General Policies
University Policy Number 1123
Subject: Gift Acceptance Policy
Responsible Parties: George Mason University Office of University Development & Alumni Affairs and the George Mason University Foundation
Procedures: For the acceptance of gifts to George Mason University and the George Mason University Foundation
Related University Policies: Not Applicable
I.
SCOPE
II. POLICY STATEMENT
A. General Guidelines for Management and Reporting
B. Conformity to National Reporting Standards (CASE/NACUBO Guidelines)
C. Research Grants and Gift Reporting
D. Campaign Gift Counting
E. Code of Ethical Principles and Standards of Professional Practice
III. DEFINITIONS
IV.
RESPONSIBILITIES
V. THE GIFT ACCEPTANCE COMMITTEE
VI. FORMS OF GIVING
A. Cash Transactions
B. Publicly Traded Securities
C. Non-liquid Business Interests
D. Real Estate
E. Tangible Personal Property
VII. ENDOWED FUNDS
A. General Policy
B.
Endowment Minimums
VII.
NAMING OPPORTUNITIES
A. General Policy
B.
Funding Requirements
IX. WAYS OF GIVING
A. Current/Outright Gifts
B. Pledges
C. Deferred Gifts
1. Bequests and Retirement Plan Designations
2. Life Insurance
3. Charitable Gift Annuity
4 Charitable Remainder Trust
5. Charitable Lead Trust
6. Retained Life Estates
D. Trusts Held by a Third Party
X. EFFECTIVE DATE AND APPROVAL
A. Effective Date of Policy
B. Notes
I. SCOPE
This policy applies to all George Mason University and George Mason University Foundation staff for accepting gifts from donors through the University Foundation. This policy applies to the development, issuance and maintenance of gift acceptance agreements.
A. General Guidelines for Management and Reporting
The Office of Development must receive all gifts to the University through George Mason University Foundation, Inc. Upon receipt, the terms, restrictions, and conditions of the gift will be recorded. The Office of Development will deposit gifts through the Foundation Office to designations specified by donors and send an acknowledgment of the gift, which shall comply with the substantiation regulations of the IRS, and message(s) of gratitude to all donors in a timely manner. Pledges will be recorded, and the Office of Development will maintain a pledge payment reminder system.1
In the event that the Office of Development mistakenly receives a payment on an externally sponsored agreement, such payment should be provided to the Foundation Office who will endorse the check for deposit by the University.
Outright gifts to the University shall be reported only when assets are actually and irrevocably transferred to the institution. Deferred gifts shall be reported only when the assets are actually and irrevocably transferred to the institution by trust or gift instrument. Documented provisions in wills or other revocable instruments shall be acknowledged and reported separately but not treated as charitable gifts to the University until funds are actually received.
Total fundraising at George Mason University shall be the sum of all new pledge commitments documented in the reporting period and all new cash/cash equivalent gifts received by the Foundation in the same period. The amount of actual gifts received will be reported separately and will be the sum of all cash/cash equivalents received in the reporting period, including payments on pledges. Verbal pledges or commitments may not be counted in gift totals under any circumstances. Income from ticket-based operations, contract revenues, and investment earnings is excluded from gift income. Net proceeds from special events benefiting University programs shall constitute gift income.
(1)Conformance to Financial Accounting Standards Board, rule 116, requires that the Foundation record pledges as assets of the institution, since FASB 116 interprets a “pledge” as an unconditional promise to give an asset to the Foundation.
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B. Conformity to National Reporting Standards
The standards of accounting and reporting established by the Council for Advancement and Support of Education (CASE) and the National Association of College and University Business Officers (NACUBO) as printed in CASE Management Reporting Standards - Standards for Annual Giving and Campaigns in Educational Fundraising, shall govern the management and reporting of gifts to the University. The Annual Gift Report by the University shall also conform to the Council for Aid to Education’s (CFAE) annual Survey of Voluntary Support of Education (VSE).
