Duke University: Alumni & Development Records: Policies - Gift Acceptance and Disposition Policy

TABLE OF CONTENTS

GIFTS GOVERNED BY THIS POLICY

GIFT POLICY COMMITTEE 1

GIFTS OF TANGIBLE PERSONAL PROPERTY 2

Criteria for Acceptance 2

Gift-in-Kind Guidelines 2

Approval/Acceptance Process 3

Disposition 4

GIFTS OF REAL PROPERTY 4

Criteria for Acceptance 5

Approval/Acceptance Process 6

Disposition 7

GIFTS OF LIFE INSURANCE 8

Criteria for Acceptance 8

Approval/Acceptance Process 9

Administration 9

GIFTS OF OTHER ASSETS 10

Criteria for Acceptance 10

Approval/Acceptance Process 11

Disposition 12

GUIDELINES AND PROCEDURES FOR THE ACCEPTANCE

OF OUTDOOR OBJECTS

GIFT ACCEPTANCE AND DISPOSITION

POLICY OF DUKE UNIVERSITY

GIFTS GOVERNED BY THIS POLICY

GIFT POLICY COMMITTEE

This policy is established to govern the acceptance and disposition of all gifts made to Duke University and any of its subsidiaries or affiliated organizations, whether such gifts are inter vivos (lifetime) gifts or gifts from estates, other than gifts of: (a) cash, (b) publicly-traded equities traded on national exchanges, (c) whole life insurance policies meeting the criteria set forth in Section A of Category 3 below, (d) library books/collections donated specifically to a University library, or (e) works of art donated specifically to the University Art Museum. All gifts that fall under this policy must be approved in advance of acceptance of such gifts by the Gift Policy Committee ("GPC") and in accordance with this policy. It is the responsibility of any development officer or departmental or other University official (principally in the Library, Art Museum, Real Estate Office, Medical Center Cultural Affairs Office, or Alumni & Development Records Office) presented with a gift or working with an estate to bring all gifts subject to this policy before the Gift Policy Committee prior to accepting such gifts.

The Gift Policy Committee is appointed by the President of Duke University, is chaired by the Executive Vice President, and consists of representatives from Development including the Director of Planned Giving and at least one representative from Medical Center Development, one from Duke Management Company ("DUMAC"), one from Alumni & Development Records, one from Endowment Investment Accounting, one from Real Estate, and one from University Counsel, subject to such changes in composition as the President may wish to make from time to time. The Director of Planned Giving will serve as Secretary to the Committee.

Gifts subject to this policy will be considered in four categories: tangible personal property, real property, life insurance, and other assets. The latter category includes, but is not limited to, such items as promissory notes, assignment of promissory notes, partnership interests, and restricted or non-publicly traded securities. The criteria for gift acceptance, the acceptance/approval process, and the disposition policy (administration policy in the case of life insurance) for each category is set forth below.

CATEGORY 1 — TANGIBLE PERSONAL PROPERTY

A . CRITERIA FOR ACCEPTANCE

Except as provided in the following Section B regarding Gifts-in-Kind, the GPC will consider gifts of tangible personal property, including but not limited to works of art, manuscripts, literary works, boats, motor vehicles, and computer hardware, only after a thorough review indicates that the property is:

(1) readily marketable; or

(2) needed by the University for use in a manner which is related to one of the purposes for which tax exempt status of the University was granted; that is, for education, health care, research, or a combination thereof.

B . GIFT-IN-KIND GUIDELINES

The GPC has delegated the authority to accept certain types of Gifts-in-Kind ("GIK’s") valued at less than $5,000 to the Office of Alumni & Development Records, including but not limited to tickets to athletic events, postage, television sets, VCR’s, stereos, computers and computer software, medical equipment, and items for auction. Such gifts need not be formally presented for acceptance by the GPC, but instead may be sent directly to the Office of Alumni & Development Records for processing. Only in the event that the Director of Alumni & Development Records is unsure as to whether the GPC would accept such a gift does a GIK valued at less than $5,000 need to be brought before the GPC for formal acceptance.

The Office of Alumni and Development Records will record a GIK of any value. This is deemed necessary in order to tracked all gifts in the University's official gift system. Please contact Alumni & Development Records before accepting a GIK to determine all proper documentation needed and processes that must be followed.

