Institutional Advancement.
Stewardship Plan Last Updated Page 3 of 7 February 2008
• Gifts, pledges, and pledge payments of $5,000 and above for the Crummer School and the Holt School are drafted by their respective development office.
• Signed letters from the President’s office are scanned into NolijWeb and mailed within one day of receipt. In addition, the administrative assistant for advancement services will record the mailing date of the letter in the acknowledgment database and record the contact in the AMACONT form in SCT Banner within three days of receipt of the signed letter.
Acknowledgements and receipts should be sent as soon as possible noting the purpose of the gift, even for small gifts. All acknowledgements should be customized based on the gift amount and designation, and standard acknowledgement templates should be changed at least annually. If all gifts are stewarded correctly, some donors may turn out to be major contributors over time. If a gift has a restriction or is conditional, or if the donor has indicated stipulations concerning reports, these should be noted in detail in the donor’s file in SCT Banner and communicated to appropriate central development personnel. Affirmation of Donor Intentions Once accepted, gifts must be used in the way and for the purpose the donor intends, with scrupulous attention being paid to the donor’s wishes and stipulations. In evaluating the acceptance of a proffered gift, care should be taken to consider whether the donor’s wishes and stipulations are feasible before
a gift agreement is drafted. Advancement files should contain all the details of restricted gifts and gift agreements should be recorded with either Nolij Web and SCT Banner.
Fund Management Resources provided by the donor must be invested, conserved, and utilized soundly and wisely in the best interests of the College and the particular unit that is benefiting from the gift. Currently, the Acknowledgment Coordinator receives an endowment funds summary report, as well as the market value of the endowment fund, on an annual basis from the finance office, and the endowment database housed in Advancement Services is updated on an annual basis. Reports to donors will be prepared by the Acknowledgment Coordinator for the following types of gifts. Scholarship Endowments: The minimum amount to establish an endowed scholarship fund is $50,000. As of March 2007, Rollins has approximately 175 individually maintained and named scholarship endowment funds.
• Financial snapshot reports are sent to each living donor or donor representative and show contributions to the fund, current market value, as well as student recipient information including names, majors, academic classifications, and award amounts. Accompanying
Stewardship Plan Last Updated Page 4 of 7 February 2008
the report is a cover letter explaining the report and thanking the donor(s) again for establishing an endowed scholarship. Reports are sent annually.
• The acknowledgment coordinator is expected to have student recipients write thank-you
notes. Please note that donors’ addresses are not given to students. These letters are a most valuable and meaningful stewardship tool. Donors of scholarships enjoy hearing from students who receive the scholarship to find out from where they hail, what they are studying, and what their plans are after graduation.
• Online biographical forms will expedite annual reports to donors.
Endowed Chairs and Professorships The minimum to endow a chair at Rollins is $1.5 million. As of March 2007, there are 32 fully-funded endowed chairs. Reports are sent annually in various formats and are signed by the Vice President for Institutional Advancement . All Other Endowed Funds (including research funds, lectureships, support funds, award funds, and book funds): The minimum to endow these funds varies from $10,000 to $100,000. Financial reports are sent to each living donor or donor representative and show the date the account was officially established, the endowment principal, the current market value, the projected spendable earnings for the coming year, and information on the purpose of the fund and how the fund was used when available. Accompanying the report is a cover letter explaining the report and thanking the donor(s) again for establishing the endowment, an investment report on the College’s pooled endowment fund, and highlights of the College for the donor’s information. Reports are sent annually. • Units are expected to keep donors apprised of how funds are being used, either in person or
through Advancement’s annual reports, and to seek opportunities to share information with, visit with, or invite to campus those donors of other endowed funds.
• Letter from appropriate administrator or faculty member whose department or unit benefits
from the particular endowed fund. This could be included in the annual report or sent separately under the administrator’s signature.