C. Research Grants and Gift Reporting
Grants supporting externally sponsored agreements which are also donative in nature will be reported as contributions by the Office of Development in accordance with University Policy 4000. Pledge information for these agreements shall be provided to the Office of Development by the Office of Sponsored Programs. Payment information on these agreements shall be provided to the Office of Development by the Office of Sponsored Programs.
Such grants will be considered donative under the following conditions:
- No quid pro quo exchange is required
- The outcome does not result in a product of marketable value intended for the exclusive use of the funder
- Unexpended funds are not required to be returned to the funder (except when the funder is a private foundation)
When the University launches a comprehensive fundraising campaign, the Office of Development, via the Gift Acceptance Committee, will be responsible for implementing all campaign-specific policies and procedures for campaign gift accounting and reporting established by the President and the Board of Visitors. These policies and procedures may differ from gift policies and procedures stated elsewhere, e.g., campaign gifts may include charitable commitments from donors that are not counted as assets of the Foundation under FASB accounting standards.
E. Code of Ethical Principles and Standards of Professional Practice
All Development staff at George Mason University will abide by the Association of Fundraising Professionals’ Code of Ethical Principles and Standards of Professional Practice, as amended from time to time (adopted in 1964; amended October 1999).
III. DEFINITIONS
George Mason University Foundation, Inc. (hereinafter referred to as the Foundation) manages private resources for George Mason University (hereinafter referred to as the University). A gift, or donation, is a voluntary and irrevocable transfer of money or real property (e.g., stock, real estate, equipment, or materials) to the Foundation made by a donor without any expectation or receipt of direct economic benefit or provision of goods or services from the recipient
Grants, cooperative agreements, or contracts are agreements representing the transfer of money, property, or services by a sponsor to the University, in exchange for specified services or activities (e.g., research and development), including requirements for financial and/or technical reporting by the recipient as to the actual use of the money and results. The agreement is enforceable by law, and performance is usually to be accomplished under time constraints with payment being subject to being revoked for cause.
IV. RESPONSIBILITIES
The University considers its donors to be a highly valued constituency. All University officials will treat donors with the utmost respect and professionalism. The University will honor donors’ wishes for designating the use of their gifts for any legitimate and approved program within the University. All donors will be acknowledged and thanked for their gifts in writing within a reasonable period of time.
In all gift matters, George Mason University staff must be aware of and sensitive to a potential donor’s financial needs and concerns.
All representatives of George Mason University shall use their best judgment to help donors make informed gift decisions. Each representative should be knowledgeable about gifts and should disclose to the donor advantages and disadvantages that could reasonably influence the decision of the donor to make a gift to George Mason University Foundation. In particular, planned gift items subject to variability (such as market value and income payments) should be discussed fully.
George Mason University will not knowingly accept a gift that is contrary to the donor’s best interests.
The University and the Foundation will honor the request of donors who wish to remain anonymous.
All information that the University and Foundation has gathered on its donors, prospects and alumni will be held and maintained by the University and Foundation in strict confidence. Files will be made available whenever required by law.
V. THE GIFT ACCEPTANCE COMMITTEE
The University will have a Gift Acceptance Committee (GAC) made up of the President of the Foundation, Vice President for University Development & Alumni Affairs, the Senior Vice President of the University, Chief Financial Officer of the Foundation, a representative from the University Controller’s Office, the Director of Leadership Gifts and Planned Giving, and one of the Deans currently serving as representation on the Board of Trustees. Each committee member will serve a term consistent with their tenure in their position. The Vice President for Development will serve as chair of the GAC.
The GAC shall be responsible for recommending and implementing all University gift acceptance policies as directed or authorized by the President. All such gift acceptance policies must be approved by the Board of Visitors. Additionally, the GAC shall convene periodically to review, approve or decline certain gift plans and gifts of real and personal property in accordance with the following gift acceptance policy. All actions taken by the GAC shall be reported to the Development Committee of the Board of Trustees and the Development Committee of the Board of Visitors.
