Marylyn,
We did develop a process to standardize our "reasonable efforts". We're also "lucky" enough that our state (PA) requires the same type of reporting with a different threshold ($100K vs. $250K) and reporting timeframe (1x per FY vs. 2x per CY).
In short, we now include the following checkboxes above the signature section on all gift agreements:
[ ] By signing this document, the Donor(s) affirm that they are a citizen, national, or legal entity created solely under the laws of the United States or a trust territory or protectorate thereof and that this contribution is not funded by a foreign source unless indicated by checking the box below.
[ ] By signing this document, the Donor(s) affirm that they are not a citizen, national, or legal entity created solely under the laws of the United States or a trust territory or protectorate thereof or that all or part of this Intention will be fulfilled by a foreign source. Furthermore, the Donor(s) agree that they will provide Lehigh with the necessary information pertaining to this gift to meet its reporting obligations as required by law.
Should any of the information referenced above change after this Intention is executed, the Donor(s) will notify Lehigh prior to making a contribution related to this Intention. Lehigh will review the notification and advise whether further information provided by the Donor(s) is necessary for the University to comply with its reporting obligations related to gifts from foreign sources.
If the donor checks off the second box, we send them a follow up form (similar to the attached) to get more information.
To my knowledge, we haven't had pushback from any donors.
In addition, I run a report every reporting period for any donor who meets the threshold during that period. I use that report to check for any red flags (Do they have a home address outside the US? If they're an org/corp where are the incorporated? If they're a foundation, are they a registered 501(c)3 with the IRS? Etc...). Of course, none of these things are iron clad, but our gift agreement statement combined with this basic research has been deemed "reasonable efforts" by our counsel.
Hope that helps.
Sean
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Sean Shappell
Lehigh University
ses211@lehigh.edu------------------------------
Original Message:
Sent: 01-29-2024 02:33 PM
From: Marylyn West
Subject: Foreign Gifts Disclosure Process
Hi All,
As with you all, we are reporting foreign sourced gifts and contracts bi-annually to the USDOE based on Section 117 of the HEA of 1965. In working with our internal counsel, we are instructed to make "reasonable efforts" to identify if the donor meets the criteria for a "foreign source". Have any of you included language in your agreements, specifically for corporate donors, asking them to disclose if they are a subsidiary of an entity outside of the US? Have you made any changes in your process in how you're identifying potential foreign donors?
Thanks in advance for any thoughts on this!
Marylyn
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Marylyn West
University of Alabama at Birmingham
marylyn@uab.edu
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