Policies and Procedures Manual

Chapter 4: Business & Administration

04:54:00   Solicitation and Acceptance of Gifts

The purpose of this policy is to establish procedures regarding the solicitation and acceptance of gifts to Northeast State Community College or the Northeast State Community College Foundation pursuant to the provisions and directives of the policy established by the Tennessee Board of Regents (Policy 4:01:04:00).

General Statement

Northeast State Community College’s service to its students and to the community at large is significantly affected by private gifts of real and personal property from interested individuals and organizations. Recognizing the vital importance of support from the private sector, the Tennessee Board of Regents and the administration of Northeast State Community College encourages the solicitation and acceptance of gifts for purposes that are consistent with the mission of the College. All activities related to the solicitation and acceptance of gifts for either Northeast State Community College or the Northeast State Community College Foundation shall be implemented in a manner which serves the mutual interests of the donors and the College or Foundation.

Solicitation of Gifts

  1. The Chief Advancement Officer and Vice President for Access and Development shall serve as the president’s delegates in planning, approving, and conducting activities for the purpose of soliciting gifts to the College.
     
  2. All activities that involve in whole or in part the solicitation of gifts to Northeast State or the use of Northeast’s name as an endorsement are subject to prior approval, and a written proposal describing the proposed activity must be forwarded to the executive director of the Foundation for consideration by the director, the president, or the Executive Council as may be appropriate. Such activities should conform to the following criteria:
     
  3. The activity should be consistent with the image of the institution.
    1. The activity should not be disruptive of nor detract from the mission of the College.
    2. The activity should not conflict with the general development strategy of the institution.
    3. The activity should be considerate of the potential donor or donors.
    4. The activity should have the prior approval of and be routed through the appropriate administrative official.
       
  4. Solicitation of gifts which require a commitment of college resources must be approved by the president.

Acceptance of Gifts

The Chief Advancement Officer shall serve as the president’s delegate to accept gifts on behalf of the College with the following exceptions:
 

  1. Only the Board of Regents may accept a gift if Board acceptance is a condition set by the donor. 
  2. Only the chancellor and the Board of Regents may accept gifts of real property or any permanent interest in real property, and the title must be conveyed to the Board on behalf of the institution; in the name of the Board of Regents of the State University and Community College System of Tennessee for the use and benefit of the institution. 
  3. Any acquisition of real property by gift or devise which obligates the institution, Tennessee Board of Regents or State of Tennessee to expend State of Tennessee funds for capital improvements or continuing operating expenditures shall be approved by the State Building Commission in accordance with TCA 4-15-102 (d)(2) prior to acceptance by the chancellor and Board. Any such deed transferring title to the Board of Regents shall not be recorded until the State Building Commission has approved the acceptance of the gift property. 
  4. Gifts with conditions that ultimately will require consideration by the Board of Regents or the chancellor must be approved by the chancellor prior to acceptance (e.g., gifts to support the initiation of a new academic program or capital improvement project). 
  5. Gifts of property subject to indebtedness must be approved by the chancellor prior to acceptance.
  6. The president may recommend approval by the chancellor or Board of Regents prior to acceptance of any gift.
  7. Any Northeast State Community College faculty or staff member may propose the acceptance of an in-kind gift to the College by submitting through the appropriate administrative official a “Proposal for Acceptance of Gifts” form to the office of the Foundation. Upon approval, an acknowledgment letter will be sent by the office of the Foundation to the donor and a copy to the form originator who may, at his/her discretion, send an additional letter of thanks. If for any reason the proposal is not accepted, the office of the Foundation will notify the form originator of the reasons adverse action was taken.
  8. Corporate stock given to the College will be sold by the College through or in consultation with a registered security broker within 60 days of receipt of the stock certificate, and the sale will be executed by the president or a designated representative.
  9. The  Chief Advancement Officer shall have the responsibility for acknowledging acceptance of all gifts to the College (not otherwise provided for by letters of authorization from the president) and for ensuring compliance with conditions set by donors.
  10. No staff or faculty member shall accept gifts from state vendors or state contractors who conduct or may conduct business with the College. Gifts include, but are not limited to, payment for services or travel (in which the staff or faculty member will represent the College), tangible items or money. Any staff or faculty member who is unclear of whether a potential gift falls into this category should contact the Chief Advancement Officer.
  11. The cost of accepting or keeping a gift in accordance with donor restrictions should not cost more than the benefit of the gift.

