Gift Policy and Procedures

The purpose of this policy manual is to provide guidelines for those who represent PCC and its Foundation in their philanthropic endeavors. The policies and procedures set forth in this manual apply to all fund raising activities in the name of the College and its Foundation.

FUND RAISING ACTIVITY
All efforts within Pratt Community College to raise funds from nongovernmental, private sources (corporations, foundations, trusts, alumni, parents, and friends) for annual, capital, scholarships, and planned giving programs whether restricted, unrestricted, or designated will be coordinated by the PCC Administration/Foundation Executive. It is the goal of the College and its Foundation to coordinate all fundraising activities for PCC capital and scholarship related fundraising activities. This is necessary to avoid the simultaneous approach to donors for funding, avoid adverse gift restrictions and to protect the donor’s gift intent. Successful coordination of fundraising eliminates confusion, duplication of efforts, embarrassment to PCC and/or the Foundation and adverse donor relations. Donors expect the College/Foundation to determine its own priorities and take a single, coordinated approach to raising funds.

Within the framework of PCC Board of Trustees, the administration and the Foundation, the PCC Director of Development/Foundation Executive Director will consult with those who wish to approach a funding source for a major gift ($5,000 or higher) and determine the appropriate timing. Institutional priorities and the history of the particular donor’s interest will be considered.
Proposals to solicit funding from governmental sources involving matching funds must be pre-approved by the PCC administration or Board. Notification and strategy sessions should be held with the PCC administration/Foundation Executive Director prior to the submission of all proposals.

GIFT ACCEPTANCE POLICIES
In accepting gifts, the PCC Foundation values and protects its integrity, its independence, and its tax exempt status as does the college value and protect its integrity and reputation in the community.
Gifts will only be sought for purposes, positions, and programs which already have the approval of the PCC president and/or the PCC Board of Trustees. All student fundraising activities to be conducted by PCC unless otherwise noted require pre-approval of the college’s Vice President for Students/Enrollment Management.

Gifts may be sought from individuals, corporations, foundations, any governmental agency, as well as from foreign governments. Whenever it appears that a gift, because of its source, its conditions, or its purpose, could expose the College and/or the Foundation to adverse publicity, extend College/Foundation resources beyond their strength, jeopardize the Foundation’s tax exempt status or involve the Foundation or the College in new and unexpected responsibilities, prior to final acceptance of the gift, the matter shall be referred to the Director of Development/Foundation Executive Director. The director will then consult with the College President and/or the Foundation Chairperson. Because of federal legislation, it is especially important that gifts-in-kind have prior approval of the President or Board of Trustees before they are accepted. Such approval is based on their use within or value to PCC.

The Pratt Community College Foundation has delegated the authority to solicit and accept gifts to the Executive Director, and in the appropriate cases, will accept them personally. The Board of Trustees delegates similar authority to the President. When the gift has implications which could have widespread considerations for the Foundation, the Foundation’s Executive Director will withhold approval pending a review by appropriate experts, a College vice president/athletic director and the PCC President.

While donors often wish to specify the general purpose for which the gift is given, the College/Foundation will not accept gifts which are too restrictive in purpose or which do not support its stated purpose. The College/Foundation will not accept a gift which bears with it an offensive discrimination based upon race, religion, or sex. Additionally, the Foundation will not accept a gift which may jeopardize its tax exempt status.

PROTECTION OF DONOR(S) INTEREST
The task of the College Administration and Foundation members and staff shall be to inform, serve, guide or otherwise assist the donor(s) in fulfilling their philanthropic wishes.

In all matters involving donor(s) or prospective donors, the interest of the donor shall come before that of the College/Foundation or its entities. No program, trust, contract or commitment shall be urged upon any donor(s) or prospective donor(s) which would benefit the College/Foundation at the expense of the donor’s interest. No agreement shall be made between the College/Foundation and any agency, person, company or organization on any matter which would knowingly jeopardize the donor’s interest.

LEGAL COUNSEL
The College Administration/Foundation shall seek the advice of its legal counsel in all matters pertaining to its planned giving program and shall execute no agreement, annuity contract, trust or other legal document to which it is a party without the review and recommendation of its legal counsel. Further, all prospective donor(s) shall be advised, and in all cases urged, to seek the counsel of their attorney on all aspects of their proposed gift, whether by bequest, trust agreement, annuity contract, or other. They shall particularly be advised to consult their attorney on all matters relating to the tax planning of a gift and matters relating to estate planning.*

* Promotion of gift and estate planning concepts by College/Foundation staff are for educational purposes only. Preparing and completing a gift plan is a team process. The College/Foundation encourages donors to seek independent professional advice from qualified advisors. All illustrations and calculations provided are for informational purposes only. The College/Foundation is not practicing law, accounting or investment management by providing this information.

