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Policy Information
Date Established: 5/25/2021
Date Last Updated:
Category:
Financial
Responsible Office:
Vice President for University Advancement
Responsible Executive:
Vice President for University Advancement
Policy Contents
Summary
This policy describes the fees assessed on revenues generated with philanthropic intent and the timing of the fees.
Policy Statement
The University at Buffalo (UB, university) will assess a fee on philanthropic revenues received by the university. The fee is assessed to offset the costs of gift administration as well as applicable transaction, fiduciary, and reporting costs. This policy governs all philanthropic revenues deposited with the UB Foundation.
Donors will receive legal and recognition credit for their entire gift amount (before fees are deducted). Gift minimums outlined in the Naming University Properties, Facilities, and Academic and Non-Academic Programs Policy are based on the donor’s full gift amount before fees are deducted. A donor may elect to provide for the fee by making an additional gift so that the intended value is applied toward the donor-designated purpose.
| Fee | Fee Amount | Fee Timing |
|---|---|---|
| Gift Fee Current use gifts (non-endowed) Gifts to endowment principal In-kind gifts Gifts of real, tangible or intellectual property (fee assessed on net proceeds of sale - not appraised value or assigned value when gift was received) |
| |
| Endowment Administrative Fee Fee assess on annual investment earnings to cover administration costs | Approximately 1% of the three-year average market value | Annually, at the beginning of each fiscal year |
| Fee for Charitable Remainder Trusts | Approximately 0.5% of the January 1 market value | Annually, at the end of each calendar year |
| Fee for Charitable Gift Annuities | Less than 0.5% of the market value of each charitable gift annuity | Annually, at the end of each fiscal year |
| Charitable Raffle or Contest Fee Assessed on net proceeds (gross receipts less cash payout or value of prize) | 5% of net proceeds | At time of deposit |
| Philanthropic Event Fee Applies to portion of event ticket revenue beyond that which is legally considered a tax deductible charitable contribution (the amount paid that exceeds the fair market value of what is received) | 5% of gross revenue | At time of deposit |
Background
The university administers gifts and endowed funds in compliance with industry standards and all relevant federal and state laws and regulations, including the New York Prudent Management of Institutional Funds Act (NYPMIFA). University policy will not supersede any provision of federal or state law or regulation.
Applicability
This policy applies to all charitable gifts accepted by the UB Foundation on behalf of the university.
Definitions
Charitable Gift Annuity
A life-income gift arrangement that includes a charitable donation and the purchase of an annuity contract.
Charitable Remainder Trust
A life income gift arrangement that allows donors to generate a source of income for self or others while also making a deferred charitable gift.
Contest
As opposed to a raffle where winners are determined by chance, a contest requires skill of some kind to determine the winner.
Current Use Gift
A charitable donation that the donor intends for the university to fully expend within a finite period in support of current objectives.
Endowed Fund
A philanthropy vehicle where a donor stipulates that the gift principal remains intact and invested for the purposes of producing a stream of income.
Gift
The voluntary, non-reciprocal transfer of money or property from a funder/donor to the university. The funder/donor may be an individual, corporation, or non-profit organization. Other than an expectation that the university will use the gift for its intended purpose, the funder/donor does not expect anything of value in return besides recognition, and does not have control over expenditures. A gift may meet the interests of the donor and can be restricted or unrestricted. Gifts may be made to UB anonymously. A restricted gift is a contribution designated for a specific purpose, program, or project. If the donor does not specify any restrictions, the gift is unrestricted, and UB may allocate the funds at its own discretion.
Gift-in-Kind
Non-cash gift that becomes an inventoried, usable asset of the university (e.g., equipment, artwork, literary collection).
Philanthropic Event
Event where the primary purpose is to generate funds for the university (e.g., golf tournament, scholarship fundraising event). Participants are eligible for a charitable contribution receipt as defined by the Internal Revenue Service (IRS).
Raffle
Game of chance in which a participant pays money in return for a ticket or other receipt and in which a prize is awarded on the basis of a winning number or number(s), color or color(s), or symbol or symbol(s) designated on the ticket or receipt, determined by chance as the result of a drawing from among those tickets or receipts previously sold.
Responsibility
Vice President for University Advancement
- Review this policy annually and update as necessary.
- Disclose information regarding philanthropic fees in discussions with donors and in relevant gift documentation.
Departments
- Deposit all charitable contributions into an appropriate UB Foundation account.
- Conduct raffles in accordance with the Raffle Policy for University Fundraising Efforts.
- Complete the Raffle Proposal prior to conducting raffles.
- Conduct departmental events in accordance with the Financial Management of Departmental Events Policy.
- Work with Financial Management to complete the Departmental Event Fee Approval Form.
Financial Management
- Review the Raffle Proposal and forward to the UB Foundation.
- Work with departments to complete the Departmental Event Fee Approval Form.
University at Buffalo Foundation
- Receive and administer gifts made to the university.
- Assess appropriate philanthropic fees.
- Track and report fee revenue.
- Review this policy annually and update as necessary.
University at Buffalo Foundation Board of Directors
- Review and approve changes to this policy.
Contact Information
Contact | Phone | |
|---|---|---|
| University Advancement | 716-645-2925 | donorrelations@buffalo.edu |
Related Information
University Links
Forms
Related Links
Presidential Approval
Signed by President Satish K. Tripathi
Satish K. Tripathi, President
5/25/2021
Date