Any GIK with a value exceeding $100 but less than $5,000 will be recorded on the University’s gift record system at $1, unless independent verification of the fair market value of the gift is provided. The receipt given by the Office of Alumni & Development Records for all GIK’s will reflect the following two messages to emphasize the donor’s responsibility to obtain tax advice:

(1) Your [the donor’s] gift may require that you complete IRS Form 8283, together with an appraisal of the donated property. Please consult your tax adviser.

(2) The deduction you [the donor] receive from this gift may be limited to the lower of the cost or the market value of the goods donated. Please consult your tax adviser.

(3) GIK’s with a value exceeding $5,000 will be processed in accordance with the following Section C and will be recorded on the University’s gift record system at a value to be determined by the GPC. The Director of Alumni & Development Records or the GPC may require documentation from the donor or the department or program to benefit from the GIK in order to substantiate the donor’s cost and/or the market value of the goods donated.

C . APPROVAL/ACCEPTANCE PROCESS

(1) The development officer or other appropriate departmental official will prepare a written summary of the gift proposal and submit that summary to the GPC through the Director of Planned Giving. At a minimum, the summary shall include the following information:

(a) description of asset;

(b) the purpose of the gift (e.g., to fund an endowed chair, a deferred gift, an unrestricted gift) and the department(s), program(s), or endowment(s) to benefit from the gift;

(d) any potential University use and, if so, written review by the department to benefit from the asset; and

(e) any special arrangements requested by the donor concerning disposition (e.g., price considerations, time duration prior to disposition, potential buyers, etc.).

(2) The GPC will review the material presented by the development officer or other appropriate departmental official and make a determination as of whether to accept or reject the proposed gift (or, if necessary, to postpone a decision pending the receipt of additional information). The final determination of the GPC shall be communicated to the development officer or other appropriate departmental official by the Director of Planned Giving, and the development officer or other appropriate departmental official shall communicate the University’s decision to the donor in writing.

(3) If a proposed gift of tangible personal property is approved by the GPC, the Director of Alumni & Development Records will acknowledge receipt of the gift on behalf of the University. The University will not appraise or assign a value to the gift property. It is the donor’s responsibility to establish a value for the gift and to provide, at the donor’s expense, a qualified appraisal required by the IRS in the case of gifts of tangible personal property valued in excess of $5,000.

(4) The execution and delivery of a deed of gift or other appropriate conveyance acceptable to the University, and the delivery of the property, as applicable will complete the gift. The donor will pay the costs associated with the conveyance and delivery of the gift. In addition, the IRS requires the filing of Form 8283 by the donor for gifts of tangible personal property valued at more than $500. This form should be sent to the Office of Alumni & Development Records for execution by the University.

D . DISPOSITION

(1) Upon approval of a proposed gift of tangible personal property by the GPC, it will assign a University office the responsibility for disposing of the gift, unless the gift is intended to be put to a specific University purpose in which case no immediate disposition is necessary. Any guidelines the GPC wishes to impose on disposition, including minimum sales price and approval or rejection of any special arrangements with the donor, will be put in writing to the University office responsible for disposing of the gift at this time.

(2) Upon approval of a proposed gift, the GPC through the Office of Endowment Investment Accounting will designate a Budget and Finance Responsibility Code ("BAFR code") for charging expenses associated with the gift pending disposition. In the absence of a known beneficiary for the gift, a Development or Medical Center Development BAFR code will be used as a holding account.

(3) The Chair of the GPC must first be consulted and/or the entire GPC polled or convened, before a gift of tangible personal property may be sold for less than appraised value or estimated fair market value, or fails to meet the guidelines imposed by the GPC when approving the gift, as the case may be. If in the judgment of the University office responsible for disposing of the gift a current appraisal of the property would assist in disposing of the property, the University office responsible for disposing of the gift may request permission from the GPC or its Chair to have the appraisal performed.

(4) Upon sale of the property, the University office responsible for disposing of the gift will prepare a final report on the property, including a financial summary of net proceeds to the extent known, and distribute it to the Director of Planned Giving, the Office of Endowment Investment Accounting, the Office of Alumni & Development Records and the designated representative of the department to benefit from the gift.

(5) The Office of Alumni & Development Records is responsible for filing Form 8282 for gifts of tangible personal property valued at more than $5,000 sold by the University within two years of the date of gift.