Annual Fund Scholarship Stewardship
• At present there are 5 general designations for Annual Fund Scholarships, they are: SF1, McKean, Lathrop, Rider, and Mendell. • Each August the Acknowledgement Coordinator names a student recipient in name
only for reporting purposes on these funds and a letter is drafted for mass mailing by the Development Office. This letter includes a brief student biography and overview of the fund’s purpose.
• Also in November the Development Office coordinates a thank-a-thon that produces hand written notes from students for these donors.
• In addition, there are certain “specific” annual expendable scholarships, at current time 14, that receive a snapshot report in June and in November receive hand written thank you notes from students obtained by the Acknowledgment Coordinator.
Stewardship Plan Last Updated Page 5 of 7 February 2008
Donor Recognition – Non Endowment Donor recognition takes many forms at Rollins, such as special events; gift societies; naming opportunities; magazine, newspaper and newsletter article(s); and small gifts of appreciation. • Special Events
Special events at Rollins include donor recognition dinners, lunches, or receptions; ceremonies; and “campaign-milestone” and other celebration events, which are often held in conjunction with the creation of new endowments, facilities, renovations, groundbreakings, dedications, or renamings as a result of major gifts. Special events can also include “by invitation only” events for the various group members, i.e., President’s Leadership Council Meetings. These special events are coordinated by the Office of Donor Relations. These events give donors the opportunity for continued involvement with Rollins. They feel connected to the campus, and hearing from the President is a good way to do that because they feel more informed as to what is going on at the College. Each event should have a specific purpose and goal.
• Naming/Renaming Opportunities
Depending on construction costs of buildings, naming opportunities provide ways for donors to give more (i.e. naming of building/wing, room inside building, stained glass windows, classrooms, apartments, etc.). By having their name displayed, donors feel a sense of ownership and pride in their facility. It is also the role of the Acknowledgment Coordinator to keep donors informed of what is happening in their spaces and be invited to special events held in those spaces. • Donors of $10,000 and above should receive a stewardship report—first about building
progress and then about the happenings within the space. • Advancement staff are encouraged to seek letters from students, faculty, and/or staff who
use the space thanking and explaining how this positively affects their work at Rollins. • Invite facility donors to campus to see finished product—a one-day touring event hosted
by the appropriate College official. • A scrapbook could be developed and given to the person whose name is on the building. • A DVD slideshow for all donors.
• Gift Clubs and Societies
At present, there are multiple gift clubs and societies at Rollins. There is one central gift society for planned giving donors.
• The Cloverleaf Society—members include Rollins in their wills, name Rollins as owner
and beneficiary of a whole life insurance policy, establish a charitable remainder trust for the eventual benefit of Rollins, or make a gift of life interest in personal property.
Current Stewardship Includes: • Thank you and personal visit from the Office of Planned Giving.
Stewardship Plan Last Updated Page 6 of 7 February 2008
• Special invitation to Society functions and estate planning seminars. Annual Fund(s) Stewardship Coordinated with Advancement Service Office and Development Office
• Rollins Fund Gifts • Three times a year the Advancement Service Office and Development Office will
combine efforts to create digital e-mail stewardship to all donors, February, June and October are the target months.
• In addition in the summer the donors will receive a postcard/thank you magnet for their FY giving.
• 5 year consecutive givers also receive a thank you note from the Vice President and a pin for their loyalty.
• First time givers will be pulled quarterly and will receive a thank you for your first time gift packed coordinated by the Advancement Service Office and Development Offices.
• Tar Booster Club • The Tar booster club donors will receive two athletic email stewardship pieces, one in
the fall and one in the spring coordinated between the Advancement Service Office and Development Offices.
• In the summer the donors will receive a postcard/thank you magnet for their FY giving.
• Matching Gifts • When a donor’s matching gift company gives, the Development Office drafts a
notecard to the donor informing them a match has been made in their name by the company.
• VIP and Fiat Lux Donors • Twice a year in March and October current Fiat Lux donors will receive notecards
with a campus scene or building on them and a thank you note. This effort will be coordinated by the Advancement Service Office and the Development Offices.
