CHARITABLE FUNDRAISING
ctive: September 15, 1987
sed: February 1996
Page 1 of 5
The University of Tennessee maintains and promotes an aggressive program to secure
gifts and grants from private sources. Gifts and grants from alumni, friends, corporations
and foundations are sought to enhance programs at all campuses of the University. The
UT Health Science Center Office of Development and Alumni Affairs serves the
University by providing a systematic and coordinated approach to fundraising efforts for
the Memphis campus.
University-Wide fundraising activities are coordinated by the Vice President for
Development, who reports to the President. Campus activities are coordinated by the
campus Vice Chancellor for Development and Alumni Affairs, who reports to the
campus Chancellor and maintains a programmatic relationship with the University-Wide
Development Office. Charitable fundraising activities include programs which are
established to solicit annual gifts, special gifts, deferred/planned gifts, corporate gifts, and
foundation grants.
The University of Tennessee Health Science Center encourages and wishes to assist
faculty and staff in seeking private support to maintain the excellence of its programs in
health professional education, biomedical research, public service, and patient care. The
achievement of private support for The University of Tennessee Health Science Center
requires the involvement and encouragement of all members of the University
community. Faculty, staff, and students are in a position to influence the public image of
the University and, thus, to secure private support. Those directly involved in the
University's mission are best prepared to communicate both accomplishments and needs.
POLICY
To ensure that the institution and its priorities are properly represented in all appeals for
private support and that individual unit needs are balanced with the overall needs of the
institution, solicitation of gifts or privately-funded grants by anyone for the benefit of UT
Health Science Center requires prior approval of and coordination by the Office of the
Vice Chancellor for Development and Alumni Affairs. The Vice Chancellor for
Development and Alumni Affairs will review all plans to raise funds from private sources
prior to their initiation. Additionally, formal major campaigns may require the approval
of the Chancellor and the concurrence of the Vice President for Development. The UT
Health Science Center Office of Development and Alumni Affairs will coordinate these
approvals.
Grant requests to foundations and corporations which incur an obligation on the part of
the University to provide a benefit to the grantor are not requests for charitable gifts and,
thus, are not covered by this policy.
PROCEDURES
I. General
The UT Health Science Center Office of Development and Alumni Affairs reports to the
UT Health Science Center Chancellor and maintains programmatic ties with the
University-Wide Development Office through the Vice President for Development, the
Senior Associate Vice President for Development, and the Associate Vice President for
Alumni Affairs and Annual Giving. This serves to coordinate UT Health Science Center
activities with other University-Wide activities.
The UT Health Science Center Office of Development and Alumni Affairs develops and
implements programs to involve alumni, donors and other constituencies in the
University, keep them informed about the University, and enlist their financial support of
the University. The Office plans and manages overall fundraising activities and strategies
as necessary to ensure that overall University fundraising objectives are fulfilled. In its
role in charitable fundraising, the Office of Development and Alumni Affairs performs
the following functions:
A. Coordinates all types of fundraising programs and activities to ensure
that appeals for support are properly targeted and that excessive appeals to
any one potential source are avoided.
B. Assists in evaluating proposed fundraising approaches in terms of their
appropriateness and potential for success.
C. Assists in the design and execution of all approved fundraising
programs on behalf of the University.
D. Coordinates and manages the solicitation process.
E. Maintains accurate and up to date records on a variety of potential
donors and providers of support.
F. Maintains the official University records on donors and charitable gifts,
using the University-Wide Alumni/Development Information System
(ANDI).
G. Deposits gifts to appropriate accounts and issues official receipts to
donors.
H. Ensures that gifts are appropriately acknowledged.
I. Coordinates the recognition of donors in conjunction with the
University-Wide Recognition Program.
II. Solicitation of Gifts and Grants from Private Sources
The solicitation of private gifts and grants must be coordinated by the Office of
Development and Alumni Affairs
A. Responsibility of Individuals Seeking Private Support. Any individual
seeking to approach a private source should contact the Office of
Development and Alumni Affairs prior to the approach. The individual
should be prepared to assist in identifying prospective donors and in
articulating the case for support. Depending upon the scope of the project
or solicitation, a written plan including a brief description and cost
analysis of the program or project, a budget, and proposed
sources/prospects may be required. All fundraising approaches are subject
to the approval of department heads, deans, or Chancellor as deemed
necessary by the Vice Chancellor for Development and Alumni Affairs. If
a formal major campaign is appropriate, approval of the Vice President for
Development may be required.
B. Responsibility of the UT Health Science Center Office of Development
and Alumni Affairs. The Office of Development and Alumni Affairs will
assist faculty and staff in creating an awareness within the private sector of
the scientific and professional capabilities and financial needs of UT
Health Science Center and will formulate and implement plans through
which the private sector may assist in supporting the University's mission.