CATEGORY 2 — REAL PROPERTY

The GPC will consider gifts of real property, both improved and unimproved (e.g., detached single-family residences, condominiums, apartment buildings, rental property, commercial property, farms, acreage, etc.), including gifts subject to a retained life estate, only after a thorough review of the criteria for acceptance set forth below under the direction and supervision of the Director of Real Estate Administration.

A . CRITERIA FOR ACCEPTANCE

(1) Market Value and Marketability. The GPC must receive a reasonably current appraisal of the fair market value of the property and interest in the property the University would receive if the proposed gift were approved. Development Officers will inform the donor that, if the gift is completed, the IRS will require an appraisal made within sixty days of the date of gift. Development Officers must understand and communicate to donors that it is the University’s policy to dispose of all gifts of real estate (other than property which the University wishes to retain) as expeditiously as possible. Thus, regardless of the value placed on the property by the donor’s appraisal, the University will attempt to sell at a reasonable price in light of current market conditions, and the donor needs to be informed that any such sale occurring within two years of the date of gift will be reported to the IRS on Form 8282.

(2) Potential Environmental Risks. All proposed gifts of real property, including gifts from estates, must be accompanied by a Phase I environmental audit performed at the donor’s expense. The only permitted exception to this requirement is for residential property which has been used solely for residential purposes for a significant (at least twenty-year) period of time. In cases where this exception applies and no environmental audit is undertaken, the donor/executor must have outside parties complete an Environmental Checklist prepared by the Office of Real Estate and may be required to execute an environmental indemnity agreement. Even in cases where a Phase I audit is submitted, the Director of Real Estate may require that the donor sign an environmental

indemnity agreement.

(3) Limitations and Encumbrances. The existence of any and all mortgages, deeds of trust, restrictions, reservations, easements, mechanic liens and other limitations of record must be disclosed. No gift of real estate will be accepted until all mortgages, deeds of trust, liens and other encumbrances have been discharged, except in very unusual cases where the fair market value of the University’s interest in the property net of all encumbrances is substantial.

(4) Carrying Costs. The existence and amount of any carrying costs, including but not limited to property owners’ association dues, country club membership dues and transfer charges, taxes and insurance, must be disclosed.

(5) Title Information. A copy of any title information in the possession of the donor, such as the most recent survey of the property, a title insurance policy, and/or an attorney’s title opinion, must be furnished.

B . APPROVAL/ACCEPTANCE PROCESS

(1) The Director of Real Estate Administration with the assistance of the development officer will prepare a written summary of the gift proposal and submit that summary to the GPC through the Director of Planned Giving. At a minimum, the summary shall include the following information:

(a) description of real property;

(b) the purpose of the gift (e.g., to fund an endowed chair, a deferred gift, an unrestricted gift) and the department(s), program(s), or endowment(s) to benefit from the gift;

(c) an appraisal of the property’s and, if different, the University’s interest in the property’s fair market value and marketability;

(d) any potential for income and expenses, encumbrances, and carry costs prior to disposition;

(e) any environmental risks or problems revealed by audit or survey;

(f) any potential University use; and

(g) any special arrangements requested by the donor concerning disposition (e.g., price considerations, time duration prior to disposition, potential buyers, realtors or brokers with whom the

donor would like the University to list the property, etc.).

(2) The GPC will review the material presented by the Director of Real Estate and make a determination as of whether to accept or reject the proposed gift of real property (or, if necessary, to postpone a decision pending the receipt of additional information). The Director of Planned Giving shall communicate the final determination of the GPC to the development officer, and the development officer shall communicate the University’s decision to the donor in writing, including any conditions imposed by the GPC prior to acceptance.

(3) If a proposed gift of real property is approved by the GPC, the Director of Alumni & Development Records will acknowledge receipt of the gift on behalf of the University upon notice by the Office of Real Estate that the property has been properly recorded in the local Registry of Deeds. The University will not appraise or assign a value to the gift property. It is the donor’s responsibility to establish a value for the gift and to provide, at the donor’s expense, a qualified appraisal required by the IRS.