• Two VIP mailing to all assigned prospects will go out in August and January, featuring the R-Community News.
• Holiday cards for all assigned prospects will be sent out in a coordinated effort by the Advancement Service Office and the Development Offices.
• Electronic birthday cards will be sent out in a coordinated effort by the Advancement Service Office and the Development Offices.
• Assigned prospects or anyone who was visited with by a development officer will receive a hand written thank you note from their assigned development officer within a week of the visit or gift’s appearance in the GER.
****Please see attached stewardship Schedule and Acknowledgment Coordinator schedule for a calendar view of the year’s activities**** __________________________________________________________________
Stewardship Plan Last Updated Page 7 of 7 February 2008
Miscellaneous Duties of the Acknowledgment Coordinator
Special Donor Recognition At present, continuous major givers are not being recognized in a special way by the College. The following is proposed: • A year-end report should be generated by Advancement Service Office for all donors with
cumulative giving of $50,000 and above where those gifts were made to multiple (greater than two) areas on campus. The Acknowledgment Coordinator would then compose reports based on this list to recognize these donors for their generous support. These reports would be signed by the Vice President Institutional Advancement
• Partner with Advancement Services to identify the top 20 continuous annual donors to the institution (those who have given at least $250,000 in the past 20 years to multiple areas on campus). Work with Vice President and Director of Development to produce personalized stewardship plans for these individuals. (Individualized plans may include hand-written notes from a significant insider; press releases, emails, or articles about donor interest topics or fund beneficiaries; newsletter feature on donor; invitation to become more involved with the campus; invitations to special events of interest to the donor; meeting with one or more key administrators, nomination for a philanthropic award;; etc.
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An Overview Office of Stewardship
Stewardship is a long-term process that is critical to the success of institutional
advancement. The Merriam-Webster Online Dictionary defines stewardship as the
conducting, supervising, or managing of something; especially: the careful and
responsible management of something entrusted to one’s care.
There are three compelling reasons to make good stewardship a high priority:1
• Stewardship preserves the opportunity for further support. It keeps
information flowing from institution to donor and donor to institution. Donors
feel appreciated and successful, and they stay in touch with and become closer
to our institution.
• Stewardship offers legal and public relations protection to our institution. It
helps ensure accurate crediting of gifts and documentation of gift purposes. It
makes certain that gift restrictions are clarified and documented. And it
guarantees that gift transactions are appropriately documented for accounting,
financial auditing, and tax purposes.
• Stewardship is the right thing to do. Responsible stewardship respects
philanthropy, our loftiest goal and our firmest bottom line. What’s more,
because gratitude is a universal standard, its expression deserves great care.
Stewardship should be viewed as a responsibility for all Advancement Office staff and
indeed, the entire Loyola community, when a gift is accepted. Donors have the right to
expect that an institution will be a good steward—that it will be accurate and truthful
with them, both in presenting its need for their current gifts and in reporting its use of the
major gifts, particularly endowments, entrusted to its care. When donor expectations are
fulfilled, a strong message is sent to the donor that both the gift and the giver are
1 Excerpts from Donor Relations: The Essential Guide to Stewardship Policies, Procedures and Protocol, CASE Books, 1999.
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appreciated. The main goal of the Office of Stewardship here at Loyola is to inspire and
maintain an institution-wide culture of gratitude.
Receipt and Deposit of Gifts
At Loyola University Chicago™, all gifts of any type are processed through Data
Management. This office is currently charged with the appropriate recording, reporting
and receipting of gifts, and a continuing goal is to have all gifts deposited within a 48-
hour time period, all things considered.