All charitable gifts contributed in the form of cash, checks, money orders, travelers’ checks, electronic fund transfers, and credit or debit card transactions shall be received at face value and will be recorded, receipted, and acknowledged in accordance with Foundation cash handling policies, and current IRS and FASB regulations. The University and Foundation will provide a high level of security to donors who make online gifts. The date of gift for cash gifts will be determined by one of the following criteria:
- The date legal tender is received by the Foundation by hand delivery
- The date of the U.S. postal marking indicated on the mailing envelopecontaining the gift
- The date electronically transferred funds are received into a Foundation account
- The date a credit or debit card transaction is authorized by the donor (if such authorization is obtained through the mail, the above criteria apply)
The Foundation will accept all publicly traded securities based on the full fair market value of the securities, which shall be valued, recorded, receipted and acknowledged in accordance with current IRS regulations. The securities received will be sold as soon as practicable by the Foundation broker unless otherwise directed by the donor or the President of the Foundation.
The Foundation will maintain one or more brokerage accounts for the purpose of processing all gifts and securities. The Foundation Investment Committee will manage the process of opening or closing brokerage accounts.
Gifts of publicly traded securities will be valued for gift recording purposes as the mean of the highest and lowest selling prices quoted for the stock (as reported by recognized public securities exchanges) on the date of their gift to the Foundation. The date of gift will be determined based on one of the following criteria:
- The date an electronic transfer of securities from a donor’s account is received into a brokerage account owned by the Foundation or into a broker’s gift account
- The date of hand delivery of certificates that are signed over to the Foundation
- The date of U.S. postal cancellation on envelopes containing a certificate(s) accompanied by a qualified stock power (NOTE: Both the stock power and the certificates must be received by the Foundation before valuation can be determined)
Gifts of publicly traded securities will be acknowledged to the donor in writing by identifying the names(s) of the securities and the actual number of shares given. No dollar amount will be included in the receipt. The exception to this will be when the donor gives securities in exchange for a life income gift and the securities must be valued in order to calculate the remainder value.
C. Non-liquid Business Interests
Closely held or restricted securities, sole proprietorships, general or limited partnership interests, S corporate stock, and/or REITS may be accepted as contributions only after review and approval by the Gift Acceptance Committee. Receipt of such gifts shall be recorded, receipted and acknowledged in accordance with all applicable IRS regulations.
Gifts of non-liquid business interests will be valued for recording purposes based on either a qualified independent appraisal when required by the IRS or by an objective third party who is knowledgeable about the interest. Gifts of non-liquid business interests will be acknowledged to the donor in writing by identifying the gift with particularity, including the names(s) of the shares and the actual number of shares given. No dollar amount will be included in the receipt.
The Foundation will consider gifts of real estate on a case-by-case basis. Real estate can be given outright, through a bargain sale arrangement, or for the purpose of funding a life income charitable giving arrangement. All gifts of real estate must be approved by the Gift Acceptance Committee. The Gift Acceptance Committee will approve or decline a prospective gift of real estate in part upon the recommendation of the Foundation Board of Trustees Real Estate Committee, Foundation President and the Office of University Development.
All gifts of real estate will be handled in accordance with University Policy #2109 Asset Capitalization Policy on receiving donations of assets. A representative from the Development Office must review the University’s real estate acceptance procedure with the prospective donor.
Gifts of tangible personal property (gifts in kind) with a value in excess of $25,000 will be accepted only with the approval of the Gift Acceptance Committee. Gifts in kind with a value less than $25,000 will be accepted with the approval of the appropriate dean or officer of the University. The Foundation will accept gifts of tangible personal property as long as the property donated has tangible value to the University or can be liquidated to produce cash. All gifts of property received by the Foundation must be recorded and acknowledged by the Foundation in accordance with IRS regulations.
If the Foundation is required to sign IRS Form 8283 regarding the receipt of tangible personal property, the Foundation President or Chief Financial Officer is authorized to execute the document in accordance with IRS regulations. If the Foundation or University is required to file Form 8282 regarding the sale of donated property, the Office of Development is responsible for preparing the form and the Foundation President or Chief Financial Officer will execute the form on behalf of the Foundation or University.