(4) The execution and delivery of a deed of gift or other appropriate conveyance will complete the gift. The costs associated with the conveyance and delivery of the gift, including but not limited to recording fees and, if deemed necessary by the Director of Real Estate, a current survey, title insurance and/or an attorney’s title opinion, will be either paid by the donor or charged to the fund code of the department(s), program(s), or endowment(s) to benefit by the donation. In addition, the IRS for gifts of real property requires the filing of Form 8283 by the donor. This form should be sent to the Office of Alumni & Development Records for execution by the University.

C . DISPOSITION

(1) By resolution adopted in June 1996 by the Executive Committee of the University’s Board of Trustees, the Executive Vice President may authorize the sale of real property received by gift valued at up to $1 million, provided that such property is not located on or contiguous to the University’s Campus or determined by the President or Executive Vice President to be important to the University in carrying out its educational, research and health care mission; in case where one or more of the above criteria is/are applicable, Board of Trustee (or Executive Committee) approval of the sale is required.

(2) Subject to the terms of the above resolution, it is the responsibility of the Office of Real Estate Administration to dispose of all gifts of real property, except those gifts of real property acquired by an investment pool under the management of

DUMAC at the time a gift is received. For purposes of this Policy, the term "acquired by an investment pool" shall mean, in the case of gifts designated for endowment purposes, acquired by the issuance of investment pool units credited to the designated endowment fund; in all other cases, acquired by cash transfer to the designated beneficiary of the gift. The GPC will advise the Director of Real Estate Administration of any guidelines it wishes to impose on disposition, such as minimum sales price or approving/rejecting special arrangements with the donor.

(3) If the Chair of the GPC determines that it is in the best interests of the University to retain for its own use a gift of real property, he/she will recommend to the appropriate officers of the University and/or to the Board of Trustees that, in the case of gifts designated for endowment purposes, they designate and reclassify unrestricted quasi-endowment or other available funds for the purpose of providing the designated endowment fund with an amount equal to the fair market value of the property as of the date of its receipt by the University; and that, in all other cases, they authorize liquidation of such funds for the benefit of the designated gift purpose.

(4) Upon acceptance of a gift, the GPC through the Office of Endowment/Investment Accounting will designate a BAFR code for charging expenses associated with the gift pending disposition. In the absence of a known beneficiary for the gift, a Development or Medical Center Development BAFR code will be used as a holding account.

(5) Until the property is sold or otherwise disposed of, the Office of Real Estate will prepare quarterly status reports and distribute them to the Director of Planned Giving and to the designated representative of the department to benefit from the gift.

(6) Upon sale of the property, the Office of Real Estate will prepare a final report on the property, including a financial summary of net proceeds, and distribute it to the Director of Planned Giving, the Office of Endowment/Investment Accounting, and the designated representative of the department to benefit from the gift.

(7) The Office of Real Estate Administration is responsible for filing Form 8282 for gifts of real property sold by the University within two years of the date of gift.

CATEGORY 3 — LIFE INSURANCE

A . CRITERIA FOR ACCEPTANCE

The University will accept — without the necessity of review and approval by the GPC — gifts of life insurance policies, including whole life, variable and universal life policies, which meet the following three criteria:

(1) The policy is either paid-up or, if not paid-up as of the date of the gift:

(a) has a minimum face value of $100,000;

(b) has a payment schedule not to exceed twelve years and which assumes an interest rate not to exceed one percent below the prevailing prime interest rate as reported in the Wall Street Journal (for existing policies an "in force" illustration will be required); and

(c) requires a written pledge of a charitable contribution from the donor to the University in a total amount which equals or exceeds the total premiums due, and with pledge payments scheduled so as to equal or exceed each policy premium payment as that payment becomes due. This written pledge also will acknowledge the absolute ownership by the University of the policy given and acknowledge the resulting right of the University to cash-in the policy and apply the proceeds of the same for the benefit of the University in accordance with an existing endowment agreement, if any; and if there is no endowment agreement in effect, or if minimum funding levels for the same are not attained with the proceeds, then the pledge shall provide that the proceeds shall be applied for the benefit of the University as the Trustees of the University may deem appropriate, giving due consideration to the intent of the donor.

(2) Duke University is designated as the owner and the beneficiary of the policy. (While the policy will identify the University as the beneficiary, the development officer should work with the donor to clarify the purpose of the gift — whether it be for endowment (existing or new), specific program or department, or unrestricted use — by attachment of a memorandum, letter, or endowment agreement to the policy.)

