Gift Acceptance Policy

This Gift Acceptance Policy (“Policy”) applies to all University faculty and staff when accepting charitable Gifts or Grants on behalf of the University. See Section IV below for the definitions of capitalized terms contained in this Policy.

The University has established this Policy to ensure fidelity to Donor intent, manage expectations about how a Gift will be used, ensure that all Gifts meet University needs, and safeguard the University’s reputation. The purpose of this Policy is to articulate and outline the University’s methods for analyzing and accepting charitable Gifts for the University’s benefit. It is also intended to answer the following questions for gift officers and other University officers who deal with Donors and Gift-related issues.

This document does not anticipate all possible gift situations. Soliciting officers should discuss any potential Gift not described in this document with appropriate University officers, including the Vice President for Development and Alumni Engagement or their designee.

This Policy shall be interpreted in light of the following overriding principle:

A gift will be accepted by the University only if there is a reasonable expectation that accepting the Gift will be of a charitable nature that will ultimately benefit the University. Factors that may be considered in making that determination include the capacity of the University to utilize the Gift; any restrictions placed on the Gift by the Donor; and any costs or obligations that the University may incur by accepting the Gift.

Further, all Gifts, whether or not addressed in this Policy, should adhere to the following principles of gift acceptance:

Gifts will not be accepted that involve unlawful discrimination based on race, religion, sex, age, national origin, color, disability, or any other basis prohibited by federal, state, and/or local laws and regulations, or University policy. Nor can the University accept Gifts which may result in a violation of any other applicable laws or regulations or which violate the charter or mission of the University.

The University will adhere to federal law, including the Internal Revenue Code and its regulations, and Pennsylvania law relating to charitable organizations and not-for-profit corporations. Further, the University will set standards that are consistent with guidelines established by industry organizations such as the Financial Accounting Standards Board (“FASB”), the Council for the Advancement and Support of Education (“CASE”), National Association of Charitable Gift Planners (“CGP”), and the Association of Fundraising Professionals (“AFP”) and its related Donor Bill of Rights.

This Policy is not intended to create contract rights and, as a living document, is subject to change at any time in accordance with the University’s Policy on University Policy Development.

The University and its staff and representatives shall endeavor to assist Donors in accomplishing their philanthropic objectives through providing charitable support for the University, in accordance with the following principles:

The University encourages Gifts of all types from Donors willing to support its mission. However, the University must take care to avoid assuming potential liabilities or obligations of any kind that may outweigh the value of a Gift received by the University.

Gifts can come from individuals, corporations, partnerships, foundations (private, community or corporate), private liability companies, Donor Advised Funds, public charities, estates, and trusts.

A Gift may be made either outright (i.e. the Donor retains no use of, or ownership in, the assets donated) or in trust, in which case the Donor contributes to the University either a “future interest” in a trust’s principal value or the right to a trust’s income for a certain term.

The Donor may designate a Gift for unrestricted use by the University or a particular school, department, or unit. A Donor may also make a Restricted Gift by designating a specific purpose for the Gift. Any restriction must adhere to the University’s gift acceptance policies. Or, the Donor may limit the expenditure of a Gift by adding the gift to an existing (or establishing a new) endowed fund.

The purpose and use of a Gift as specified by the Donor must be appropriate to the functions and character of the University, as determined by its policies and procedures, and in accordance with all applicable laws and policies.

Gifts should be in amounts appropriate to the specified uses and consistent with the University’s published program and planning priorities. Gifts should not be directed to purposes that are so narrowly restricted that effective use or administration, either immediate or in the future, will be problematic.

Gifts requiring a commitment by the University to spend its own funds, either upon receipt or in the future, in addition to any amounts donated or pledged, must first be presented by the Vice President for Development and Alumni Engagement for approval by the President and/or Provost (and depending on size and scope of gift, the Board of Trustees) before consideration by the University.