Prospective donors of a gift of tangible property should be advised that the Foundation reserves the right to sell, exchange or otherwise dispose of the personal property in question, if such action is deemed financially advisable or necessary. If the Foundation decides to sell, exchange or otherwise dispose of the property (valued at $500 or more) within three years after the date of receipt, the Foundation must file Form 8282 with the IRS. However, it is advised that gifts of tangible personal property not be accepted if it is the intention that they are to be sold within three years of receipt of the property.
Gifts of tangible personal property will be credited at the full fair market value regardless of the donor’s charitable deduction. Gifts with fair market values exceeding $5,000 will be credited with the values placed on them in a qualified appraisal by a qualified appraiser as required by the IRS for valuing non-cash charitable contributions. The burden of obtaining the qualified appraisal rests with the donor.
Gifts of $5,000 or less will be credited at the value placed on them by the donor or by someone with knowledge in the field.
The Foundation shall define and manage its true and quasi-endowments in accordance with FASB definitions and rules.
Endowments may be designated by the donor for restricted use in any school/college, department or program within the University and may be named in honor of individuals. Endowments shall be governed by a written agreement executed by the donor, the Foundation and the University. This agreement must be approved and executed by the Foundation President, Senior Vice President for the University, and appropriate Dean or Director before it is presented to the donor.
Endowments may be funded with outright contributions including contributions pledged over a maximum period of five years and must meet the required minimums established by prevailing University policy. Any exceptions to the policy must be approved by the GAC. If gifts for an endowment fail to meet the required minimum after the maximum pledge period, the funds may either be transferred to the general endowment funds of the University or to another University fund, as determined by the President upon recommendation by the Gift Acceptance Committee. Endowments funded by designated contributions from a Charitable Lead Trust may exceed the five year maximum payment period on a case by case basis with the approval of the Gift Acceptance Committee.
Endowments may also be funded with deferred contributions from bequests, life insurance policies, retirement plan designations, charitable remainder trusts, charitable gift annuities, and similar instruments and arrangements. However, only the remainder value of these giving agreements may be used for credit toward the required endowment minimums. Should such a deferred contribution not meet the prevailing minimums for an endowed fund at the time it becomes available to the University, the Board of Visitors shall determine a use for the funds that most closely resembles the purpose(s) set out in the original gift agreement.
Endowments created by testamentary transfer shall be administered in accordance with the donor’s wishes as set forth in the relevant testamentary document, provided that the donor clearly intends to establish an endowment and the intended use is not prohibited by law or University policy. If the intended use does fall outside of the law and/or University policy, or if the gift fails to meet the prevailing required minimum for an endowed fund at the time it becomes available to the University, the University will adhere to the laws and regulations of the Commonwealth of Virginia regarding such matters.
A donor (and the donor’s family or designee) who establishes a scholarship or award may participate in the selection of recipients upon approval by the University and subject to applicable law. The nature of the donor’s and/or his/her family’s or designee’s involvement must be clearly defined in the endowment agreement between the donor and the University. In all cases, participation is advisory in nature. Final decision on the selection of scholarship and award recipients is the sole right of the University.
Endowment principals will be pooled and invested, and income expended, in accordance with the prevailing investment and spending policies of the Foundation.
If a donor wishes to establish an endowed fund that includes provisions outside of University policy or approved procedure, the Gift Acceptance Committee must first review and recommend approval to the President.
Endowments that establish chairs and professorships must adhere to all University policy on chairs and professorships.
An endowed chair attached to the position of dean of a school or college will require additional funding beyond the minimum required for an endowed chair. The amount of such funding must be approved by the Board of Visitors.
Chairs and professorships may be funded with a combination of outright and deferred gifts assuming the total funding meets endowment minimums. If a portion of the funding will come from a bequest, life insurance policy, or retirement plan designation, the donor must be willing to sign an enforceable and irrevocable testamentary pledge agreement. An endowed professorship or chair will not be named and awarded until one half of the principal to be contributed is received by the University and invested in the endowment. Any exceptions to this funding arrangement must first be reviewed and recommended by the Gift Acceptance Committee prior to final approval by the President.