(3) If intended for endowment purposes, the face value of the policy meets the minimum funding standards for endowments for its stated purpose(s) established

by the Board of Trustees and in effect at the time of the gift of the policy. (Development officers need to be aware that the actual funding of an endowment funded with the proceeds of life insurance takes place following the death of the insured, and the minimum funding requirements that are in effect at the time of the insured’s death will govern whether there are sufficient death benefits to fund such endowment for its stated purpose(s).)

B . APPROVAL/ACCEPTANCE PROCESS

(1) The development officer will prepare a written summary of any proposed gift of a life insurance policy which fails to meet all of the criteria specified in Section A above and submit that summary through the Director of Planned Giving. At a minimum, the summary shall include the following information:

(a) description of the type of life insurance policy, face value, premium payment schedule, interest rate, age of insured(s), and other relevant policy information; and

(b) the purpose of the gift (e.g., to fund an endowed chair, a deferred gift, an unrestricted gift) and the department(s), program(s), or endowment(s) to benefit from the gift.

(2) The GPC will review the material presented by the development officer and make a determination as to whether to accept or reject the proposed gift or, if necessary, to impose any terms (e.g., the donor’s pledge to make contributions to cover premiums, a revision in the payment schedule) as a condition of approval. The final determination of the GPC shall be communicated to the development officer by the Director of Planned Giving, and the development officer shall communicate the University’s decision to the donor in writing, including any conditions imposed by the GPC prior to acceptance.

(3) If a proposed gift of a life insurance policy is approved by the GPC, the Director of Alumni & Development Records will acknowledge receipt of the gift on behalf of the University.

(4) The gift will be completed upon the execution and delivery of the life insurance policy to the University or an assignment of the policy in the event that the University is not the original owner of the policy.

C . ADMINISTRATION

The Office of Alumni & Development Records shall administer all gifts of life insurance policies and shall maintain records of all donor policies, contribution schedules, donor designations of

death benefits, and the like. This office also shall be responsible for pledge reminders and monitoring payments of premiums.

The Office of Endowment/Investment Accounting shall be responsible for confirming the existence and cash value of all policies in force at least annually and for collecting and distributing death benefits. Upon receipt of death benefits, the Office of Endowment/Investment Accounting shall provide notice to the department(s), program(s), or endowment(s) to benefit from the gift.

CATEGORY 4 — OTHER ASSETS

A . CRITERIA FOR ACCEPTANCE

The GPC will consider gifts of other assets, including but not limited to promissory notes, assignment of promissory notes, partnership interests, and restricted or non-publicly traded securities, only after a thorough review of the criteria set forth below.

(1) Market Value and Marketability. The GPC must receive a reasonably current appraisal of the fair market value of the property and interest in the property the University would receive if the proposed gift were approved. Development officers will inform the donor that, if the gift is completed, the IRS will require an appraisal made within sixty days of the date of gift. The appraisal and other information must indicate clearly and convincingly that there is a market for the asset under consideration and that the asset can be sold within a reasonable period of time.

(2) Potential Environmental Risks. All proposed gifts in which the University would acquire an interest in real property must be accompanied by a Phase I environmental audit performed at the donor’s expense. The only permitted exception to this requirement is for residential property that has been used solely for residential purposes for a significant (at least twenty-year) period of time. In cases where this exception applies and no environmental audit is undertaken, the donor must have an agent complete an Environmental Checklist prepared by the Office of Real Estate and may be required to execute an environmental indemnity agreement.

(3) Limitations and Encumbrances. The existence of any and all mortgages, deeds of trust, restrictions, reservations, easements, mechanic liens and other limitations of record must be disclosed. No gift of an interest in real estate will be accepted until all mortgages, deeds of trust, liens and other encumbrances have been discharged, except in very unusual cases where the fair market value of the University’s interest in the property net of all encumbrances is substantial or

where a separate agreement to pay any such encumbrances which might be charged to the University has been executed by a financially responsible party.

(4) Carrying Costs. The existence and amount of any carrying costs, including but not limited to property owners’ association dues, country club membership dues and transfer charges, taxes and insurance, must be disclosed.

(5) Title Information. A copy of any title information in the possession of the donor, such as the most recent survey of the property, a title insurance policy, and/or an attorney’s title opinion, must be furnished.