The most useful kinds of support for the College/Foundation are funds with as few restrictions as possible. Unrestricted funds enable the College/Foundation to support the most pressing college needs with appropriate funding. Thus, unrestricted funds for operating expenses and for unrestricted endowment are the most desirable. Funds designated for the support of a particular department, program, or activity within the College are sought without regard to the size of the contribution.

GIFT OPPORTUNITIES
Members of the Foundation Board and the College Administration are familiar with the following types of gift opportunities which are of frequent interest to potential donors. While not exhaustive, this list covers a wide range of possible gift options. No gift is too small, and likewise no gift is too large.
The amounts quoted are for specific programs and activities. Donors, if they wish, are recognized for their gifts large or small, because every gift increases the impact of the Foundation and benefits the College.
A. Unrestricted Operating Funds
The College actively seeks, and very much needs, unrestricted funds for scholarships and other complimentary purposes. Without such funds, the College would not be able to sustain its enrollment
The College/Foundation provides several forms of recognition to donors based on their preference. All gifts of $5000 or more are added to the Memorial Board displayed in the main hallway of the Administration building. Other types of recognition may occur based on the impact of the donation
The Foundation has two types of endowment funds, i.e., general (unrestricted) and specific (restricted) endowment funds.
B. Unrestricted Endowment Funds
The income from unrestricted endowment funds is available for selected scholarships and selected activities and projects that support the College mission. Unrestricted endowment funds are pooled for investment by the Foundation and income is credited as determined by investment policy of the Foundation Board.
An unrestricted endowment fund named to honor the donor or some other person or persons, according to the wishes of the donor, may be established with a gift of $25,000 or more. Once established the same fund may be increased by means of additional gifts of any amount at any time.
C. Restricted Endowment Funds
A restricted endowment fund supports a purpose, program, department, or activity according to the wishes of the donor. It should be consistent with the mission, goals, purposes and plans of the College/Foundation.

TYPES OF RESTRICTED FUNDS
Six types of restricted endowment funds are explained below. The variety of purposes and giving levels of specific endowment funds is designed to appeal to a broad range of donors. Endowment funds that do not fit these categories may be established with the approval of the Foundation Board of Directors if they are deemed beneficial to the college after discussion with the President. In this case the minimum gift to establish a restricted endowment fund not explained below will be $25,000.