Certain philanthropic “grants” (see below) consist of payments by a foundation or corporation in response to a proposal requesting funding for a school or specified project over a set period of time. Although the University’s Office of Sponsored Research and Programs approves and monitors these charitable grants, the University will count them in development and campaign totals, recording them in Raiser’s Edge. The following transfers do not constitute philanthropic gifts and will not be recorded in Raiser’s Edge:

The Division of University Advancement (UA) and the Office of Sponsored Research and Programs are responsible for requesting funds – whether they are reflected as Gifts, charitable grants, or awards (contracts) – to the University. Determining whether the funds are philanthropic — and therefore, how to count and treat those funds — can often be challenging. To make this determination, both offices must be in communication to understand a number of determinant factors: intent, purpose, risk, intellectual property (“IP”), deliverables, reporting, return of funds, control of funds, accounting, and publicity. Both UA and the Office of Sponsored Research and Programs may submit funding proposals to corporations and foundations, but some will be classified as philanthropic and some will not.

The question of whether an award is charitable and therefore countable as a Gift is not determined by which office manages the funds. Both offices can accept charitable contributions, which the IRS defines as voluntary donations to a tax-exempt organization for charitable, scientific, literary, or educational purposes. The Office of Sponsored Research and Programs also handles non-charitable transactions, which are exchanges having potential commercial benefit or profit back to the funder that do no support charitable purposes.

1. General Standards for Gift Acceptance
The legal name of the University is Arcadia University. It is a nonprofit corporation formed by an act of the Commonwealth of Pennsylvania.  

Arcadia is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, classified as a public charity and eligible for charitable tax deductions under 26 U.S.C. Section 170(b)(1)(A)(ii) as an education organization. The University’s Employer Identification Number (EIN) is 23-1352620. This number includes all of the University’s colleges, schools, departments, centers and institutes.

The University can accept Gifts under its full legal name or the variation “Arcadia.” Donors should be instructed to make checks payable in this manner. Any further direction or restriction should be entered on the memo line of the check and/or described in Donor correspondence (e.g. a gift agreement).

Whenever a Gift creates the potential for exposing the University to liability, the University should consult with the University’s Office of General Counsel and consider accepting such Gift through a single-member limited liability company owned by the University in accordance with Internal Revenue Notice 2012-52, which allows contributions made to a domestic single-member limited liability company wholly owned and controlled by a charitable organization, like the University, to be treated as a charitable contribution directly to the charitable organization. Specifically, the University shall consider accepting all Gifts that are not cash or marketable securities through a single-member limited liability company, including, but not limited to, interests in partnerships, interests in the limited liability company, and real property interests. Additionally, the Department of Finance and Administrative Services must evaluate the possibility that unrelated business tax income (“UBTI”) will be attributed to the University as a result of ownership of an interest in a partnership or limited liability company.

Additionally, when the University receives a gift of any type of property, it is the University’s policy to either immediately put the property in use or sell it. Donors that seek a charitable deduction for property contributed to the University shall be responsible for completing IRS Form 8283 (Noncash Charitable Contributions) and submitting said form to Advancement Operations in UA for completion. This form should then be returned to the Donor so that they may process it with the IRS. However, if the University sells, exchanges, or disposes of donated property within three (3) years of receipt, the University shall file a Form 8282 (Donee Information Return) with the IRS and provide a copy to the Donor.

2. Reporting and Valuation Standards

3. Ethical Standards
The University is committed to the highest ethical standards. University Advancement staff at all levels of the organization shall adhere to all University policies related to ethics and conflicts of interest, and shall familiarize themselves with and aspire to meet the standards set forth in the Model Standards of Practice for the Charitable Gift Planner adopted by the American Council on Gift Annuities (“ACGA”) and the National Association of Charitable Gift Planners (“CGP”); the Code of Ethical Principles adopted by the Association of Fundraising Professionals (“AFP”); and the Ethical Standards and Principles for Fundraisers, Zero Tolerance Pledge, and the Statement of Ethics adopted by the Council for Advancement and Support of Education (“CASE”), as well as the Higher Education Conflict of Interest Guidelines adopted by the American Council on Education (“ACE”).

