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  • 1.  Institutional Independence Language in Gift Agreements or Gift Acceptance Procedures

    Posted 2 days ago

    Good morning,

     

    I'm interested in learning how other institutions address institutional independence and donor non-involvement in governance and operational matters within gift agreements or gift acceptance policies.

     

    Specifically, we are considering adding (or refining) language that clearly affirms that donors do not have authority to direct or influence institutional decisions, specifically around areas such as:

    • Personnel and employment decisions
    • Student-related matters
    • Research activities
    • Compliance and regulatory obligations
    • Operational and strategic decision-making

     

    Do you include similar "institutional independence" or "reserved authority" provisions in your templates or procedures?

     

    If so, I would greatly appreciate any examples, excerpts, or general approaches you're willing to share.

     

    Thank you in advance for your insights.

     

    Kind regards,

     

    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: Institutional Independence Language in Gift Agreements or Gift Acceptance Procedures

    Posted 2 days ago
    I find that less is more here, Colleen. I do not think you want to list many dos and don'ts in the agreement. That's an easy way for a donor to find loopholes: "But the agreement didn't say I couldn't do XYZ."

    Of course, you will want Counsel to weigh in on the final language. But something like the following should cover everything you need:

    "Upon receipt, the Gift shall become the property of XYZ, and XYZ shall have full legal custody and control of all contributed funds. Except as specifically set forth in this Agreement, the Donor shall retain no right to direct, manage, control, or approve the investment, administration, or expenditure of the Gift."

    Some organizations will reference the two sections in the CASE Standards on Donor Control and Donor Influence. However, those references are better placed in the Gift Acceptance Policy rather than in the gift agreement. I prefer that gift agreements be as succinct as possible to avoid extensive back-and-forth with the donor.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






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