  1. 1. Naming Gifts - Memorial and honor endowments are established in honor of individuals who have made significant contributions. These endowments will be named after them. Most memorial or honor funds will be restricted funds and investment income will be applied to the projects specified by the individual establishing the fund. When unrestricted funds are received as named gifts the proceeds will be applied to projects selected by the Foundation and the Board of Trustees. Some special cases warrant the creation of named funds in anticipation of future gifts totaling the minimum required amount. In these cases, the newly created funds will be classified as temporary specific purpose accounts until the contribution total exceeds the required minimum amount or until the Foundation Executive Director and the College President determine that the likelihood of receiving the minimum is remote and permanently classify the fund as temporary and remove the name. In order to protect the integrity and reputation of the Foundation, all naming gifts must be approved by the Board of Directors. However, the Executive Director or Board designee has the authority to negotiate potential naming grants. Posthumous commemoration is the preferred naming option for individuals. If commemoration of a living individual is desired, approval of the Board of Trustees/Foundation Board of Directors is needed. The Board of Trustees reserves the right to remove the name of any individual, living or dead, whose character or reputation casts a poor reflection on itself or the College. Generally, cash gifts and multi-year cash pledges may be used to provide the funds necessary for a naming opportunity. However, some special circumstances will allow for the use of deferred gifts (charitable trusts and annuities) to name a facility today even though the gift proceeds will not be available for some time. Supporting documentation from the donor must be on file with the Foundation Executive Director/Director of Development. Deferred gifts can only be used for this purpose if there is no expressed provision in the document for the donor(s) to reserve the right to change the College/Foundation as a charitable beneficiary.
    1. Charitable Remainder Trusts - The present value of the Foundation remainder interest (the calculated amount of the current income tax deduction multiplied by the Foundation’s proportional share of the remainder) meets or exceeds the minimum amount needed for the naming opportunity.
    2. Charitable Lead Trusts - The present value of the future income stream to the Foundation from the lead trust meets or exceeds the minimum amount needed for the naming opportunity.
    3. Charitable Gift Annuities - The present value of the remainder interests (the amount of the income tax deduction) meets or exceeds the minimum amount needed for the naming opportunity.
    4.  Deferred Payment Gift Annuities - May not be used for naming gifts until funds have been received from the donor.
    5. Life Insurance Gifts - May not be used for naming gifts until funds have been received from the estate.
    6. Gifts of Personal Property (collections, art, coins, collectibles) - Personal property may be used for naming opportunities only after the actual sale of the property yields enough proceeds to meet or exceed the minimum amount needed for the naming opportunity.
    7. Present Value of a Future Bequest - May not be used for naming opportunities due to the revocable nature of a bequest
  2. Endowment for General Use Funds - Unrestricted funds will be placed in this account. The proceeds coming from this endowment will be applied to scholarships and projects supported by the College/Foundation.
  3. Construction and Major Renovation Funds - Gifts given to name buildings, floors, labs, areas, rooms, and other physical plant entities are encouraged and desired. To protect the integrity of named facilities, an acceptable guideline, though not mandatory, would be that the total monetary contributions of the donor, at the time the name is under consideration, equal approximately 25 percent of the value of the facility under consideration. In all cases, the final decision rests with the Board of Trustees who will determine the actual gift amount.
  4. Scholarship Fund - Restricted funds given to promote and encourage individuals to attend PCC will be accumulated in this Fund. Application for these funds will be handled through the College Director of Financial Aid.
  5.  Project Funds - Support for special educationally related projects would be included in this fund.

METHODS OF GIVING
A variety of giving methods for the College/Foundation allows donors to choose the most advantageous way. The College/Foundation endeavors to present concepts which provide the donor with a benefit, current or deferred, as well as making provision for the charitable needs of the community. With the permission of the donor all such gifts will be accepted through the PCC Foundation which is recognized by the PCC Board of Trustees as the college’s official fundraising entity.

  1. Gifts of Cash or Securities: The College/Foundation welcomes gifts in the form of cash (checks) or marketable securities. Checks should be made payable to the PCC Foundation. Gifts of securities may be made by contacting the Foundation Executive Director. Securities also may be transferred to the Foundation by transfer agent who then delivers them to the Foundation Treasurer/Vice President for Finance & Operations.
  2. Planned Giving: Planned giving allows a donor to make a gift commitment to the College/Foundation but to delay delivery of the final benefit of the gift until a later time. Some types of planned gifts result in lifetime incomes for the donor and/or other beneficiaries. Donors may receive a reduction of income taxes, capital gains taxes and estate taxes as a result. Planned gifts may be made through: a bequest; charitable remainder trust, gift annuity, and deferred payment gift annuity; making the Foundation the beneficiary and owner of an insurance policy; gifts of remainder interests in a personal residence, farm or other real property; and charitable income trusts. It should be noted that the laws governing such gifts are subject to revision and it is therefore extremely important that the Foundation Executive Director/Director of Development has up-to-date information on the tax consequences of such benefactions.
  3. Gifts of Real Estate: The College/Foundation welcomes opportunities to explore with donors gifts of real estate. It should be noted that by Kansas law, the College cannot own property outside of Pratt County. Such a donation will be channeled through the Foundation. Some donors may wish to give real property to the Foundation and retain a life interest for themselves and/or spouses. Such gifts may benefit both the donor and, ultimately, the College/Foundation. Real estate, under certain conditions, may be used to fund a life income trust whereby the donor retains a life income interest in the earnings of the trust. Gifts of real estate can often bring a significant gift within the reach of many donors. Real estate gifts requiring a Foundation commitment to expend funds for land and/or site development and general on-going usage must have the approval of the Foundation Board and the PCC Board of Trustees if located in Pratt County, prior to acceptance.
  4. Gifts of Art and Other Tangible Personal Property: In general, the College/Foundation may receive gifts of art and other tangible personal property, such as antique furniture, rare books, and collections. A donor’s charitable deduction may be reduced somewhat if the gift is not consistent with the programs and activities of the College/Foundation. For this reason, and to ensure the donor’s satisfaction with the College/Foundation’s use or disposition of the gift, prior consultation with the Foundation Board and/or the PCC Board of Trustees is necessary. The most recent Internal Revenue Service regulations concerning such gifts should be consulted and verified before the gift is accepted. The gift terms of any collection should expressly authorize the sale or exchange of those items which duplicate items owned by the College/Foundation or of items subsequently deemed inappropriate or not useful to the College/Foundation. The proceeds from any such sale would be applied according to the original objectives of the donor.
  5. Tax Benefits to Donors of Property: The tax benefits available to a donor for a gift are determined by their appropriate sections of the U.S. Tax Code and applicable regulations and rulings. For nearly every type of gift, a donor is entitled to a charitable deduction for the full fair market value of the gift. To establish the most valid market value for gifts of real estate and tangible personal property, an appraisal should be rendered by licensed independent appraiser retained by the college when the gift is made directly to the college. The most recent IRS regulations should be consulted. When a donor elects to give property on which he or she would realize a long-term capital gain if sold, including gifts of securities, it is usually unwise to sell the property and give the proceeds to the College. In such instances, it is usually more beneficial to the donor to give the property to the Foundation. In the case of property on which a donor has incurred a capital loss, particularly securities, it is usually more advantageous for tax purposes to sell the property and give the proceeds to the Foundation.
  6. Annuity - Trusts: Annuities and trusts will be marketed as different ways to support the College through the PCC Foundation. Appropriate legal counsel will be utilized to formalize these agreements. It is the intent of the College/Foundation to use local accountants and attorneys when possible in conjunction with the legal counsel of the PCC Foundation.

