SOPAG Documentation

Standard Operating Procedures for Acceptance of Gifts

Supporting Documentation

DEFINITIONS

Gift – A gift is personal property (cash, securities, books, equipment, etc.) and real property provided by a donor without expectation of tangible economic (except tax) benefit. The transfer of the gift to the University or a University Associated Entity implies no responsibility to provide the donor a product, service, technical or scientific report, or intellectual property rights. Providing the donor with the names of recipients of scholarships, awards, etc. or providing a report of how the funds were expended, do not necessarily prevent the contribution from being considered a gift. The donor may specify the general use of the fund or it may be an unrestricted gift for use in meeting needs identified by the University, college, or related support organization. For scholarship gifts, the donor may not participate in the selection of the recipient but may designate specific criteria for the selection of recipients.

Grant – A grant, unlike a gift, is normally a written agreement to carry out a specified project that may entail a tangible product, usually a proprietary report. A grant that requires performance on the part of the University must be processed through established University procedures. A grant from a nongovernmental source that does not require proprietary reporting and has no provisions for intellectual property and/or publication rights may, in the name of the University, be counted as a campaign contribution. Government funds will be excluded, with the exception of Tobacco Trust Fund and Nickels for Know How North Carolina State government pass-through payments.

Ledger numbers – In the University’s financial system, the Project ID code is used to account for the various funds. The first number in the Project ID is referred to as the ledger number. This number is used to identify specific University funding groups. Ledger 5 refers to contracts and grant activities. Ledger 6 identifies foundation spending, foundation operating funds, and foundation endowment activities. Ledger 7 refers to University restricted gift and endowment activities.

Legal (hard) credit – The donor’s giving record is credited with the actual amount that is deposited into the account for gifts of cash and securities according to the gift transmittal form filed on the gift. For irrevocable planned gifts such as charitable remainder trusts, charitable gift annuities, and retained life estates, the donor’s giving record is legal credited with the charitable deduction allowed by the Internal Revenue Service (IRS) and reflected on the gift transmittal form. For gifts of real estate, life insurance, and other gifts of property, the donor’s giving record is given proper credit with the allowable charitable deduction.

Recognition (soft) credit – The donor’s giving record receives recognition (soft) credit when his or her direct actions result in a gift, but he or she is not entitled to a charitable deduction for the gift. Examples include recognition (soft) crediting an individual for a gift from a charitable gift fund or a community foundation, or a gift that is made by his or her spouse/partner or his or her company if he or she is the principal owner, and any employer matching funds that NC State receives because of the individual’s gift.

University Associated Entities – Any of the non-profit organizations that support the University and which have been approved in accordance with UNC-GA Regulation 600.2.5.2[R], “Required Elements of University- Associated Entity Relationship”.

INDEX OF ABBREVIATIONS

FAI	Foundations Accounting and Investments
FMV	Fair Market Value
GAC	Gift Acceptance Committee
GRM	Gifts and Records Management
OGC	Office of General Counsel
OGP	Office of Gift Planning
QCD	IRA Qualified Charitable Deduction
RED	Office of University Real Estate & Development
SOPAG	Standard Operating Procedures for Acceptance of Gifts
UAE	University Associated Entity
VC of UA	Vice Chancellor for University Advancement
VC of FA	Vice Chancellor for Finance and Administration

FREQUENTLY ASKED QUESTIONS (FAQ) FOR NEW READERS

What is the Standard Operating Procedures for Acceptance of Gifts?

The Standard Operating Procedures for Acceptance of Gifts (SOPAG) document sets forth the University’s rules of engagement for the acceptance of charitable gifts received by the University and University Associated Entities. North Carolina State University NC State) actively encourages the solicitation and acceptance of gifts that enable it to fulfill the University’s missions of teaching, research, extension, and engagement. The Office of University Advancement is charged by the Chancellor to increase private giving in support of the University’s missions, to collect and maintain donor information on all gifts in keeping with the Donor Bill of Rights, and following IRS standards as well as to provide donors with the appropriate receipt for income tax filing purposes. The primary sources for this document are the standards and definitions provided by the Council for Advancement and Support of Education (CASE) in its publication CASE Global Reporting Standards, 1st Edition, and the National Association of Charitable Gift Planners in its publication Guidelines for Reporting and Counting Charitable Gifts.

Who is responsible for adhering to the PAG policies and procedures?

All parties involved are responsible for accepting gifts in the manner set forth in the SOPAG. All employees of NC State and its University Associated Entities must adhere to the following procedures. Gifts & Records Management (GRM) will be responsible for reviewing and monitoring all gifts for appropriateness to ensure that the Standard Operating Procedures and any applicable policies have been followed. Appropriate documentation should be provided to GRM at the time gifts are processed.

Do SOPAG policies and procedures apply to all gifts?

The SOPAG applies to all gifts made to NC State University and its University Associated Entities, including the NC State Student Aid Association, Inc. (the Wolfpack Club). University Advancement is not responsible for the receipting of gifts made to NC State Student Aid Association, Inc.

Any gift to NC State University that results in points toward seating preference at on-campus athletic events may not be tax deductible. Donors should always consult their own tax advisors regarding contributions. This document does not apply to sponsored contracts, specific grants, and cooperative agreements for research purposes.

What types of gifts are not accepted by NC State?

The University will assess the financial desirability of receiving assets as gifts from potential donors and determine whether to accept a gift as offered. Certain gifts will be subject to an assessment as directed by the Chancellor. The University and University Associated Entities reserve the right to decline gifts from which it will realize little or no financial gain. It may refuse gifts that are offered for purposes that are inconsistent with its educational, research and service missions.

The University and University Associated Entities shall not accept gifts with restrictions that violate the IRS regulations, federal or state laws, CASE guidelines, University’s ethical standards, or those that require expenditures beyond their resources, that compromise the academic freedom of the University community, or that involve unlawful discrimination based on race, religion, gender, age, national origin, disability or any other basis prohibited by federal, state and local laws and regulations.

Additionally, some gifts or income may not be recorded as charitable gifts by the University and University Associated Entities, such as: