Standard Operating Procedures for Acceptance of Gifts

Authority:

Vice Chancellor for University Advancement

History:

First Issued, March 27, 2008.

Revised, September 1, 2010. 2nd Revision, September 1, 2011

Related Policies:

POL03.00.1, Coordination of Fundraising Activities and Acceptance of

Private Donations (Gifts)
REG07.50.1, Acquisitions and Dispositions
REG10.00.1, Donations of Intellectual Property to NC State University

Contact for Info:

Associate Vice Chancellor for Advancement Services (919) 513-2954

1. Introduction
1.1 North Carolina State University (NC State) actively encourages the solicitation and
acceptance of gifts that enable it to fulfill the Universitys missions of teaching, research,
extension, and engagement. The Office of University Advancement is charged by the
Chancellor to increase private giving in support of the Universitys missions, to collect and
maintain donor information on all gifts, and to provide donors with the appropriate receipt
for income tax filing purposes. This document sets forth the Universitys procedures for
acceptance of gifts received by the University and University Associated Entities. All
employees of NC State and its associated entities must adhere to the following procedures
pertaining to the proper processing of private donations. Failure to do so may subject the
employee to disciplinary action, up to and including dismissal, and/or personal liability.
1.2 This document does not apply to gifts made to the NCSU Student Aid Association, Inc.
(the Wolfpack Club) or the North Carolina Textile Foundation, Inc. (Textiles), except for
deferred gifts. Any gift to NC State that results in points toward seating preference at oncampus athletic events must be reduced by 20% when calculating gift credit and tax
deductable amounts. Donors should always consult their own tax advisors regarding
contributions.
1.3 This document does not apply to sponsored contracts, grants and cooperative agreements
for research purposes.
1.4 The responsibility for accepting gifts in the manner set forth in the Standard Operating
Procedures for Gift Acceptance rests with each Development Officer. Appropriate
documentation should be retained in each development office and a copy provided to
Alumni & Donor Records at the time gifts are processed. Alumni & Donor Records will
be responsible for reviewing and monitoring all gifts for appropriateness to ensure that the
Standard Operating Procedures and any applicable P.R.R. have been followed.
1.5 In concert with the acceptance of any gift to NC State and its associated entities, an
assessment on certain gifts may be applied, as directed by the Chancellor.
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2. Definitions
2.1 A gift is personal property (cash, securities, books, equipment, etc.) and real property
provided by a donor without expectation of tangible economic (except tax) benefit. The
transfer to the University or a University Associated Entity implies no responsibility to
provide the donor a product, service, technical or scientific report, or intellectual property
rights. Providing the donor the names of recipients of scholarships, awards, etc. or
providing a report of how the funds were expended, do not necessarily prevent the
contribution from being considered a gift. The donor may specify the general use of the
fund or it may be an unrestricted gift for use in meeting needs identified by the University,
college, or related support organization. For scholarship gifts, the donor may not
participate in the selection of the recipient but may designate specific criteria for selection
of recipients.
2.2 A grant, unlike a gift, is normally a written agreement to carry out a specified project and
may entail a tangible product, usually a technical report. A grant that requires performance
on the part of the University must be processed through established University procedures.
A grant proposal that requires no performance on the part of the University, no technical
report, and has no provisions for intellectual property and/or publication rights, may be in
the name of the University or a University Associated Entity and would be treated as a
contribution. If an award is made with stipulations on technical reporting, intellectual
property or other performance requirements in response to a grant proposal, then the
project will be administered by the Office of Sponsored Programs and deposited with the
University. Any exceptions must be approved by the Vice Chancellor of Finance and
Business.
2.3 University Associated Entities: any of the non-profit organizations that support the
university and which have been approved in accordance with UNC-GA Regulation
600.2.5.2[R], Required Elements of University-Associated Entity Relationship.
2.4 Hard Credit: the donors giving record is credited with the actual amount that is deposited
into the account for gifts of cash and securities according to the gift transmittal filed on the
gift. For irrevocable planned gifts such as charitable remainder trusts, charitable gift
annuities, and retained life estates, the donors giving record is hard credited with the
charitable deduction allowed by the Internal Revenue Service and reflected on the gift
transmittal. For gifts of real estate, life insurance and other gifts of property, the donors
giving record is given proper credit with the allowable charitable deduction.
2.5 Soft credit: the donors giving record is soft credited when their direct actions result in a
gift, but they are not entitled to a charitable deduction for the gift. Examples would include
soft crediting an individual for a gift from a charitable gift fund or a community
foundation, or a gift that is made by their spouse/partner or their company if they are the
principal owner, and any matching funds that NC State receives because of the individuals
gift.

3. Gift acceptance
3.1 The University will assess the financial desirability of receiving assets as gifts from
potential donors and determine whether or not to accept a gift as offered. The University
reserves the right to decline gifts from which it will realize little or no financial gain. It may
refuse gifts that are offered for purposes that are inconsistent with its educational, research,
and service missions. The University and University Associated Entities shall not accept
gifts with restrictions that violate the Universitys ethical standards, or those that require
expenditures beyond their resources, that compromise the academic freedom of the
University community or that involve unlawful discrimination based on race, religion,
gender, age, national origin, disability or any other basis prohibited by federal, state and
local laws and regulations.
4. Types of Outright Gifts
4.1 Cash gifts:
4.1.1

Outright gifts of cash and cash equivalents such as checks, credit cards, wire transfers
or payroll deductions are credited to the donors giving record at actual cash value and
a receipt is issued for the value of the gift.

4.1.2

Cash may be delivered in person, by mail, by facsimile, by Electronic Funds Transfer

(EFT), or by wire transfer. The date of gift for cash gifts will depend on the type of
delivery made.

4.1.2.1 Cash gifts are complete on the date the cash is physically handed to a representative of
the University or a University Associated Entity and will be receipted on the date the
cash is received and processed by Alumni and Donor Records (ADR) in the Office of
Advancement Services.
4.1.2.2 When cash is received by mail, the date of gift usually is the date the envelope is
postmarked. The ADR will receipt the gift on the date the gift transmittal is received
from the appropriate development office and the gift is processed in ADR.
4.1.2.3 When gifts are transferred by EFT or wire, the date of gift is the day that the funds are
deposited into the Universitys or the University Associated Entitys bank account.
The ADR will receipt the gift on date the gift is processed in ADR.
4.1.2.4 Checks will be deposited to the entity named as the Payee on the check. Checks made
payable directly to a University Associated Entity will be deposited directly to that
entitys account. All other checks must be deposited with the University unless there is
written documentation from the donor indicating that the intent is for the gift to benefit
the associated entity.
4.1.2.5 Credit card gifts are recorded on the date that the credit card charges are processed by
ADR. The name on the credit card must match the name of the person making the gift.

4.1.3

Gifts of foreign currency will be valued at the US dollar equivalent on the date the gift
is received. Foundations Accounting and Investments (FAI) is responsible for currency
conversion transactions, and for informing either the development office preparing the
gift transmittal or ADR of the US dollar amount of the gift. The transaction fees
resulting from converting foreign currency to US dollars will be charged against the
gross proceeds of the gift.

4.1.4

University payroll deduction can be set up through ADR. Monthly payments by credit
card or bank draft can be made online or by sending a gift transmittal form to ADR for
processing each month.

4.1.5

Procedure to process cash gifts:

4.1.5.1 All gifts to any University Associated Entity, with the exception of Textiles and
Wolfpack Club) are processed through ADR. Gifts to the University are deposited by
departments receiving them through the Cashiers Office, with documentation
forwarded to ADR for recording in the advancement database. The development office
receiving the gift is responsible for preparing the gift transmittal form (Attachment 1)
and sending it with the gift to the ADR within 24 hours of receipt along with either the
original or copies of all backup supporting the gift. In order for gifts to be processed to
a University Associated Entity project, the gift must have been solicited in the name of
the University Associated Entity. Additionally, checks must be made payable to the
entity in which the gift is to be deposited. All other checks will be deposited to a
University account. In order for a check not made payable directly to a foundation to
be deposited to a foundation account it must be accompanied by additional supporting
documentation from the donor clearly indicating the intent to make a gift to that entity,
unless there is clear evidence that the intent of the payment is in support of a previously
properly recorded pledge to that entity.
4.1.5.2 If funds are being wired, the development office must alert FAI as wired funds come to
its attention. FAI will alert the development office working with the donor and ADR of
the date funds are received. The development office receiving the gift must prepare the
gift transmittal and send it to ADR along with written confirmation from FAI.
4.1.5.3 The donors giving record will receive hard credit for the value of the gift.
4.1.6

Recognition (soft) credit:

4.1.6.1 Recognition credit is automatically given to the spouse/partner on all types of gifts.
4.1.6.2 Recognition credit will also be given if the gift is made by a business entity, provided
the donor is the major owner or one of the major owners of the business. This
relationship must be brought to the attention of ADR. The Associate Vice Chancellor
of Development shall approve exceptions to this provision.
4.1.6.3 Recognition credit can also be given when the gift is made by a family foundation, a
living trust, community foundation, donor advised fund, or a matching gift. Attribution

is not always obvious; therefore ADR must be informed on the gift transmittal when
such credit should be given.
4.2 Publicly traded securities, mutual funds, and dividend reinvestment accounts:
4.2.1

Marketable stocks, bonds, or other securities traded on national exchanges are

acceptable as outright gifts, payments towards pledge commitments, and to fund
various deferred gifts such as charitable remainder trusts and charitable gift annuities.

4.2.2

Generally, securities are sold as soon as they are received. The charitable deduction
and internally recorded value of the gift is based on the average of the high and low
selling price for the security on the date of gift.

4.2.2.1 A receipt will be issued to the donor reflecting the internal value of the shares on the
date of gift, as well as a description of the securities received. The donors giving
record will receive hard credit for the value calculated for internal purposes. Any
difference between the average price and the actual selling price will be treated as a
gain or loss to the fund where the gift is deposited and posted to the accounting system
by FAI.
4.2.3

The internal valuation date of gift on a securities transaction depends on the type of
delivery used.

4.2.3.1 If the security is personally delivered to a representative of the University or a

University Associated Entity, the gift date is the day the stock certificate is physically
delivered to the University representative.
4.2.3.2 If the securities and the required stock power and letter of instructions are mailed, the
gift date is the postmark on the envelope.
4.2.3.3 When the securities are delivered via any other non-electronic third-party delivery
system exclusive of the US Postal Service, the gift date will be the day the security is
received by the University or the University Associated Entity.
4.2.3.4 When securities are electronically transferred (DTC system) from the donors
brokerage account to the brokerage account for the University or a University
Associated Entity, the gift date is the date the securities are credited to the University or
University Associated Entitys account.
4.2.3.5 When the donor has shares re-issued by the transfer agent in the name of North
Carolina State University or one of the University Associated Entities, the date of gift is
the date the certificate is reissued, not the date the new certificate is received.
4.2.3.6 Dividend reinvestment accounts (DRIP) are another way that a donor may make a gift
of securities. A DRIP account holds stock that is acquired because the donor has their
dividends reinvested in order to purchase additional shares. This type of account
usually holds fractional as well as full shares.

4.2.3.6.1

4.2.4

The date of gift on DRIP accounts will be determined in the same manner as for
publicly traded securities.

Gifts of mutual fund shares are also acceptable; however, transfers of this type take
longer to complete. Many mutual funds are not DTC transferable and each company
sets its own requirements regarding transferring these shares to a charitable
organization.

4.2.4.1 The date of gift on mutual fund shares will be determined in the same manner as for
publicly traded securities.
4.2.5

Procedure to process gifts of securities:

4.2.5.1 The Office of Gift Planning (GPO) is responsible for the processing of gifts of
securities to benefit NC State or the University Associated Entity, except for the Textile
Foundation and the Student Aid Association (Wolfpack Club). The development officer
or his or her staff should immediately inform the GPO as soon as it is known that a
stock transfer is going to be made.
4.2.5.1.1

Required information includes the name of the donor, the number of shares, name
of the security being transferred, the account name and number to which the
proceeds should be deposited.

4.2.5.1.2

GPO, in consultation with FAI will provide electronic transfer instructions to

donors or their advisors for the University or any of the University Associated
Entities as well as to development officers and their staffs.

4.2.5.1.3

If paper certificates will be used, GPO will assist the donor in the preparation of the
required stock power and the transmittal letter (Attachment 2). These documents
require the donor(s) to have their signature guaranteed at a commercial bank or a
brokerage account before they are returned to GPO to complete the gift transaction.

4.2.5.2 GPO prepares all security transmittal documents (Attachment 3) and is responsible for
sending the donor both the official receipt and an IRS form 8283 (Attachment 4).
4.2.5.2.1

GPO informs the appropriate University entity that a security gift is being made and
sends copies of all paperwork to the appropriate development office.

4.2.5.2.2

GPO also informs FAI of all security gifts so that the funds can be properly credited
when received from the broker.

4.2.5.2.3

A copy of the completed security transmittal is sent to ADR so that a receipt for the
gift can be prepared.

4.2.5.3 The donors giving record will receive hard credit for the value of the securities. The
official receipt will reflect the average of the high/low sales price of the securities on
the gift date.
4.2.5.4 When securities are used to make a payment against a pledge, the pledge balance will
be reduced by the amount of the hard credit.
4.3 Closely-held securities (non-public) or restricted stock:
Under certain circumstances the University will accept gifts of securities that are not traded
on a public stock exchange or that have restrictions on them. The Vice Chancellor for
University Advancement and the Vice Chancellor for Finance and Business must approve
the acceptance of non-public securities before the shares can be accepted.
4.3.1

Procedure to process gifts of closely-held securities:

4.3.1.1 If a donor wishes to make a gift of closely-held securities, the development office
working with the donor should contact the GPO for assistance.
4.3.1.2 Before a gift of closely-held stock can be accepted, the GPO will request approval to
accept the gift from the Vice Chancellor for University Advancement and the Vice
Chancellor for Finance and Business using the gift of securities transmittal form.
Information required includes the potential use for the gift, the number of shares,
estimated value, the potential to liquidate the shares, and if there are any restrictions as
to when the stock can be traded or to whom it may be traded, and the identity of any
potential purchaser of the shares.
4.3.1.3 The date of gift will be determined based on the type of delivery that is made - see gifts
of publicly traded securities above.
4.3.1.4 This gift is considered a gift of property and the correct transmittal form is the gift of
securities transmittal form. The receipt will indicate the number of shares, the name of
the company, and the gift date. No gift value will be listed.
4.3.1.5 It is the donors responsibility to have the gift appraised for appropriate gift value.
GPO will prepare the required IRS form 8283 for the donor and transmit the receipt and
the signed 8283 to the donor and provide copies to the development officer involved.
4.3.1.6 Either the University Treasurer (for gifts to foundations FAI manages) or the University
Controller (for University gifts) will prepare the required IRS form 8282 (Attachment
5) and forward the donors copy to GPO for transmittal to the donor if the shares are
liquidated within the time required by the Internal Revenue Service in relation to the
gift date.
4.3.1.7 The donors University giving record will receive hard credit for the appraised value of
the shares. No adjustments to the giving record are made once the shares are sold.

4.4 Employer-sponsored Matching gifts:

4.4.1

A matching gift may be received from a company or a company funded foundation,

matching a gift given to the University or a University Associated Entity (including
gifts to the Wolfpack Club for whom ADR will process matching gift applications)
by an employee, retired employee, or a director of the company, foundation, or other
organization.

4.4.2

Matching gifts must be credited to the same account(s) as the original gift unless
restricted by the matching company, except for certain gifts to Wolfpack Club that are
not allowed by the matching company. These gifts will be matched to a fund for the
general use of the university.

4.4.3

The donors giving record is soft credited for the value of the matching gift when
received.

4.4.4

When the gift being matched is a stock gift, the value that will be matched is the
internally calculated value as described above, and not the net proceeds from the sale.

4.4.5

Potential matching gifts cannot be entered as a part of a pledge the donor makes for
future support since those are not funds the donor has control of or is irrevocably
entitled to receive.

4.4.6

Procedure to process matching gifts:

4.4.6.1 The development office sends the matching gift form along with the original gift
transmittal to ADR for processing. The matching gift information is provided on the
original gift transmittal. Some companies, however, allow their employees to apply for
matching gifts on-line.
4.4.6.2 The Matching Gift Manager is solely responsible for processing all matching gift
claims.
4.4.6.3 Under certain circumstances, a matching gift claim can be entered for a deferred gift.
This is an exception to the rule that the matching funds must be deposited into the same
account as the original gift. The GPO will work with the Matching Gift Manager to
insure the gift is properly deposited into an appropriate account. This generally only
happens when a company has allowed a matching gift to be made as long as it goes to
an endowment or specific fund and is not added to the deferred gift.
4.5 Donor Advised Funds and Community Foundations:
4.5.1

Donor Advised Funds and Community Foundations (DAF/CF) are recognized as

stand-alone 501(c)(3) tax-exempt charitable organizations. When a donor makes a
donation to one of these entities they receive their income tax deduction for doing so
from the DAF/CF.

4.5.2

A donor may recommend that a donor advised fund or a community foundation make a
grant to NC State or one of the related foundations from funds the donor has given to
the DAF/CF. No receipt will be issued to the original donor, but the donors giving
record will be soft credited with the value of the gift and it will be noted that the gift
was made by the DAF/CF.

4.6 Procedure to process Gifts of Tangible and Intangible Personal Property:

4.6.1

Gifts of tangible personal property include, but are not limited to: books, works of art,
manuscripts or archival materials, automobiles, films, video tapes, boats or sporting
equipment, computer equipment, furniture, animals, office equipment, machinery, and
lab equipment. Gifts of intangible personal property include, but are not limited to:
computer software, patents, easements, and copyrights. The deduction allowable for
these types of gifts depends on how long the donor has owned the property and if it is
related to the charitable purpose of the University.

4.6.2

NC State or one of the University Associated Entities can accept a gift of personal
property and ADR may issue a receipt whether it is related or unrelated to the
charitable purpose of the University or one of the University Associated Entities.
Whether the gift is related or unrelated to the charitable purpose of the University or
one of the University Associated Entities can affect the allowable charitable deduction
a donor may be permitted to claim under IRS regulations. For example, gifts of
artwork to the Gallery of Arts and Design are for a related use as would be lab
equipment given to Chemical Engineering. Items donated for an auction are not related
to the universitys educational mission.

4.6.3

The receipt issued to the donor for a gift of personal property will not show a value for
the property. The receipt will describe the property received and the donors giving
record will be hard credited with the estimated fair market value of the item. It is the
responsibility of the donor to determine the value of a gift of personal property for their
tax purposes.

4.6.4

A University employee shall never value personal property for a donor.

4.6.5

If the property is a work of art that was created by the donor or something the donor has
held for less than 366 days, he or she should be advised to check with their own tax
advisor on the potential deductibility of the gift before the gift is accepted.

4.6.6

Generally, a gift of personal property is made to the University and not to a University
Associated Entity. The University maintains insurance on personal property and the
University Associated Entities do not. As such, capital gifts of tangible personal
property (valued at $5,000+), or intangible personal property (valued at $100,000+)
generally are included in the Capital Assets Management System (CAMS) inventory.
Advancement Services is responsible for notifying the appropriate offices for those
gifts, including forwarding a copy of the BA-151 (Attachment 6 see the Addendum
for BA-151 completion instructions) and supporting documentation to the CAMS unit.

Gifts of software and animals generally are not covered by insurance, but are still
considered to be gifts to the University and not to a University Associated Entity.
4.6.7

If the personal property and the associated costs of maintaining that property exceed
$1,000 per year, the development officer must secure written approval from his/her
dean or director or the Vice Chancellor for University Advancement before accepting
the gift.

4.6.8

Gifts of patents are highly technical in nature and the development officer should first
contact the Office of University Development for guidance. University Development
works with the Office of Technology Transfer on how these gifts can be accepted by
NC State. Patent donations are recorded at $1.

4.6.9

Gifts made in support of the patent (toward the costs associated with holding the patent
or additional research and development for example) are hard credited at face value and
a receipt will be issued for the amount donated.

4.6.9.1 The date of gift for gifts of personal property will be either the date the propertys
ownership is completely assigned to the University via a deed of gift, even if physical
possession will take place at a later date, or an employee of the University or a
representative of a University Associated Entity takes possession of the property.
4.6.10 Procedure to process gifts of personal property
4.6.10.1 Gifts of personal property are reported on a BA-151 that must be filed with ADR
along with the supporting documentation.
4.6.10.2 The value of the gift must be provided by the donor and should be documented with
an appraisal, sales receipt, or other independent documentation for all gifts where the
value is $5,000 or less. For all gifts of personal property in excess of $5,000 an
appraisal of the property may be required under IRS rules if the donor intends to take a
tax deduction for the gift.
4.6.10.2.1 The appraisal can be done as of no sooner than 60 days prior to the gift or can be
done anytime after the gift is completed up until the time the tax return for the
donor is submitted.
4.6.10.2.2 A valid appraisal must be done by a qualified appraiser according to the IRS
guidelines. The cost of the appraisal is the responsibility of the donor.
4.6.10.3 The gift receipt issued will contain a description of the property with no indication
of value.
4.6.11 The GPO will assist development staff members in the preparation of the IRS form
8283 and, if the gift exceeds $5,000 in value, the GPO will secure the signature of the
University Treasurer on the form before returning it to the development officer for
transmittal to the donor.

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4.6.12 Gifts of this nature that are disposed of within the time required by the IRS in relation
to the gift date must be reported to the IRS on form 8282. Either the University
Treasurer (for gifts to foundations FAI manages) or the University Controller (for
University gifts) will prepare the 8282 to be sent to the IRS with a copy to the
development officer for transmission to the donor.
4.6.13 The Capital Asset Accounting (CAMS) Coordinator in the Controllers Office will
review the BA-151 and supporting documentation for the asset gifted, and will
determine what is capital in nature for recording in the university accounting system as
inventory so that it will be covered by University insurance.
4.7 Gifts-in-kind of services include, but are not limited to, such activities as printing of
materials, appraisals, and design work, for example. These services provide valuable
support to the University or University Associated Entities. The contribution of services,
no matter how valuable to NC State, is not tax deductible according to the IRS. Therefore
no hard or soft credit is recorded for such gifts.
4.8 Miscellaneous Gifts: Whenever the donor is provided something in exchange for the gift
such as tickets for a dinner, concert, or other event, the development officer is responsible
for providing ADR with the fair market value associated with attending the event. It is the
responsibility of the office sponsoring the event to retain the records proving the value of
the ticket, dinner, or other tangible benefit for IRS purposes. Failure to keep the
information could result in fines and potential loss of tax-exempt status.
4.8.1

Other types of gifts that may require special receipts and review prior to accepting the
gift include: inventory, artistic property created by the donor or the donors spouse or
received as a lifetime gift from the artist, real property subject to depreciation
recapture, and Section 306 stock.

4.9 Auctions and Raffles:

4.9.1

NC law limits the number of raffles a state agency or non-profit may conduct each
calendar year. The Vice Chancellor for University Advancement should approve all
raffles to ensure compliance.

4.9.2

Purchase of a raffle ticket is not a gift under IRS regulations and no gift credit or gift
receipt will be issued. See the FAI website regarding taxation issues related to raffle
winnings.

4.9.3

Items donated for sale at an auction are not considered for a related use (to the
Universitys educational purpose) according to the IRS. Therefore, the receipt that will
be issued will list the item donated, but no value. Auction donors must be made aware
of this fact.

4.9.3.1 The description of the donated items should be submitted to ADR on a BA-151.

11

4.9.3.2 The donors giving record will be hard credited for the fair market value or the
appraised value of the item, provided the item does not represent a service or partial
interest.
4.9.3.3 A gift receipt can only be issued to a purchaser of an auction item if the price paid by
the successful bidder exceeds the listed fair market value of the item. The amount of the
receipt will be the difference paid above the fair market value of the item.
4.9.3.4 The fair market value must be clearly indicated in the information posted about the item
at the auction and that information should accompany the Other Income sheet
(Attachment 7) submitted with the check/cash to FAI.
5. Pledges
5.1 Pledges should be recorded in accordance with relevant Financial Accounting Standards
Board (FASB) rules, CASE Guidelines, and in keeping with the guidelines and
Procedures outlined in the Alumni & Donor Records Guidelines and Procedures Manual.
5.2 Pledged commitments must be written, signed by the donors, and include the amount of the
pledge, the pledge period, the date of the first payment, and the frequency of payments. In
addition, the written pledge must contain a statement of the gifts designation, purpose, and
any restrictions.
5.3 Every effort should be made to keep the pledge payment period to five years or less.
5.4 A donors pledge cannot be paid on the gift system with a closely held stock gift (until
liquidated), a payment by a third party such as a community foundation or donor-advised
fund, or a matching gift.
5.4.1

The development office responsible for the pledge should monitor these gifts and when
the required pledge amount has been received by a third-party, they should request that
ADR ensure that the pledge balance is zero.

5.5 Procedure to process pledges:

5.5.1

The development office working with the donor should submit the completed pledge
transmittal form (Attachment 8) to ADR so that the pledge can be entered on the gift
reporting system.

5.5.2

The ADR is responsible for sending the pledge reminders to the donor unless the
development office working with the donor requests to send the reminder.

5.5.3

When processing a gift that is a pledge payment, the development office filing the gift
transmittal should note that the payment is a pledge payment.

5.5.4

Annually, by June 30th, the development office should verify/confirm to ADR that all
of the pledge balances are correct, or report any changes in pledge balances they are

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responsible for in the gift recording system. Semi-annually the Associate Vice
Chancellor for Advancement Services will conduct a review of all past-due pledges.
Pledges of under $5,000 that are more than 2 years old and have not been paid on
within the past two years will be written off. Development Officers responsible for
past-due pledges between $5,000 and $25,000 that are over 2 years old will be
informed of the pledge status and urged to communicate with their donors. Pledges of
$25,000+ that are past-due will be required to have updated payment plans obtained
from donors by their Development Officers.
6. Deferred Gifts
6.1 Deferred gifts will benefit the University or a University Associated Entity at some point in
the future. Generally, these gifts are either revocable (can be changed by the donor at any
time) or irrevocable (can not be changed by the donor once the gift is made). The benefits
to the donor depend on both the type of gift and if the donor retains the right to modify the
gift. Types of deferred gifts include: simple bequests, charitable gift annuities, charitable
remainder trusts, charitable lead trusts, life insurance, retained life estates, or naming an
NC State entity as the beneficiary of a retirement plan.
6.1.1

The GPO is responsible for assisting potential donors and development officers in
making these types of gifts, securing approval of the gift from the Vice Chancellor for
University Advancement and the Vice Chancellor for Finance and Business, when
appropriate, and processing and recording of all planned gifts to benefit any area at NC
State including the Textile Foundation and the Student Aid Association (Wolfpack
Club).

6.2 Charitable bequests: Donors can make a charitable bequest to the University or one of the
University Associated Entities via their will or trust of any type of property. The
University or University Associated Entity retains the right to accept or decline any gift
made through a will and/or trust.
6.2.1

A bequest is a revocable gift. No gift receipt is issued for a bequest until the funds or
properties are actually in the hands of the University or the University Associated
Entity. The receipt issued will be to the Estate of the donor or the Trustee of the
donors trust. While a bequest intent is revocable, it does represent a new commitment
by the donor and, therefore, much like a pledge the donor will receive hard credit as a
Bequest Expectancy (pledge) at its face value.

6.2.2

Bequests from estates or trusts payable to North Carolina State University without
specific reference to a University Associated Entity by state law must be deposited into
the Endowment Fund of NC State University and not in a University Associated Entity
account. The GPO will work with the executor/trustee to provide information on how
the donor wished for their funds to be used.

6.2.3

GPO oversees the management of all gifts made by a bequest under a will, living trust,
and testamentary trust, through a charitable remainder trust, charitable gift annuity

13

and/or other will substitutes such as a life insurance policy or designation of a

retirement account.
6.2.4

GPO will provide sample bequest language to development offices and donors to
facilitate the donor wishes to make their gifts to the entity of their choice.

6.2.5

Development officers should contact GPO as soon as they have knowledge that a donor
has died and forward all paperwork to the GPO for processing.

6.2.6

GPO will prepare the gift transmittal and make sure that the appropriate development
office and the executors/trustees receive the appropriate receipt for gifts made.

6.2.7

The giving record of the donor, now referred to as The Estate of, will be hard
credited with the value of the bequests received. Soft credit is typically not given to
any other person or entity for these gifts except for a surviving spouse/partner.

6.3 A charitable gift annuity (CGA) is a contract between the donor and a University
Associated Entity whereby the donor transfers assets in exchange for guaranteed fixed
payments to one or two beneficiaries for the remainder of their lives. The donor specifies
how the remainder of the annuity will be used by the University Associated Entity after the
passing of the last beneficiary.
6.3.1

The minimum gift necessary to fund a gift annuity is $10,000 and that can be
accomplished in two installments, if necessary.

6.3.2

At least one beneficiary of a gift annuity must be 50 years of age when payments begin
and a maximum of two lives can be covered.

6.3.3

Assets that can be used to fund the annuity include cash, securities and in certain
circumstances, real estate (when approved in advance by the Vice Chancellor for
University Advancement and the Vice Chancellor of Finance and Business following
the usual procedure for the acceptance of real estate).

6.3.4

NC State follows the recommended rates of the American Council on Gift Annuities
when offering a gift annuity to a donor. NC State caps the highest rate allowed at 9.1%
for an immediate payment gift annuity. Any change in the highest allowable rate or
any requested rate greater than the approved maximum must be approved via the gift
exception process by the Vice Chancellor for University Advancement and the Vice
Chancellor for Finance and Business prior to the annuity contract being finalized.

6.3.5

Procedure to process deferred gifts:

6.3.5.1 The GPO is responsible for the preparation of the gift annuity contract and all
supporting documents needed by the donor to claim their charitable income tax
deduction and the transmission of that material to the donor with the required
disclosure statements.

14

6.3.5.2 The gift is recorded on a Deferred Gift Transmittal (Attachment 9) prepared by the
GPO.
6.3.5.3 The GPO will provide the appropriate development office, FAI, and ADR with copies
of all relevant documents pertaining to the gift.
6.3.5.4 The GPO will secure the approval and signature of the donor(s), the president or
designated officer of the foundation or chairperson of the Board of Trustees of the
Endowment Fund of NC State University as well as the Treasurer of the appropriate
entity on the gift annuity contract.
6.3.5.5 GPO coordinates the gift, payments to the donors, and the annual tax statements with
the outside firm charged with management of the planned giving assets.
6.3.5.6 The giving record of the donor will be hard credited with the charitable deduction
allowed under IRS guidelines and their record will be soft credited for the actual value
of their gift.
6.4 Deferred charitable gift annuity (DGA): The difference between this gift and the charitable
gift annuity is the point in time when payments to the beneficiary are set to begin.
Deferred annuities must begin their payments at least one year after the date that the
contract is signed. For the donor this means a higher rate on the annuity and a larger
charitable deduction.
6.4.1

The minimum age for a deferred annuity is 40 years of age with payments set to begin
at least 15 years in the future. Another option, the deferred flexible gift annuity,
provides a range of years in which the beneficiary can opt to have their payments begin.

6.4.2

In all other aspects, the gift requirements and procedures are the same as that for the
charitable gift annuity.

6.5 A charitable remainder trust (CRT) is established when a donor irrevocably transfers assets
to a trustee who invests the assets to pay income to the donor or others chosen by the donor
for their lives or for a term of years (20 is the maximum). At the conclusion of the trust, the
remaining assets are distributed to the University or a University Associated Entity
pursuant to the directions the donor has made. There are two types of charitable remainder
trusts: the charitable remainder annuity trust (CRAT) where payments are fixed and never
change and the charitable remainder unitrust (CRUT) where the payments are based on the
annual valuation of trust assets. If the University or a University Associated Entity is going
to act as trustee of the CRT, a minimum gift of $50,000 is necessary to establish the trust.
6.5.1

The minimum age for establishing a charitable remainder trust is 50 years of age unless
the donor opts for a term of years trust (20 years is the maximum allowable term).

6.5.2

When the University or University Associated Entity will act as trustee of the CRT, a
maximum of two beneficiaries is allowed unless it is a term of years trust.

15

6.5.3

The rates offered on CRTs are based on the projected life expectancies of the
beneficiaries and range from 5% to 7%. The Vice Chancellor for University
Advancement and the Vice Chancellor for Finance and Business must approve any rate
greater than the approved maximum prior to the signing of the trust agreement.

6.5.4

Assets that can be used to establish a CRT depend on the type of trust being
established. Charitable remainder annuity trusts (CRAT) can be funded with cash or
securities only. The charitable remainder unitrust (CRUT) can be funded with cash,
securities, insurance, real property, or retirement plan assets. Personal property cannot
be used to fund either type of CRT at NC State.

6.5.5

Procedure to process charitable remainder trusts:

6.5.5.1 When the University or University Associated Entity serves as trustee of a charitable
remainder trust, the attorney retained by NC State will draft the trust document. Each
University Associated Entity is responsible for paying these legal fees and expenses
from their funds.
6.5.5.2 The GPO is responsible for preparing all supporting documents needed by the donor to
claim their charitable income tax deduction and the transmission of those materials to
the donor with the required disclosure statements.
6.5.5.3 The GPO will provide to the appropriate development officer, FAI, and ADR copies of
all relevant documents pertaining to the gift.
6.5.5.4 GPO will secure the approval and signature of the donor(s), the president or designated
officer of the University Associated Entity or chairperson of the Board of Trustees of
the Endowment Fund of NC State University as well as the treasurer of the
Foundation/Endowment Fund on the trust document.
6.5.5.5 The GPO coordinates the gift, payments to the donors, and the annual tax statements
with the outside firm charged with the management of the planned giving assets.
6.5.5.6 The giving record of the donor will be hard credited with the charitable deduction
allowed under IRS guidelines and their record will be soft credited for the actual value
of their gift.
6.6 The charitable lead trust (CLT) provides an income stream for a specific period of time to
the University or the University Associated Entity. The NC State entity receives the
income from the trust and applies it according to the wishes of the donor. At the
termination of the trust, the remaining principal is returned to the donor or to other
beneficiaries the donor designates.
6.6.1

Neither NC State nor a University Associated Entity will serve as the trustee of these
types of trusts.

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6.6.2

With proper documentation, the donors giving record will be hard credited with the
value of the gifts as received.

6.7 Gifts of life insurance may name the University or a University Associated Entity as
beneficiary of the policy or as both the beneficiary and owner of the policy.
6.7.1

No receipt will be issued to the donor unless the University or a University Associated
Entity is named as both the owner and the beneficiary of the policy.

6.7.2

A receipt for a life insurance policy that is fully paid that names the University or a
University Associated Entity as both the owner and the beneficiary will reflect the
value provided by the insurance company on IRS Form 712.

6.7.3

A receipt for the life insurance policy with premiums remaining to be paid that names
the University or a University Associated Entity as both the owner and the beneficiary
will reflect the value provided by the insurance company on IRS Form 712.

6.7.3.1 Subsequent premium payments may be made annually, semi-annually or can be

automatically debited from the donor's account to the NC State or University
Associated Entitys account.
6.7.3.2 Each payment will be recorded on the donors gift record as an outright gift and a
receipt will be issued to the donor for that payment.
6.7.4

A new policy can also be issued in the name of the University or a University
Associated Entity.

6.7.4.1 Premium payments made by the donor to the University or a University Associated
Entity will be receipted to the donor as an outright gift.
6.7.5

Term life insurance polices will not be accepted.

6.7.6

The date of gift is the date the change in ownership and/or beneficiary designation is
made on the records of the insurance company.

6.7.7

Procedure to process gifts of life insurance:

6.7.7.1 All gifts of life insurance are handled by the GPO and the development officer should
contact GPO for assistance in completing this gift.
6.7.7.2 The gift is reported on a BA-151.
6.7.7.3 The GPO will handle all of the required paperwork to complete the gift, secure the tax
deduction for the donor, and submit the BA-151- and supporting documentation to
ADR who will record the gift in the gift reporting system.

17

6.7.7.4 Copies of all paperwork will be sent to the appropriate development officer, FAI, and
ADR.
6.7.7.5 The GPO will secure the required IRS Form 712 from the insurance company and
prepare IRS Form 8283, when appropriate, and transmit this information to all
interested parties.
6.7.7.6 The donors giving record will be hard credited with a planned gift equal to tax
deductible amount of the gift, and soft credited for the face amount of the policy when
the University or one of the University Associated Entities is named as both the owner
and the beneficiary of the policy.
6.7.7.7 When the policy matures, any excess over the amount recorded as a planned gift will be
counted as an outright gift.
6.8 The University or a University Associated Entity may be named as the beneficiary of
retirement plan assets such as IRAs, 401(k) plans and other retirement plans. Currently,
no charitable deduction is available to the donor when they make this designation.
6.8.1

A receipt will be issued to the donor or their estate when the proceeds are received by
the University or a University Associated Entity.

6.8.2

Donors may choose to transfer retirement assets during their lifetime to benefit the
University or one of the University Associated Entities.

6.8.3

A receipt will be issued to the donor as an outright cash gift to charity or to a life
income vehicle such as a charitable remainder flip unitrust or a deferred charitable gift
annuity. The beneficiary designation should be to the University or University
Associated Entity the donor wishes to benefit using the correct legal name of that
entity.

6.9 In a retained life estate (or remainder interest in a residence or farm) the donor makes an
irrevocable gift by deed of their personal residence, vacation home or farm while retaining
life use of the property. The donor retains full ownership rights and enjoyment of the real
estate until the specified lifetimes or time period has ended; at that point the University or a
University Associated Entity becomes the sole owner of the property.
6.9.1

Procedure to process life estate gifts:

6.9.1.1 The GPO will handle the processing of all retained life estate gifts and prepare the
appropriate transmittals, IRS Form 8283 and tax-related materials for the donor and
send copies to the appropriate development office, ADR and FAI.
6.9.1.2 Transfer is made by deed and the value of the gift is determined by a qualified appraisal
of the property done no more than 60 days prior to the date of gift.

18

6.9.1.3 The original deed should be delivered to the University Real Estate Office for
safekeeping and a copy sent to FAI along with a copy of the BA-151.
6.9.1.4 The donors giving record will be hard credited with the charitable deduction allowed
under IRS guidelines for the gift and soft credited with the appraised value of the real
property.
6.9.1.5 A receipt will be issued to the donor describing the real property that has been donated
and the deduction allowed under IRS guidelines.
6.9.1.6 After the retained life estate terminates, the property may be sold. The sales price is not
considered to be a gift and no gift transmittal should be done at that time.
6.9.1.7 A retained life estate is a gift of real property subject to all policies and procedures
associated with the gifts of real property listed below.
7. Gifts of Real Property (Real Estate)
Gifts of real property include improved and unimproved land, residences, condominiums,
apartment buildings, rental property, commercial property, woodlands, and farms. Gifts of
real property can be valuable assets for furthering the missions of NC State University by
enhancing the delivery of high quality teaching, research, and extension and engagement
activities and programs. However, gifts of real property can create financial, legal and
logistical obligations for the University, particularly if the gift is provided with the
expectation or condition that the University retains the gift for extended periods, for
specific purposes, or in a specific condition.
7.1 Any gift of real estate must meet the criteria set out below.
7.1.1

Gifts of real property must benefit the University in at least one of the following ways:

7.1.1.1 Programmatic purpose. Gifts of real property may be accepted to advance the
programs of the University (teaching, research, and extension and engagement) either
as the location for specific programs or as long-term sources of income to support
programs.
7.1.1.1.1

Location for specific programs. Gifts of real property may be accepted if the
property provides a direct enhancement for a particular program (e.g., land or
facility for a research site, demonstration area, field teaching laboratory, or public
education site). In these cases, the specific gift must provide a unique opportunity
or other advantage that could not be achieved by using resources owned by others
(e.g., long term research and the ability to generate grants in support of existing
research often depends on the ability to assure that land use will not change over
time and that research will not be compromised by the disturbance of research areas
that must be maintained as undisturbed sites; University ownership may better
support this objective than a short term or long-term lease of land).

19

7.1.1.1.2

Generation of income for programs. Gifts of real property may be accepted that
generate income to support programs financially (e.g., facility rental, contract
farming, timber management). The University must also have a programmatic
interest in the property to accept such income producing gifts (e.g., a working forest
that can demonstrate leading-edge forest practices may also produce income to
support those programs through planting, culture and harvesting of trees; a site at
which students serve internships required by their academic program in which
public programs are held may also produce income to support those programs
through admission prices or rental for special events).

7.1.1.2 Real property to be sold. Gifts of real property may be accepted for immediate sale or
short-term retention in anticipation of sale for purposes of providing funds to support
other University objectives.
7.1.1.3 Other institutional purposes. Gifts of real property may be accepted if the gifts are
determined to be valuable assets to the University for other appropriate purposes (e.g.,
serving as a potential site for a University facility, serving as a potential site for a
cooperative venture with another state agency, being part of a major grant submission,
adding to the cultural richness of the University, permitting the retention of farmland or
open space, or historical-site conservation).
7.1.2

Gifts of real property that are programmatically advantageous must be accompanied by

endowed funds, a revenue generating mechanism, or some other explicit financial plan
to support the maintenance of the gift and the fulfillment of the programmatic purpose.

7.1.3

Gifts of real property must be accompanied by an express understanding that the

property may be sold by the University at the Universitys sole discretion at any time.

7.2 Procedures for Review of Proposals for Accepting Gifts of Real Property:
7.2.1

Submission of Proposal. Any proposal for the acceptance of a gift of real property
must be in writing and contain a description of the specific criteria that supports
acceptance of the gift and identify whether the gift will be held by the State of North
Carolina, the University Endowment Fund of NC State University, or a University
Associated Entity.

7.2.1.1 Proposals to accept gifts of real property that support programmatic goals also must
address the following:
7.2.1.1.1

The immediate and long term potential for the gift to support one or more specific
programs.

7.2.1.1.2

The faculty/staff and programs that the gift would support.

7.2.1.1.3

The uniqueness or special value of the gift to support the identified programs.

20

7.2.1.1.4

A proposed financial, management, and maintenance plan for the property and the
programs that will occur on it.

7.2.1.1.5

Specific criteria to be used over time to evaluate the success of the proposed
program and whether or not the program should be continued, and to enable a
judgment as to whether the property should be retained, used for another purpose,
sold or transferred to another owner.

7.2.1.2 Proposals to accept gifts of real property that may generate income to support programs
also must include a business plan that addresses the following:
7.2.1.2.1

The intended use of the gift.

7.2.1.2.2

The relation of the gift to a programmatic interest of the University.

7.2.1.2.3

A logistical plan for managing the property.

7.2.1.2.4

The expected annual net returns to the University over the expected retention period
of the property.

7.2.1.2.5

The identification of a source of funds to cover expenses incurred while holding the
property until it becomes income generating.

7.2.1.2.6

Specific criteria to be used over time to evaluate the proposed business plan to
enable a judgment as to whether the property should be retained, used for another
purpose, sold or transferred to another owner.

7.2.1.3 Proposals to accept gifts of real property to be sold for proceeds to support other
University objectives also must include the following:
7.2.1.3.1

A plan for sale and immediate management of the property.

7.2.1.3.2

The identification of a source of funds to cover expenses incurred while holding the
property until it is sold.

7.2.1.3.3

A description of the anticipated net proceeds to be realized from the sale and the
proposed use of such proceeds.

7.2.1.4 Proposals to accept gifts for other institutional purposes must include all of the
information indicated in this section, and be supported by a compelling rationale for
acceptance of the gift.
7.2.2

The Proposal must be approved by the applicable department head/program director

and college dean/vice-chancellor and sent to the University Real Estate Office.

7.2.3

The University Real Estate Office shall evaluate the proposal relative to financial,
environmental and other general property-related considerations and after due diligence

21

make a recommendation to the Vice Chancellor for University Advancement and the
Vice Chancellor for Finance and Business. The Office of General Counsel is available
for consultation on potential legal issues pertaining to the property.
7.2.4

Upon approval of the Vice Chancellor for University Advancement and the Vice
Chancellor for Business and Finance, the gift of real property may be accepted.
Acceptance of any real property to be owned by the Endowment Fund of NC State
University, the State of North Carolina, or a University Associated Entity requires
subsequent approval by the appropriate entities.

7.3 The Chancellor may make exceptions to the criteria set forth in this regulation after
consultation with the executive officers.
7.4 Procedure for routing a request to accept gifts of real property:
7.4.1

The development officer working with the donor should contact the University Real
Estate Office and the GPO for the required items to begin a review of a potential gift of
real property.

7.4.1.1 Information that will be required includes: the current deed and property description;
determination if property is a townhouse or condominium; recent property tax bill,
most recent survey and map of the property; information regarding known easements,
restrictions, covenants, zoning information, right-of-way, conservation easements;
current or former uses of property; copy of current leases, mortgages, liens,
assessments, homeowner association agreements; most recent appraisal, environmental
study or report; listing of any litigation, pending litigation, disputes, issues with
neighboring developments; and, any disclosures or known issues.
7.4.1.2 Real Estate Acceptance Review Process:
7.4.1.2.1
7.4.1.2.2
7.4.1.2.3
7.4.1.2.4

7.4.1.2.5

7.4.1.2.6

Initial site visit conducted by representative of the Office of Real Estate, the
development officer and/or representative of the Office of Gift Planning.
At donor expense, a current appraisal conducted by certified independent appraiser,
approved by the Office of Real Estate, is required.
On behalf of the University or University Associated Entity, a full title search by
legal counsel at the expense of the University or University Associated Entity.
On behalf of the University or University Associated Entity, a Phase One
environmental impact study unless, at the determination of the Office of Real
Estate, the property is historically residential property with no history of known
environmental issues. The study is an expense of the University or University
Associated Entity.
On behalf of the University or University Associated Entity, if residential property
is being gifted, a full home inspection will be conducted; or, if commercial property
is being gifted, a full building/site inspection will be conducted. The inspection is
an expense of the University or University Associated Entity.
Any expenses noted in 7.4.1.2.3, 7.4.1.2.4, or 7.1.4.1.5 that the University or
University Associated Entity (as recipient, trustee of a charitable remainder trust, or

22

7.4.1.2.7

7.4.1.2.8

via retained life estate) wishes the donor to accept must be confirmed in a written
agreement signed by the donor.
If real property is being gifted to a charitable remainder trust for which the
University or University Associated Entity will serve as trustee, a full written plan
for disposition, marketing, or property management will be submitted before
acceptance. The written plan will be prepared by the development officer and the
Office of Real Estate.
If real property is being gifted via estate devise (bequest), it is imperative that the
Office of Real Estate and Office of Gift Planning be notified immediately since real
property (under North Carolina law) is deemed to pass as of the date-of-death of the
decedent. The University or University Associated Entity has only nine months to
disclaim the devise should there be any problems where the University or
University Associated Entity would not wish to or be unable to accept the gift.

7.4.1.3 If the property is to be held for any reason, it is the responsibility of the development
officer to secure the written documentation required and deliver that to the University
Real Estate Office.
7.4.1.4 The University Real Estate Office will deliver their report on the property and their
recommendation to accept or reject the gift to the GPO.
7.4.1.5 The GPO prepares the real estate gift acceptance recommendation and attaches that to
the report from the University Real Estate Office and secures the approval or
disapproval from the Vice Chancellor for University Advancement before delivering
the gift acceptance form to the University Treasurers Office.
7.4.1.6 The University Treasurer, after review of the gift acceptance form, secures the
approval/disapproval of the Vice Chancellor for Finance and Business before returning
all documents to the GPO.
7.4.1.7 The GPO sends a copy of the gift acceptance form to the University Real Estate Office
and to the development officer working with the prospect.
7.4.1.8 The gift is processed on a BA-151 prepared by the GPO after the deed to the University
or a University Associated Entity is received. The BA-151 is sent to ADR with a copy
of the deed and the qualified appraisal of the property. Copies are sent to FAI and the
development office working with the donor.
7.4.1.9 The receipt issued will show a description of the property only. The donors giving
record will be hard credited with the appraised value of the real property.
7.4.1.10 The GPO will prepare the IRS Form 8283 for signature by the Treasurer of the
University or the University Associated Entity. This will be sent to the donor along
with the receipt with copies to the development office working with the donor.
7.4.1.11 If the property is sold within the time required by the IRS in relation to the date of
gift, IRS Form 8282 must be filed with the IRS within 180 days of the sale. Either the

23

University Treasurer (for gifts to foundations FAI manages) or the University

Controller (for University gifts) will prepare the form and send it to the IRS with a copy
to GPO for transmission either directly to the donor or for the development office
working with the donor to forward to the donor.
7.4.1.12 At the time the real property is sold, no adjustment will be made to the donors
giving record, as the gift was complete when the donor deeded the property.
8. Gifts that warrant further review and approval by the Vice Chancellors
8.1 Gifts of personal property if they are not to be used by the University.
8.2 All gifts of real or personal property subject to donor restrictions regarding the disposal of
such property.
8.3 Any bargain sale of property where a gift element is associated with the acquisition of
property by the University or University Associated Entity below its fair market value.
8.4 Cash gifts with significant donor restrictions.
8.5 All gifts of unusual items or gifts of questionable value.
8.6 All gifts that require additional expenditures by the University or a University Associated
Entity.
8.6.1

Development officers should contact the GPO for assistance with gifts in this category
as all will require prior approval by the Vice Chancellors for University Advancement
and Finance and Business.