The Development and Alumni Affairs staff will work closely with faculty
and staff to identify and evaluate prospective donors and enlist voluntary
leadership as required. The following services are provided:
1. Feasibility studies
2. Prospect research
3. Preparation of proposals and solicitation materials
4. Planned giving services
5. Enlistment of volunteer leadership
6. Solicitation
7. Annual Giving appeals (mail and telephone)
8. Deposit and recording of gifts and grants
9. Acknowledgement and recognition of donors
10. Stewardship
III. Categories and Designations of Gifts/Grants
A. Current Funds and Endowment Funds.
Current funds are those which are intended to be immediately available for
expenditure.
Endowment funds are intended for investment to provide a perpetual
income for expenditure. The principal, or corpus, of endowment funds
cannot be invaded; only the income may be spent. The establishment of an
endowment requires a signed agreement between the University and the
donor(s). The minimum level for the establishment of an endowment at
the University of Tennessee is stipulated in Fiscal Policy Statement 01.
However, levels in excess of the minimum may be required by the college
or campus for various types of funds. The Office of Development and
Alumni Affairs should be consulted regarding specific minimum
endowment requirements.
B. Unrestricted and Restricted Gifts.
Unrestricted gifts are highly valued for their flexibility in meeting a wide
variety of education, research, and public service/patient care needs.
Gifts may be restricted (designated) by the donor for a variety of specific
needs and naming opportunities, such as: professorships, scholarships,
fellowships, research, laboratories, young investigator awards,
distinguished visiting professorships, departmental support funds, and the
libraries.
IV. Acceptance and Evaluation of Gifts
A. Acceptance. Gifts to UT Health Science Center are officially accepted
by the Office of Development and Alumni Affairs, which will seek to
ensure that they meet the definition of a tax-deductible gift as stipulated in
the Internal Revenue Code. To protect the interests of the donor as well as
the interests of the University, the Office of Development and Alumni
Affairs must be consulted prior to acceptance of any gift.
1. Gifts of Cash. Cash is the most common form of gift and includes
currency, checks, money orders, and credit card authorizations.
2. Non-Cash Gifts. While the University is appreciative of the financial
support and goodwill of all donors, special care is required to ensure that
the acceptance of a non-cash gift (sometimes called a gift-in-kind) will not
involve financial commitment or other obligation on the part of the
University that is disproportionate to the usefulness of the gift. The UT
Health Science Center Office of Development and Alumni Affairs should
be consulted when non-cash gifts are offered. Only gifts which can be
converted to cash or which are of actual value to the University can be
considered for acceptance as gifts. Consideration must be given to costs of
delivery, installation, maintenance, insurance, exhibition, storage, etc.
Examples of non-cash gifts are securities, books, equipment, services, and
real estate.
B. Evaluation of Gifts. As a matter of University and Internal Revenue
Service policy, it is always the responsibility of the donor to establish the
value of gifts for tax purposes. In the case of gifts of cash or publiclytraded securities, establishment of the value of the gift presents little or no
problem. However, in the case of other non-cash gifts, establishing the
value can become highly complex and difficult.
The involvement of the University in the appraisal process could result in
the accuracy and objectivity of that appraisal being challenged by the
Internal Revenue Service. Therefore, it is in the donor's best interest that
the University neither provide directly nor be responsible for securing the
services of an appraiser in connection with gifts to the University. Internal
Revenue Service regulations require that certain forms be completed by
the donor and certified by a qualified appraiser as well as by an officer of
the organization receiving the gift.
V. Deposit, Recording, Acknowledgement, and Recognition of Gifts
The Office of Development and Alumni Affairs is charged with the responsibility to
record, deposit, and acknowledge all gifts to UT Health Science Center. This includes
pledges of support as well as gifts of cash, securities, insurance policies, real estate and
other gifts in kind. All gifts and pledges should be directed to the Gift Records Unit of the
Office of Development and Alumni Affairs.
Gifts of cash, securities or other negotiable instruments received by any UT Health
Science Center employee should be delivered to the Gift Records Unit immediately upon
receipt to ensure that deposit, recording, and acknowledgement can be accomplished in a
timely manner.
A. Depositing and Recording Gifts. To ensure that gifts are deposited to
the appropriate account and recorded on the donor's official record, gift
transmittals should include the following information:
1. Name and full mailing address of donors.
2. Purpose of the gift.
3. Gift account to which the gift should be deposited, if known. (All new
gift account numbers are assigned by Business and Finance upon the
authorization of Development and Alumni Affairs.)
4. Original copy of any correspondence accompanying the gift.
The Gift Records Unit will record and deposit all gifts to the University in accordance
with University Fiscal Policy 01 and Procedures Statement 01.
B. Acknowledgement and Recognition.
1. An official receipt is provided to all donors.
2. Appropriate deans/unit heads are informed of gifts and pledges, so that they can send
an acknowledgement to the donor. Special gifts and pledges will also be acknowledged
by the Chancellor and other University officials as appropriate.
3.The Office of Development and Alumni Affairs will ensure that the donor is recognized
as a member of one of the University's Donor Recognition Clubs and Societies as
appropriate.
VI. Donor gift and pledge information is considered confidential and will be treated as
such. Whenever requested, and to the extent legally possible, anonymity of the donor will
be respected and protected both internally and externally.
VII. Detailed and specific information regarding charitable fundraising policies and
procedures is available in the Office of Development and Alumni Affairs.