University of Saskatchewan

Financial Services Division (FSD)

Guidelines & Procedures

Donation Assessment Policy Guidelines

AUTHORIZATION: R. P. MacKinnon, President
Date Authorized: June 16, 2003

1.0 Background

A significant portion of philanthropic contributions raised through fundraising and other programming initiatives of the University is directed towards very specific initiatives and activities. As a result these funds are not available to directly support the effort undertaken to generate this type of funding. The benefits of institutional wide advancement functions accrue to all fundraising efforts, while the costs of such initiatives are supported largely from operating funds. Although it is reasonable for operating funds to support these efforts it is not unreasonable for beneficiary initiatives and activities to also support a portion of these costs.

To more closely associate fundraising benefits and costs and to generate a pool of resources that will be available to the University for enhancement and fundraising initiatives, the University requires a Donation Assessment Policy. These funds will be used, along with other institutional resources, to support a broad spectrum of fundraising and enhancement initiatives such as priority fundraising campaigns, University Advancement operations, institutional matching program initiatives, student award initiatives and other academic or administrative initiatives and activities that advance the effectiveness and profile of the University.

The following guidelines presented in this document have been established to clarify the policies, procedures, practices and processes and to ensure:

2.0 Scope

These guidelines govern the application of the Donation Assessment Policy and the administration and allocation of the resources generated under its authority.

3.0 Policy Application

For information on the types of gifts accepted by the University of Saskatchewan, see the University of Saskatchewan Gift Acceptance Policy http://www.usask.ca/university_secretary/policies/advancement/5_06.php?heading=menuPolicies) and Gift Acceptance Policy Guidelines.

3.1 Donations Subject to Donation Assessment/Donations Held

The following philanthropic donations receipted by the University following the implementation of the Donation Assessment Policy Guidelines are subject to the Policy, except as listed under Section 3.4.

Donations subject to assessment: donations under the Annual Fund; undesignated donations to the "University'; non-endowed direct mail solicitation donations and other donations where the donor has agreed to an assessment.

Donations subject to holding: donations for capital projects; donations for other non-endowed special initiatives that do not require the immediate use of the funds; and where the donor has agreed to the donation being held as determined by the Executive Director, University Advancement.

3.2 Donation Assessment Rate/Hold Period

All philanthropic donations deemed assessable under the Policy will be assessed at a rate of 6% of the receiptable value of the gift; or as may otherwise be agreed to with the donor and approved by the Executive Director, University Advancement.

In those cases where a donation is to be held for a period of time rather than be subject to an assessment, the funds will be held for a period of 12 months or as approved by the Executive Director, University Advancement.

The standard donation assessment rate and hold period is set under the authority of the PEC.

3.3 Annual Fund Gifts - President's Fund Donation Assessment

In addition, donations made to the University of Saskatchewan Annual Fund are subject to a further 20% assessment on the net remaining balance of the gift at the time of distribution to the designated recipient area.  This assessment is transferred to the President's Fund to be used by the President to support student and faculty priority needs.  This assessment has been in place since the inception of the Annual Fund.

3.4 Donations Not Subject to Donation Assessment

The following will not be subject to donation assessment:

4.0 Enhancement Initiatives Fund

The University of Saskatchewan Enhancement Initiatives Fund established under the authority of the Board of Governors will be administered under the direction of the President's Executive Committee for the purpose of allocating financial resources in support of priority institutional enhancement initiatives that may include fundraising initiatives, matching program initiatives, student award initiatives and other academic or administrative initiatives that advance the effectiveness and profile the University.

The University of Saskatchewan Enhancement Initiatives Fund will be used to receive and administer funds for the support of priority institutional enhancement initiatives.

Initially the Enhancement Initiatives Fund will receive proceeds generated from:

5.0 Responsibilities

5.1 President's Executive Committee (PEC)

5.2 University Advancement

5.3 Financial Services Division