APPROVED BY ANTHONY EVANS, PRESIDENT:
REVISION #1
RECOMMENDED BY ADMINISTRATIVE COUNCIL:
APPROVED BY ALBERT K. KARNIG, PRESIDENT:
REVISION #2:
RECOMMENDED BY ADMINISTRATIVE COUNCIL:
APPROVED BY ALBERT K. KARNIG, PRESIDENT:
FOR INTERPRETATION OF THIS POLICY, PLEASE CONTACT:
Office of Associate Vice President for University Advancement, 909/880-5005
The University Advancement Program at California State University, San Bernardino, is designed to enhance the awareness of and support for the University among its diverse constituencies.
The University Advancement staff is responsible, along with other campus units, for coordinating the University's outreach programs to alumni, the community, business and industry, the media, and governmental and private agencies. These separate but interdependent functions are carried out by offices such as Public Affairs, Alumni Affairs, Athletics, and Development under the leadership of the Vice President for University Advancement. The University Advancement staff is committed to helping the University achieve its goals so that academic quality and service to the region can be maintained and advanced.
State-assisted universities, in order to maintain academic quality and provide appropriate access in a time when traditional funding sources are diminishing, must look to the private sector -- to friends in the community, to foundations, and to business corporations -- for additional support. As these partnerships develop, the mutual benefits increase. The university becomes stronger as it acquires resources to support those activities that are not adequately funded by the state. Funds for scholarships, faculty research and professional development, state-of-the-art equipment, visiting lecturers and artists, and community outreach are only a few examples. Gifts may come from other sources. The Office of Research and Sponsored Programs does not normally seek gifts. However, there may be exceptions, such as when required to support the matching requirements for a grant. In those and other cases, Research and Sponsored Programs will coordinate its efforts with the appropriate development officer. The community benefits as it accepts university graduates who have received a high quality education provided by outstanding faculty who maintain currency in their fields through appropriate professional development opportunities. The community and the university benefit when scholarships are available to recruit and retain promising students.
The development plan at California State University, San Bernardino, is designed to maintain a well organized fund-raising program that seeks funds and gifts-in-kind to enhance the quality of the programs of the institution. The program follows a traditional model in which fund-raising activities evolve from needs and priorities established by the University.
The development policies and procedures that provide a framework for the development program are established for the following purposes:
Those who wish to solicit funds or property in the name of or for the benefit of the University must communicate their intention to make an approach to a specific prospect such as individuals, foundations, or corporations. This procedure of "prospect clearance" is delineated in the CSUSB Prospect Clearance Policy that went into effect January 2002 (Appendix A). This requirement, which applies to all friends and support groups and to intercollegiate athletic programs, as well as to student and alumni groups, is intended to protect existing relationships between donors and campus representatives and to avoid over-solicitation of any individual, corporation, or foundation. In cases where a conflict appears to exist (e.g., two different academic schools wishing to solicit the same individual or business), the Vice President and the parties involved will work together to arrive at a satisfactory solution.
The Foundation for California State University, San Bernardino, was chartered in 1962, as a non-profit, self-financed California corporation, to operate within the framework of The California State University but to operate without state funds. It was organized to serve and assist the University by providing certain services that are quasi-public in nature. These activities include the operation of the Coyote Bookstore and the campus food service. In addition, the Foundation fiscally administers federal and non-federal research projects.
The Board of Trustees of the Foundation is composed of members drawn from the faculty, student body, administrative staff, and the community. The Board meets quarterly.
Of increasing importance is the Foundation's responsibility for the fiscal administration of all contributions received on behalf of the University from private citizens, companies, corporations and foundations. All monies and gifts-in-kind received into the Foundation from these sources are routed through the Development Office to provide for proper recording and acknowledgment. Funds are invested according to policies established by the Foundation Board and disbursed according to donor specifications provided that these do not conflict with Foundation policies. (See Appendix B.)
Gift acceptance policies and procedures are designed to insure proper and timely acknowledgment and recording of gifts. The Vice President for University Advancement is responsible for insuring that campus policies and procedures are followed and are compatible with any applicable policies from the Board of Trustees.
The Office of Development serves as the central receiving, acknowledging, recording and reporting unit for all gifts. Gifts are then deposited with the Foundation for CSUSB. Donors should make checks payable to the Foundation for CSUSB. The Foundation maintains separate accounts for various support groups, scholarships, university departments and divisions. The Business Services Director of the Foundation insures that all designated cash gifts are credited to the proper account and disbursed for the purposes designated by the donor.
Complete records on all gifts are maintained in the Office of Development. If a donor wishes to remain anonymous throughout the giving process, the donor's campus contact person should discuss appropriate arrangements with the Vice President for University Advancement.
All gifts of cash, checks, credit cards, and payroll deductions received by an administrative unit or support group shall be forwarded directly to the Office of Development using the Gift Transmittal Form (Appendix C), available in that office. This will include original documentation, including envelopes and corporate matching gift forms that accompany the check.
The appropriate administrator of the receiving unit shall acknowledge the gift in writing. The President will also acknowledge gifts of over $1,000.00, if appropriate. Gifts below that level will be acknowledged with a gift receipt and/or a letter from the representative vice president, dean, director of development, or department chair.
Pledges for cash gifts of $1,000 or more should be reported using the Pledge Report Form available in the Office of Development (Appendix D).
Departments or programs to which gifts have been designated will receive a weekly report of any gifts credited to their programs.
While most cash gifts can be accepted, there are occasions when a donor places restrictions on a gift that would preclude its acceptance by the University or the Foundation. Questions concerning such restrictions should be directed to the Vice President for University Advancement before acceptance of the gift is completed.
