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:

• the application of this Policy is compliant with legislated regulations and requirements
• the funds are used to support priority fundraising and other priority initiatives and activities of the University
• there is a consistent application of the policies and procedures
• the policy and procedures are appropriately represented to donors.

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.

• Receipts acknowledging a donation will continue to be issued at the receiptable value.
• The donation will be recorded in UFRIEND and FRS at the receiptable value.
• The donation will be reviewed for assessment at the time of recording in UFRIEND to determine its status under the Policy, or at the time of transfer to the designate account.
• Where the donation assessment is applied it will be calculated based on the receiptable value and recorded at the time a donation is released to the recipient area.
• Where the donation assessment is applied, the calculated assessment will be recorded as a transfer from the appropriate recipient FRS account.
• Where a donation is held, the donation will be placed in a holding account within FRS and then transferred to the appropriate recipient FRS account once the holding period has passed.
• Assessments applied and earnings generated on donations held will be credited to an account under the authority of the President's Executive Committee (PEC): the "University of Saskatchewan Enhancement Initiatives Fund" (per Point 4 following).
• In some situations, the donation may not be accepted.

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:

• Testamentary gifts and pledged donations on trust agreements or initiatives that predate the implementation of the Donation Assessment Policy. University Advancement will review testamentary gifts on a case-by-case basis in consultation with Trust Advisory Services, Financial Services Division.
• All endowed donations
• "In memoriam" donations
• Donations relating to 'charitable event' fundraising (golf tournaments, dinners, etc.).
• Donations solicited for specific purpose projects that have been pre-approved by the Executive Director, University Advancement.
• Payments on pledge commitments made prior to the implementation of the Policy.
• Non-cash equivalent in kind donations to be retained by the University; such as gifts of equipment, works of art, archival and library material, etc.
• Grant and contracted contributions received by the University where consideration accrues to the contributor.
• Donations funding pre-approved planned giving instruments such as: life insurance policy premiums; donor annuities with existing life-interest commitments, etc.
• Donations under the Campus Community Campaign "Thinking the World of our University" January 2003 through December 31, 2003

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:

• The application of the Donation Assessment Policy.
• The balance of funds generated by the University investment pools administrative fee net of specific funding allocations approved by the Board of Governors.
• Other funds approved by the Board of Governors.

5.0 Responsibilities

5.1 President's Executive Committee (PEC)

• To set the standard assessment rate and hold period for Policy.
• To monitor the financial integrity of the University of Saskatchewan Enhancement Initiatives Fund.
• To identify priority institutional enhancement areas and foci.
• To receive and assess proposals for support relating to institutional enhancement initiatives.
• To make annual allocations of resources in support of priority institutional initiatives.
• Determine application and reporting requirements associated with the administration of the Policy.
• To report annually to the Board of Governors on the financial status and application of the University of Saskatchewan Enhancement Initiatives Fund.

5.2 University Advancement

• Will periodically seek appropriate counsel from donors, college, department and administrative offices to ensure the Policy is supporting the aims and objectives of the University.
• Assess that the Policy is consistent with institutional and legislative requirements and guidelines.
• Advise university administrators and development officers as to the terms, conditions and application of the Policy.
• Provide required financial reporting in keeping with management and donor requirements in consultation with Financial Services Division.
• Develop and promote communication regarding the Donation Assessment policy and guidelines to campus community and donors.
• The Executive Director will consider/approve requests for the assessment of special purposes gifts and for alternate assessment rates, holding periods or other payment methods in lieu of an assessment.

5.3 Financial Services Division

• Assess that the Policy is consistent with institutional and legislative requirements and guidelines.
• To report to the PEC on the financial status of the Enhancement Initiatives Fund.
• Review and validate overall donation reporting (with the exception of pledge information maintained only in the UFRIEND system).
• To release funds from the University of Saskatchewan Enhancement Initiatives Fund as authorized by PEC.