Charitable Donations to the University (II.B.2)

Volume II: Business and Finance
Chapter B: Gifts
Responsible Executive: President
Responsible Office: Office of the President
Date Issued: January 15, 2016
Date Last Revised: September 5, 2019

TABLE OF CONTENTS

Contacts
Statement of Policy
Reason for This Policy
Individuals and Entities Affected by This Policy
Exclusions
Responsibilities
Definitions (defined terms are capitalized throughout the document)
Related Documents, Forms and Tools
Website Address for This Policy
History and Updates
Appendix

CONTACTS

STATEMENT OF POLICY

Charitable donations help ensure that Purdue University maintains its reputation for excellence in higher education and allow the University to fund programs, scholarships, fellowships, professorships, research and Facilities.

From time to time procedures for Gift acceptance, solicitation, naming and stewardship may be promulgated under this policy to aid in its implementation. Such procedures may be amended as new tools emerge, new processes are designed or the risks and benefits associated with a given activity evolve over time. All naming requests associated with Gifts to the University must adhere to the procedures outlined in the University Development Office’s Gift Acceptance and Naming Operating Procedures that are in effect from time to time (see the Related Documents, Forms and Tools section below). This policy, the aforementioned operating procedures and all other supporting procedures maintained by the University Development Office or a Regional Campus advancement office shall be interpreted in light of two overriding principles:

• Principle 1
  A charitable Gift will not be accepted on behalf of the University if such acceptance would not be in the best interest of the donor and the University. A determination of the donor's interest may include, but is not limited to, the donor's financial situation, philanthropic interests and any tax or other legal matters revealed by the donor to the University Development Office or Regional Campus advancement office while planning for a Gift. A Gift associated with a private benefit (i.e., a restricted Gift in which the donor and a donor-designated beneficiary have less than an arms-length relationship) would jeopardize the charitable contribution deduction under IRC Section 170. Such a Gift will generally be deemed not to be in the best interest of the donor and the University and will not be accepted on behalf of the University. There must be a distance between the donor and recipient such that the recipient does not receive benefits that are otherwise not available to colleagues of similar status and interest. For example, in the capacity of donor, an employee of the University or Purdue Research Foundation (PRF) may not subsidize his/her own salary, travel funds or fringe benefits through a Gift.

• Principle 2
  A charitable Gift will be accepted on behalf of the University when there is a reasonable expectation that acceptance of the Gift will support the University in its missions of learning, discovery and engagement.

Acknowledgment and recognition of donor generosity is a matter of common courtesy and good stewardship.  All Gifts will be recognized in a timely manner and in a meaningful way, keeping in mind the stated wishes of the donor regarding anonymity or, if desired by the donor, the level of public disclosure to be accorded the Gift. Naming privileges granted in exchange for the receipt of charitable Gifts (whether associated with University Facilities or other naming opportunities, such as professorships, scholarships, etc.) must adhere to established thresholds and the review and approval procedures promulgated under this policy from time to time.

Every effort will be made to ensure that all monies designated for restricted purposes are expended under the guidelines and within the timeframe requested by the donors. Good stewardship also dictates that an ongoing relationship with the donors be maintained through mutually beneficial engagement activities consistent with the mission and goals of the University.

While this policy is intended to provide guidance to PRF’s University Development Office, Regional Campus advancement offices and other University personnel regarding acceptance of prospective Gifts, donors are ultimately responsible for ensuring that their proposed Gift furthers their charitable, financial and estate planning goals. Neither the University nor PRF provides legal, accounting, tax or other professional advice to donors or prospective donors. Therefore, each donor and prospective donor is urged to seek the advice of independent financial and legal counsel in the Gift planning process.

REASON FOR THIS POLICY

Purdue Research Foundation (PRF) was created in 1930 as a separately incorporated, nonprofit entity, the primary purposes of which include, among others: (i) promoting the mission of the University; (ii) seeking, acquiring and holding Gifts for the needs of the University; and (iii) supporting and assisting, in any other manner or by any other means whatsoever, the Board of Trustees in the conduct of the affairs of the University and the accomplishment of its educational purposes. PRF is exempt from federal tax liability by virtue of Internal Revenue Code (IRC) Section 501(c)(3) and qualifies as a “public charity” under IRC Section 509.