Good stewardship begins with the initial listing or recording of the gift. Accounts should
be established using the name the donor wishes or specifies. The donor’s name, spouse’s
name and other contact information must be recorded accurately and precisely. Each
staff member must be vigilant and attentive to timeliness, thoroughness, accuracy and
detail. Mishandling a gift or misspelling a name can undo everything that has gone into
developing a donor’s major gift. Relationships (spouse, relatives,
corporations/foundations) must be recognized, flagged, and linked where appropriate to
capture a more whollistic picture of the entity.
Gift Acknowledgements
• Gifts less than $1,000 receive a combined receipt/acknowledgement prepared by the
Office of Stewardship.
• For gifts greater than $1,000 but less than $5,000, the Office of Stewardship prepares
an acknowledgement from an annually renewed template letter digitally signed by the
President.
• For gifts of $5,000 or greater, the stewardship coordinator composes an
acknowledgement letter that is personally signed by the President.
• The Development Officers are also encouraged to work with their dean or director to
acknowledge gifts that are special or meaningful to the school's/unit's mission,
programs, etc. and to encourage stewardship efforts at the school/unit level.
Development Officers should receive weekly reports from Development and Donor
Services regarding their individual fund raising results to facilitate gift
acknowledgements.
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Acknowledgements and receipts should be sent immediately, noting the purpose of the
gift, even for small gifts. If all gifts are stewarded correctly, some donors may turn out to
be major contributors over time. If a gift has a restriction or is conditional, or if the donor
has indicated stipulations concerning reports, these should be noted in detail in the
donor’s file, contact report and/or noted in BSR Advance. Other offices should be
apprised as appropriate (e.g., Financial Planning, Financial Aid or an academic area).
Procedures must be put in place to ensure that future monitoring occurs as needed.
Timely deposits of checks and transfers of stock keep donors from becoming irritated at
an apparent lack of stewardship. We are all stewards, and appropriate offices should be
notified of incoming gifts and copied on correspondence with donors.
Affirmation of Donor Intentions
Once accepted, gifts must be used in the way and for the purpose the donor intends, with
scrupulous attention being paid to the donor’s wishes and stipulations. If a unit is unable
or unwilling to follow the donor’s wishes, the gift should not be accepted! When
appropriate, gift agreements prepared by the director of planned giving help ensure that
the donor’s wishes are carried out. Central Files should contain all the details of
restricted gifts.
Fund Management
Resources provided by the donor must be invested, conserved and utilized soundly and
wisely in the best interests of the University and the particular unit that is benefiting from
the gift. The University’s Financial Planning division is responsible for the management
of donated funds and other assets that have restrictions, conditions or ongoing
implications. If another department is affected, the two must work in partnership. The
Advancement Office should always be included in this process because good stewardship
is a special province of Advancement and, of all the administrative departments, it is the
one most oriented to the donor. Currently, the Stewardship Coordinator receives
annually, an endowment funds summary report, as well as the market value of Loyola
University Chicago Pooled Endowment Fund from the Financial Planning division. In
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the near future, the Stewardship Coordinator will have automated monthly access to
endowment activity.
Reporting and Accountability to Donors
The University’s stewardship of donors’ gifts is critical to winning their confidence and
continued support. Gifts take many forms and donors come in many categories—
individuals, groups, classes, corporations, foundations, religious organizations—but the
principles of good stewardship apply to all. The University must let donors know how
the institution uses their gifts, what these gifts have provided for the institution and how
the institution, its students, the community and society in general have benefited.
Stewardship Reports and Strategies
The current goal of the Stewardship Office is to provide annual stewardship reports on
endowments to donors. These reports will:
• Review the purpose(s) for which a donor’s gift was contributed.
• Provide pertinent financial data regarding the gift such as growth of endowment
principal, market value and investment return.
• Include other information of interest to the donor such as the names and backgrounds
of new recipients/incumbents to scholarships, fellowships or endowed chairs.
• Reaffirm the University’s deep appreciation for the donor and the gift, as well as the
difference the gift has made and continues to make in the lives of students or faculty
and in the growth of the institution they so generously support.