The following are the required minimums to fully endow the purpose listed. The Board of Visitors reserves the right to adjust the required minimums from time to time. If a donor wishes to establish an endowment for a designation not currently listed in this document, the Gift Acceptance Committee will review the donor’s intent and interests on a case-by-case basis. All gifts can be made over a period of up to five years or through other means as described in this document.
| Fund Type2 | Minimum |
| Endowed Prizes/Awards | $10,000 |
General Endowment |
$25,000 |
Endowed Lectureship |
$25,000 |
Fully Endowed Undergraduate Scholarships
|
$175,000 $350,000 $250,000 $175,000 to $350,000 |
Endowed Athletic Team Position |
$100,000 |
Endowed Head Coach Position |
$250,000 to $1,000,000 |
Endowed Faculty Research Fund |
$200,000 |
Endowed Dean’s Fund for Excellence |
$250,000 |
| Endowed Faculty Fellowship | $150,000 |
Endowed Professorships |
$ 500,000 |
Endowed Chairs Endowed Chairs |
$1,500,000 |
Endowed University Executive Positions
|
$10,000,000 $5,000,000 |
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VIII. NAMING OPPORTUNITIES
A naming opportunity is an invitation to a donor (or donors) to name a school/college, facility (such as a building or classroom), center, institute or other program (such as an Honors Program) in honor or memory of someone the donor wishes to recognize, in exchange for a gift in an amount established by the University for the benefit of the corresponding program or facility.
Naming opportunities, including the appropriate gift size, the funding plan and the manner in which the gift will be utilized, must always meet with the approval of the President of the University after consultation with the Gift Acceptance Committee, and, when required, the Board of Visitors.
Institutes and centers are defined as units within the University community with separate budgets and staff that fall under the auspices of a dean, a vice president or Provost of the University. The establishment of a new center or institute must meet with the approval of the President, after consultation with the Provost, dean or vice president under which the program will be supervised.
The naming of multiple spaces within a single facility must be pre-approved in a written plan. The plan will include the identification of the spaces to be named, the appropriate gift amount to name the space, and how the money will be utilized when it is collected.
Deans and/or directors may prepare naming opportunity plans in consultation with the Gift Acceptance Committee and the Provost or cognizant vice president before such plans are presented to the President. The President’s approval and consent is required for naming opportunity plans to be submitted to the Board of Visitors for approval.
Contributions qualifying for naming opportunities can be utilized for facility construction or renovation, maintenance, program enhancement, and/or operations, scholarships, or research. Contributions may or may not be endowed. The utilization of the gift must be set forth in a legally binding written agreement between the donor and the University.
The funding plan for a named opportunity must be in writing and must meet with the approval of the President of the University after consultation with the Gift Acceptance Committee, and the Board of Visitors when required. It may be determined that the naming will be delayed until agreed funding requirements are met.
Outright gifts and written enforceable pledges for up to five years may be used to fully or partially fund a named opportunity at face value. The President, after consultation with the Gift Acceptance Committee, must approve any pledge agreement that provides for any pledged amounts to be received beyond five years, prior to the pledge agreement being executed by the donor.
Testamentary deferred gifts (including gifts by will, trust, retirement plan or life insurance policy) may be used in combination with an outright pledge to fully or partially fund a named opportunity as long as the testamentary portion of the total commitment is no more than 50% of the total gift, is secured by an irrevocable pledge agreement, and the present value of the gift will meet the agreed upon gift level.
Irrevocable deferred gifts (including gift annuities and charitable remainder trusts) may be used to fully or partially fund a named opportunity as long as the present value of the gift will meet the agreed gift level.
Namings associated with capital gifts will be conferred when 50% of the gift is received by Foundation. The exception is endowment gifts, which can be named upon receipt of a pledge.
The University will accept current/outright gifts of cash, securities, or real and personal property.