The University Development Office was established in 1972 for the purpose of increasing private giving in support of the University’s learning, discovery and engagement activities and developing and maintaining positive relationships with the University’s broad range of constituents. As a part of PRF since 2014, the University Development Office continues to engage in fundraising operations for the University’s benefit and serves as the University’s agent for the receipt and management of Gifts — all pursuant to a services agreement between PRF and the University. This policy, together with such operating procedures and standards as may be promulgated under it from time to time, is adopted and endorsed through the governance systems of both PRF and the University to regulate the acceptance and management of charitable Gifts for the benefit of the University.

This policy is intended to provide a framework for the administration of charitable Gifts made for the University’s benefit, thus ensuring that philanthropy to the University serves, supports and aligns with Purdue’s land-grant mission.

INDIVIDUALS AND ENTITIES AFFECTED BY THIS POLICY

PRF:

• Chairman of the Board
• President and other members of PRF leadership
• Vice President for Development (also serves as University’s Vice President for Development)
• Associate Vice President for Development Operations
• Director of Donor Services
• Senior Business Manager for Advancement
• University Development Office
• Donors

The University:

• President
• Executive Vice President for Academic Affairs and Provost (hereafter referred to as Provost)
• Chief Financial Officer and Treasurer
• Vice President for Development (also serves as PRF’s Vice President for Development)
• Chancellors, Vice Chancellors and Vice Provosts
• Vice Presidents, Deans, Directors, Department Heads and Center Directors
• Regional Campus advancement personnel
• Faculty and staff
• Physical Facilities and Planning
• Business offices
• Alumni and donors

EXCLUSIONS

None.

RESPONSIBILITIES

Board of Trustees of Purdue University

• In accordance to the Bylaws of The Trustees of Purdue University, specifically Article IX thereof, the Board of Trustees makes all determinations regarding the naming of University buildings and additions to buildings, except that the President of the University has the authority to name rooms or other areas within buildings. The authority of others to make naming decisions, as delegated under this policy and in the operating procedures and standards promulgated under it from time to time, remains subject to this ultimate authority (i) of the Board of Trustees with respect to naming University buildings and building additions, and (ii) of the President of the University with regard to naming rooms and other areas within University buildings.

Chairman of PRF Board of Directors; President of the University

• As chair of the PRF Board of Directors, oversees, directly or through a designee, the administration of this policy and the establishment of guidelines for Gift naming opportunities; recommends the establishment and activation of named funds upon the receipt of Gifts on behalf of the University.
• As President of the University, and subject to the ultimate approval of the Board of Trustees when required, reviews and approves all naming requests related to University buildings and building additions, except those explicitly allowed to be reviewed and approved by the Chancellors of the Regional Campuses.
• As President of the University, reviews, for recommendation to the Board of Trustees, all naming requests related to new, renovated and existing Facilities that involve a contribution equal to or in excess of $1 million, as recommended by the Naming Committee.

Vice President for Development of PRF; Vice President for Development of the University

• Solicits, receives, coordinates, receipts and administers all Gift activity.
• Subject to the ultimate approval of the Board of Trustees or the President of the University when required, reviews and approves all naming requests related to new, renovated and existing Facilities on the West Lafayette campus that involve a contribution of less than $500,000.
• Coordinates (or assigns a designee to coordinate) all private fundraising activity, including interaction with PRF and University offices as necessary.
• Develops and maintains the Gift Acceptance and Naming Operating Procedures.
• Chairs the Gift Acceptance and Naming Committees.

Purdue Research Foundation 

• Serves as Purdue’s agent with respect to the receipt, processing, management and reporting of private Gifts made for the benefit of Purdue, whether received directly, in the name of Purdue Foundation, or otherwise.
• Conducts, manages and directs fundraising operations consistent with goals established by the University Development Office in consultation with the University.
• Occasionally engages in the foregoing activities in the name of “Purdue Foundation” as an assumed business name (or DBA) of PRF.
• Considers and grants requests from the Board of Trustees of the University for the naming of PRF building Facilities that will be used substantially for a University activity, consistent with the wishes of, and in order to honor, the donor.

