Lawrence University of Wisconsin
Gift Acceptance Policy
I. INTRODUCTION
This policy is designed to ensure that all gifts to or for the use of Lawrence University are mutually beneficial for Lawrence and its donors. Because some gift situations may be complex, or more costly than beneficial, this policy has been developed to establish standards for evaluating potential gifts. These standards are designed to account for the uniqueness of each gift and each donor, and to allow for a full and fair assessment of any gift in a timely and professional manner.
II. GUIDING PRINCIPLES
• Lawrence encourages gifts from all sources, including individuals, corporations, foundations, and governmental entities, in support of its charitable and educational purposes.
• Lawrence values and is responsible for maintaining its character as an exceptional private liberal arts college. As such, Lawrence will only accept gifts in keeping with this character and in furtherance of its charitable and educational purposes.
• Lawrence reserves the right to decline certain gifts, including those that are not in furtherance of Lawrence's charitable and educational purposes, that are likely to generate little or no financial gain, that would inhibit gifts from other donors, or that would cause Lawrence to violate current legal or ethical principles.
• Lawrence will use its best efforts to facilitate gifts that comport with a particular donor's interests. Even so, Lawrence will at all times encourage unrestricted gifts to ensure its character as an exceptional private liberal arts college and to sustain and enhance its financial strength and flexibility.
• Lawrence will use its best efforts to provide donors with appropriate information to facilitate the gift-giving process, and to ensure that all development staff respond to donors in a timely, professional, and courteous manner.
• Although Lawrence's development staff strives to maintain a high level of familiarity with current tax and related laws that affect charitable gifts, individual staff members cannot provide legal or tax advice to donors. Lawrence encourages all donors to consult with their personal legal counsel, tax advisors, and/or financial planners prior to making a gift.
• Lawrence will seek the advice of its own legal counsel as appropriate and necessary prior to accepting gifts of a complex nature. Lawrence will observe all legal requirements governing the acceptance and administration of charitable gifts, including the filing of all necessary documentation upon the receipt and/or disposition of a gift.
• Lawrence may incur and pay reasonable fees for legal or other professional services rendered to the institution in direct connection with the acceptance, administration, and/or stewardship of a gift. Fees for legal or other professional services rendered to the donor, including but not limited to fees for tax, legal, financial, or appraisal services, cannot be paid by Lawrence.
• Lawrence will acknowledge all gifts in an appropriate manner that respects and honors each donor and his, her, or its wishes regarding publicity or anonymity.
• In accepting a gift, Lawrence also accepts responsibility to the donor to steward that gift. This includes administering the gift properly, providing the donor with appropriate financial information about the gift, and, when appropriate, providing reports to the donor about the use of the gifted assets.
III. GENERAL PROCEDURES
Lawrence's Vice President for Development and Alumni Relations shall be responsible for evaluating all proposed gifts other than gifts of cash, gifts of publicly traded securities that are readily marketable, and gifts of tangible personal property valued at less than $50,000. All gifts, other than those listed in the preceding sentence, shall be brought to the attention of the Vice President for Development and Alumni Relations by the staff member(s) responsible for the proposed gift. Upon review of all necessary and appropriate information about the proposed gift, the Vice President for Development and Alumni Relations, in consultation with members of the Lawrence Board of Trustees, Lawrence administration and staff, and/or independent professionals as may be necessary or appropriate or as otherwise required by this policy, shall determine whether the gift should be accepted or declined as proposed, or whether further investigation and/or negotiation is warranted. All such decisions shall be documented and shall be shared promptly with the responsible staff member.
IV. SPECIFIC ASSETS
A. Cash and cash equivalents. Lawrence will accept gifts of cash (currency) and cash equivalents (including checks and commercial paper, credit card or electronic funds transfers, wire transfers, and payroll deductions).
B. Publicly traded securities. Lawrence will accept gifts of readily marketable securities (including mutual funds and government securities) that are traded on any recognized stock exchange. Lawrence encourages electronic transfers (e.g., DTC) whenever possible. In certain circumstances, the transfer or disposal of publicly traded securities may be restricted by applicable securities laws (e.g., Rule 144); in such cases, the Vice President for Development and Alumni Relations shall determine whether Lawrence will accept the securities. Lawrence reserves the right to sell gifted securities upon or at any time after receipt.
C. Closely held securities. Lawrence will accept gifts of closely held securities, including debt and equity positions in non-publicly traded companies, interests in general and limited partnerships, and interests in limited liability companies and similar entities, subject to the approval of the Vice President for Development and Alumni Relations. Such gifts generally will not be approved if the securities are likely to generate unfavorable tax or financial consequences (including a likely inability to convert the securities to cash within a reasonable timeframe) for Lawrence. Lawrence reserves the right to sell or otherwise dispose of gifted securities upon or at any time after receipt.
