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Policy: Solicitation and Acceptance of Gifts of Real Property and Life Insurance 


Date: 09/26/13 Policy ID: EXT-006 Status: Final

Policy Type: University
   
Contact Office: University Advancement (Office of)
   
Oversight Executive: Senior Vice President for University Advancement
   
Applies To: Academic Division, the Medical Center, the College at Wise, and University-related Foundations.
   
Table of Contents:  Policy Statement
  1. Gifts of Real Property
  2. Gifts of Life Insurance
  3. Authorized University Agents

Procedures

   
Reason for Policy: The University strives to ensure that gifts support the University’s mission of teaching, research, public service, and healthcare and that donor requirements and restrictions associated with gifts are acceptable to the University. There are only certain offices that may accept gifts of real property and life insurance because of the special nature of these gifts.
   
Policy Summary: 
   
Definition of Terms in Statement: 

Gift: Pledges or outright contributions received from private sources for which no goods or services are expected, implied or forthcoming to the donor, and in which no proprietary interests are to be retained by the donor. (Refers exclusively to private gifts, even though such gifts may be termed “grants” by corporations and foundations. For more information, see FIN-001, Determining if an Award is a Gift or Sponsored Project.)

Life Insurance: Any permanent insurance policy including whole life, universal life, variable life and variable universal life for which the University of Virginia may be named as owner and beneficiary or simply named as beneficiary.

Real Property: Real estate, including residential, commercial, industrial and undeveloped land.
   
Policy Statement: 

Gifts of real property and life insurance to a department, school, unit, Center, or related Foundation have the potential to obligate the University (e.g., for maintenance of the property before it is sold; or to pay premiums due on gifted life insurance that is not yet paid-up). Thus, the Office of Gift Planning shall be involved when these gifts are being considered for acceptance.
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  1. Gifts of Real Property:
    Except for interests of Real Property owned in a time-share arrangement, all gifts of real estate in excess of $50,000, including single and multi-family residential, commercial, industrial, farms and undeveloped land, will be considered for acceptance.

All offers of real estate gifts shall be directed to the Office of Gift Planning for guidance, and reported to the Senior Vice President for University Advancement (or designee) and the Chief Executive Officer (CEO) of the University of Virginia Foundation.

Ordinarily, no financial or other burdensome obligation or expense shall be incurred directly or indirectly by the University as a result of a gift of real property. The University will not pay for appraisal expenses, and any gift of real property must meet Internal Revenue Service regulations which apply to the donor and to the University. Restrictions as to the ultimate sale of real property received as a gift will not be accepted by the University. On the other hand, designating a purpose within the University for a fund or deferred giving vehicle created by the assets received from a sale of such property is permissible. If under extraordinary circumstances, exceptions to the above policies need to be considered, approval by the Senior Vice President for University Advancement and the CEO of the University of Virginia Foundation is required.

Donor interest in retaining a life estate in property shall be directed to the Office of Gift Planning. Gift Planning will coordinate with the beneficiary at the University and the University of Virginia Foundation. Where a life estate is retained in such property, all expenses for maintenance, taxes and other carrying costs will be borne by the tenant. The tenant will be required to maintain the property in substantially the same condition as of the time of the gift and will not let the property suffer waste or diminution of value. Any changes to the property covered by the life estate, including, but not limited to the building, grounds and landscaping will require the approval of the University of Virginia Foundation. Final authority for acceptance of real property gifts rests with the University of Virginia Foundation and such acceptance will be subject to its Real Estate Gift Policy and related agreements with the University.
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  1. Gifts of Life Insurance:
    Gifts of life insurance to the University take many forms. Depending on the type of life insurance gift, numerous University departments may be involved. When a gift to the University involving life insurance is being considered by a potential donor, the Office of Gift Planning shall be notified. Gift Planning will coordinate appropriate contacts with the Office of Treasury Management, Financial Reporting and Analysis, Gift Accounting, appropriate stewardship officers, development officers and deans, as well as the Senior Vice President for University Advancement when appropriate.

A Gift Planning officer will assist gift officers and donors with the process of assigning ownership and beneficial interest to the University and will coordinate documentation, when necessary, regarding the cash surrender value or replacement value as of the date of gift and report the gift value to the Office of Treasury Management and Gift Accounting.

Coordination of gifts that potentially involve the University purchasing a life insurance contract on an individual’s life will be coordinated through the Office of Gift Planning and the Office of Treasury Management. If the University accepts a policy in which the donor will make annual contributions equal to the premium payments, it will be based on the understanding that the annual contributions will be received by the University in advance of the due date of the premiums. The policy must have a minimum face value of $25,000. It also must be made clear to the donor that the University may allow the policy to lapse if donor contributions are not received by the premium date.

Similarly, if the University is to purchase a life insurance policy based on a donor gift, the contract will not be purchased until sufficient contributions have been received. Only the Associate Vice President for Finance and the Assistant Vice President & University Comptroller, in consultation with the Senior Vice President for University Advancement, have the authority to execute these contracts.

For related Foundations, it is recommended that the Office of Gift Planning be notified and consulted prior to the acceptance of a gift of life insurance.
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  1. Authorized University Agents:
    A gift of real property may be recommended for acceptance by any of the following authorized agents or their designees:

    President
    Executive Vice Presidents
    Senior Vice President
    Vice Presidents
    School Deans
    Vice President and CEO of the Medical Center
    Assistant and Associate Vice Presidents for Development, Office of    University Advancement
    University Librarian
    Associate University Librarian
    Director, Special Collections
    Associate Director, Special Collections
    University Archivist
    Director, University Art Museum
    Director of University Gift Planning
    Director of Corporate and Foundation Relations
    Director of Regional Development
    Directors of Development for Schools and Units, and University-related Foundations
    Associate Vice President for Health System Development
    Executive Director, Virginia Athletics Foundation
    President and CEO, Law School Foundation
    Executive Director, University of Virginia Alumni Association
    Executive Director, Medical Alumni Association

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Procedures: 

Gifts of Life Insurance [link to be added]

   
Related Information: 

For gifts of tangible and intangible personal property, refer to IX.A.11, Gift in Kind Policies.
FIN-001, Determining if an Award is a Gift or Sponsored Project
FIN-036, Signatory Authority for Executing University Contracts.

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Policy Background: 
   
Major Category: External Relations
   
Category Cross Reference: 
   
   
Process: 
   
Next Scheduled Review: 09/26/16
   
Approved By, Date: Policy Review Committee, 09/26/13
   
Revision History: 
   
Supersedes (previous policy):  IX.A.4, Solicitation and Acceptance of Certain Types of Gifts