The Chief Advancement Officer serves as the College’s ethics officer.

Records and Reporting: The Chief Advancement Officer shall:

  1. Maintain adequate records of all gifts in accordance with accepted accounting procedures to allow a proper audit trail.
     
  2. Prepare for the president for inclusion in the College’s Annual Report to the Board of Regents a summary of all gifts to the College made during a fiscal year.

In-kind Gift Acceptance Process:

Determination of Usefulness

  1. Prior to the acceptance of any gift, it must be determined if the gift can be used by the College. The determination should be made by someone within an organizational unit which will use the item. Once it has been determined that the gift has potential usefulness, two representatives from the College should physically inspect the proposed gift and assess its usefulness to the College.
  2. If the gift can be used, the “Proposal for Acceptance of Gifts” form must be obtained from the office of the Foundation and completed by the organizational unit head proposing to accept the gift. The estimated value of the in-kind gift is to be determined by the donor and included on the form.
     

Approval of Gift

  1. The individual completing the “Proposal for Acceptance of Gifts” form should secure the signature of their immediate supervisor. The supervisor will forward the form to the Chief Advancement Officer. Once  Advancement approval is complete, the form should be forwarded to the Chief Financial Officer for approval of estimated value and the availability of budgeted funds for any costs related to the acceptance of the gift. The Chief Financial Officer will forward the form to the president for official approval to accept the gift.
  2. After all required signatures have been obtained, one copy of the form should be forwarded to the Business Office for recording on the official accounting records, one copy should be forwarded to the office of the Foundation for acknowledgment of the gift, and one copy should be forwarded to the department as their authority to accept the gift.
     

Responsibility of the Department Proposing to Accept a Gift

  1. The department is responsible for completing the “Proposal for Acceptance of Gifts” form and obtaining the required signatures. Two employees within the department should physically inspect the item, assess the usefulness of the gift, and receive from the donor an approximate value of the gift, either fair market value or a reasonable value to the College.
     

Responsibilities of the Finance Office

  1. The Chief Financial Officer in coordination with the appropriate departmental employees who will use the item, determine if the fair market value submitted by the donor is a fair market value to the College and should be recorded in the financial records system. The fair market value listed should be comparable to the price paid for similar items recently acquired or a documented appraisal from an expert outside of the College. A graduated scale on the condition of the item may be used for determining the realistic value to the College in addition to the above criteria. If there are any costs associated with the transportation of the item to the campus, approval of budget funds covering the costs must be obtained from the Chief Financial Officer.
  2. After the realistic value to the College has been determined and any costs have been approved, the form is signed by the Chief Financial Officer and forwarded to the president for his/her review and approval.
     

Responsibilities of the Chief Advancement Officer

  1. The office of the Foundation is responsible for maintaining the documentation of all donated items. The documentation is then used to report on an annual basis the amount of in-kind gifts to the Tennessee Board of Regents. In addition, the office is responsible for acknowledging any gift donated to the institution or foundation. The acknowledgment should include a description of the item but should not include the dollar value for the item. The institution shall assume no responsibility for establishing a value of gifts for tax purposes of the donor.
     

Recording, Inventory and Disposal of Gifts

  1. Once gifts become the property of the College, recording, inventory and disposal are handled as all other college property. 

 



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Divisional Review Responsibilities Checklist: Finance

Revision History: March 2005, November 2005, March 2011, March 2013, June 2014, November 2016