B . APPROVAL/ACCEPTANCE PROCESS

(1) The development officer will prepare a written summary of the gift proposal and submit that summary to the GPC through the Director of Planned Giving. At a minimum, the summary shall include the following information:

(a) description of the asset;

(b) the purpose of the gift (e.g., to fund an endowed chair, a deferred gift, an unrestricted gift) and the department(s), program(s), or endowment(s) to benefit from the gift;

(d) potential for income and expenses, encumbrances, and carry costs prior to disposition;

(e) any environmental risks or problems revealed by audit or survey;

(f) credit history or financial statement of financially responsible party, if applicable [N.B.: Duke’s Public Safety Department can help with credit checks];

(g) any special arrangements requested by the donor concerning disposition (e.g., price considerations, time duration prior to disposition, potential buyers, realtors or brokers with whom the donor would like the University to list the property, etc.).

(2) The GPC will review the material presented by the development officer and make a determination as of whether to accept or reject the proposed gift (or, if necessary, to postpone a decision pending the receipt of additional information).

The final determination of the GPC shall be communicated to the development officer by the Director of Planned Giving, and the development officer shall communicate the University’s decision to the donor in writing, including any conditions imposed by the GPC prior to acceptance.

(3) If a proposed gift of an asset in this Category 4 is approved by the GPC, the Director of Alumni & Development Records will acknowledge receipt of the gift on behalf of the University. The University will not appraise or assign a value to the gift property. It is the donor’s responsibility to establish a value for the gift and to provide, at the donor’s expense, a qualified appraisal required by the IRS in the case of assets valued in excess of $5,000 ($10,000 for non-publicly traded stock).

(4) The gift will be completed by the execution and delivery of a deed of gift or other appropriate conveyance, and the delivery of the property, as applicable. The donor will pay the costs associated with the conveyance and delivery of the gift. In addition, the filing of Form 8283 by the donor is required by the IRS for gifts of assets valued at more than $500. This form should be sent to the Office of Alumni & Development Records for execution by the University.

C . DISPOSITION

(1) It is the responsibility of the Office of Endowment/Investment Accounting to dispose of all gifts of assets in this Category 4. If the asset involves an interest in real estate, it is generally expected that the Office of Real Estate will assist the Office of Endowment/Investment Accounting in disposing of the asset. If the asset is a security, it is generally expected that DUMAC will assist the Office of Endowment/Investment Accounting in disposing of the asset, subject to DUMAC’s policies then in effect for trading securities. Any guidelines the GPC wishes to impose on disposition, including minimum sales price and approval or rejection of any special arrangements with the donor, will be put in writing to the Director of Endowment/Investment Accounting at this time.

(2) Upon acceptance of a gift, the GPC through the Office of Endowment/Investment Accounting will designate a BAFR code for charging expenses associated with the gift pending disposition. In the absence of a known beneficiary for the gift, a Development or Medical Center Development BAFR code will be used as a holding account.

(3) Upon sale of the property, the Office of Endowment/Investment Accounting will prepare a final report on the property, including a financial summary of net proceeds, and distribute it to the Director of Planned Giving and the designated representative of the department to benefit from the gift.

(4) The Office of Endowment/Investment Accounting is responsible for filing Form 8282 for assets valued at more than $5,000 sold by the University within two years of the date of gift.

EFFECTIVE DATE

These policies were first adopted as of May 1, 1994, and last revised as of December 18, 1996.

EXCEPTIONS

Exceptions to this policy must be approved in writing by the GPC.

ADDENDUM NO. 1

GUIDELINES AND PROCEDURES FOR

THE ACCEPTANCE OF OUTDOOR OBJECTS

This addendum establishes guidelines and procedures for the acceptance of works of art, sculpture and other three-dimensional objects intended for outdoor display (hereafter referred to as "outdoor objects") within the confines of the University’s campuses.

It shall be the general policy of the University not to accept gifts of outdoor objects for display in the core areas of the East and West Campuses. The core areas of the East and West Campuses are defined as the quadrangles and the openings that lead to the quadrangles. Normally, the only permitted exception to this general policy shall be for outdoor objects intended to be displayed in well-recognized areas set aside for such displays. Currently, benches outside the West Union Building would fall within this exception; in the future, so too would a sculpture garden outside the Art Museum, when and if such an area is established.

