UVa Seal

Policy: Gifts of Securities 

Date: 05/14/07 Policy ID: FIN-018 Status: Final

Policy Type: University
Contact Office: University Advancement (Office of)
Oversight Executive: Senior Vice President for University Advancement
Applies To: University-wide and Univesrity-related Foundations.
Table of Contents: 

Policy Statement

Reason for Policy: To standardize policy on the acceptance, valuation, recording and disposition of gifts of securities.
Policy Summary: 
Definition of Terms in Statement: 

Security: An instrument which allows the holder to claim an ownership position or interest in a corporation; a creditor relationship or interest in a corporation, a government or its agency; or other rights to ownership or interest as stipulated in specific contracts.

Marketable Security: Any security, stock, debenture, share or other interest capable of being sold in a relatively liquid market or exchange or otherwise can be readily converted to cash.

Policy Statement: 

Gift Acceptance
The University of Virginia accepts donations of marketable securities and mutual fund shares. Gifts of non-marketable or restricted securities may be accepted by the Gift Acceptance Committee after obtaining input from the Gift Accounting Department, the University of Virginia Investment Management Company, Treasury Operations, and the receiving school or area.

Gift Liquidation
If the donor is identified, security gifts will be sold immediately upon transfer to the University.  Exceptions to this policy must be approved by the Executive Vice President and Chief Operating Officer or Vice President and Chief Financial Officer.

Security gifts from unidentified donors received in the Rectors and Visitors securities acceptance account will be held for a period of one year. At that point, the stock will be sold and recorded in the University of Virginia unrestricted endowment fund.  Records of these transactions will be maintained by the Gift Accounting Department for future reference.

Gift Valuation
Security gifts will be valued for recording and receipting purposes in accordance with existing Internal Revenue Service regulations.

Gift Recording
Securities gifts will be recorded on the donor’s gift record at the valuation amount. Securities gifts received through the University’s brokerage account on behalf of a related foundation will be sold and the net sales proceeds will be transferred to the foundation for recording and receipting purposes.

Procedures:  **Pending**
Related Information: 
Policy Background: This is the first version of this policy.
Major Category: Finance and Business Operations
Category Cross Reference: External Relations
Next Scheduled Review: 05/14/10
Approved By, Date: Executive Vice President and Chief Operating Officer, 05/14/07
Revision History: This is the first version of this policy.
Supersedes (previous policy):