Pledge Reminders
• A renewed pledge reminder initiative is currently being proposed and an update to
this initiative is forthcoming.
Matching Gift Notices
• Donors are notified via notecards signed by the stewardship assistant when a
matching gift arrives. The Stewardship Office encourages the Advancement staff to
reiterate to donors, when and wherever possible, the importance of matching gifts.
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Tribute Gifts
• Gifts made in honor or in memory are recognized in the same format and threshold as
other gifts with special mention of the honoree. Family members are sent notice of
gifts made in honor/memory of their loved ones that includes names and addresses.
Recognition
• TBD
Prepared by Theresa E. Mullin, Stewardship Director
SALISBURY SCHOOL STEWARDSHIP PLAN JULY 2005
Prepared by Theresa E. Mullin, Stewardship Director
MISSION STATEMENT
The Salisbury School Stewardship Program was established to develop and administer a comprehensive and institutionalized stewardship and donor recognition program. The mission of the program is to sustain and nurture the School’s relationships with its donors, while providing accurate and timely information pertaining to the investment and use of their gifts. The Stewardship Program provides appropriate donor recognition and reporting relative to the level and use of individual gifts. Effective stewardship involves institutional representatives including the Headmaster, development officers, trustees, volunteers, faculty, and staff.
DEFINITION OF STEWARDSHIP
Donor stewardship means developing an ongoing relationship with a donor, which includes thanking and recognizing them for their contribution, ensuring that the gift is used in accordance with the donor’s wishes, reporting to the donor on what has been accomplished with their gift, heightening their interest and involvement with the school, and soliciting additional larger donations in keeping with donor’s interests. It is the process whereby an institution cares for and nurtures its philanthropic support – its gifts and those who give them – in a way that responds to the donor’s expectations and respects the act of giving and the relationship between donor and institution.
“Fundraising includes a limited number of programs and processes designed to acquire a first gift from a donor and ask for subsequent gifts. Stewardship includes a sophisticated and varied number of activities designed to make the donor WANT to keep giving. Since
profit is directly tied to donor longevity (i.e. loyalty), stewardship is, by definition, the critical determinant of fundraising success. In an age of intense competition for philanthropic
dollars, excellent stewardship is the customer loyalty advantage of the fundraising industry.” Penelope Burk
Prepared by Theresa E. Mullin, Stewardship Director
WHY STEWARDSHIP?
The standard “gift cycle” involves four primary stages: prospect identification, prospect cultivation, solicitation, and stewardship. Stewardship consists of three basic activities: to acknowledge, recognize, and inform. Stewardship supports continued cultivation and fundraising, fosters institutional accountability in the use of gifts (including maximum use of restricted endowed income), and honors donors’ rights to accurate information pertaining to the administration and impact of their gifts.
THE NEED FOR STEWARDSHIP
It could be argued that stewardship has always been an acknowledged component of the fundraising process and has been executed by many non-profits with varying degrees of effectiveness. It has become increasingly more important with the rising numbers of charities and non-profits competing for charitable dollars. In a recent issue of The Fundraising Free Press
, in an article on Fundraising Trends for 2004 and Beyond, two trends mentioned are the increased competition and “a greater demand for accountability and transparency.” With misuse of dollars widely reported in the media for the corporate, government, and non-profit sectors, the need for proper stewardship of the dollars as well as the donor relationship becomes increasingly important – to maintain those good relationships we have and retain those future dollars; to build trust so that others will want to give and give again; and to become an institution of choice for many donors who are determining their philanthropic priorities.
