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  • 1.  Donor Influence Question

    Posted 11-08-2024 04:39 PM

    Hi

    A few years ago, we established a named donor fund to support a graduate student's research. The recipient is selected by the University, with no involvement from the donor.  However, we are now facing a situation where the donor appears to be extending their influence into the student's research work.

     

    Examples would include:

    - direct contact with the student and their PhD advisor, coupled with sending of articles with a request to read;

    - questioning of research methodology with repeated suggestion to use an alternative approach, or to reorder the student's project;

    - frequent/weekly communication that includes offers to connect the student with NGOs local to the student's research area, geographically, among other items that the college leadership considers beyond the scope of the student's research and the gift agreement.

     

    To qualify as a charitable gift, the donor must not retain control over the distribution of the funds, and the charitable organization must have ultimate discretion over how the funds are used.  While I don't believe this behavior disqualifies the donation as a charitable gift due to donor control, I would like to know if there are additional IRS guidelines or other resources that reinforce that the donor should not be influencing the outcomes of the research.  Any advice would be greatly appreciated.

     

    Thanks.

     

    Colleen

     

    Colleen Hobson

    Associate VP Advancement Services

    Tel : 435-797-1285 Cell: 435-770-4155

     

    890 E 700 N | USU Alumni Center, Room 201A

    Utah State University

    1590 Old Main Hill

    Logan UT 84322-1590

    http://www.usu.edu/advancement

     



  • 2.  RE: Donor Influence Question

    Posted 11-08-2024 04:59 PM
    At the least this is inappropriate behavior. But it also sounds like activity that is beyond the scope of both the scholarship and the the mission of the department.

    You probably should have a sit down with Counsel and the Dean - with the Prospect Manager - and discuss how and who should approach the donor and ask them to remove them self from any involvement with the student or their work.

    The donor might storm off and request a return of funds. But you cannot permit donors this degree of undesired involvement with the student or the research.

    John

    John H. Taylor
    919.816.5903 (Cell/Text)

    Big Ideas - Small Keyboard