4. Responsible Offices
Implementation of this Policy is delegated to the Vice President for Development and Alumni Engagement in UA, who shall be responsible for oversight of the acceptance of all Gifts by the University. Revisions to this Policy will be made in accordance with the University’s Policy on University Policy Development.

5. Approval Exceptions
Acceptance of Gifts by the University in a manner that is in any way inconsistent with this Policy must be approved in writing by the Vice President for Development and Alumni Engagement, who shall report such exceptions to the President of the University before the gift is accepted.

6. Period Review

7. The Gift Review Committee

The Gift Review Committee (composed of the President’s Cabinet, key faculty, and other stakeholders) reviews potential Gifts that would fall outside of standard procedures and practices or that would significantly impact the University. Following are examples of Gifts/actions that may be brought, at the discretion of the Vice President for Development and Alumni Engagement, to the Gift Review Committee and which may require the Committee’s approval:

Appropriate clearances, approvals, and signoffs are expected to be in place before negotiations proceed or a Gift is accepted.

“The University is entitled to protect the Fund from obsolescence and impracticability. Should any intervening event(s) or restriction(s) or condition(s) on the distribution of funds from the Fund cause this Agreement to become, in effect, obsolete, impracticable, or incapable of fulfillment in the judgment of the President of the University, then any restriction or condition on the distribution of funds may be modified in a manner such that the Fund may be applied to support such other purpose or purposes as are determined by the University to be consistent with Donor’s original intent. The University may exercise this variance power without prior approval, including that of any court or other agency.”

Because of their disproportionate importance to the success of the University’s fundraising efforts and potential impact on the operation and finances to the University, its Trustees and the President require that all potential proposals of Gifts of $5 million or more be presented for review (in writing, outlining the purpose, potential budgetary impact, and naming opportunity implications of the Gift) to the Vice President for Development and Alumni Engagement prior to presentation to prospective Donors.

For all Gifts, firsthand knowledge of potential donors along with, when necessary, documentation of their background provides the basis for understanding whether acceptance of a Gift is appropriate, and sets the stage for a thorough, fact-based analysis and evaluation.

In thinking about the acceptance of a Gift, the University should consider the following:

If a soliciting officer has any concerns, they are expected to alert their supervisor before proceeding with a Gift conversation in order to allow for an appropriate review of the facts and circumstances. In certain situations, this review may prompt extraordinary due diligence measures. In such instances, it is expected that all of the procedures for appropriate research and documentation will be followed. In addition, any or all of the following actions may be undertaken to ascertain the appropriateness of accepting a Gift:

​​If the Donor designates a deferred Gift to establish an endowed or restricted fund, the gift agreement will include a proposed name for said fund and a provision that the Gift must reach the minimum amount required to establish such a fund at the time the Gift is realized.

Limitations and encumbrances will be carefully reviewed before a Gift can be accepted, including any and all mortgages, deeds of trust, restrictions, reservations, easements, mechanics’ or other liens and other limitations of record. Generally speaking, no Gift of real estate will be accepted until all mortgages, deeds of trust, liens, and other encumbrances have been discharged. Exceptions may be made when the fair market value of the University’s interest in the property, net of all encumbrances, is deemed to be substantial, or when a separate agreement to pay any encumbrances that might be charged to the University has been executed by a financially responsible party. Prior to the acceptance of any parcel of real property, an assessment of the potential environmental risks will be conducted. This assessment shall include the following:

An environmental audit conducted by a professional service in the form of a Phase I Environmental Site Assessment also may be required.

The University may require an inspection by a properly licensed or certified professional for all Gifts of real estate, including an interest in mining or oil and gas properties, as may be required to demonstrate due diligence and care in accepting the property as free from contamination. Any such inspection shall be documented properly for legal reasons.