Prepared by Theresa E. Mullin, Stewardship Director
Key Components of Salisbury School’s Stewardship Program The following diagram shows the standard Prospect Management Cycle with Stewardship being a key component of that donor/prospect cycle. Prospect Management Cycle
Prospect Management to Stewardship Cycle
Qualification
Cultivation
Stewardship
Identification
Solicitation
Cultivation
Stewardship
Prepared by Theresa E. Mullin, Stewardship Director
Within the Stewardship component there is another cycle with four active parts. They are:
I. Acknowledge II. Appreciate
III. Account IV. Ask Again They are interconnected and naturally flow from one to another. A donor relationship that is well-stewarded will easily move to cultivation once again. See descriptions below. I. Acknowledge
Acknowledge is the part of the stewardship cycle where a donor is thanked for their contribution. It includes all forms of thank you letters, tax receipts, phone calls and personal visits. This is a critical component and if missed or done poorly can damage the donor relationship for the long term. Awareness of secondary relationships or giving through spouses, foundations, and businesses needs to be a part of the acknowledgement process and recognition.
Practices may apply to all or specific areas of fundraising. Numbers following practices define areas. 1. Major Gift 2. Annual Fund 3. Deferred Gifts 4. Scholarship Endowment/Student Awards
“The thing that separates our successful charitable relationships from those that are unsuccessful is the care that charities take to provide personal attention after they receive
the gift as well as before.” Penelope Burk
II. Appreciate
Appreciate is the part of the stewardship cycle which includes donor recognition events and walls, plaques or other tokens of appreciation. Ongoing appreciation is intrinsically connected to the Account part of the cycle, with donor reports and personal visits being another way of showing appreciation and actively demonstrating how each gift has made a difference.
III. Account
Account is the component in the stewardship cycle where the donor is informed about the results and use of their gift. It is often regarded as the key ingredient to continued donor satisfaction. This can take the form of the annual donor report, specialized stewardship report, campaigns or a specific project. Written and verbal forms of accountability may be employed.
Prepared by Theresa E. Mullin, Stewardship Director
Accountability means communication, treating the donation with integrity and financial responsibility, and reporting the results. If done well, most donors will consider giving again and as a result, the opportunity to Ask Again will present itself at the appropriate time and place. The stewardship function is an integral part of the cultivation process, and at its best, will be seamless in its transition from the first donation to the next. IV. Ask Again
This is part of the stewardship cycle that connects back to the Prospect Management cycle for Major Gifts. Annual Fund and Annual Scholarship donors are asked on an annual basis as a matter of course. Some Annual Fund and Scholarship donors are identified for major gift opportunities and are referred to the Prospect Management cycle. All the components of Stewardship could be considered long term cultivation to ready the donor for the next ask.
It will cost an organization 4% more of administrative time to get a new donor on board than it does to ask an existing donor! Penelope Burk
CURRENT PRACTICES
1. Gift Acknowledgement (See Gift Policy Guidelines - Appendix A) 2. Communication to Prize /Award Donors in the summer announcing recipient of
the prize / award they created for prize night and graduation. (See Attached Sample – Appendix B)
3. Thank you letter to scholarship donors, which includes a cover letter and student(s) personal thank you letter(s). These letters go out in the fall. (See Attached Sample – Appendix C).
4. Special thank you’s throughout the year as needed (i.e., E.E. Ford Challenge – See Attached Sample of Headmaster Thank You – Appendix D.)
5. Special invitation to Prize / Award Donors to Prize Night & Graduation (new for 2005).
6. Dedications – i.e., Bates Playground, Belin Lodge, Turf Field, etc.
DESIRED FUTURE PRACTICES (FINANCIAL RESOURCES PERMITTING)
1. Create a hardcopy file for each endowed fund and major gift with important information & check RE 7 to be Sure a record is in place for each with a current contact, address, etc. (Summer of 2005)
2. Develop a Stewardship Program Calendar / Checklist for Each Calendar Item. 3. Communication in the fall to all donors of endowed funds with information on
fund history and fund performance. (See Attached Sample – Appendix E.)
Prepared by Theresa E. Mullin, Stewardship Director
4. Newsletter communication once / twice a year from department chairs to special donors to their department or building on what is happening in their classroom, how it is making a difference, and how thankful they are.
