FP-24 Solicitation and Acceptance of Gifts

I.    Mission of the Fund Raising Program 
II.   Solicitation of Gifts 
III.  Acceptance of Gifts 
IV.  Records and Reporting 
V.   Foundations

I. Mission of the Fund Raising Program

The mission of the fund raising program at East Tennessee State University is to generate contributions to be used to enhance the University's broad spectrum of projects and programs. Gifts of real and personal property from individuals and organizations often benefit the University by making possible the accomplishment of objectives for which support from other sources is limited or unavailable. Gifts also often represent a means by which the donor may contribute to an aspect of higher education that is of particular interest to the donor. Gifts of all types are encouraged, including both current and deferred contributions. This policy conforms to TBR Policy No. 4:01:04:00.  
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II. Solicitation of Gifts

The President of the University has ultimate responsibility for the fund raising program of the institution. The Chief Development Officer is charged with the responsibility of establishing and administering the University's fund raising program. The Development Office staff works under the Chief Development Officer's direction. The Chief Development Officer shall work closely with the University President and Vice Presidents to develop a broad spectrum of fund raising activities. A member of the professional development staff will be appointed to work directly with the dean of each college and the director of each major program, such as the library and athletics, to establish effective fund raising programs for these units.

An overall fund raising program, specifying goals and priorities, will be adopted through appropriate University channels. All specific fund raising activity, including direct and indirect solicitation and special fund raising projects, outside the general fund raising program that are conducted in the name of and in behalf of the University must be approved prior to beginning the solicitation or project. This includes fund raising activity by University-affiliated organizations such as special support groups where the funds generated are deposited into an account in the University.

To gain approval for a specific fund raising project, a written request shall be originated by the individual who represents the department or organization wishing to conduct fund raising activity. The request should include:

1. The ultimate benefit to be derived from the fund raising activity.

2. The constituencies to be solicited.

3. The type fund raising to be conducted.

4. The fund raising goal.

5. The key people responsible for the fund raising activity.

6. Approval lines for each position in the respective unit including:

a. Individual originating request.

b. Department chair or director.

c. Dean or equivalent who will assign priority to the project as it relates to the overall fund raising program for that college or unit and also for the University-wide program.

d. Vice President for the requesting unit for major campaigns or projects.

e. Chief Development Officer.

f. University President.

Any solicitation of a gift which might require a commitment of University resources, including unusual space or manpower requirements, maintenance contracts, or matching funds will require appropriate approvals up to and including the University President before the gift is solicited. The President may also seek the consultation and/or approval of the Chancellor of the TBR before final approval is granted. In the case of computer-related gifts, approval of the Vice President for Administration is necessary before the request is submitted to the University President.
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III. Acceptance of Gifts

The Chief Development Officer is authorized by the President to accept gifts on behalf of the University, subject to review and confirmation by the President and subject to the following conditions:

1. Only the Board may accept a gift if Board acceptance is a condition set by the donor.

2. Only the Chancellor and Board may accept gifts of real property or any permanent interest in real property, and title must be conferred in the name of the Board of Regents of The State University and Community College System of Tennessee for the use and benefit of the University.

3. Any acquisition of real property by gift or devise which obligates the University, Tennessee Board of Regents or State of Tennessee to expend State of Tennessee funds for capital improvements or continuing operating expenditures shall be approved by the State Building Commission in accordance with TCA 4-15-102(d)(2) prior to acceptance by the Chancellor and Board. Any such Deed transferring title to the Board of Regents shall not be recorded until the State Building Commission has approved acceptance of the gift property.

4. Gifts with conditions that ultimately will require consideration by the Board or Chancellor must be approved by the Chancellor prior to acceptance (e.g., gifts to support the initiation of a new academic program or capital improvement project.

5. Gifts of property subject to an indebtedness must be approved by the Chancellor prior to acceptance.

Securities given to the University shall be put on the market for immediate sale through a registered security broker unless there are extenuating circumstances or the donor specifies otherwise. In some instances, gifts consist of stock in a closely held company and cannot be sold until the donor calls for sale. In such cases, the stock will be sold immediately after the call for sale. The Chief Development Officer shall have the authority to complete such transactions for the University.

The Chief Development Officer is charged with coordinating the acknowledgment of all gifts. Gifts of cash, securities, property, equipment and supplies and in kind gifts of services and materials are reported to the Office of University Development as soon as they are received in any area of the University. In addition to a receipt, appropriate letters of acknowledgment will be sent from either the University President, Chief Development Officer, or other University official in accordance with established guidelines. Other appropriate acknowledgment from deans, chairs, etc., will be encouraged. A record of each gift is sent to the deans from the Office of Development weekly.
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IV. Records and Reporting

An accounting system maintained in accordance with all appropriate accounting procedures which includes all gifts to the University shall be maintained under the supervision of the University Comptroller. In addition, a donor records system shall be maintained so a donor's contributions can be tracked on an annual and on a cumulative basis.

A summary of all gifts to the University during a fiscal year shall be included in the University's Annual Report to the Board as required by Board Policy No. 1:02:10:00.  
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V. Foundation

The East Tennessee State University Foundation is the legal entity through which most gifts intended for use by ETSU are received, managed and dispersed. Such gifts are to be received by the ETSU Foundation in full accordance with policies set forth by TBR, ETSU and any controlling agency such as the IRS, NCAA, etc. East Tennessee State University may not accept gifts specifically intended for the ETSU Foundation, and only gifts intended for the Foundation may be accepted by the Foundation. Those gifts obviously intended for the Foundation, in that they are designated to a specific account in the Foundation, will be assumed to be intended for deposit in the Foundation and will be processed accordingly. The University Comptroller shall be responsible for determining that gifts are deposited to the appropriate entity based on review of all circumstances surrounding the gift.

In general, institutional resources may not be used to meet conditions of gifts to the Foundation; however, exceptions may be approved by the President or the Chancellor.

The University Comptroller shall be responsible for maintaining records of gifts to the institution separate from those gifts to the Foundation. A common donor record system shall be maintained wherein all gifts made by a specific donor to either the University or the Foundation shall be recorded.

The University shall report gifts to the Foundation in the summary of gifts during a fiscal year to be included in its annual report as provided under Records and Reporting.
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Original effective date: May 1, 1994
Revised: September 21, 2001
Last review: September 21, 2001

Web page last updated 06/22/09

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