All expenses associated with a Donor’s Gift of real property, including appraisals, surveys, and environmental risk assessments, shall be borne by the Donor. In general, the University’s policy is to dispose of all Gifts of real estate as expeditiously as possible. This policy must be communicated to the Donor when the University receives notification of the Donor’s desire to make the Gift.

Bargain sale transactions (other than charitable gift annuities) may be accepted by the University only with the prior written approval of the Vice President for Development and Alumni Engagement and the Vice President of Finance and Administrative Services, and as applicable, the Office of General Counsel. Since bargain sale transactions require the outlay of funds by the University, these transactions should first be approved by the President and only in very limited circumstances. One such circumstance involves property that the University intends to keep for use in its programs that may be acquired on beneficial terms in a bargain sale transaction. In limited circumstances, the University may consider bargain sale transactions to acquire property that would not be retained for use in the University’s programs, if it is determined in the approval process that the property can be sold for cash in a timely manner.

To be counted, a Donor must provide written documentation that the University is a listed as an irrevocable beneficiary. If the Donor is aged 65 or above at the time of the Gift (or by the end of the campaign public phase, if in a campaign), Bequests will be counted at face value. They will be discounted for Donors aged 45-64 per the following scale:

For Donors below the age of 45, written bequest intentions are welcome, but Bequests will not count toward achievement totals. 

The University will accept Charitable Gift Annuities that meet a minimum gift level of $10,000. For immediate annuities, the age of the income beneficiary must be sixty (60) or greater; if payable to joint annuitants, their average age must equal sixty (60) or greater at the time annuity payments commence. For deferred annuities, the age of the income beneficiary must be fifty-five (55) or greater; if payable to joint deferred annuitants, the average age must be at least fifty-five (55) at the time the annuity payments commence.

The pool is invested in a diversified portfolio. A pro-rata share of income earned by the pool is distributed annually to each Donor and/or other income beneficiary. Donors also receive income tax deductions based on the fund’s rate of return the previous three (3) years, the number of beneficiaries, and the beneficiaries’ ages.

Upon the Donor’s death, the Donor’s share in the pooled income fund is severed and turned over to the University. The fund itself does not terminate, but continues to administer the gifts of other Donors. The University is not actively seeking to add new Donors to the University’s pooled income fund at this time.

Pooled income funds will be counted at face value for gift counting purposes. The discounted present value will also be recorded and tracked.

Remainder trusts can be funded with a wide variety of assets. They can be established during the Donor’s lifetime or through their estate, and the Donor (or the estate) will receive a current income or estate tax charitable deduction.

Charitable Remainder Annuity Trusts (“CRATs”) pay a fixed payout rate that remains unchanged over the trust term. While this means that additional contributions to an annuity trust are not permitted, it also provides the certainty of a fixed amount of income each year, regardless of any fluctuations in the value of the trust assets.

Charitable Remainder Unitrusts (“CRUTs”) pay an amount that is recalculated annually, based on the annual market value of the trust assets. This may provide a hedge against inflation: if the value of the trust principal increases, so does the Donor’s income. The converse is also applicable on an annual basis. Donors may make additional contributions to the trust principal. There are several different ways to structure a CRUT, each designed to suit a Donor’s specific circumstances.

The minimum gift level for the University to accept charitable remainder trusts is $100,000. Charitable remainder trusts will be counted at face value for gift counting purposes. The discounted present value will also be recorded and tracked.

The University will accept income from a Charitable Lead Trust funded at any level. It will not, however, act as trustee or successor of any Charitable Lead Trust.

The minimum gift level for a Charitable Lead Trust is $100,000. A Charitable Lead Trust will be counted at face value for first five (5) annual payments, discounted present value for remaining years.

This situation requires charitable contributions to be made by the Donor to the University in an amount which is at least equal to any premiums, including unscheduled premiums, which may become due in order to maintain the Policy. The Donor’s payment of premiums is a condition of a gift of a Life Insurance Policy where the University has been named an irrevocable owner and beneficiary.