9. Refunding of Gifts
9.1 Very rarely, the University or a University Associated Entity may feel it necessary to
refund a gift, either because it is in the best interest of the University or University
Associated Entity to do so or because conditions agreed to in accepting the gift cannot or
will not be met. A request for the refund must be sent to the Vice Chancellor for University
Advancement for approval prior to making a commitment to the donor. If approved, the
request must be sent to ADR by the University or University Associated Entity as a gift
reversal. ADR will forward the request to FAI and the donors giving record will be
adjusted for the refund by ADR.
9.2 If the donor has filed a tax return claiming a charitable deduction for the gift, they will need
to contact their tax advisor to determine if they need to amend their tax return.
10. Discounts on Materials and Services
10.1
Corporations and/or individuals may offer significant discounts on materials and/or
services to the University or one of the University Associated Entities.

24

10.2
The entity receiving the discount on materials and or services may, at it discretion,
send a letter of acknowledgement to the donor.
10.3
No official receipt will be issued as this is not considered to be a gift under IRS
guidelines. The donors giving record will not be credited. The only exception permitted
would be those donations qualifying as bargain sales as described in IRS Publication 526.
11. Gifts from University Faculty and Staff
11.1
Gifts from faculty and staff of North Carolina State University must meet the
following three criteria in order to be deductible for tax purposes:
11.2

Charitable intent should be the primary reason for making the contribution.

11.3
The contribution must be credited to a fund not under sole control of or does not
personally financially benefit the donating faculty or staff member.
11.4
The faculty or staff donor should not receive or expect to receive future
remuneration from the fund to which their gift was credited. Examples of deductible gifts
would include signing an honorarium check over to the department and that faculty
member not having control over the receiving fund (this is taxable income to the faculty
member as well), making a stock donation to fund a life income gift to ultimately benefit a
University-wide scholarship endowment, or donating equipment or materials for use by the
department.
12. Other types of income that will not be accepted as gifts by the University and
University Associated Entities
12.1

Advertising income.

12.2

Alumni membership fees and dues.

12.3

Appraisal costs.

12.4

Contract revenues.

12.5

Contract services.

12.6
Discounts on purchases, such as the common practice of offering education
discounts, but not to be confused with bargain sales, which are acceptable gifts.
12.7

Earned income.

12.8

Reimbursement of expenses associated with transferring a gift to the University.

25

12.9
Gifts to social organizations such as sororities or fraternities, even if they are
affiliated.
12.10
Government funds whether local, state, federal or foreign. This includes
disbursements from Indian Tribal Governments and their private enterprises.
12.11
Monies received as result of exclusive vendor relationships, such as pouring
rights.
12.12

Non-gift portions of quid pro transactions.

12.13
Proceeds from sale of merchandise, unless the merchandise is sold as part of a fundraising program and the charitable portion of the gift transaction is clearly identified.
12.14

Royalties for affinity agreements.

12.15
Instances where there is a stipulation that a specific student be the recipient of a
scholarship or tuition funds.
12.16
Memorials that are not intended to remain with the entity to support University
programs. For example, requesting memorial gifts for scholarship funds that will belong to
the minor children of the deceased.
13. Related Material
1. Acquisitions and Dispositions, REG07.50.1
2. Coordination of Fundraising Activities and Acceptance of Private Donations
(Gifts)POL03.00.1
3. Authority of the Vice Chancellor for Business and Finance, POL01.20.2
4. Endowment and Minimums for Naming Rights
5. CASE Reporting Standards & Management Guidelines, 4th Edition
14. Attachments
1.
2.
3.
4.
5.
6.
7.
8.
9.

Gift Transmittal
Letter of Instructions, stock/mutual funds
Gift of Securities Transmittal
IRS Form 8283
IRS Form 8282
BA-151 (2011 Revision)
Other Income form
Pledge Transmittal
Deferred Gift Transmittal

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Addendum
Instructions for Completing a BA-151
The Office of University Advancement is charged by the Chancellor with the primary
responsibility for collecting donor information on all gifts to the University so that giving totals for
the entire University can be reported, maintaining one central database for donor records and
providing donors with the appropriate receipt for income tax filing purposes. Effective January 1,
1994, federal law requires charities to provide donors with receipts containing specific information
in order for the donor to take a tax deduction for charitable gifts. Failure to provide this receipt can
result in stiff penalties for the charity. Since many of these gifts to NC State come directly to a
college or department, it is important that any unit receiving a gift directly follow this procedure,
in order to protect both the donor and the University. The following statement provides procedures
for reporting these gifts to the Office of University Advancement.
Outline of form BA-151
Note: All forms are to be typed or printed so that they can be easily read.
Form BA-151, Notification of Gift, may be obtained from the Office of University Advancement,
Box 7501, Rm. 12 Holladay Hall.
Section I: Donor Information
This section must be completed in order to insure that credit is awarded to the appropriate donor.
Correct address information is required in order to provide the donor with a timely receipt. In the
case that the donor is an organization, the name and title of the person who is the contact for the
organization is required.
Section II: Gifts of Cash
Part A: General Description
This section is required and must be completed in full in order to insure that the donor receives the
proper credit. The Financials Project# requested is the Financials Project# to where the gift will be
deposited. The departmental contact and extension should be the person preparing the Form BA151.
Part B: Purpose/Use of Gift
One of the spaces in this section must be marked in order to complete the Form BA-151. If the
section titled "Other:" is marked, please provide a brief description of the purpose or intended use
of the gift.
Section III: Gifts of Property

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For proper handling of all gifts of property (non- cash gifts) this section is required and must be
completed in full. The value of the gift of property is required and may be approximated by a
qualified individual in the area receiving the gift.
Section IV: Receipt Information
Federal law requires NC State to obtain and communicate certain information regarding gifts made
to the University and its affiliates to its donors. The information in this section is required and
must be completed in full in order for NC State to be in compliance with the law.
Please keep a copy of Form BA-151 for your records. The white original and gift deposit are to be
forwarded to:
Office for University Advancement
Attention Gift Processing
Box 7004 NCSU Campus
All gifts of cash or property received by NC State or any of its affiliates must be reported to the
Office for University Advancement within 5 working days using the Notification of Gift Form
(BA-151). For deposits made by departments to appropriate gift accounts with object code 0269,
please attach a copy of donor's check.
All cash gifts for an established endowment fund are to be delivered immediately upon receipt to
the Office of University Advancement. The gift must have attached the Notification of Gift Form
(BA-151).
All cash gifts for endowment for which no endowment fund has been established must be
delivered immediately upon receipt to the Office of University Advancement for processing. The
gift must have attached the Notification of Gift Form (BA-151).
Procedures for Proper Notification of Gift Receipts:
Gifts of Cash Deposited with University Cashier:
Fully complete the Notification of Gift Form (BA-151) along with a University Deposit Slip (see
section A, statement 4.0 for instructions on the University Deposit Slip). Deliver Form BA-151 to
the University Cashier's Office along with the deposit. Proper completion of Form BA-151 is
required in order to deposit a gift.
Gifts of Cash for Endowment Funds:
Fully complete the Notification of Gift Form (BA-151) and deliver immediately, along with the
gift, to the Office for University Advancement.
Gifts of Property:
Fully complete the Notification of Gift Form (BA-151) and deliver immediately, along with the
gift, to the Office for University Advancement. Please make sure a value of gift is complete. The
gift cannot be processed without an amount to enter.

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