Other than in extraordinary circumstances, no gift of an outdoor object will be deemed acceptable if it requires the expenditure of significant sums of money by the University, either for its installation and/or its continuing maintenance, unless the proposed gift is accompanied by a separate cash gift or an endowment of sufficient size to meet these expenditures.

For outdoor objects intended to be displayed within the confines of the University’s campuses, the acceptance process shall proceed as follows:

(1) Upon being notified that a gift of an outdoor object has been proposed, the GPC shall first determine if the general criteria described above have been met. To assist the GPC in this evaluation, the proposal must be accompanied by the following information:

a. A description and a picture or photograph of the object.

b. The donor’s preferences for identification of the object; (i.e., any plaques or other means of identification).

c. Estimated installation and maintenance costs, and the funding for it, if any.

If the general criteria above have not been met or if the donor is unwilling or unable to furnish the requested information, the GPC shall decline to accept the proposed gift.

(2) If the proposed gift is intended to honor an individual or an event, the GPC shall, in consultation with the Executive Vice President and/or other Senior Officers of the University, determine if the timing of the proposed gift is appropriate and, if not, the GPC shall decline to accept the proposed gift.

(3) If the above criteria have been met, the GPC shall refer the matter to the President’s Art Advisory Committee ("PAAC") to judge the proposed gift’s aesthetic merits. The PAAC is chaired by the Director of the Art Museum and also includes sufficient other members appointed by the Chair to ensure adequate representation of the University community. Currently, the other members are the University Archivist and a member of the Art and Art History Department. The PAAC shall be asked to draw one of three conclusions: (a) the proposed gift meets the University’s general aesthetic standard as interpreted by PAAC, regardless of the intended site for display; (b) the proposed gift meets the University’s general aesthetic standard as interpreted by PAAC, depending upon the intended site for display; or (c) the proposed gift does not meet the University’s general aesthetic standard as interpreted by PAAC. If the PAAC’s conclusion is (c), it shall so advise the GPC, and the GPC shall decline to accept the gift. If the PAAC’s conclusion is either (a) or (b), it shall so advise the GPC, and the GPC shall proceed to the next step below.

In the case of outdoor objects that are not works of art, such as a bench or a trellis, the GPC may decide to forgo referral of the matter to the PAAC and proceed directly to the next step below.

(4) Upon receipt of a favorable determination as to aesthetic merit by the PAAC, the GPC normally will proceed to Step 5 below, but may in certain cases in which siting is an issue first refer the matter to an ad hoc Site Advisory Committee (typically consisting of four members: the University Architect, a representative from the Committee of Facilities and the Environment ("CFE"), a representative from the PAAC, and a representative from the GPC). If utilized, the ad hoc Site Advisory Committee shall report back to the GPC its recommendations as to the suitability of suggested sites and other sites, if any, deemed suitable by the ad hoc committee.

(5) Based on the information and recommendations acquired in the above three steps, the GPC then shall normally: either (a) reject the proposed gift if no site exits which is satisfactory to the GPC; or (b) accept the proposed gift, subject to siting approval by CFE, if there is a site or are sites satisfactory to the GPC.

(6) Once a proposed gift is referred to CFE for siting approval, the University Architect pursuant to standard operating procedure shall request permission from the Executive Vice President to place the item on CFE’s agenda. If the Executive Vice President should refuse permission, the University Architect shall notify the GPC, and the GPC shall decline to accept the proposed gift.

If a proposed gift of an outdoor object is placed on CFE’s agenda, the sponsor of the gift (who may be a development officer or the Director of the Art Museum or his/her designee) shall then present the proposed gift to CFE outside the presence of the donor. CFE may approve, reject or select alternative sites to any sites for display suggested prior to CFE’s review. If CFE approves of one or more site(s) for display, CFE shall so notify the GPC, and the gift shall be accepted. If CFE cannot agree upon a site for display within a reasonable period of time, CFE shall so notify the GPC, and the proposed gift shall be declined.

These guidelines shall apply to proposed gifts of outdoor objects, regardless of whether or not they are intended to honor active, living or dead faculty members, students or staff and regardless of whether the outdoor objects represent a living person or not, including the honoree, if there is one.