The University will pay Life Insurance Policy premiums on a timely basis (provided the Donor has not paid the premium directly). If a premium notice is received by the University before the Donor has made the gift to cover the required premium, the University will pay the premium in order to keep the Policy active and will notify the Director of Gift Planning (or equivalent title), who will send a reminder to the Donor. Premium non-payment by a Donor may result in a decision by the University to have the University absorb the cost of the premium, allow the Policy to lapse, cash in the Policy, or pursue a viatical settlement arrangement.

The Gift will be counted at cash surrender value for a fully paid Policy and for those within five (5) years of payments; and cash settlement amount for realized death benefits provided and not previously counted. Premium payments made by the Donor are treated and counted as a charitable gift if the five (5)-year payment clause is met.

The Gift will be completed upon the execution and delivery of the Life Insurance Policy to the University, or upon transfer of the Policy if the University is not the original owner of the Policy.

If the Donor designates the Gift to establish an endowed or restricted fund, the gift agreement will include the provision that the Gift must reach the required minimum gift level when the Gift is realized in order to establish such a fund.

Retained life estate gifts are subject to all of the policies and procedures for both Gifts of real estate and gift annuities. In addition, the Donor must sign a “life estate agreement” with the University, prepared by the Office of General Counsel, which will articulate the Donor’s on-going responsibility for maintenance of the property, taxes, insurance, and other expenses.

Also, Donors who are 70 ½ and required to take minimum distributions (“RMDs”) may authorize their IRA administrators to rollover up to $100,000 annually to a 501(c)(3) organization as a qualified charitable distribution (“QCD”). A rollover check received must be cashed in the calendar year in which the Gift is intended. The University must take prudent care to process these Gifts particularly at the end of the calendar year. These IRA charitable rollovers are not eligible for life income gifts, Donor Advised Funds, or additional favorable tax treatment.

All potential corporate gifts that have associated rights to Naming Opportunities, as defined by the Naming Opportunities Policy, will be discussed with the Vice President for Development and Alumni Engagement and any University leader whose area may have a relationship with the potential Donor. The proposed Gift will be reviewed confidentially with the Gift Review Committee before a formal solicitation is presented to the prospective Donor. All potential corporate gifts of $500,000 or more from University vendors will be presented and discussed with the Gift Review Committee before an official solicitation is presented to evaluate any real or perceived conflict of interest.

All potential corporate gifts of $500,000 or more shall be reviewed in light of the University’s Financial Conflict of Interest Policy.

All potential corporate gifts of $1 million or more, whether or not they include a Naming Opportunity, will be discussed with the Vice President for Development and Alumni Engagement as soon as possible in the cultivation process. The proposed Gift will be discussed with any other University leader whose area may have a relationship with the Donor and will determine if the Gift Review Committee needs to evaluate the potential Gift before an official solicitation is presented.

The University requires the use of a gift agreement signed by the donor and an appropriate representative of the University to codify and formalize (a) all outright gifts of $25,000 or more for which new funds need to be established, (b) all commitments (pledges) of $25,000 or more, (c) all outright gifts of more than $50,000 intended to supplement existing funds, and (d) any amendments to the terms of an existing fund.

The gift agreement must include:

The commitment should not impose any unreasonable financial or administrative burden on the University and should be in accordance with the gift acceptance principles articulated in the gift agreement’s section pertaining to “Purpose.”

Outright gifts to the University in excess of $25,000 which are designated as supplemental to existing funds, and annual giving commitments in excess of $10,000 may be codified and formalized by a written letter signed by the Donor that clearly articulates the name of the fund into which the Gift is to be added. The signed letter may not include any modifications to the terms or purpose of the existing fund.