Naming Committee  

• Is established under this policy and by designation of the President of the University.
• Oversees procedures and issues related to naming requests.
• Subject to the ultimate approval of the Board of Trustees of the University when required, reviews, for recommendation to the President of the University, all naming requests related to new, renovated and existing Facilities that involve a contribution equal to or in excess of $1 million. This responsibility is system-wide; that is, it includes the University’s Regional Campuses.
• Subject to the ultimate approval of the Board of Trustees or the President of the University when required, reviews and approves all naming requests that involve a contribution of more than $500,000 but less than $1 million.
• Is comprised of the following:
  • Vice President for Development (Chair)
  • Executive Vice President for Academic Affairs and Provost
  • Chief Financial Officer and Treasurer

The Gift Acceptance Committee

• Is established under this policy.
• Oversees procedures and issues related to Gifts.
• Reviews all “Gifts of considerable risk” (as that term is defined in procedures promulgated by the University Development Office from time to time). All such Gifts shall be documented by a written understanding between the donor and the University.
• Is comprised of the following:
  • Vice President for Development (Chair)
  • Associate Vice President for Development Operations
  • Director of Donor Services
  • Senior Business Manager for Advancement
• May consult with University administrators on particular Gifts, as deemed appropriate by the Vice President for Development.

Chancellors of Regional Campuses

• Subject to the ultimate approval of the Board of Trustees or the President of the University when required, reviews and approves all naming requests related to new, renovated and existing Facilities on his or her campus that involve a contribution of less than $1 million. Situations that involve a new Facility or addition to a Facility require approval of the Board of Trustees or the President of the University no matter the dollar amount.

Regional Campus Advancement Offices

• Solicit, receive, coordinate, receipt and administer all Gifts for their campus in accordance with this policy and the Gift Acceptance and Naming Operating Procedures established, promulgated and maintained by the University Development Office.
• Maintain operating procedures as necessary to support this policy with regard to Gifts that the campus is permitted to solicit, receive, coordinate, receipt or administer without consultation or approval beyond its Chancellor.
• Coordinate all private fundraising activity for their campus, in consultation with the University Development Office as necessary.

DEFINITIONS

All defined terms are capitalized throughout the document. Additional defined terms may be found in the central Policy Glossary.

Gift
A contribution for which the donor receives no direct benefit and requires nothing in exchange beyond an assurance that the intent of the contribution will be honored. A Gift may also include a "quid pro quo contribution" within the meaning of IRC Section 6115 where goods or services may be provided to the donor in recognition of the consideration given by the donor. Where there is a “quid pro quo contribution,” the disclosure and substantiation requirements of the IRC will be complied with.

Gifts made to PRF and Gifts made directly to the University are both processed and reported by the University Development Office or the Regional Campus advancement office.

Guidelines regarding classification, administration, and reporting of nongovernment support can be found in the policy on Classification, Administration, and Reporting of Nongovernmental Support (II.B.6).

Generally, Gifts made for the University’s benefit take the form of outright Gifts, pledges, planned Gifts or endowments. These types of Gifts, and salient points regarding their receipt and handling, are more particularly described in procedures promulgated by the University Development Office from time to time. See the Related Documents, Forms and Tools section below.

Facilities
New and renovated buildings, centers, laboratories, and the interior and exterior spaces associated with them, as well as new exterior areas that may or may not be associated with any particular building.

RELATED DOCUMENTS, FORMS AND TOOLS

Donor Bill of Rights

Gift Acceptance and Naming Operating Procedures

Classification, Administration, and Reporting of Nongovernmental Support (II.B.6)

BOT Policy on Naming Facilities in Absence of Gift or Recognition of Service

WEBSITE ADDRESS FOR THIS POLICY

www.purdue.edu/policies/business-finance/iib2.html

HISTORY AND UPDATES

September 5, 2019: Contacts section updated.

January 15, 2016: This policy supersedes the earlier version of policy II.B.2, dated November 18, 2011, and consolidates and supersedes University policies II.B.3, II.B.4, and II.B.5 (Naming of New, Renovated and Existing University Facilities; Solicitation of Gifts; and Stewardship of Gifts, respectively). It also supersedes the Guidelines for Naming Opportunities and Endowed Funds for the West Lafayette Campus (WL-8). 

APPENDIX

There are no appendices to this policy.