5. Thank you letters for faculty chair holders to donors with an update on themselves, how the money is being used, and why they are thankful.
6. Continue to do groundbreaking, building, etc. dedications. 7. Scholarship luncheon or dinner in the fall for all students on financial aid, their
family members, and donors. Director of Financial Aid be the speaker. This gives the donors the opportunity to meet the students.
8. Scholarship thank you letters from students to donors moved from the fall to spring towards the end of the school year. This gives the student an opportunity to participate in more and have much more to write about. Information is gathered throughout the year on the financial aid students to include in the cover letter to the donors.
9. Special Donor Recognition Day where donors come to campus, sit in on a class, meet with faculty / department chairs, student panel, Headmaster’s thank you and lunch or dinner on campus.
10. Keep donors informed of what is happening on campus via e-mail communication with a link to our Web site (i.e., artist who is alum comes back to campus and spends time with students, etc.)
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UAB Comprehensive Stewardship Plan
Stewardship is a long-term process that is critical to the success of institutional
advancement. The Merriam-Webster Online Dictionary defines stewardship as the
conducting, supervising, or managing of something; especially: the careful and
responsible management of something entrusted to one’s care.
There are three compelling reasons to make good stewardship a high priority:1
• Stewardship preserves the opportunity for further support. It keeps
information flowing from institution to donor and donor to institution. Donors
feel appreciated and successful, and they stay in touch with and become closer
to our institution.
• Stewardship offers legal and public relations protection to our institution. It
helps ensure accurate crediting of gifts and documentation of gift purposes. It
makes certain that gift restrictions are clarified and documented. And it
guarantees that gift transactions are appropriately documented for accounting,
financial auditing, and tax purposes.
• Stewardship is the right thing to do. . . Responsible stewardship respects
philanthropy, our loftiest goal and our firmest bottom line. What’s more,
because gratitude is a universal standard, its expression deserves great care.
Stewardship should be viewed as a responsibility that all Development Office staff and
the institution itself incur when a gift is accepted for some purpose. Donors have the right
to expect that an institution will be a good steward—that it will be accurate and truthful
with them, both in presenting its need for their current gifts and in reporting its use of the
major gifts, particularly endowments, entrusted to its care. When donor expectations are
fulfilled, a strong message is sent to the donor that both the gift and the giver are
appreciated.
1 From Donor Relations: The Essential Guide to Stewardship Policies, Procedures and Protocol, CASE Books, 1999.
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Receipt and Deposit of Gifts
At UAB, all gifts of any type are processed through the Gift Records Office. This office
is currently charged with the appropriate recording, reporting and receipting of gifts, and
a continuing goal is to have all gifts deposited within a 24-hour time period.
Good stewardship begins with the initial listing or recording of the gift. Accounts should
be established using the name the donor wishes or specifies. The donor’s name, spouse’s
name and other contact information must be recorded precisely. Everyone on the
Development Office staff must be vigilant and attentive to timeliness, thoroughness,
accuracy and detail. Mishandling a gift or misspelling a name can undo everything that
has gone into developing a donor’s major gift.
Gift Acknowledgements
• All gifts receive a receipt from the Gift Records Office.
• For gifts greater than $1,000 but less than $5,000, the communications staff of Donor
Services prepares an acknowledgement letter signed by the Vice President for
Development, Alumni and External Relations.
• For gifts of $5,000 or greater, the communications staff of Donor Services prepares
an acknowledgement letter signed by the President.
• The Directors of Development are also encouraged to work with their dean or director
to acknowledge gifts that are special or meaningful to the school's/unit's mission,
programs, etc. and to encourage stewardship efforts at the school/unit level. Directors
of Development receive weekly reports from the Gift Records Office regarding their
individual fund raising results to facilitate gift acknowledgements.