Any gift requiring a gift agreement must be accepted on behalf of the University by the Vice President for Development and Alumni Engagement. For all endowed gifts, the President and the Vice President for Development and Alumni Engagement must sign in order for the agreement to be fully executed. Acceptable signatures include originals (wet), pdfs, and electronic signatures. Email chains cannot qualify as gift agreements, including those referencing subsequent agreement revisions.

For gift agreements requiring an English translation, such translation must be made by a translator or translation service approved by the University. The English translation of the gift agreement will be the version that is officially signed on behalf of the University. In the event of a conflict or question of interpretation between the foreign language and the English versions, the English version will govern. Any exceptions to this procedure require the approval of the Gift Review Committee. The cost of translation, if not borne by the Donor, will be borne by the area benefiting from the gift.

A Bequest is a Gift from a Donor’s estate that is made by including language in the Donor’s will or living trust indicating that the Donor wishes to leave a portion of their estate to the University. Bequests may be made for a specific amount, a percentage of the Donor’s estate, or for all or a portion of what is left after other bequests have been made.

A Charitable Gift Annuity is a contract between a Donor and the University, whereby the Donor transfers cash or property to the University in exchange for a partial tax deduction and a lifetime stream of income from the University.

A Charitable Lead Trust is an irrevocable trust that provides an income stream for the University for a term of years or the life of one or more individuals, with the remainder passing to a family member or other noncharitable beneficiary.

A Charitable Remainder Trust is an irrevocable trust that allows the Donor and/or other beneficiaries to receive an income stream for a period of years or the life of one or more individuals, with the remainder of the assets passing to the University.

A Charitable Grant consists of payments by an institutional donor (i.e., a DAF, foundation, or corporation) in response to a recommendation made or proposal requesting funding for a school or specific project over a set period of time.

A Donor is an individual, or institution, or organization who has irrevocably transferred a monetary asset or tangible property to the University.

A Donor Advised Fund is a charitable giving vehicle maintained by a public charity that allows a Donor to make a contribution to that charity and receive an immediate tax deduction, and then recommend charitable grants over time to any IRS-qualified public charity.

An Endowment is a collection of funds whose principal/corpus cannot be spent.

A Gift (or charitable contribution) is an irrevocable, unconditional, voluntary and non-reciprocal transfer or donation of funds or property to the University from an individual or entity that is accompanied by philanthropic intent and for which the Donor does not receive or expect anything of value. This includes donations of surplus property by a governmental or other public sector entity. A charitable gift may, in some circumstances be described as a philanthropic or charitable grant.

A Life Insurance Policy is a contract with an insurance company that, in exchange for premium payments, provides a lump sum payment to named beneficiaries upon the insured’s death. This gift type can be revocable or irrevocable, depending on how the gift is structured.

A Matching Gift is a Gift that is made contingent on another Donor’s Gift. Matching Gifts are generally made by corporations that agree to match Gifts made by their employees, officers, directors, or retirees.

Gifts of Personal Property are Gifts of tangible or intangible Personal Property that will be retained and used by University faculty, staff, and/or students to complement the core mission of the University in the areas of teaching, research, creative endeavors, outreach programs, or any combination thereof.

A Planned Gift is a Gift that represents a Donor’s present decision to make a future Gift, as evidenced through a written gift instrument.

A Pledge is a good faith commitment to make a Gift to the University, as evidenced through a written gift instrument.

A Quasi-Endowed Fund is a collection of funds that have been restricted by the Board of Trustees to be invested in the long-term investment pool in order to provide income over a long period of time.

Gifts of Real Property are Gifts of real estate (improved and unimproved), including detached single family residences, condominiums, cooperative units, apartment buildings, rental property, commercial property, farms, and acreage.

A Restricted Gift supports a certain purpose or program as designated by the Donor.

Stewardship is meeting a Donor’s gift intentions and expectations within the parameters of the University to create a long-term, mutually beneficial relationship.

University refers to Arcadia University, its colleges, schools, affiliates, divisions, and subsidiaries.

This Policy is effective on the date that it is signed by the President.

June 25, 2020