GIFT PROCESSING PROCEDURES
Procedures to transmit, process, and acknowledge gifts have been established to aid recipients of gifts in thanking donors and to provide proper gift recording.

A. Transmitting Gifts to the Pratt Community College Foundation

When a solicitation results in a gift to Pratt Community College or the Foundation or when an unsolicited gift is received, the recipient of the gift should forward the gift on the same business day as it is received to the Foundation Treasurer’s office or to a designated location. That location is the PCC Vice President for Finance and Operations.

Each gift transmitted to the College/Foundation should be accompanied by a copy of all correspondence pertaining to the gift, including the envelope that has the donor’s return address if it is not reflected on their correspondence or check. The following information must accompany each gift:

  • the name and address of the donor
  • the classification of donor (e.g., booster, memorial, etc.)
  • the date, amount and form of the gift (check, securities, etc.)
  • the purpose of the gift (supported by correspondence from the donor or verification of the donor’s intent or gift restrictions)
  • the name of the individual who is acknowledging or should acknowledge the gift (e.g. College President, Foundation Chairperson, Foundation Executive Director)
  • the name of the person who transmits the gift
  • any other pertinent written or oral expressions of intent

The following procedures will be used to ensure maximum security when transmitting a gift to the Foundation:

  1. Checks payable or endorsed to the PCC Foundation/College shall be directed to the Foundation Treasurer/Vice President for Finance & Operations office
  2. Cash and securities shall be hand carried to the Foundation Treasurer’s/Vice President for Finance & Operations office.

B. Processing and Acknowledging Gifts
Once a gift is transmitted, the Foundation office records the gift as received and enters it into the gift file. The Foundation is responsible for crediting the appropriate account based on gift information provided by the donor and/or the person who received the gift.

Gifts are acknowledged by receipts signed by the PCC President, the Foundation Chairperson, or the Foundation Executive Director at the earliest opportunity. When gifts of real property are given the acknowledgement will include a description of the gift and an independent appraisal.
In the case of memorial gifts, a letter mentioning the name of the donor is sent to the family of the deceased. A letter shall also be sent to the donor expressing appreciation and informing him/her that a letter has been sent to the family of the deceased. A similar procedure shall be followed for honorariums.

CONCLUSION
The guidelines in this manual will not meet every case and contingency that may arise. Further information on the suitability of a planned approach to a donor should be sought from the PCC Foundation Executive Director or Treasurer/Vice President for Finance & Operations. Any and all written agreements between the College and a donor must first be reviewed by legal counsel and approved by the Board of Trustees before the gift can be officially accepted.

Revision Dates: 07-16-2018, 10-17-2016, 03-21-2005.

Policy Number: 

4-10

Policy Type: 

Board Policy

Adoption Date: 

Monday, December 16, 2002

Review Date: 

Monday, July 20, 2020

Revision Date: 

Monday, July 16, 2018