The University will accept and record written pledges in accordance with generally accepted accounting standards and FASB rules. No multi-year pledge of more than $10,000 will be recorded on development or general accounting records unless it is substantiated in writing via a University-approved gift agreement signed by the University, the Foundation, and the donor. The agreement must include the gift amount and schedule of pledge payments. The agreement will also specifically state the designation of the gift within the University to indicate specific preferences and restrictions on the use of the funds. Single year pledges will be recorded in accordance with Office of Development procedures.
The maximum amount of time to fulfill a pledge will be five years from the date of execution of the agreement. Pledges of more than five years must be approved by the President, after consultation with the Gift Acceptance Committee.
The Office of Planned Giving within the Office of Development will coordinate the receipt of all deferred gifts. Deferred gifts include bequests made through wills or living trusts, retirement plan designations, life income plans, charitable lead trusts, and retained life estates. Donors of life income giving arrangements may designate the remainder value of their gift to any approved program within the University. Remainder gifts that will be used to establish named endowments or for naming opportunities must meet with the prevailing minimums.
The Office of University Counsel, Legal Affairs will process all legal documents associated with deferred gifts, and prior approval by University Counsel, Legal Affairs is required before any legal document may be executed by an approved University officer.
1. Bequests and Retirement Plan Designations
The Foundation will receive charitable bequests and retirement plan designations, and will generally abide by any restrictions or designations indicated in appropriate documents assuming such restrictions and designations are applicable to current programs within the University and do not violate University policy. The University will not abide by any restrictions that are considered to be in violation of federal, state or local laws. If the intended use does fall outside of the law and/or University policy, the University will adhere to the laws and regulations of the Commonwealth of Virginia regarding such matters.
If a bequest or retirement plan designation of $25,000 or more is given for the general purposes of the University, such funds shall be deposited into a segregated account and the President of the University shall have discretionary authority to determine how to spend these contributions.
2. Life InsuranceThe Foundation will accept gifts of life insurance policies (where the Foundation is named as both owner and beneficiary of the policy) based on the following:
a) The policy must have a death benefit of $100,000 or more, unless the policy is fully paid up. Any future policy premiums due will be paid by regular contributions from the donor to the Foundation. The Office of Planned Giving will coordinate all premium payments with the donor.
b) Term policies of any amount will be declined unless the donor irrevocably pledges to make regular contributions to the Foundation equal to the regular premium amount. If the donor refuses to make regular contributions equal to the premium amount, the Foundation will allow the policy to lapse.
c) The Foundation may surrender an existing life insurance policy for its surrender value or sell the policy via a viatical settlement based on prior review and approval of the Gift Acceptance Committee.
d) Acquiring a naming opportunity within the University with a life insurance policy while the donor is living can only be done with a fully paid up policy for the equivalent cash value of the naming opportunity. All exceptions to this policy must be approved by the President after consultation with the Gift Acceptance Committee.
e) The Foundation will record a gift of a life insurance policy only on the basis of its fair market value for general accounting purposes.
f) All donations of life insurance policies and contributions made to pay life insurance policy premiums will be receipted and acknowledged to the donor in accordance with prevailing IRS regulations.
3. Charitable Gift AnnuityThe Foundation will establish and promote gift annuity contracts with donors in accordance with applicable federal law, IRS regulations and the laws and regulations of the Commonwealth of Virginia. Additionally, the Foundation’s gift annuity program will adhere to the following:
a) The minimum size contributions to fund either an immediate gift annuity contract or a deferred payment gift annuity contract will be set by the Gift Acceptance Committee and may be periodically adjusted at its discretion.
b) All gift annuity contracts must first be approved by the Foundation and University Counsel, Legal Affairs.
c) The payout rates will conform to the applicable published rates of the American Council of Gift Annuities (ACGA). Any deviation from the ACGA rates must first be approved by the Gift Acceptance Committee.
d) The Foundation may engage one or more third party entities to provide
gift administration, custodial, and investment services for its gift annuity contracts.e) All assets given to fund a gift annuity will be invested. Income and principal will be used to pay any annuity obligations of the contract until all income beneficiaries under the contract are deceased or no longer entitled to receive income.
f) Gift annuity contracts will be booked at face value for Development and recognition purposes, but only at remainder value for general accounting purposes.