D. Real estate. Lawrence will accept gifts of real estate, including residential, commercial, and undeveloped property, upon recommendation of the Vice President for Development and Alumni Relations and subject to the approval of the President of the University and the Chair (or, in his absence, the Vice-Chair) of the Board of Trustees. In evaluating such gifts, the Vice President for Development and Alumni Relations, the President, and/or the Chair (or Vice-Chair) may require that a member of the Board or its designate conduct a site visit to the property. Unless otherwise agreed prior to approval of the gift, contributions of real estate generally will not be approved if the property is encumbered by a mortgage or similar debt, if the donor cannot provide clear title, if the property is subject to significant carrying costs (such as maintenance or taxes), or if the property shows signs of environmental damage.
To determine the existence of environmental damage, Lawrence will generally require the donor to provide a formal environmental site assessment (Phase I and/or Phase II) prepared by a qualified engineering or environmental firm. Any environmental damage confirmed as a result of such assessment must be remediated and certified as such by the appropriate governmental authority, again at the donor's expense, prior to approval of the gift.
Unless otherwise agreed prior to approval of the gift, Lawrence reserves the right to sell or otherwise dispose of gifted real estate upon or at any time after receipt.
E. Tangible personal property. Lawrence will accept gifts of tangible personal property, subject to the approval of the Vice President for Development and Alumni Relations if such property is valued at $50,000 or more. Factors affecting the evaluation of such gifts include the extent to which the property relates to Lawrence's charitable and educational purposes, the marketability of the property, the carrying costs of the property (including transportation, storage, maintenance, and insurance), and the effect of any existing or proposed restrictions on the use, display, or disposition of the property. Unless otherwise agreed prior to approval of the gift and unless the gifted assets are directly related to Lawrence's charitable and educational purposes, Lawrence reserves the right to sell or otherwise dispose of gifted tangible personal property upon or at any time after receipt.
F. Life insurance policies and commercial annuities. Lawrence will accept gifts of life insurance and commercial annuities, subject to the approval of the Vice President for Development and Alumni Relations. Such gifts generally will not be approved unless Lawrence is named as owner and full (100%) beneficiary of the policy or contract. Lawrence may elect to maintain a gifted insurance policy and pay any necessary premiums at its discretion, but reserves to convert the policy to cash or to paid-up status, or to sell or otherwise dispose of a gifted policy or contract, at any time.
G. Other gifts. Any proposed gifts not described above must be approved by the Vice President for Development and Alumni Relations. Factors affecting the evaluation of such gifts include the extent to which the gift (or any sales proceeds thereof) could be used in Lawrence's charitable and educational purposes, the marketability and/or carrying costs of the gift, and any legal, financial, or other risks related to the gift. Unless otherwise agreed prior to the approval of any such gift, Lawrence reserves the right to sell or otherwise dispose of the gifted asset upon or at any time after receipt.
V. SPECIFIC FORMS OF GIFTS
A. Bequests. Subject to the provisions of Section IV, above, Lawrence accepts bequests of specific assets, specific dollar amounts, and fixed percentages of an estate, residuary estate, or trust established within an overall estate plan. Lawrence will not serve as personal representative, executor, or administrator of an estate, and generally will not serve as a trustee of a revocable or irrevocable trust.
B. Insurance beneficiary designations. Lawrence accepts gifts of insurance proceeds (separate from ownership of the underlying insurance policy) through designation as a beneficiary of a specific dollar amount or fixed percentage of the proceeds.
C. Retirement beneficiary designations. Lawrence accepts gifts of retirement assets through designation as a beneficiary (primary or contingent) of a specific dollar amount or fixed percentage of the account balance.
D. Remainder interests in real estate. Subject to the provisions of Section IV, above, and the approval of the Vice President for Development and Alumni Relations, Lawrence will accept a remainder interest in a personal residence or farm. Unless otherwise agreed prior to approval of the gift, the donor will remain responsible for insurance, property taxes, maintenance and repairs, and any mortgage or similar encumbrance on the property.
E. Bargain sales. Subject to the provisions of Section IV, above, and the approval of the Vice President for Development and Alumni Relations, Lawrence will enter into bargain sales that are reasonably expected to further its charitable and educational purposes. Factors affecting the evaluation of such gifts include the nature and value of the property, the proposed purchase price and anticipated carrying and transaction costs, and the ability to sell or otherwise dispose of the purchased property.