Acknowledgements and receipts should be sent immediately, noting the purpose of the
gift, even for small gifts. If all gifts are stewarded correctly, some donors may turn out to
be major contributors over time. If a gift has a restriction or is conditional, or if the donor
has indicated stipulations concerning reports, these should be noted in detail in the
donor’s file. Other offices should be apprised as appropriate (e.g., Financial Affairs,
Financial Aid or an academic area). Procedures must be put in place to ensure that future
monitoring occurs as needed.
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Timely deposits of checks and transfers of stock keep donors from becoming irritated at
an apparent lack of stewardship. We are all stewards, and appropriate offices should be
notified of incoming gifts and copied on correspondence with donors.
Affirmation of Donor Intentions
Once accepted, gifts must be used in the way and for the purpose the donor intends, with
scrupulous attention being paid to the donor’s wishes and stipulations. If a unit is unable
or unwilling to follow the donor’s wishes, the gift should not be accepted! When
appropriate, gift agreements and/or resolutions for presentation to The Board of Trustees
of The University of Alabama are prepared by the communications staff of Donor
Services to help ensure that the donor’s wishes are carried out. Development Office files
should contain all the details of restricted gifts.
Fund Management
Resources provided by the donor must be invested, conserved and utilized soundly and
wisely in the best interests of the University and the particular unit that is benefiting from
the gift. The University’s Financial Affairs division takes on the lion’s share of the
management of donated funds and other assets that have restrictions, conditions or
ongoing implications. If another department is affected, the two must work in
partnership. The Development Office should always be included in this process because
good stewardship is a special province of development and, of all the administrative
departments, it is the one most oriented to the donor. Currently, the Stewardship
Coordinator receives an endowment funds summary report, as well as the market value of
The University of Alabama Pooled Endowment Fund, on a monthly basis from the
Financial Affairs division.
Reporting and Accountability to Donors
The University’s stewardship of donors’ gifts is critical to winning their confidence and
continued support. Gifts take many forms and donors come in many categories—
individuals, groups, classes, corporations, foundations, church bodies—but the principles
of good stewardship apply to all. The University must let donors know how the
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institution uses their gifts, what these gifts have provided for the institution and how the
institution, its students, the community and society in general have benefited.
Stewardship Reports and Strategies
The current goal of the Donor Services area of the Development Office is to provide
annual stewardship reports on endowments to major University donors. These reports
will:
• Review the purpose(s) for which a donor’s gift was contributed.
• Provide pertinent financial data regarding the gift such as growth of endowment
principal, market value and investment return.
• Include other information of interest to the donor such as changes within a named
facility or the names and backgrounds of new recipients/incumbents to scholarships,
fellowships or endowed chairs.
• Reaffirm the University’s deep appreciation for the donor and the gift, as well as the
difference the gift has made and continues to make in the lives of students or faculty
and in the growth of the institution they so generously support.
Reports to donors will be prepared by Donor Services for the following types of gifts.
• Scholarships, Fellowships and Loan Funds
Provide annual reports to scholarship donors, or their representatives, which
include the recipients' names, majors, academic classifications and award
amounts, as appropriate.
Use scholarship recipient general information forms to obtain personal
information about recipients and to obtain their authorization for the release of
this information to donors.
Involve each school's Director of Development in the stewardship process
through the provision of information about scholarship recipients, as well as in
contacting donors.
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• Chairs and Professorships
Work with Directors of Development and the various holders of fully-funded
chairs and professorships to establish a relationship with the stewardship office.
Explain to these chair holders the importance of keeping donors informed and ask
them to supply an annual report to the stewardship office for inclusion in a
stewardship report to the donor.
For partially-funded chairs, send annual fund management reports to the donor
contact to help assure that all pledges are paid in a timely manner.
• Other Endowments: Award Funds, Support Funds, Lectureships, Research Funds and
Book Funds
Identify which endowments have donor contacts and need to be stewarded.
Work with units to establish a relationship.
Explain to them the importance of keeping donors informed and ask them to
supply an annual report (where appropriate) to this office for inclusion in a fund
management report to the donor.