4. Charitable Remainder Trust (CRT)The Foundation will accept and administer contributions to a charitable remainder trust in accordance with applicable federal law, IRS regulations, and the laws and regulations of the Commonwealth of Virginia. Additionally, the Foundation will administer its charitable remainder trusts based on the following:
a) The Foundation may serve as a trustee for charitable remainder annuity trusts (CRAT) or charitable remainder unitrusts (CRUT) only if it is named as an irrevocable remainder beneficiary of at least 51% of the remainder value of the trust.
b) The President, after consultation with the Gift Acceptance Committee, will establish from time to time the minimum initial gift to a CRT.
c) The Foundation may hire one or more third party entities to provide trust administration and custodial and/or investment services for CRT agreements.
d) The Office of University Counsel, Legal Affairs must approve all CRT agreements prior to their execution.
e) If George Mason University Foundation, Inc. is named as trustee and 100% irrevocable remainder beneficiary of a CRT, the Foundation will charge the trust or the income beneficiary(ies) of the trust direct administrative, management or brokerage fees that are expended to operate the trust. If the Foundation is named as less than 100% irrevocable remainder beneficiary, any costs incurred by the Foundation to operate the trust must be proportionately shared by any other named remainder beneficiary.
f) The Foundation will serve as trustee of a CRT when a donor wishes to donate real estate to the trust only if the donor will accept the trust in the form of a charitable remainder net-income unitrust, with a flip provision. Contributions of real estate to a CRT must follow the University’s policy on real estate contributions and any costs associated with the sale of real estate within a CRT will be charged to trust principal.
g) The Office of Planned Giving is authorized to establish CRT payout rates at the minimum required by law and up to a maximum of 7%. If a donor wants a payout rate higher than 7%, it must first be approved by the President, after consultation with the Gift Acceptance Committee. All CRT payout rates established by the Foundation must also conform to applicable federal law, IRS regulations, and the laws and regulations of the Commonwealth of Virginia.
h) George Mason University CRT agreements will be booked at face value for Development and recognition purposes, but only at the remainder value for general accounting purposes.
i) When a donor establishes a qualified CRAT or CRUT outside of the Foundation and names the George Mason University Foundation as an irrevocable remainder beneficiary, the University may book this contribution in the same manner as a CRT upon receipt of a copy of the signed trust agreement.
j) Donors may contribute additional gifts of a minimum value of $5,000 to their charitable unitrust for which George Mason University Foundation serves as trustee.
The University will promote the use of charitable lead trusts (CLT) to donor prospects as a means of reducing income or estate taxes and helping the University at the same time. Income produced by a CLT for the University may be restricted and designated in accordance with policies established for any other cash contributions. The Foundation will not serve as a trustee of a CLT.
6. Remainder Interest in Real Property
The University will promote and accept gifts of retained life estates in real property if the donor agrees in writing to be responsible for all maintenance, insurance costs, and taxes associated with the property for as long as they retain their right to reside in the property. Gifts with a retained life estate must also conform to all other University policies regarding gifts of real estate. Gifts of a remainder interest will be credited to the donor in the year the transfer of ownership is completed from the donor to the University at the charitable remainder value of the contributed real estate.
D. Trusts Held by a Third Party
The University will record such trusts, and gifts from such trusts, in accordance with generally accepted accounting principles.
X. EFFECTIVE DATE AND APPROVAL
The policies herein are effective May 8, 2008 (and were revised on May 8, 2008) and will apply to all new gifts and new pledges received hereafter. This Administrative Policy shall be reviewed and revised, as necessary, annually to become effective at the beginning of the University’s fiscal year, unless otherwise noted. The President of the University is authorized to make technical amendments to this policy.
Approved:
________________________
Board of Visitors
Date approved: May 8, 2008
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