F. Charitable gift annuities. Lawrence accepts gifts of cash or publicly traded securities in exchange for charitable gift annuities, deferred gift annuities, and flexible gift annuities, in each case for no more than two designated annuitants. Subject to the provisions of Section IV, above, and the approval of the Vice President for Development and Alumni Relations, Lawrence will accept gifts of other assets in exchange for deferred and flexible gift annuities. Lawrence generally requires a minimum contribution of $10,000 and a minimum age of 65 at the time annuity payments begin. Lawrence provides annuity payments at rates up to but not in excess of those recommended from time to time by the American Council on Gift Annuities.
G. Charitable remainder trusts. Lawrence accepts designation as a remainder beneficiary of all forms of charitable remainder trusts, including annuity trusts, standard unitrusts, net income (with or without make-up) trusts, and flip trusts. Lawrence generally will not serve as a trustee of a charitable remainder trust. Due to administration expenses and transaction costs, it is generally recommended that charitable remainder trusts be funded with a minimum of $250,000.
H. Charitable lead trusts. Lawrence accepts designation as an income beneficiary of all forms of charitable lead trusts, including grantor and non-grantor trusts with annuity or unitrust payouts. Lawrence will not serve as a trustee of a charitable lead trust. Due to administration expenses and transaction costs, it is generally recommended that charitable lead trusts be funded with a minimum of $1,000,000.
I. Unqualified split-interest trusts. Lawrence accepts designation as an income and/or remainder beneficiary of all forms of split interest trusts not otherwise described above. Lawrence will not serve as a trustee of such trusts. Due to the unfavorable tax consequences of such trusts, donors are encouraged to create qualified charitable remainder or lead trusts instead.
J. Wholly charitable trusts. Lawrence accepts designation as an income and/or remainder beneficiary of trusts established exclusively for charitable interests. Lawrence generally will not serve as a trustee of such trusts unless Lawrence is named as a full (100%) beneficiary. Due to administration expenses and transaction costs, it is generally recommended that charitable trusts be funded with a minimum of $100,000.
K. Donor-advised, field-of-interest, and agency funds. Lawrence accepts gifts from or designation as a beneficiary of donor-advised, field-of-interest, agency, and similar funds administered by community foundations or commercial entities.
L. Pooled income funds. Lawrence no longer accepts contributions to its pooled income fund. Donors who are interested in making a gift that will generate an income stream for one or more individual beneficiaries are encouraged to consider a charitable gift annuity or charitable remainder trust.
VI. SPECIFIC GIFT PURPOSES
From time to time, donors may wish to provide funding or assets for a particular purpose or project. Lawrence recognizes the need to ensure that sufficient funding is available not only for the preferred purpose, but also for Lawrence's general operations. Accordingly, gifts designated for an academic department or institutional program will generally be treated as unrestricted gifts and used to underwrite that portion of Lawrence's operating budget devoted to the preferred purpose. In certain circumstances, however, the Vice President for Development and Alumni Relations or his designate may arrange for gifts solicited or secured for specific purposes to be used in part or in full to augment existing budgets for those programs. Lawrence also recognizes the interest that donors may have in establishing a named and/or endowed fund to support a particular purpose. The Development Committee of the Lawrence Board of Trustees has established certain minimum amounts for such funds, which amounts may be adjusted from time to time by the Development Committee or any successor committee of the Board. Those minimum amounts, as they may be adjusted from time to time, are deemed to be incorporated by reference into this policy.
Lawrence also recognizes the importance of clear guidelines for reporting the value of gifted assets. When providing donors with acknowledgement of gifts for tax purposes, Lawrence adheres to the relevant rules and regulations set forth in the Internal Revenue Code and Treasury Regulations, as such may be amended from time to time. When providing financial statements to public or governmental authorities, Lawrence observes the practices and standards promulgated by the Financial Accounting Standards Board. When crediting gifts for the purpose of donor recognition, reunion class totals, or capital campaigns, Lawrence follows internal guidelines specifically developed for such purposes.
VII. AMENDMENT
This policy may be amended from time to time to address certain forms of gifts or types of gift assets that warrant particular attention due to increased popularity, changes in legal or financial practices, or any other reason. Such amendments shall be approved by the Development Committee of the Lawrence Board of Trustees, or any committee then acting in its stead, and shall be deemed to be incorporated by reference into this policy upon approval.
This Gift Acceptance Policy has been duly adopted by the Campaign Steering Committee, acting in the stead of the Development Committee of the Lawrence Board of Trustees, on this _____ day of _______________, 2005