At the direction of CSU Advancement, a committee has been formed to implement the systemwide policies for accepting, valuing, and reporting gifts of software and review/approve their valuations. The committee will adhere to the systemwide policy that was first established and explained in a memorandum dated June 4, 1999. It is currently being updated with estimated finalization in late spring 2002. The CSUSB committee will be comprised of the Vice President for University Advancement, representatives from Administration and Finance, Procurement, the State business office, and/or the Foundation. If appropriate, the development officer representing the recipient department or unit shall participate.
A gift cannot be considered a gift unless the donor has relinquished control over the asset. For example, that means that if a faculty or staff member makes a gift to his/her department and claims a tax deduction for it, the donor cannot spend that money to meet his/her own needs, be they personal or professional. It is also inappropriate for the donor to have signature authority over the money that he/she has contributed.
If a group of employees decides to contribute money to establish a collective fund for professional development in their department or college, then it is permissible for one of the contributors to have signature authority and for any of the contributors to use the money, provided there are criteria for allocating the funds.
When an administrative unit or support group receives a proposal from a donor to transfer ownership of equipment, library collections or similar property, the proposal and necessary background information shall be provided to the Vice President for University Advancement, following review by the appropriate college dean or vice president. If there are special costs or space requirements associated with the gift, these shall be noted, along with the proposed plan for covering such costs or arranging for additional space. The Vice President for University Advancement will consult with the President, the Provost/Vice President for Academic Affairs, or other appropriate administrators when there are unusual restrictions or requirements associated with an in-kind gift.
Once the gift has been accepted by the University, and the Gift Transmittal Form submitted, the Vice President for University Advancement (or designate) will notify the appropriate college dean or vice president and, when appropriate, the property clerk. The original receiving unit or support group will also provide proper acknowledgment to the donor and send a copy of same to the Vice President for University Advancement. The University's acknowledgment letter shall not place a dollar value on the gift. Donors may contribute in-kind gifts and have them qualify for a charitable deduction. IRS requirements for gift substantiation note that the donor has the responsibility for valuing in-kind gifts for tax deduction purposes. Even in cases where the donor's intention is to not claim the in-kind gift as a charitable donation, the University's policy will be to ask the donor to place a value on the in-kind gift.
When the University or the Foundation receives a gift that has been appraised in excess of $5,000, the Vice President for University Advancement will send the donor Form 8283, Noncash Charitable Contributions (Appendix E). After the donor resubmits Form 8283, with the proper information on the donated property, the Foundation Director will sign Part IV and return to the donor. In signing the form, the University or the Foundation, as the recipient of the gift, agrees to file an information return (Form 8282), with the IRS if the property is sold, exchanged, or otherwise disposed of within two years after receipt of the gift. Routine donations of books and periodicals to the John M. Pfau Library are exempt from those procedures.
If the University cannot accept an in-kind gift, the Vice President for University Advancement will confer with the appropriate college dean or vice president before making arrangements for the donor to be notified.
Planned giving vehicles such as charitable trusts, bequests, pooled income funds, life insurance and charitable gift annuities are used with increasing frequency by donors. Such gifts may have very specific tax consequences. If a donor expresses an interest in making a gift in this manner, the Vice President for University Advancement or his/her designee should be brought into the discussion at the earliest possible stage. University development staff will work with the donor and with the donor's financial and legal advisors in an effort to meet the needs of the University. The gift information will be reviewed for acceptance and then forwarded to the donor.
Gifts of land and buildings and gifts of closely held stock or limited partnerships must have the review and approval of the Vice President for University Advancement and the Executive Director of the Foundation for CSUSB. An Ad Hoc Committee may be involved in the review of gift acceptance. Once the donor accepts the terms and conditions of the gift agreement, copies of the signed agreement will be kept in the donor's file, located in the Development Office and in the Foundation.
Proceeds of a bequeathed estate are designated per the instruction of the estate. If the University is unable to follow the bequest exactly as stipulated under the will, the Vice President for University Advancement or his/her designee will, after consultation with the campus attorney, contact the executor to obtain a mutually acceptable designation. Undesignated bequests will be created as unrestricted bequests and will be used at the discretion of the University.
The President is responsible for the allocation of all University funds, including those provided by the State budget, funds acquired through the development program and gift fee revenues.
Faculty and staff who require funds for a project or program must work through their vice president or college dean. If the project or program is cross-divisional, then this work is coordinated by the respective representative vice presidents or deans. The Vice President for University Advancement does not allocate funds.
The following sections describe various types of development funds and procedures for their allocation. All procedures require strict observance of relevant policies described in the preceding sections of this document.
When a donor designates a gift for a specific division, college, department, institute, center, and/or other ancillary unit, program, or purpose, the appropriate administrator is responsible for allocating and using the funds in accordance with the donor's wishes as long as they do not conflict with University or Foundation policy.
Funds donated to the University which have not been identified by the donor for a specific use shall be considered "Undesignated Funds." Undesignated funds may be used by the University for any purpose, upon approval by the President.
A percentage of all undesignated income is identified each year to promote the success of the development program. In an effort to secure a permanent and reliable source of funding for the University's development and related programs, all private gifts received by the Foundation for CSUSB, except those specified in the Policy on the Recovery of Development Operating Costs from Private Gifts (Appendix F) are required to provide a one-time amount equivalent to five percent (5%) of the principal of the total gift. This amount is set aside in a Development Program Fund and allocated by the President according to the approved annual university-wide development plan submitted by the Associate Vice President for Development. The funds can be gathered in three ways:
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